Stocks and sectors moved across U.S. premarket trading as company-specific updates and broader tech pressure shaped investor sentiment. Netflix slid after results failed to impress, Alphabet dipped for a second day following a report on its Gemini AI timeline, and Intuitive Surgical dropped sharply after its latest quarterly update. Elsewhere, Verizon edged higher on restructuring plans, while regional bank Fifth Third Bancorp rose despite a modest earnings miss.
Key takeaways
- Netflix fell more than 10% after reporting results that missed investor expectations, with additional concerns tied to changes in the frequency of its engagement reporting.
- Alphabet slipped around 1.5% to start the day for a second straight session as a Bloomberg report said the company is months behind delivering its latest Gemini AI model.
- Intuitive Surgical dropped over 11% after results came in below expectations, even as the company maintained its full-year outlook for da Vinci procedures.
- Software and memory shares weakened as broader tech- and AI-linked pressure persisted ahead of the week’s outlook.
- Verizon rose about 1% after announcing asset sales and workforce cuts as part of an ongoing restructuring.
Company moves in focus
Netflix shares fell more than 10% after the streaming company reported second-quarter results that were in-line with neither earnings nor investor expectations. Netflix earned 80 cents per share on revenue of $12.56 billion, while analysts polled by LSEG expected 79 cents per share on revenue of $12.59 billion. Although the headline comparison was close, investors also reacted to management’s decision to reduce how often it releases its “What We Watched” reports, which track viewer engagement trends.
Alphabet declined for a second day, down about 1.5% in premarket trading, following Thursday’s drop of nearly 4.5%. The move was tied to a Bloomberg report that Google is months behind delivering its latest Gemini AI model. Investors appeared to weigh delays in AI development against a market that has been underwriting momentum in the AI product cycle.
Intuitive Surgical slid more than 11% after the medical technology company posted second-quarter results. The firm reported adjusted earnings of $2.80 per share on revenue of $2.89 billion, compared with LSEG expectations for $2.50 per share and revenue of $2.82 billion. Despite keeping its full-year outlook, including growth of around 14% for procedures using its da Vinci robotic system, the stock’s sharp reaction suggested investors were focused on forward signals and overall demand assumptions.
SpaceX shares fell more than 3.5% after the company aborted a Starship launch attempt. CEO Elon Musk said on X that some engines did not start, triggering an automatic launch abort, and that SpaceX plans to try again in the coming days.
Verizon Communications rose about 1% after announcing plans to sell 274 company-owned retail storefronts and cut roughly 500 corporate jobs. The company said the steps are part of an ongoing restructuring effort, a move that can alter near-term cost expectations even as investors assess the longer-term strategy for its consumer and network footprint.
Energy, banks, and industrial updates
BP and ConocoPhillips gained more than 1% after CNBC reported that the companies will announce new investments in Iraq on Friday. While the specific commitments were not immediately available, people familiar with the matter told CNBC the investment could be in the billions of dollars and potentially tens of billions. For investors, larger upstream commitments can shift expectations around future production and cash flow, though details will likely matter for timing and returns.
Truist Financial climbed about 1.4% after reporting a second-quarter earnings beat. Truist posted earnings of $1.23 per share versus analysts’ estimate of $1.08, according to FactSet, and revenue also topped expectations. The positive reaction indicates investors were more focused on the earnings and revenue comparison than any broader sector headwind for banks.
Alcoa edged lower, down about 0.5%, even after results beat analyst expectations. The company reported $2.12 per share excluding certain items on revenue of $3.97 billion, compared with LSEG forecasts for $2.06 per share and $3.94 billion in revenue. Alcoa also lowered its 2026 alumina production outlook, a key input for aluminum smelting—an item that can weigh on sentiment by signaling potential longer-term constraints or demand assumptions.
Fifth Third Bancorp rose despite a slight earnings miss. The regional bank reported net interest income in-line with expectations that was up 48% from the same quarter a year ago. The stock’s move suggested that investors may have prioritized the underlying interest income trend, even if the overall earnings line fell marginally short.
Tech and AI pressure extends into memory names
Software stocks were broadly lower in premarket trading. Data cited in the report showed the iShares Expanded Tech-Software Sector ETF (IGV) down more than 1.5% and pacing for a sixth week lower in seven. Salesforce and Palantir Technologies were down more than 2.4%, while ServiceNow fell about 2%. Microsoft declined 1.7%. The pattern indicated investors were continuing to price in caution across the growth-rate expectations that have supported the sector’s valuations.
Memory stocks also remained under pressure, reflecting an ongoing pullback in parts of the AI trade. The report said the Roundhill Memory ETF (DRAM) was down more than 3% and pacing to end the week down 19%. Western Digital fell about 2.5%, Micron Technology dropped 1.5%, and Seagate Technology declined 2%.
With investors weighing both company-specific earnings developments and the direction of the broader tech complex, the focus for the next session will likely shift to follow-through in guidance, the details behind restructuring and investment plans, and any incremental signals for AI-linked demand—particularly among memory and software names. Upcoming earnings, company updates, and major macro data and central bank communication will also be key for setting the tone as the week progresses.
