【US Pre-Market】Intel Plunges 25%, Amazon Drops About 7%, Memory Stocks Slide, SanDisk Falls Over 8%, Gold Drops Below $4,000

TradingKey - In pre-market trading on October 30 ET, futures for the three major U.S. stock indices were mixed. As of press time, Dow Jones Industrial Average futures were virtually flat, S&P 500 futures fell about 1.05%, and Nasdaq 100 futures dropped around 2.52%.

[Source: Investing]

Alphabet (GOOGL)'s earnings-triggered tech stock sell-off pressure continues. As Amazon (AMZN) and Intel (INTC) further expose cash flow pressures from AI infrastructure investments, investors are focusing more on the scale and returns of capital expenditures by major tech companies.

Memory stocks dropped across the board in pre-market trading, with SK Hynix (SKHY) down over 7% and SanDisk (SNDK) down over 8%; Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) and other semiconductor stocks weakened in tandem.

In commodities, as of press time, Brent crude (UKOIL) was trading at $112.76 per barrel; WTI crude (USOIL) was at $103.6 per barrel. Gold (XAUUSD) fell below $4,000 per ounce, currently trading at $3,973.2 per ounce.

Bitcoin (BTCUSD) fell below $78,000 and is currently trading at $77,523.1; the cryptocurrency market came under pressure after Binance disclosed a security incident, leading to heightened market volatility.

Market Action

Intel slumps over 25% pre-market as fourth-quarter guidance misses expectations

Intel's third-quarter revenue grew 21% year-over-year to $16.5 billion, with GAAP EPS of $0.60 and non-GAAP EPS of $0.52, above market expectations of $0.40.

The company expects fourth-quarter revenue of $15 billion to $16 billion and non-GAAP EPS of $0.25, both below market expectations. Intel stated that the slowdown in the PC market could persist into the first half of 2027, but demand for Xeon server CPUs remains strong. The company will continue investing to expand capacity and increase working capital to enhance supply capability.

Despite better-than-expected third-quarter results, weak fourth-quarter guidance and cash flow pressures in 2026 heightened market concerns over capacity expansion costs and manufacturing investments.

Weighed down by Intel's warning on PC market weakness, HP (HPQ) fell over 8% pre-market, Dell (DELL) dropped more than 10%, while Hewlett Packard Enterprise (HPE) and Super Micro Computer (SMCI) both fell over 5%.

Amazon falls about 7% pre-market as higher capex weighs on cash flow and Q4 outlook

Amazon's third-quarter net sales increased 12% year-over-year to $201.9 billion, while diluted earnings per share were $1.89, below market expectations of $1.96 and down from $1.95 in the prior-year period.

AWS revenue grew 39.3% year-over-year to $46 billion, with operating profit rising about 56% to $17.8 billion. However, the company's trailing 12-month free cash flow was negative $42.4 billion, compared with positive $14.8 billion in the same period last year.

Amazon expects cash capital expenditures of approximately $220 billion in 2026. CEO Andy Jassy stated that capital expenditures will increase further in 2027, with AWS revenue growth projected to exceed 40% in both 2027 and 2028.

In addition, the company's fourth-quarter sales guidance of $240 billion to $247 billion came in below market expectations of approximately $244.2 billion.

While AWS delivered strong growth, continued increases in capital expenditures, negative free cash flow, and weak fourth-quarter guidance intensified market focus on the return on AI investments.

Reddit (RDDT) drops over 20% pre-market as user traffic risks spark concerns

Reddit's third-quarter revenue increased 53% year-over-year to $895 million, and daily active unique users grew 12% year-over-year to 130.3 million.

However, CEO Steve Huffman stated that if search engine referral traffic continues to decline, fourth-quarter daily active visitors could drop by a low-double-digit percentage from the current level of around 130 million.

These comments triggered market concerns over user growth and the advertising business. If traffic continues to decline, it could impact ad impressions and revenue growth, making it important to monitor whether the company's user monetization can offset the impact of reduced traffic.

Rivian (RIVN) rises over 6% pre-market after raising full-year delivery guidance

Rivian's third-quarter revenue grew 38% year-over-year to $2.155 billion, and the company raised its full-year 2026 delivery guidance from 65,000–70,000 units to 67,000–70,000 units.

This adjustment primarily raised the lower end of the delivery guidance. Market attention going forward will focus on mass production and delivery timelines for the R2 model, as well as automotive profitability and software business performance. The raised delivery guidance improved market outlook on the company's full-year performance, though execution on deliveries and cost control remain key.

Market News

Binance Discloses Security Incident as Bitcoin Drops to Six-Week Low

Binance disclosed a potential security incident on October 30, with an estimated $6.3 billion in assets affected. The company stated that it has frozen approximately $3 billion in related assets in cooperation with blockchain partners and is currently investigating the cause of the incident.

Preliminary investigations indicate that the attacker may have compromised a DevOps engineer's laptop to gain access to internal services and initiate unauthorized withdrawals. Binance stated that there is currently no evidence of wallet private key compromise.

The news triggered a sell-off in the cryptocurrency market. Bitcoin dropped to as low as $77,646, marking a six-week low, while Ethereum fell to $2,238.76, reaching a two-month low.

Addressing the losses and funding arrangements, Binance co-founder He Yi stated that the company's annual revenue is sufficient to cover the losses and that it will not need to sell its stake in SpaceX. The incident has once again drawn market attention to the security of cryptocurrency exchanges and the risks associated with user asset custody.

Kioxia Q2 Net Profit Reaches 1.36 Trillion Yen; Q3 Guidance Misses Expectations

In the second quarter of fiscal year 2026 (July to September), Kioxia reported revenue of 2.48 trillion yen (approximately $15.7 billion), up 40.3% quarter-on-quarter. Operating profit reached 1.995 trillion yen, up 57.1% quarter-on-quarter, while net profit stood at 1.36 trillion yen.

The company stated that performance growth was primarily driven by strong demand from generative AI data center customers, which boosted the average selling price of NAND products and increased bit shipments.

Looking ahead to the third fiscal quarter, Kioxia expects operating profit of 2 trillion yen, below the market consensus of 2.35 trillion yen. The company also announced an interim dividend of 90 yen per share.

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