Stock Movers Amazon Drops, Home Depot Falls, Cloudfare Sinks After Outage
Nov 18, 2025
There's a buzz around the tech industry as Amazon and Microsoft face downgrades due to skepticism about their AI strategies. Meanwhile, Home Depot is feeling the pinch, cutting its earnings forecast as cautious consumers hold back on hefty purchases. On the tech front, a significant Cloudflare outage created ripples, disrupting major sites like ChatGPT and X, leading to a slump in their shares. The market reacts, keeping everyone on their toes.
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AI Hype Echoes Early Cloud Doubts
- Rothschild & Co. downgraded Microsoft and Amazon amid skepticism that Gen-AI hype mirrors early cloud 1.0 optimism.
- The move signals market concern that AI expectations may outpace real deliverables for big tech.
Big Tech Underperforms After Downgrade
- Microsoft and Amazon underperformed the Mag7 after the downgrade, with Microsoft hitting its lowest since July.
- Analysts and markets are questioning whether AI-driven growth narratives justify current valuations.
Home Depot Lowers Guidance On Soft Demand
- Home Depot cut full-year earnings guidance and warned consumers are pausing big-ticket home purchases.
- The company expects adjusted EPS to decline about 5% year-over-year, reflecting pressure on spending and housing weakness.