US stocks ended a volatile week of trading on 23 October 2026 as investors weighed a steady run of corporate earnings against the rising cost of artificial intelligence spending. The S&P 500 slipped 0.5% and the Nasdaq lost 0.7%, while the Dow Jones gained 0.4%. The week's turbulence included a sharper sell-off on Thursday, when the Nasdaq dropped 2.6% as Wall Street questioned whether the large AI investments now underway will pay off. Taken together, the reports spanned technology, electric vehicles, space and defense, offering a cross-sector view of how major companies are balancing large investment programs against bottom-line results.

Meta Shares Fall Despite Strong Earnings

Meta Platforms shares fell nearly 7% on Thursday, even though the company's third-quarter revenue beat expectations. The decline reflected investor focus on the Facebook and Instagram parent's AI spending plans rather than on its results.

The company reported $64.6 billion in revenue for the quarter, up 26% from a year earlier. It also projected capital expenditures of $135 billion to $145 billion for 2026, with the majority of the outlay earmarked for AI infrastructure — a range that is more than double the company's quarterly revenue.

The quarter carried financial strain as well: Meta posted a quarterly free cash flow deficit of $2.12 billion, and a $9.9 billion legal settlement charge weighed on operating profit. Free cash flow, the cash left after capital expenditures, is where heavy infrastructure spending shows up first in the financials.

Tesla Profit Drops 44%

Tesla reported quarterly net income of $787 million, down 44% from a year earlier, while revenue came in flat at about $28 billion. Even so, the company's adjusted earnings still beat expectations. With sales holding steady but profit falling sharply, Tesla kept less of each revenue dollar than it did a year earlier.

The electric vehicle maker generated $1.5 billion in free cash flow during the quarter and lowered its earlier capital spending expectations. It continues to invest in autonomous driving, robotics and AI infrastructure.

SpaceX Revenue Jumps 161%

SpaceX posted third-quarter revenue of $14.6 billion, a 161% increase from the same period last year, with the company's AI business and Starlink satellite operations supporting the growth.

The company swung to net income of $4.4 billion, compared with a loss of $1.1 billion a year earlier. Because SpaceX is privately held and does not publish earnings the way listed companies do, the disclosed figures offer an uncommon public look at its financial performance.

Elon Musk also confirmed that special committees at Tesla and SpaceX are discussing a possible merger, though no agreement has been reached.

Lockheed Martin Reports Record Backlog

Lockheed Martin reported quarterly revenue of $20.7 billion, an increase of 11% from a year earlier, with net earnings of $1.8 billion.

The defense contractor announced a record order backlog of $292 billion, including $52.5 billion tied to a multiyear missile defense contract, and raised its annual financial outlook. A backlog represents contracted work still to be delivered, and at the current quarterly revenue pace, Lockheed's total equals more than three years of sales. Demand came from military aircraft, missile systems and defense technology.

Amazon Says AWS Capacity Is Largely Booked

Amazon chief executive Andy Jassy said Amazon Web Services capacity is largely sold out through 2027, with commitments also extending into 2028.

The company has outlined about $220 billion in capital spending for 2026 — more than the top end of Meta's newly guided range — and will release its third-quarter earnings on 29 October, the next scheduled update on AWS demand and capital spending.

Source: CoinCentral