Premarket Stock Movers: Meta Slumps on AI Spending, Eli Lilly and Amazon Surge on Strong Earnings

Several major stocks experienced significant moves in premarket trading following the release of their latest earnings reports and updated forecasts. Meta Platforms saw a sharp decline after raising its capital expenditure guidance, while Eli Lilly and Amazon posted strong earnings that boosted their shares.

These early market reactions highlight investor sensitivity to spending plans and revenue beats, especially in sectors like technology, pharmaceuticals, and retail. The varied performances underscore the ongoing impact of AI investments, cloud growth, and consumer demand on stock valuations.

Meta Platforms Drops Amid Increased AI Spending Concerns

Meta Platforms' stock fell 9% in premarket trading after the company raised its full-year capital expenditures guidance to between $125 billion and $145 billion. This increase, driven by heavy investments in artificial intelligence, overshadowed Meta's better-than-expected first-quarter earnings report, sparking investor worries about the cost of AI development.

Eli Lilly and Amazon Impress with Strong Earnings and Upgraded Outlooks

Eli Lilly's shares surged nearly 8% after the pharmaceutical giant exceeded earnings and revenue expectations for the first quarter. The company also raised its full-year sales forecast to $82 billion to $85 billion, up from $80 billion to $83 billion, fueled by strong demand for drugs like Zepbound and Mounjaro.

Amazon gained 3% after reporting first-quarter earnings of $2.78 per share and revenue of $181.52 billion, both surpassing analyst estimates. The online retail and cloud computing leader's robust performance reflects continued strength in its core businesses.

Tech Giants Alphabet and Microsoft Show Mixed Premarket Moves

Alphabet's shares jumped 7.4% after posting $109.9 billion in first-quarter revenue, beating expectations. Google Cloud revenue soared 63% year-over-year to $20.02 billion, significantly outperforming analyst forecasts.

Microsoft, part of the 'Magnificent Seven' tech stocks, saw its shares dip nearly 2%. Despite beating earnings and revenue estimates, the company reported lower-than-expected capital expenditures of $31.9 billion for its fiscal third quarter, below the $34.9 billion consensus.

Other Notable Movers: Caterpillar, Royal Caribbean, Qualcomm, and Carvana

Caterpillar's shares rose 4.5% after beating earnings and revenue estimates, reporting adjusted earnings of $5.54 per share on $17.42 billion revenue. Royal Caribbean jumped 7% following strong adjusted earnings of $3.60 per share, despite slightly missing revenue expectations.

Qualcomm surged 11% after posting adjusted second-quarter earnings of $2.65 per share, beating analyst estimates. Carvana's stock soared over 10% as the used car marketplace forecasted record retail unit sales and adjusted EBITDA for the second quarter.

Mixed Results from Auto and Healthcare Stocks

Ford Motor's shares dropped 5% despite raising its 2026 guidance and beating first-quarter revenue estimates. Stellantis shares also fell 5% amid complex results involving tariffs and provisions, despite tripling adjusted operating income.

Merck rose 3.4% after beating expectations with strong demand for its cancer immunotherapy Keytruda. Teladoc Health shares slipped nearly 9% after posting a wider-than-expected loss, although revenue beat estimates.

Premarket Summary and What to Watch Next

The premarket session revealed a market sensitive to capital spending plans and earnings beats, especially in technology and healthcare sectors. Investors will be closely watching how companies balance growth investments with profitability amid evolving economic conditions.

Upcoming earnings reports and guidance updates will further shape market sentiment, with particular attention on AI spending, cloud growth, and consumer demand trends. Staying informed on these developments will be key for navigating the market's next moves.