OpenAI revenue revision drags tech stocks as investors brace for market open
OpenAI disclosed lower-than-expected revenue, prompting declines in several AI-related shares, while political comments from President Trump and a mixed earnings outlook for Delta Air Lines add to market uncertainty ahead of Friday trading.
Stock futures were up on Friday morning after the S&P 500 posted a loss the previous day. Investors are watching several developments that could shape market direction.
OpenAI told investors its annualized revenue at the end of September was about $18 billion less than previously reported, CNBC confirmed. The revision sparked a sell-off in AI-focused equities, with CoreWeave down nearly 8%, Oracle off almost 6% and Nvidia falling 3%. Other chip makers such as AMD, Broadcom, Intel and Super Micro Computer also closed lower, pulling the Nasdaq Composite more than 1% lower – its steepest decline since mid-August, though the index remains near record highs.
President Donald Trump posted on Truth Social that the United States would not attack Iran before the November 3 midterm election, describing recent talks as “productive.” The statement marked a shift from earlier remarks in which he expressed reluctance to negotiate with Tehran. Oil prices finished the prior session higher.
Retail investors are increasingly using margin to fund stock purchases. One trader in Houston refinanced his home to maintain a leveraged Tesla position after the stock fell in 2022, highlighting the growing reliance on borrowed funds and the associated risk of amplified losses.
Delta Air Lines reported earnings that missed Wall Street estimates for the first time in two years and trimmed its full-year profit outlook amid elevated fuel costs linked to the Iran conflict. CEO Ed Bastian told CNBC’s Phil LeBeau that demand remains strong, saying, "We're not seeing any slowdown at all. Our consumer is incredibly resilient." Delta shares were about 2% lower before the bell.
Separately, reports indicate Starbucks has explored acquiring Chipotle Mexican Grill. Analysts note potential synergies but question the valuation and note Starbucks is undergoing a multi-year turnaround. Chipotle’s stock rose 6% after the news, while Starbucks shares fell.
These items, along with other weekend-focused stories, round out the market preview for investors.