Friday's Tech Bloodbath: Netflix (NFLX), Chip Stocks, and SpaceX Tumble on Earnings Disappointments

TLDR

Table of Contents

Tech-heavy Nasdaq 100 futures tumbled 1.8% amid widespread selling in semiconductor and artificial intelligence stocks
Streaming giant Netflix plummeted nearly 10% following second-quarter revenue shortfall and reduced full-year projections
Robotic surgery leader Intuitive Surgical declined 9% despite earnings beat, with investors concerned about stagnant guidance
SpaceX shares retreated 5% following aborted Starship V3 test launch due to multiple engine malfunctions
Chip manufacturers AMD, Dell, Intel, and Micron tumbled 2% to 5% as artificial intelligence enthusiasm waned

Tech Stocks Crater as Netflix Disappoints and Semiconductors Retreat

Friday delivered a punishing blow to technology investors. Nasdaq 100 futures plummeted 1.8%, with semiconductor manufacturers and artificial intelligence-related equities absorbing the heaviest losses.

Advanced Micro Devices shed 3.5%. Dell Technologies declined 4%. Intel Corporation dropped 4.3%. Micron retreated 2%, while Sandisk fell 2.1%.

Advanced Micro Devices, Inc., AMD

Additional casualties in the downturn included Applied Materials, Lam Research, Marvell Technology, and Super Micro Computer.

The widespread semiconductor retreat lacked a specific trigger. Market participants seem to be reassessing the AI investment thesis following its prolonged rally.

Netflix emerged as one of Friday’s most significant losers. The stock plummeted approximately 10% after delivering second-quarter revenue figures that slightly underperformed Wall Street’s projections.

Revenue expanded 13.4% compared to the prior year, propelled by subscriber additions, price adjustments, and advertising income. However, free cash flow totaling $1.53 billion substantially missed analyst predictions.

Netflix additionally revised its full-year 2026 revenue outlook to a midpoint of $51.2 billion, falling short of the $51.4 billion consensus estimate from analysts.

The streaming platform announced plans to modify its engagement data reporting methods for investors. Management also highlighted expanded implementation of generative artificial intelligence throughout its operations.

Intuitive Surgical and SpaceX Join the Decline

Intuitive Surgical ranked among the poorest performers in S&P 500 premarket activity, declining approximately 9% to 12% across various reporting sources.

The medical device manufacturer exceeded second-quarter earnings and revenue projections. Despite this performance, the company maintained its full-year da Vinci procedure growth projection at 13.5% to 15.5%.

Market participants also scrutinized tariff-induced margin compression. Intuitive disclosed that gross margins of 68% to 69% incorporate approximately a 1% revenue impact from tariff costs.

SpaceX retreated roughly 5% following the cancellation of its inaugural test flight for the enhanced Starship V3 spacecraft.

The launch sequence was automatically terminated when several Raptor engines failed to achieve ignition. Chief Executive Elon Musk indicated two engines would undergo replacement, with the subsequent launch attempt scheduled for early the following week.

The unsuccessful launch prolonged SpaceX’s five-session losing streak. The stock has now fallen beneath the company’s $135 initial public offering price.

STAAR Surgical likewise tumbled approximately 12%. The ophthalmology company disclosed second-quarter revenue that doubled year-over-year, yet investors concentrated on geopolitical challenges and an enterprise resource planning system implementation that created operational difficulties during the period.

The Broader Picture

The S&P 500 and Dow Jones Industrial Average were both positioned to commence trading lower alongside the Nasdaq. The widespread selling persisted despite recent domestic inflation figures offering modest support to market sentiment.

The latest update: SpaceX’s subsequent Starship launch attempt is anticipated early in the following week, contingent upon completion of engine repairs.

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