The artificial intelligence trade has faced several headwinds this year, but last week’s sell-off struck at the foundations of the multiyear AI infrastructure boom, revealing a stark shift in investor sentiment as warnings about financing costs and returns become harder to ignore.

The week began with industry leaders highlighting the growing importance of capital availability and the cost of financing AI infrastructure.

Intel and Broadcom executives warned that funding could become a major constraint on the industry’s expansion, reflecting mounting pressure on companies to demonstrate returns on their investments.

“If there’s any challenge in the front, it’s capital and the cost of capital, and then the other part is in the longer run, people want to see the ROI,” said Intel CEO Lip-Bu Tan.

The warnings came as bond yields remained elevated, increasing borrowing costs for companies investing heavily in data centres and computing capacity.

The economics of these investments depend partly on how quickly demand for computing power grows and whether it generates sufficient revenue to justify the spending.

Inflation and competition add to AI concerns

Competition from China also continued to weigh on semiconductor stocks, particularly memory-chip makers, as ChangXin Memory Technologies (CXMT) advances its development of higher-grade memory products.

A hotter-than-expected US consumer price index report added to the pressure by pointing to broader inflationary forces, strengthening concerns that interest rates could remain elevated for longer.

Anthropic’s third-quarter revenue figures provided another reason for investors to reassess expectations.

The AI company reportedly generated $16.8 billion in revenue during the September quarter, an increase of nearly 50% from the previous quarter.

While growth remained substantial, it represented a slowdown from the roughly 140% sequential increase reported between the first and second quarters.

The figures came amid growing questions about whether the revenue generated by AI companies will be sufficient to support the industry’s enormous infrastructure commitments.

Gartner warns of potential infrastructure overspending

A Gartner report added to the concerns, warning that more than $3.5 trillion of AI infrastructure spending could be exposed to impairment by the end of 2030 if providers continue their current pace of investment.

AI providers are projected to spend $7 trillion on infrastructure through 2030, while Gartner estimates they will generate no more than $3.6 trillion in related revenue over the same period.

Neocloud providers, which rent computing capacity to AI developers and other customers, could be particularly vulnerable to the imbalance between spending and revenue.

Gartner predicts that by 2030, cost pressures and a lack of differentiated business models will force more than 80% of neocloud providers to cease independent operations.

The warning follows a report by Bain & Company last month that highlighted the scale of investment required to sustain the AI boom.

By 2031, annual spending on AI infrastructure could reach $1.5 trillion, including new data centres and computing capacity, as well as upgrades to existing GPUs, memory and networking equipment, Bain estimated.

Assuming capital expenditure represents about 25% of industry revenue, sustaining that level of investment would require an AI market approaching $6 trillion annually.

Debt markets signal growing financing pressure

The Gartner report weighed on neocloud companies such as Nebius and CoreWeave, while rising yields on CoreWeave’s outstanding debt reflected investors’ growing demand for compensation for the risks associated with financing the sector.

The yield to maturity on CoreWeave’s 9.625% bond due in 2032 reached 14.8%, while its 9.75% bond due in 2031 yielded around 14.9%.

Financing conditions have also become more challenging across the wider AI ecosystem.

Sources on Wall Street previously told Axios that the AI buildout was less concerning when companies could finance it with cash.

However, around a third of AI capital expenditure is now being funded through debt, the publication reported, while capital markets are showing signs of fatigue.

Global AI-related debt issuance fell to $23 billion in September 2026 from $113 billion in June, the Financial Times reported.

Companies are delaying fundraising plans or paying more to raise capital as investors demand stronger evidence that they can withstand higher interest rates and rising computing costs.

Listings involving Blackstone-backed AirTrunk REIT, Nvidia-backed Firmus and SoftBank-backed SB Energy have been pulled or paused.

“The conversation has shifted from growth at any cost to a much sharper focus on ​quality,” said Harry Evans, a partner at law firm Freshfields, in a Reuters report.

Evans added that deal activity could remain resilient through next year because of a strong pipeline.

Investors advised to be more selective with the AI trade

The mounting concerns have prompted questions about whether the strongest phase of the AI investment trade has passed.

“As we have highlighted previously, we think the AI thematic is entering a more mature phase, where valuations, funding requirements, competitive threats, regulation, and revenue visibility are coming under much greater scrutiny,” a team of strategists at Barclays led by Emmanuel Cau said, MarketWatch reported.

“It is certainly conceivable that the best of the AI thematic trade may be behind us, and therefore we think investors should be far more selective.”

Barclays continues to recommend balanced sector allocations, no longer viewing AI stocks as a “one-way trade”.

The bank advises investors to retain exposure to major technology companies ahead of further third-quarter earnings reports, while favouring businesses with proven business models, strong balance sheets, visible revenue streams and reasonable valuations.

Meta Platforms and Tesla are scheduled to report results after the market closes on October 21, becoming the first of the Magnificent Seven companies to release earnings this reporting season.

The group also includes Alphabet, Amazon, Apple, Microsoft and Nvidia.

Barclays also sees Europe as a potential source of diversification if the AI trade weakens further, as markets less exposed to the investment theme could provide some protection.

The central question for investors is increasingly whether AI demand can translate into sustainable earnings and cash flow at valuations that justify the capital being deployed.

As financing becomes more expensive and scrutiny of returns intensifies, the market may increasingly reward companies with stronger balance sheets and clearer paths to profitability rather than those simply promising rapid growth.

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Bank of America sees little reason for investors to rush back into stocks ahead of November.

Strategist Michael Hartnett favours a defensive stance because of a combination of stubbornly high borrowing costs, geopolitical tensions, election uncertainty and cracks in the AI trade.

His warning extends beyond who controls Congress – several forces supporting corporate earnings and stock valuations are coming under pressure simultaneously.

Higher yields leave stocks facing tougher competition

Hartnett expects the Fed to raise interest rates again on October 28, arguing that policymakers need to rebuild confidence in their inflation fight.

High yields create two problems for stocks: they raise financing costs and make bonds much more competitive with equities. That’s significant given businesses dependent on refinancing or distant profits face particular pressure.

Yet Hartnett also sees a potential release valve.

A credible tightening move could lower longer-term Treasury yields by another 20bps, potentially cushioning stocks if investors become more confident that inflation will retreat.

Higher oil prices threaten margins and household spending

Oil is another reason BofA remains cautious, with conflicts involving the Middle East and Ukraine complicating the outlook for energy supplies.

Hartnett identifies these geopolitical pressures as a key threat alongside interest rates and election uncertainty, especially since the economic implications reach well beyond petrol stations.

Persistently expensive energy can significantly squeeze transport and manufacturing margins, while leaving households with less money for discretionary purchases.

For investors, this means a difficult combination: weaker spending power and insufficient inflation relief.

Simply put, companies may struggle to pass higher costs through to customers, while central banks have less room to support demand.

A democratic sweep could unsettle policy expectations

Hartnett also flags the growing possibility of Democrats capturing both chambers of Congress in the November 3 midterms.

His concern centres on a potentially decisive result that could force investors to reassess the policy assumptions embedded in asset prices.

Election probabilities, however, remain market expectations rather than confirmed outcomes, and congressional control alone cannot determine subsequent legislation.

The immediate investment risk is repricing. Businesses and investors could delay decisions while assessing the balance of power and the scope for policy changes.

That uncertainty adds another obstacle for a market already wrestling with expensive capital and uneven confidence.

AI financing worries challenge a major market engine

The fourth concern strikes at a central source of market enthusiasm: artificial intelligence.

Investors are scrutinizing whether heavily financed infrastructure expansion can generate returns quickly enough to justify its costs.

CoreWeave’s shares were heading for a weekly decline exceeding 22% on October 16, as concerns about borrowing and interest rates weighed on the AI infrastructure trade.

The broader implication is that strong demand alone may no longer satisfy shareholders. Financing terms, cash generation and repayment capacity increasingly matter.

Pressure across both AI stocks and credit markets suggests investors are demanding stronger evidence that expansion can become financially sustainable.

Where BofA sees opportunities despite the caution

Hartnett’s defensive stance still leaves room for selective exposure.

He favours potential beneficiaries of peaking bond yields, including small cap stocks, real estate investment trusts (REITs) and the consumer discretionary sector.

These areas could gain breathing room if longer-term borrowing costs decline.

That makes the recommendation more nuanced than a blanket call to abandon equities.

The opportunity depends partly on the source of any yield decline: improving inflation confidence would offer a healthier backdrop than a sharp deterioration in growth.

For November, the key question is whether lower yields can ease financial pressure while confidence in corporate earnings and AI investment holds together.

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Palantir stock has suffered a big reversal, wiping out some of the gains made since June when it bottomed at $106.5. It dropped to $186.7, down by 12.75% from its highest point this year. Still, analysts are optimistic about the company, citing its strong fundamentals and revenue growth.

Palantir stock coincided with the tech sector sell-off

The ongoing PLTR stock sell-off has coincided with that of most software companies. Salesforce dropped to $241.4, down by 10% from its highest point in September. Other top software companies like Palo Alto Networks, Twilio, Okta, Fastly, and SentinelOne were among the top laggards.

One reason for the ongoing Palantir stock retreat is the upcoming midterm elections, where Democrats are set to win the House of Representatives and, potentially, the Senate. 

Analysts predict that a win by Democrats will lead to some major investigations on companies that have helped the administration on key issues. Palantir will be targeted for its role in helping the administration in border issues. It is unclear whether these investigations will impact its revenue and profitability growth.

Analysts are bullish on PLTR stock

Still, on the positive side, analysts are highly bullish on PLTR stock, citing its strong revenue and profitability growth. On Thursday, Mizuho analysts boosted the target from $215 to $245. Two days before that, Baird analysts set the target price at $250, while Barclays initiated with a target of $265. Other analysts who have maintained a bullish outlook for the stock are from Goldman Sachs, Raymond James, and UBS.

Most of these analysts are citing the company’s revenue and profitability growth. The most recent results showed that Palantir’s business continued doing well in the second quarter, driven by corporate and government orders.

American companies are increasingly turning to Palantir’s solutions, with the revenue rising by 149%. Their remaining deal value jumped to $6.24 billion, with more firms embracing its AIP solution. 

In total, Palantir’s revenue rose 93% YoY to $1.93 billion, while the adjusted income from operations rose to $1.19 billion. The management expects that this revenue growth will continue in the foreseeable future. 

Its third-quarter revenue is expected to be between $2.16 billion and $2.164 billion, much higher than the $1.18 billion it made last year.

READ MORE: Palantir stock is surging: will it retest its all-time high or reverse?

Palantir’s key valuation multiple, known as the Rule of 40, shows that it is highly undervalued. This multiple is calculated by adding a company’s revenue growth with its margins. In this case, adding the two gives PLTR a multiple of 155%, one of the highest in the US.

Traditional metrics, however, show that it is highly overvalued. It has a forward price-to-earnings ratio of 123, much higher than the sector median of 21.8. This multiple is much higher than other software companies like Microsoft, Salesforce, and Okta.

Palantir stock price analysis

PLTR stock chart | Source: TradingView

The weekly chart shows that the PLTR stock rebounded from $106 in June to a high of $212 in this month. Its highest point was notable because it coincided with the highest point in November last year. It has also formed a bearish engulfing pattern, where a big bearish candle covers a bullish candle fully.

Therefore, the stock will likely retreat further, potentially to $160, and then resume the upward trend. If this happens, the stock will likely jump to $250.

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Trump Media stock continued its strong downward trend, reaching its lowest level on record as headwinds jumped. DJT fell to $6.9, down by 60% from its highest point this year and 33% below its highest point in August. This sell-off may continue as the company faces some major headwinds.

Trump Media is facing headwinds

DJT stock has continued its strong downward trend this month as the company faces major headwinds. One of them is that President Donald Trump’s approval rating has continued to fall because of the rising inflation. A report released this week showed that the headline Consumer Price Index (CPI) rose 3.7% in September. Core inflation rose 2.7% last month.

Trump’s approval rate has plunged to a record low, with his net approval moving to minus 27. 34% of the voters approve his work, while 61% of them disapprove. Trump is being opposed by Republicans, Democrats, and Independents because of his corruption and the ongoing US-Iran war.

The ongoing approval rating drop is also affecting traffic to the Truth Social website. SimilarWeb data shows that the website had 15.31 million visits in September. While this increase was an 11% monthly jump, it remains much lower than its competitors. For example, X and Reddit had 4.18 billion and 3.82 billion, respectively.

Trump Media is also not making money. The most recent results showed that it made a net loss of $238 million in the June quarter and $643 million in the first six months of the year. Large advertisers have stayed away from Truth Social, while the recently launched API solution will not make it a lot of money in the long term.

DJT stock has also slumped because Bitcoin has lost momentum. Bitcoin has dropped from a high of $87,000 earlier this month to the current $81,000. Trump Media is the 10th-largest Bitcoin holder in the world, with 12,062 coins. Its coins are now valued at $977 million.

Trump Media is also highly overvalued, considering that it has not made money at the peak of Trump’s presidency. A $2 billion valuation for a company losing substantial sums of money per quarter is quite expensive.

DJT stock technicals point to more downside 

Trump Media stock chart | Source: TradingView

The daily chart shows that Trump Media stock has been in a strong sell-off in the past few months. It has dropped from $10.56  in August to the current $6.99. 

The stock has dropped below the 50-day moving average. It has also formed an inverted cup-and-handle pattern, a common continuation sign. 

DJT stock’s Average Directional Index (ADX) has risen to 21, its highest point 21, its highest point since August. Therefore, the stock will likely continue falling, potentially to the key support level of $5. A drop below that level will point to further downside, towards $3.

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Oil prices climbed above $110 a barrel as escalating geopolitical tensions raised concerns about global supply, while gold headed for a weekly loss amid expectations of further Federal Reserve rate hikes.

Tesla shares fell after the company unveiled its redesigned Roadster, while Apple stock edged higher following strong initial demand for its first foldable iPhone.

Oil prices hit $110 as supply concerns intensify

Brent crude rose 3.7% to $110 a barrel, its highest level since May, as traders grew concerned about the prospect of prolonged supply disruptions and diminishing chances of near-term relief.

WTI crude rose 3.24% to above $101.

Iran-backed Houthi rebels continued missile and drone attacks on Saudi Arabia, while Russia and Ukraine exchanged attacks on energy infrastructure.

Reports of a warning over potential danger in Saudi Arabia’s Khamis Mushait added to concerns surrounding major energy export centres.

Uncertainty also surrounded a proposed Russian diesel release.

US lawmakers introduced a bipartisan bill to block President Donald Trump’s deal with Moscow, which would allow Russia to release several hundred million barrels of diesel.

However, continued exclusion of Russian diesel from global markets could force refineries elsewhere to increase processing to meet demand.

A recent attack on Russia’s Ryazan refinery, which reportedly halted a primary processing unit, further complicated the outlook.

Crude prices have risen more than 70% this year amid disruptions linked to the Middle East and Russia-Ukraine conflicts.

European diesel futures have more than doubled, reflecting tightness in refined-product markets.

Gold heads for weekly loss as rate-hike bets rise

Gold prices were largely steady on Friday but remained on track for a weekly decline as stronger-than-expected US inflation data increased expectations of further monetary tightening.

Spot gold fell 0.04% to $4,168.73 an ounce, leaving it down 0.59% for the week. US gold futures for December delivery settled 0.51% higher at $4,191.10 an ounce, which is at 0.59% weekly decline.

US producer prices recorded their largest increase in four and a half years in September, following data showing consumer prices accelerated during the month.

Federal Reserve officials offered mixed signals on the outlook.

Chair Kevin Warsh expressed optimism about the US economy but did not indicate the likely direction of interest rates.

Chicago Fed President Austan Goolsbee described the inflation data as discouraging, while Cleveland Fed President Beth Hammack warned that worsening inflation expectations could require more aggressive rate increases.

Traders largely expect the Fed to hold rates this month but are pricing in a 90% probability of a December hike, according to CME’s FedWatch Tool.

Higher interest rates tend to weigh on gold because the metal does not pay interest.

Tesla stock falls after Roadster unveiling

Tesla shares fell nearly 3% on Friday after the company showcased a redesigned Roadster featuring thrusters developed in collaboration with SpaceX.

The demonstration included the vehicle performing aerial manoeuvres, jumping over obstacles and accelerating from zero to 60 miles per hour in less than a second, according to Tesla’s presentation.

However, production is now targeted for 2028, compared with the original 2020 delivery goal announced in 2017.

Tesla has not disclosed pricing or specifications for other performance variants.

Analysts questioned the car’s potential financial contribution given its expected low production volumes.

Gary Black of The Future Fund estimated that 3,000 annual deliveries and a $100,000 profit per vehicle could add approximately $0.06 per share to Tesla’s 2029 adjusted earnings.

The Roadster could nevertheless strengthen Tesla’s technology-focused brand as the company prioritises autonomous driving and robotics.

Apple shares rise after foldable iPhone sells out

Apple shares edged up on Friday after its first foldable smartphone, the iPhone Duo, reportedly sold out shortly after preorders opened.

Social media users reported that estimated delivery dates had shifted from October 23 to late January, suggesting initial demand was exceeding available supply.

The device features a 5.4-inch external display and a 7.6-inch foldable internal screen.

Apple expects foldable smartphones to account for roughly 10% of the market by 2029.

Separately, Apple Chairman Tim Cook said Apple Intelligence had received regulatory clearance in China, with a test rollout expected later in October.

The company has partnered with Alibaba to use its Qwen AI models in mainland China.

Apple is also working with Meta to optimise its Muse Spark open-weight AI model for high-end Mac computers.

Despite the developments, some analysts remain cautious about iPhone demand, with UBS maintaining a Neutral rating and KeyBanc retaining an Underweight rating.

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Wall Street ended sharply lower on Friday as renewed selling in artificial intelligence-related stocks and rising oil prices weighed on investor sentiment.

The Nasdaq Composite fell more than 2%, while the S&P 500 lost 1.1% as concerns over AI infrastructure debt, persistent inflation and the Federal Reserve’s interest rate outlook prompted investors to reduce risk ahead of the weekend.

The Dow Jones Industrial Average outperformed the broader market but still closed lower, losing 189 points.

Meanwhile, the Cboe Volatility Index (VIX) rose above 22 for the first time in four months, signalling increased market uncertainty.

US stocks fall as AI-related shares extend losses

The Dow fell 189.01 points, or 0.36%, to close at 51,990.05. The S&P 500 declined 85.44 points, or 1.10%, to 7,658.62, while the Nasdaq Composite dropped 572.99 points, or 2.15%, to 26,137.85, according to preliminary data.

Technology stocks remained under pressure as investors reassessed the outlook for companies investing heavily in AI infrastructure.

Nvidia-backed data centre operator CoreWeave fell 13% on Friday, extending its weekly losses to more than 26%.

Its debt has climbed above $51 billion, while yields on its bonds rose above 15% during the week.

Broadcom also declined, while the Philadelphia Semiconductor Index recorded its eighth consecutive daily loss.

The VanEck Semiconductor ETF fell 3% on Friday and was down around 10% for the week, its steepest weekly decline since July.

Micron Technology, Advanced Micro Devices and SanDisk were among the chipmakers weighing on the sector amid concerns about competition from Chinese memory manufacturers.

Investors are also questioning whether AI infrastructure companies can generate sufficient profits to service their growing debt burdens, particularly if borrowing costs rise further.

Oil prices jump as geopolitical tensions fuel inflation concerns

Energy prices added to the pressure on equities as escalating tensions in the Middle East and continued attacks on energy infrastructure involving Russia and Ukraine raised concerns about supply disruptions.

West Texas Intermediate crude futures rose 3.51% to settle at $101.41 a barrel, while Brent crude futures gained 3.72% to $109.86.

Higher oil prices have added to concerns about inflation, following hotter-than-expected US consumer and producer price reports released during the week.

Producer prices recorded their largest increase since 2022, while consumer inflation remained above the Federal Reserve’s 2% target.

Rising energy costs could further complicate the central bank’s efforts to bring inflation under control. Energy stocks, including Chevron, gained as crude prices climbed, helping limit the Dow’s losses.

Fed outlook and earnings season remain in focus

Investors continued to assess the Federal Reserve’s next policy move after Chair Kevin Warsh expressed optimism about the strength of the US economy but offered no clear indication of the interest rate path.

Markets increasingly expect the Fed to leave rates unchanged at its October 27–28 meeting.

The CME FedWatch tool indicated an 82% probability of a hold. However, Barclays now expects the central bank to deliver quarter-point rate hikes in December and January.

The uncertainty comes as investors prepare for a busy week of corporate earnings, with Tesla, Meta Platforms and Procter & Gamble scheduled to report third-quarter results.

Analysts expect quarterly earnings to rise more than 30%, driven largely by major AI-related technology companies.

However, the recent sell-off highlights the market’s reliance on a relatively narrow group of technology stocks.

Although the S&P 500 remains higher for the year, most of its gains have come from AI-related companies, while the median index constituent has advanced by considerably less.

Further pressure on technology shares could therefore weigh on broader market performance if investor concerns over valuations, financing costs, and inflation persist.

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Micron Technology shares MU fell about 4% on Friday, taking the weekly decline to 10% as investors assessed the potential threat from China’s memory-chip industry and concerns about the sustainability of the artificial intelligence boom.

The stock has retreated from its summer peak of more than $1,200, despite having more than tripled this year.

The recent sell-off followed progress reported by Chinese memory maker ChangXin Memory Technologies (CXMT) on a denser dynamic random access memory (DRAM) architecture known as 4F-squared.

The design could allow manufacturers to fit more memory cells into a smaller area, potentially improving production economics.

CXMT has also indicated plans to introduce server-memory products using the technology by the end of 2026, prompting concerns that Chinese suppliers could eventually expand their presence in the market.

However, analysts argue that the development does not necessarily threaten Micron’s position in high-bandwidth memory (HBM), a specialised technology used in AI servers.

CXMT’s breakthrough raises concerns about competition

Micron and South Korea’s SK Hynix both fell sharply after CXMT’s announcement.

By Friday, October 16, Micron had lost around 10% for the week, while SK Hynix was down nearly 15%.

The market reaction reflects concerns that advances in Chinese memory manufacturing could increase supply and put pressure on prices.

However, progress in chip design does not automatically translate into competitive mass production.

Citi analysts said CXMT’s manufacturing process remained several generations behind industry leaders.

They estimated that mass production using the new architecture was unlikely before 2028, potentially giving Micron and SK Hynix time to advance their own technologies.

The possibility of additional supply remains a concern, particularly if Chinese manufacturers eventually expand production enough to affect industry pricing.

Analysts see limited immediate threat to AI memory demand

Fundstrat vice president for market intelligence Kent Fung said CXMT’s new architecture could challenge conventional server DRAM but did not directly compete with the HBM products required for AI servers.

“Investors should consider the possibility that the knee-jerk response to CXMT’s announcement has been a bit of an overreaction,” Fung wrote in a research note on Thursday.

He added that CXMT’s breakthrough had a weaker connection to AI and therefore potentially weaker implications for memory and storage stocks’ growth prospects.

The distinction matters because conventional DRAM serves computers and servers more broadly, while HBM is designed to move data rapidly to AI processors.

CXMT’s progress in conventional memory does not establish that it can immediately challenge the advanced HBM products supplied by Micron and SK Hynix.

Micron’s fiscal 2026 annual report also said AI-driven memory demand was outpacing industry supply, supporting stronger pricing and margins.

Rising memory prices support Micron’s investment case

KeyBanc analyst John Vinh reiterated a $1,750 price target on Micron and described it as one of his favourite investment ideas following a trip to assess Asian supply chains.

Vinh said DRAM prices in the fourth quarter were expected to rise by 15% to 20% from the previous quarter. He also noted that Google was considering extending long-term memory-supply agreements through 2035.

While Vinh said he did not expect the current memory upcycle to last until 2031 or 2035, he argued that the potential agreements suggested customers were concerned about shortages persisting beyond 2028.

These expectations offer support for Micron’s outlook, although the potential for increased competition remains a risk.

If Chinese suppliers add meaningful capacity, additional supply could weaken memory prices and reduce the returns earned on new factories.

Even without an immediate loss of AI customers, investors could become less willing to pay premium valuations for earnings that may be unusually strong near the peak of a memory-chip cycle.

The outlook therefore depends not only on AI demand but also on how quickly supply expands and how that affects pricing.

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Strategy stock retreated more than 5% on Friday as its recent momentum faded. The shares fell to $136, which is 20% below their September high and their lowest level since September 18. The pullback may continue as Bitcoin loses traction and dilution concerns gain steam.

Strategy stock falls as Bitcoin loses traction

MSTR stock dropped as the recent Bitcoin rally lost traction. After peaking at $87,270 in September, it dropped to the current $80,980 as demand in the futures and ETF market waned. 

Spot Bitcoin ETFs have had over $534 million in outflows this month, a big reversal from the $2.6 billion inflows experienced in September and the $3.52 billion they added in August. In total, these funds have had cumulative inflows of $56.9 billion, with BlackRock’s IBIT having $66 billion in assets. 

Bitcoin’s futures open interest has also dropped modestly in the past few days. These inflows dropped to $52 billion from last month’s high of $62 billion. Falling open interest is a sign that demand among speculative investors is fading. The Coinbase Bitcoin Premium Index has remained in the red since September 26. 

Strategy is usually affected by Bitcoin’s price action because of its vast holdings. It holds 848,250 coins currently valued at $68.6 billion. 

For investors, there are signs that the company will continue to dilute its investors since it uses its stock to buy Bitcoin. Its outstanding shares have jumped to 352 million from 93.2 million in 2022.

Bitcoin price may drop further this year

Technicals suggest that BTC price has dropped in the past few weeks, moving from $87,270 late September to the current $80,890. It formed a double-top pattern and a neckline at $82,300. This pattern often leads to a strong bearish breakout.

The coin has moved below the important support level of $82,233, its highest level on May 10 this year. At the same time, it has moved below the 50-day moving average, while the Relative Strength Index (RSI) has continued falling. 

These technicals suggest that the coin may drop further towards the support of $74,933, its lowest level in September. Such a move would bring the value of Strategy’s coins to $63.4 billion.

BTC price chart | Source: TradingView

MSTR stock price technical analysis

The daily chart shows that Strategy peaked at $171.40 on September 22 and is currently at $134. This retreat has coincided with the ongoing Bitcoin sell-off. 

Strategy has already dropped below the 25-day moving average and the descending trendline that links the highest point in May, September, and October. 

The two lines of the MACD indicator have made a bearish crossover and are pointing downwards. Therefore, the stock will likely continue falling, potentially to the psychological level of $100. 

The bearish outlook will be invalidated if Strategy jumps above the resistance level of $150. A move above that level will point to more gains, potentially to $200. 

MSTR stock chart | Source: TradingView

Analysts have maintained a bullish outlook for MSTR. For example, Cantor Fitzgerald has placed a target of $208, while Citigroup has a target of $240. Bernstein believes that the stock will jump to $350, while B.Riley sees it rising to $195. 

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Moderna MRNA shares suffered a sharp reversal on Friday, falling close to 10% after a strong October rally had pushed the biotechnology to its 52-week high.

The shares, which reached $242.29 during their recent advance, were trading near $213 at the time of writing. The decline erased a significant portion of this month’s gains, which had exceeded 25% before Friday’s session.

Despite the latest retreat, Moderna has been one of the market’s strongest performers over the past 12 months, with its stock rising close to 700%. Progress in the company’s cancer treatment research has helped fuel investor enthusiasm, but the rapid appreciation has also put its valuation under greater scrutiny.

Analyst targets lag behind the share price

The sell-off mimicked a negative trading day for the broader market. Moderna’s peers recorded more modest moves, with Pfizer gaining 0.42% while BioNTech fell around 2.5%.

The sharp difference in performance suggests that Moderna faced company-specific selling pressure rather than simply following the wider biotechnology sector lower. Profit booking can be explained as one of the reasons but there were other catalysts as well.

One factor drawing attention was Goldman Sachs’ latest assessment of the stock. The investment bank increased its price target to $137 from $120 but kept its Neutral rating unchanged.

With Moderna trading around $212, Goldman’s revised valuation remains considerably below the prevailing share price. The change therefore offered limited support for investors looking for further confirmation that the recent rally could continue.

The cautious stance follows Citigroup’s decision to downgrade Moderna to Sell recently. Together, the analyst views highlight a growing divide between the market’s enthusiasm for the company’s progress and the valuations.

Cancer treatment remains central to the investment story

Much of the interest in Moderna has centred on its efforts to expand beyond vaccines into cancer treatment. The stock had dipped sharply post COVID-19 but has witnessed a dramatic turnaround since last year.

In August, the company reported positive Phase 3 results for its personalized cancer vaccine, strengthening expectations that the treatment could become an important part of its future business.

The therapy, intismeran autogene, is being developed in partnership with Merck. Investors are now awaiting more detailed findings from the late-stage trial to assess the treatment’s potential more closely.

The upcoming data could help clarify whether the clinical progress that has helped drive Moderna’s stock higher can translate into a commercially significant treatment.

For investors, however, the timing creates a difficult balance. Expectations surrounding the cancer vaccine have contributed to the stock’s substantial gains, leaving the market to judge how much potential success is already reflected in the share price.

Can the rally regain momentum?

Friday’s decline illustrates the pressure that can emerge when a stock advances rapidly ahead of further evidence to support its valuation.

Moderna’s progress in cancer treatment has reshaped investor expectations, but analysts’ price targets suggest that confidence in the science does not necessarily translate into agreement about the stock’s current worth.

The next detailed results for intismeran autogene will be an important point of focus as investors evaluate the treatment’s prospects and Moderna’s longer-term growth potential.

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Traders are increasingly betting that billionaire Elon Musk’s Tesla and SpaceX will merge by early 2027, bringing fresh momentum to one of Wall Street’s most ambitious merger theories.

By Friday morning, prediction-market odds of a merger before March had reached 56%, compared with 29% only earlier this week.

The data follows a Barclays’ research note outlining the strategic rationale for a combination.

Why a Tesla-SpaceX merger is gaining credibility

Barclays’ senior analyst Dan Levy sees a possible announcement before Tesla’s annual shareholder meeting, which his team expects to take place no later than December 6.

That creates two distinct timelines: a potential announcement in 2026 and prediction-market bets extending into 2027. Neither establishes when a transaction would actually close.

The investment case centres on artificial intelligence (AI).

Tesla is developing machines that operate in the physical world, including robotaxis and Optimus humanoid robots.

SpaceX’s AI businesses could supply complementary software and computing capabilities.

Barclays argues that bringing these together could accelerate development across both companies.

In practical terms, the proposed advantage will be tighter coordination between teams developing intelligent software and those building products that use it.

Here’s what the two companies would gain

Terafab offers a more concrete explanation for the merger discussion.

Barclays identifies the semiconductor initiative involving “Tesla, SpaceX and xAI” as a potential catalyst, because managing a shared project across separate companies creates governance and approval complexity.

A combination could simplify those decisions and align investment priorities.

For Tesla, the benefits include “closer integration” with AI software and satellite connectivity.

For SpaceX, Tesla’s energy products and production capabilities could complement its infrastructure ambitions.

Reported possibilities include “Grok-enabled” interactions for Optimus, Starlink connectivity for vehicles, and Tesla energy systems supporting SpaceX data centres.

The economic question is whether common ownership would make those projects faster or cheaper than existing commercial partnerships.

Combining businesses only creates shareholder value if the resulting gains justify the acquisition terms, integration costs and additional complexity.

Deal terms will matter more than betting odds

Investors still lack the information needed to judge an actual transaction.

Barclays has explored an all-stock structure in which SpaceX acquires Tesla, but that remains an analyst’s projection only for now.  

For shareholders, the eventual terms would determine how much of the combined business they own and which investment risks they inherit.

Governance would also deserve scrutiny because both companies are led by Musk.

A compelling AI narrative cannot settle those questions. Investors would need formal disclosures explaining valuation, financing, voting rights, and the approval process before assessing whether a merger benefits them.

Note that Wall Street currently rates both of Musk’s companies, SpaceX and Tesla, at Overweight – with mean price targets signaling significant upside potential from here.

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