US equity futures rebound from the Thursday drop, led by Mag 7. As of 8:00am ET, S&P futures are 0.8% higher and Nasdaq futures gain 1.2%, on pace for sixth and seventh straight monthly gains respectively, with all Mag 7 names higher premarket, led by AMZN (+12.7%) and AAPL (+1.9%) after their robust earnings release (AWS sales growth of 19.7%, best since 2022 and AAPL’s revenue guidance) yesterday after-close. Europe's Stoxx 600 fell for a fourth day, putting the gauge on track for its longest losing strea ...

Core Insights - Cloudflare Inc. reported third-quarter earnings of 27 cents per share, exceeding the Street estimate of 23 cents [1] - Quarterly revenue reached $562.02 million, surpassing the analyst estimate of $544.82 million [1] Financial Performance - Revenue growth accelerated for the second consecutive quarter, achieving a year-over-year increase of 31 percent [2] - The company expects fourth-quarter total revenue to be in the range of $588.5 million to $589.5 million [2] Market Reaction - Following the earnings announcement, Cloudflare shares fell by 2.2%, closing at $222.50 [2] Analyst Ratings - Needham analyst Mike Cikos maintained a Buy rating on Cloudflare and raised the price target from $240 to $285 [5] - Citizens analyst Trevor Walsh maintained a Market Outperform rating and increased the price target from $250 to $270 [5]

Core Insights - Cloudflare Inc. reported better-than-expected earnings for Q3, with earnings of 27 cents per share, surpassing the Street estimate of 23 cents [1] - Quarterly revenue reached $562.02 million, exceeding analyst expectations of $544.82 million [1] Financial Performance - Revenue growth accelerated for the second consecutive quarter, achieving a year-over-year increase of 31 percent [2] - The company anticipates fourth-quarter total revenue between $588.5 million and $589.5 million [2] Market Reaction - Following the earnings announcement, Cloudflare shares fell by 2.2%, closing at $222.50 [2] Analyst Ratings - Needham analyst Mike Cikos maintained a Buy rating and raised the price target from $240 to $285 [5] - Citizens analyst Trevor Walsh maintained a Market Outperform rating and increased the price target from $250 to $270 [5]

Apple and Amazon beating expectations as Apple projected record December revenue and Amazon saw its cloud business accelerate. Joining us right now to talk about all of this is Dan Flax. He is Newberger Berman senior research analyst.And Dan, both of these stocks hired today. Apple by about 2%, Amazon by close to 13%. Why don't we start with Amazon just because of the outsized gains that you're seeing here today.What what caught you the most offguard. What surprised you the most with the numbers there. Good ...

Core Viewpoint - Nvidia's stock is rising due to Amazon's statement that demand for AI capacity exceeds supply, aligning with trends observed among other major cloud-computing companies [1] Group 1 - Amazon's comments reflect a broader trend in the cloud-computing industry regarding AI capacity demand [1] - The increasing demand for AI capabilities is creating a favorable environment for Nvidia's growth [1]

Heard on the Street: Amazon’s cloud-computing business has disappointed investors with its recent pace of growth, but that appears to be changing https://t.co/nvLK6gkpkE ...

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Corporate Earnings - Companies in the S&P 500 are expected to post an average +7.2% increase in quarterly earnings for Q3 compared to the previous year, marking the smallest rise in two years [2] - Meta Platforms (META) reported weaker-than-expected Q3 EPS and raised its full-year total expense forecast, leading to a plunge of over -11% [3] - Microsoft (MSFT) fell nearly -3% after its Azure cloud-computing unit's revenue growth failed to meet expectations [3] - Chipotle Mexican Grill (CMG) tumbled over -18% after cutting its full-year comparable restaurant sales guidance [3] - C.H. Robinson Worldwide (CHRW) soared more than +19% after posting better-than-expected Q3 adjusted EPS and raising its 2026 operating income guidance [3] - Amazon.com (AMZN) jumped over +12% in pre-market trading after posting the strongest growth rate in nearly three years in its cloud unit and issuing solid Q4 revenue guidance [4][18] - Apple (AAPL) rose more than +1% in pre-market trading after reporting better-than-expected FQ4 results and providing an upbeat sales forecast for the holiday quarter [4][18] - Western Digital (WDC) surged more than +10% in pre-market trading after posting upbeat FQ1 results and issuing strong FQ2 guidance [19] Economic Indicators - The U.S. government shutdown has entered its 31st day, delaying the publication of key economic data including the September core PCE price index and Personal Spending [6] - The Congressional Budget Office stated that the four-week government shutdown will trim real annualized GDP growth by 1 percentage point this quarter [7] - Economists forecast the October Chicago PMI at 42.3, compared to the previous value of 40.6 [6] - Eurozone's October CPI rose +2.1% y/y, in line with expectations, while the Core CPI rose +2.4% y/y, stronger than expectations of +2.3% y/y [12] Market Sentiment - U.S. rate futures have priced in a 68.8% chance of a 25 basis point rate cut at the December FOMC meeting [8] - The Euro Stoxx 50 Index is down -0.37% amid profit-taking and fresh corporate earnings reports [9] - Japan's Nikkei 225 Stock Index closed sharply higher, hitting a new record high, supported by strong earnings from domestic companies and a weaker yen [15]

Core Insights - Google Cloud has transformed from a money-losing segment to one of Alphabet's fastest-growing businesses, driven by significant investments in AI and infrastructure [1] Group 1: Business Transformation - The transition of Google Cloud reflects a strategic pivot towards artificial intelligence and substantial investments in data centers and custom chips [1] - The growth trajectory of Google Cloud indicates a successful turnaround, highlighting the effectiveness of Alphabet's long-term investment strategy [1] Group 2: Financial Performance - Google Cloud's rapid growth contributes positively to Alphabet's overall financial performance, showcasing the potential for future profitability [1] - The investments made in Google Cloud are expected to yield significant returns as the demand for cloud services continues to rise [1]

Core Insights - Google Cloud has transformed from a struggling unit into one of Alphabet's fastest-growing businesses, driven by a cultural shift towards customer-centric sales and significant investments in AI and infrastructure [1][6][11] Group 1: Business Transformation - Under CEO Sundar Pichai, Google Cloud and YouTube were identified as key growth areas for Alphabet beyond search advertising [4][5] - Google Cloud's market share increased from 7% in 2018 to 13% in 2025, reflecting strategic leadership by Thomas Kurian [4] - Google Cloud's revenue reached over $15 billion in Q3, marking a 34% increase due to strong demand for AI services [6] Group 2: Competitive Positioning - Google Cloud aims to close the market share gap with Microsoft and Amazon, which hold 20% and 30% respectively [3] - The shift in strategy has allowed Google Cloud to engage with major AI labs, with nine of the top ten now as customers [8][11] - The competitive landscape has shifted, with analysts noting that Google Cloud is now on equal footing with its rivals [12] Group 3: Strategic Investments - Alphabet has increased capital spending to build infrastructure, with projections rising to between $91 billion and $93 billion for 2026 [18] - Investments in custom chips and datacenters have been crucial for Google Cloud's growth, with a focus on generative AI [6][11] - Google Cloud's decision to offer its TPUs to external customers has enhanced its competitive edge [13][14] Group 4: Internal Dynamics - Thomas Kurian's leadership has shifted the internal power dynamics at Alphabet, giving him a stronger voice in resource allocation discussions [17] - The cultural changes implemented by Kurian have emphasized financial discipline and a focus on revenue generation [9][10]