Trending stocks this week as markets navigate AI concerns, geopolitical tensions

Wall Street's major averages finished in the red on Friday as technology stocks continued to lag amid artificial intelligence spending fears and a continued rise in oil prices due to geopolitical issues.

Corporate earnings remained in focus, with Netflix, Tesla, Meta Platforms, and GE Aerospace among the major companies reporting quarterly results. While several companies beat earnings expectations, investor concerns about the returns on massive AI infrastructure investments weighed on technology shares, particularly after Meta's results disappointed the market.

On the economic front, U.S. housing data showed continued weakness, with September housing starts and pending home sales falling short of expectations. Meanwhile, President Donald Trump signed an executive order that aims to reduce the cost of owning a home. Most of the actions ordered would not reduce costs right away for new homebuyers but would lower them once they built a certain amount of equity or when they refinance.

For the week, the blue-chip Dow (DJI) +0.5%, the benchmark S&P 500 (SP500) finished -0.9%, and the tech-focused Nasdaq Composite (COMP:IND) slipped -1.6%.

Here's what caught investor attention this week:

Meta Platforms (META) reached a deal with CEO Mark Zuckerberg to keep him in California after he threatened to leave if voters approve a proposed wealth tax next month. The company also announced that it would create a new nonvoting class of stock to raise money to fund its AI buildout.

Netflix (NFLX) reported third-quarter earnings that beat analysts' expectations. However, revenue growth slowed to around 12%, its weakest pace in nearly three years. The company also trimmed its 2026 advertising revenue outlook. In response to the results, NFLX shares fell more than 5% on Wednesday.

SpaceX (SPCX) jumped nearly 8% on Wednesday after Elon Musk’s satellite, rocket and artificial intelligence conglomerate reported third-quarter revenue that was better than the average analyst estimate. The company, which went public in June, reported net income of $4.4B, or $0.35 a share, as revenue surged 161% to $14.6B from $5.6B a year earlier. In its earnings conference call, Musk said SpaceX (SPCX) and Tesla (TSLA) have established special committees to evaluate a possible merger.

Lam Research (LRCX) fell nearly 12% on Thursday after the semiconductor capital equipment company gave a forecast for adjusted second-quarter earnings that was slightly weaker than expected at the midpoint of the range. For the next quarter, management guided revenue of $8.6B, plus or minus $400M, and non-GAAP EPS of $2.33, plus or minus $0.15. Management cited near-term supply constraints, limited clean-room availability, and component bottlenecks. Notably, it also projected that China would represent a significantly lower portion of revenue in the next quarter and said some revenue could shift into a later period due to shipment timing.

Tower companies gained, and wireless carriers fell on Friday after SpaceX (SPCX) was said to be targeting 80,000 or more US cell sites, with talks under way with at least one infrastructure owner. One of the companies they’re in talks with is Crown Castle, which, along with American Tower and Vertical Bridge, was among the largest owners of cellular towers. Crown Castle (CCI) rose +9%, American Tower (AMT) +4%, while AT&T (T) fell -7.9%, T-Mobile (TMUS) -7.7% and Verizon (VZ) -1.2%.

IBM (IBM) reported third-quarter revenue of $17.1B, up 5% year over year, while adjusted earnings rose 11% to $2.95 per share. However, comments from CEO Arvind Krishna about enterprise customers scrutinizing returns on artificial intelligence spending caused shares to drop initially on Thursday. During the earnings call, Krishna said larger enterprises were becoming more aware of the “true ROI” of their AI spending and worried that some spending could spiral out of control without delivering meaningful returns. However, he stressed that this does not undermine AI’s potential.

Tesla (TSLA) released its third-quarter earnings report with revenue flat year-over-year at $28.1B. EPS came in at $0.48 vs. the $0.45 consensus and $0.50 a year ago. The EV maker delivered 486,532 vehicles in the quarter and produced 464,391 vehicles.

Moderna (MRNA) and Merck (MRK) shares fell after trial results for their personalized melanoma vaccine, used with Keytruda, disappointed investors. The treatment cut cancer recurrence risk by 42% and distant spread by 38% among more than 1,100 patients, but analysts said the results were “materially less impressive” than earlier findings.

Lockheed Martin (LMT) reported third-quarter revenue and earnings that beat Wall Street estimates, fueled by higher production of fighter jets and missile defense systems. Lockheed (LMT) reported earnings of $7.97 a share as revenue rose 11.3% from a year earlier to $20.7B. Separately, the company announced a framework agreement with the U.S. government for ten years of F-35 production and maintenance. The proposed arrangement covers 850 aircraft for the U.S. military, along with international orders, spare parts and modifications.

GE Aerospace (GE) reported better-than-expected third-quarter earnings and revenue Tuesday as demand for commercial jet engines and maintenance services helped the aircraft engine manufacturer raise its full-year financial outlook. The company reported Q3 revenue of $14.12B (+16% Y/Y) and adjusted earnings of $2.25 a share, up from $1.66 a year earlier.