{"id":441164,"date":"2026-10-30T05:40:19","date_gmt":"2026-10-29T22:40:19","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/earnings-bloodbath-intel-crashes-over-22-amazon-over-12-whats-coming-next-441164\/"},"modified":"2026-10-30T05:40:19","modified_gmt":"2026-10-29T22:40:19","slug":"earnings-bloodbath-intel-crashes-over-22-amazon-over-12-whats-coming-next","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/earnings-bloodbath-intel-crashes-over-22-amazon-over-12-whats-coming-next-441164\/","title":{"rendered":"Earnings bloodbath: Intel crashes over 22%, Amazon over 12%. What&#8217;s coming next?"},"content":{"rendered":"<div>\n<p>Amazon and Intel stocks tumble after earnings. Strong AI growth wasn&#8217;t enough<\/p>\n<p>Amazon&#8217;s cloud sales jumped 39% and Intel&#8217;s data-center revenue rose 78%, yet both stocks sold off sharply. Investors are questioning the cost and sustainability of growth. Here are the important price levels to watch as Friday&#8217;s trading approaches.<\/p>\n<p>Amazon (AMZN) and Intel (INTC) shares fell sharply after their October 29 earnings releases, despite impressive growth in their cloud and data-center businesses. Amazon&#8217;s heavy AI investment is consuming free cash flow, while Intel&#8217;s weak outlook raises questions about its recovery. For traders, the next test is whether the initial after-hours selling attracts lasting buying interest.<\/p>\n<p>As of 4:50 p.m. New York time on Thursday, October 29, 2026, before the scheduled 5 p.m. earnings calls:<\/p>\n<ul>\n<li>\n<p>Amazon: Approximately $228.62, down 6.4% from its final pre-release five-minute reference near $244.23.<\/p>\n<\/li>\n<li>\n<p>Intel: Approximately $76.83, down 16.6% from its corresponding reference near $92.08.<\/p>\n<\/li>\n<li>\n<p>Nasdaq futures: Down approximately 1.23% over the comparable initial reaction window.<\/p>\n<\/li>\n<\/ul>\n<p>These are after-hours observations, not regular-session closing prices or live quotations.<\/p>\n<p>Amazon: AWS is booming, but investors want to see the cash<\/p>\n<p>Amazon delivered a quarter with several genuinely impressive numbers.<\/p>\n<p>According to its <a href=\"https:\/\/ir.aboutamazon.com\/news-release\/news-release-details\/2026\/Amazon-com-Announces-Third-Quarter-Results\/default.aspx\" rel=\"follow\">official Q3 earnings announcement<\/a>, revenue increased 12% to approximately $201.94 billion, narrowly missing Wall Street expectations near $202.2 billion.<\/p>\n<p>Amazon Web Services was a standout. Revenue reached approximately $46 billion, up 39.3% from a year earlier, marking its fastest growth in nearly five years.<\/p>\n<p>Operating income rose to $28.1 billion, producing a record operating margin of 13.9%.<\/p>\n<p>Those figures do not describe a business struggling to generate growth or operating profits.<\/p>\n<p>So why did the shares fall?<\/p>\n<p>The answer appears to lie in what that growth costs, how much cash it consumes and whether investors believe future returns will justify today&#8217;s investment.<\/p>\n<p>Amazon reported negative free cash flow of $42.4 billion over the trailing 12 months, compared with positive free cash flow of $14.8 billion in the comparable period a year earlier.<\/p>\n<p>That is a deterioration of $57.2 billion.<\/p>\n<p>Importantly, this does not mean Amazon&#8217;s operations stopped generating cash. Trailing 12-month operating cash flow actually increased 29% to $168.3 billion. The difference is largely associated with the enormous investment required to build infrastructure, especially for AI.<\/p>\n<p>Management maintained its outlook for approximately $220 billion in 2026 cash capital expenditures.<\/p>\n<p>Meanwhile, fourth-quarter revenue guidance of $240 billion to $247 billion puts the midpoint at $243.5 billion, modestly below analyst expectations near $244.5 billion.<\/p>\n<p>Reported third-quarter earnings of $1.89 per share also missed estimates around $1.97. However, the year-earlier EPS comparison was inflated by $9.5 billion in pretax gains from Amazon&#8217;s Anthropic investments. It would therefore be misleading to interpret the year-over-year headline EPS movement as evidence of comparable weakness in its underlying operations.<\/p>\n<p>The emerging question is not whether Amazon can grow its AI business. The latest results demonstrate substantial demand.<\/p>\n<p>The more difficult question is how much shareholders ultimately receive from that growth after funding the infrastructure needed to deliver it.<\/p>\n<p>That is a different standard from simply reporting rapid cloud revenue expansion.<\/p>\n<p>Amazon stock: The first rebound has already recovered substantial ground<\/p>\n<p>The initial price reaction was severe.<\/p>\n<p>Amazon fell from its pre-release five-minute reference near $244.23 to an after-hours low around $214.01, a decline of approximately 12.4%.<\/p>\n<p>Buyers then returned, lifting the shares substantially off that low.<\/p>\n<p>By the 4:50 p.m. ET data cutoff, Amazon was trading around $228.62, still approximately 6.4% below the reference.<\/p>\n<p>That recovery is worth watching, but it is not yet sufficient evidence that the selling has ended.<\/p>\n<p>Amazon share-price levels to watch<\/p>\n<p>$224.90-$229.10: The first stabilization test<\/p>\n<p>This is the immediate area where traders can assess whether the rebound is developing a foundation.<\/p>\n<p>Holding this region on subsequent pullbacks would improve the short-term recovery case. Repeated failures to defend it would leave the stock vulnerable to renewed pressure.<\/p>\n<p>$232.30-$234.90: The first meaningful recovery hurdle<\/p>\n<p>If buyers push beyond the initial stabilization zone, this is the next area where the strength of the rebound can be evaluated.<\/p>\n<p>A brief price spike into the region is less meaningful than a sustained move above it, followed by evidence that buyers can defend the reclaimed prices.<\/p>\n<p>$239.70-$244.25: The higher recovery region<\/p>\n<p>This area extends toward Amazon&#8217;s pre-earnings price reference.<\/p>\n<p>Reaching it would represent a much more substantial recovery from the earnings shock. It would not, by itself, resolve concerns about AI spending or free cash flow.<\/p>\n<p>$219.70, followed by $213-$214: Downside areas<\/p>\n<p>A renewed breakdown would put the first lower observation level near $219.70 into focus.<\/p>\n<p>Below that, the market would be approaching the initial earnings low. Whether buyers defend that low, or sellers force prices through it, could help determine the next phase.<\/p>\n<p>Intel: Strong data-center growth meets a much weaker forecast<\/p>\n<p>Intel&#8217;s selloff was considerably more severe, despite an earnings report that contained encouraging signs of operational improvement.<\/p>\n<p>Its <a href=\"https:\/\/www.intc.com\/news-events\/press-releases\/detail\/1786\/intel-reports-third-quarter-2026-financial-results\" rel=\"follow\">official third-quarter results<\/a> showed revenue increasing 21% to approximately $16.5 billion.<\/p>\n<p>Non-GAAP earnings reached $0.52 per share, ahead of analyst expectations near $0.40. GAAP diluted EPS was $0.60.<\/p>\n<p>Intel&#8217;s Data Center and AI business increased revenue 78% to $7.3 billion.<\/p>\n<p>GAAP gross margin also improved to 43%, compared with 38.2% a year earlier.<\/p>\n<p>Yet the market reaction demonstrates the danger of looking at the quarter in isolation.<\/p>\n<p>Intel expects fourth-quarter revenue between $15 billion and $16 billion. The midpoint of $15.5 billion is approximately 9.2% below the $17.07 billion consensus cited by Reuters.<\/p>\n<p>The company also forecasts fourth-quarter non-GAAP EPS of $0.25, substantially below expectations around $0.43.<\/p>\n<p>That is a significant gap in forward expectations, especially for a company whose stock had already experienced a powerful rally during 2026.<\/p>\n<p>The personal-computer business presents another challenge. Revenue from Intel&#8217;s Client Computing and Physical AI group declined 5% to $8.1 billion, and management expects weakness in the PC market to persist at least through the first half of 2027.<\/p>\n<p>There is also an important manufacturing issue.<\/p>\n<p><a href=\"https:\/\/www.reuters.com\/business\/intel-signals-slower-growth-pc-market-remains-under-pressure-2026-10-29\/\" rel=\"follow\">Reuters reports<\/a> that an October disruption at Intel&#8217;s Kiryat Gat production facility in Israel is expected to reduce revenue by approximately $300 million in the fourth quarter and a similar amount in the first quarter of 2027.<\/p>\n<p>That adds a specific near-term supply constraint to the broader demand and execution challenges.<\/p>\n<p>For Intel shareholders, the positive development is that data-center demand and operating performance have improved significantly.<\/p>\n<p>The negative is that those improvements are not currently sufficient to prevent a sharp downgrade in the near-term outlook.<\/p>\n<p>Intel stock: A rebound doesn&#8217;t necessarily mean the bottom is in<\/p>\n<p>Intel&#8217;s immediate after-hours response was dramatic.<\/p>\n<p>From approximately $92.08 before the announcement, the shares fell to $71.20, a decline of roughly 22.7%.<\/p>\n<p>A rebound subsequently lifted the stock as high as $79.16.<\/p>\n<p>But the recovery struggled to hold, with the latest completed five-minute bar at the supplied 4:50 p.m. cutoff closing near $76.83.<\/p>\n<p>That leaves Intel approximately 16.6% below its pre-earnings reference.<\/p>\n<p>The important distinction now is between a temporary rebound following aggressive selling and a more convincing recovery in which buyers begin to regain control.<\/p>\n<p>Intel share-price levels to watch<\/p>\n<p>$77.15-$80.00: The first recovery decision area<\/p>\n<p>This is the immediate region traders should monitor.<\/p>\n<p>A sustained reclaim would suggest that buyers are becoming more successful in absorbing the initial selling pressure.<\/p>\n<p>Repeated failures beneath the area, particularly if accompanied by lower rebound highs, would favor continued caution.<\/p>\n<p>$84.60-$86.20: The more significant recovery test<\/p>\n<p>Reaching this region would represent meaningful progress beyond the first rebound.<\/p>\n<p>It is also important because it includes the lower boundary of the supplied pre-event options-implied price range.<\/p>\n<p>An implied range reflects options pricing expectations, not a guaranteed limit on how far a stock can move.<\/p>\n<p>$71.20-$72.55: The initial selloff-low region<\/p>\n<p>A return toward this area could become particularly informative.<\/p>\n<p>If selling slows and buyers establish a higher low, the market may be starting to absorb the earnings disappointment.<\/p>\n<p>A sustained breakdown would weaken that interpretation.<\/p>\n<p>$69.70-$70.00: The next lower observation area<\/p>\n<p>If the initial low fails decisively, this becomes the next downside area to monitor.<\/p>\n<p>It is not a prediction that Intel must reach $70.<\/p>\n<\/p>\n<p>Why the Nasdaq reaction matters too<\/p>\n<p>One of the most useful observations is that Amazon and Intel weakened considerably more than the technology benchmark during the initial reaction.<\/p>\n<p>Nasdaq futures declined approximately 1.23% over the comparable observation window.<\/p>\n<p>Amazon underperformed that move by about 5.16 percentage points, while Intel underperformed by roughly 15.33 percentage points.<\/p>\n<p>This matters because it helps distinguish a broad market decline from selling pressure concentrated in individual companies.<\/p>\n<p>The relative weakness suggests that stock-specific earnings information was an important part of the market&#8217;s repricing. It does not establish the precise contribution of every headline or the direction of causation.<\/p>\n<p>There is also a broader context to this earnings week.<\/p>\n<p>In <a href=\"https:\/\/investinglive.com\/stocks\/amazon-and-intel-headline-the-earnings-releases-after-today-s-close\/\" rel=\"follow\">investingLive&#8217;s earlier Amazon and Intel earnings preview<\/a>, the central question was whether AI-driven growth could justify the spending and support future cash flow.<\/p>\n<p>That question now looks particularly relevant.<\/p>\n<p>The selling also follows <a href=\"https:\/\/investinglive.com\/stocks\/alphabet-slides-over-9-after-hours-as-search-miss-and-9bn-cash-burn-overshadow-cloud\/\" rel=\"follow\">Alphabet&#8217;s sharp earnings reaction<\/a>, where strong cloud growth was overshadowed by concerns surrounding search performance and heavy investment.<\/p>\n<p>However, it would be premature to conclude that investors have turned against AI investment universally.<\/p>\n<p>Different companies have different cash-generation profiles, demand trends and expectations already reflected in their valuations.<\/p>\n<p>What these results suggest is that the market is becoming more demanding about the financial returns on AI investment, not necessarily questioning whether demand for AI infrastructure exists.<\/p>\n<p>Friday, October 30: What would change the picture?<\/p>\n<p>The next regular trading session could provide a more useful test of how durable the initial repricing becomes.<\/p>\n<p>A constructive recovery<\/p>\n<p>Amazon reclaims its first recovery zone and makes progress toward $232.30-$234.90, while Intel can hold above $77.15-$80.00 and build higher lows.<\/p>\n<p>Such behavior would suggest that at least part of the initial selling pressure is being absorbed.<\/p>\n<p>Continued selling pressure<\/p>\n<p>Amazon fails to defend the $224.90-$229.10 region and moves toward $219.70, while Intel repeatedly fails below $80 and returns toward $71.20-$72.55.<\/p>\n<p>That would suggest the early rebounds were insufficient to establish meaningful stabilization.<\/p>\n<p>No clear resolution<\/p>\n<p>Both stocks move erratically within their large after-hours ranges, with neither buyers nor sellers gaining convincing control.<\/p>\n<p>In that case, waiting for better price confirmation may be more useful than trying to predict the next move from an isolated price spike.<\/p>\n<p>The first 30-60 minutes of Friday&#8217;s regular session deserve attention, particularly in relation to Nasdaq futures and the price zones above. However, the opening period can also produce false breaks and substantial volatility.<\/p>\n<p>The scheduled company conference calls may materially change expectations before that session begins.<\/p>\n<p>The lesson from Amazon and Intel earnings<\/p>\n<p>There is a useful distinction here for traders and investors.<\/p>\n<p>Amazon has demonstrated rapid cloud growth and record operating profitability, but its heavy spending is putting pressure on free cash flow.<\/p>\n<p>Intel has demonstrated substantial improvement in data-center demand and margins, but the next-quarter outlook is considerably weaker than investors expected.<\/p>\n<p>Both developments can be true at the same time.<\/p>\n<p>For longer-term investors, the important questions concern sustainable growth, capital efficiency, execution and valuation.<\/p>\n<p>For shorter-term traders, the next opportunity to learn something comes from how prices behave after the initial earnings shock.<\/p>\n<p>Strong results can still disappoint a market with even stronger expectations. And sometimes, the reaction to the reaction tells us more than the first move itself.<\/p>\n<p>Market observations reflect the October 29, 2026, after-hours snapshot through 4:50 p.m. ET. Extended-hours trading can be volatile and less liquid. The price levels discussed are conditional observation areas, not trade recommendations. Educational market analysis only. Trade at your own risk.<\/p>\n<p>                            This article was written by Itai Levitan at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Amazon and Intel stocks tumble after earnings. Strong AI growth wasn&#8217;t enough Amazon&#8217;s cloud sales jumped 39% and Intel&#8217;s data-center revenue rose 78%, yet both stocks sold off sharply. Investors are questioning&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-441164","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/441164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=441164"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/441164\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=441164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=441164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=441164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}