CognitMarket market news, portfolio research, and investor insights

Backblaze (BLZE) stock is up 34.3% pre-market after reporting a significant Q3 2026 earnings and revenue beat. The cloud storage provider exceeded EPS consensus by $0.04 and revenue forecasts by over 13% [1].

Key highlights:

• Raised FY26 Revenue Guidance: New range of $177.8M-$178.2M, above analyst models [1].
• Accelerated B2 Cloud Storage Growth: Revenue up 47% YoY, B2 ARR reached $127M (+53% YoY) [1].
• AI Infrastructure Demand: Signed four new deals >$500K ARR, including three with AI builders; CoreWeave partnership ramping [1].

The strong results, coupled with an AI infrastructure narrative, triggered a significant short-covering and sentiment reversal [1].

Brookfield is targeting a massive £20 billion ($26.8 billion) AI data center in the UK, with an initial £2.5 billion investment in phase 1. The project, in partnership with Drax Group, aims for over 1 gigawatt of capacity. Drax Group shares surged 8.8% on the news [1].

This significant investment highlights:

• Growing AI Infrastructure Demand: Continued capital deployment into large-scale AI compute facilities.
• UK's AI Ambition: A push to develop domestic AI infrastructure amid high energy costs and grid connection challenges.
• Sector Impact: Potential boost for AI-related infrastructure and energy sectors.

The Texas gubernatorial race is tightening, with the Democratic candidate gaining ground on a platform that includes an immediate moratorium on AI data center development. This election is being watched as a bellwether for a broader political backlash against data centers [1].

Key points:

• Democratic candidate Hinojosa's odds have jumped from 8% to 40% [1].
• She advocates for a data center moratorium until guardrails are in place [1].
• Incumbent Gov. Abbott, who previously touted $40B Google AI investment in TX, has already halted new data center permits [1].

This signals growing regulatory risk and potential operational headwinds for the AI infrastructure sector, particularly in key development states.

Global equities are rallying, reversing Friday's tech rout, fueled by positive US manufacturing data and a sharp decline in oil prices.

• US Manufacturing PMI rose to 55.5 in October, exceeding expectations of 54.5, signaling solid domestic demand [1].
• Brent Crude fell 6.5% to ~$106 amid Iranian negotiation developments [1].
• Major Indices are up: Nasdaq +1.2%, S&P 500 +1%, MSCI World +0.5%, Europe's STOXX 600 +0.3% [1].

Investors are also looking ahead to key central bank decisions (Fed, ECB), Apple earnings, and US midterm elections this week [1].

Alibaba (BABA) stock surged 5.7% today after Apple selected its Qwen AI model for Apple Intelligence in the Chinese market. This marks Apple's first integration of a local AI company's models into its core system-level AI for a major geography [1].

• Catalyst: Apple Intelligence will feature Qwen-powered capabilities for developer beta testing starting Nov 4, with a full consumer rollout in December [1].
• Analyst Support: Citi reaffirmed its Buy rating with a $193 price target, seeing the integration as an accelerant for Qwen adoption and demand on Alibaba's cloud infrastructure. Morgan Stanley also holds an Overweight rating, citing Alibaba Cloud's accelerating AI revenue [1].
• Market Impact: The deal is a significant win for Alibaba's Cloud Intelligence Group, bolstering its position as China's leading AI cloud provider with over 35% market share [1].

Tempus AI (TEMP) is set to report Q3 earnings, with analysts anticipating its first quarterly profit since going public. The precision medicine company's data business sustainability is under scrutiny, especially with its top five customers accounting for 59% of revenue and key contracts up for renewal [1].

Investors will be watching:

• Profitability: Expected EPS of $0.01, a significant turnaround from a $0.04 loss in Q2 [1].
• Data Revenue: Potential near-term risks as diagnostic peers enter data monetization and Tempus lacks exclusive EHR data rights [1].
• Pharma Partnerships: Expanded collaborations with Bristol Myers Squibb and Pathos AI could deliver up to $192.5M, bolstering data value [1].

Tempus AI (TEM) is set to report Q3 earnings Monday, with analysts forecasting its first quarterly profit of $0.01/share since going public. This milestone comes as investors scrutinize the sustainability of its data business.

Key points to watch:

• Profitability Test: Expected $0.01 EPS marks a significant turnaround from a $0.04 loss in Q2 [1].
• Data Revenue Concerns: Top 5 customers account for 59% of revenue, with key contracts up for renewal. Competition from diagnostic peers and lack of exclusive EHR data rights pose potential risks [1].
• Pharma Partnerships: Recent expanded deals with Bristol Myers Squibb and Pathos AI could deliver up to $192.5M over five years, bolstering data value [1].
• Analyst Sentiment: Mean price target of $75.06 implies modest downside from current $77.84, with EPS estimates declining 5.21% over two months but ticking up recently [1].

China's embodied AI sector, focused on developing the 'brains' for robots, is experiencing a massive investment boom. Chinese companies raised 93.5 billion yuan ($13 billion) in H1 2026, a 5x increase year-over-year [1].

Key takeaways:

• Shift to Software: Robot makers are prioritizing AI software development over hardware, seeing it as the future margin driver [1].
• US-China Rivalry: This emerging sector opens a new front in the tech rivalry, with China leveraging manufacturing strength and data access to challenge US competitors [1].
• Industrial Impact: The country that best combines AI with machines could gain a significant advantage in automating factories and logistics, reshaping global industrial productivity [1].

Artificial Intelligence is creating a significant divergence in mega-cap tech, with Meta Platforms (META) benefiting while Alphabet's (GOOGL) search business faces disruption. Meta's Q3 ad revenue grew 26% YoY to $63.1B, now nearly matching Google Search's 12% growth to $63.4B. This 14-point growth gap is the widest in Meta's favor since 2021 [1].

Analysts attribute Meta's ad strength to AI-powered targeting tools, while Google's search ad revenue is pressured by AI chatbots offering alternatives to traditional search. This shift contributed to Alphabet's stock plunging over 12% post-Q3 earnings, wiping out ~$500B in market cap [1].

Jim Cramer suggests investors diversify beyond struggling tech into consumer staples, citing recent market performance. The Nasdaq-100 fell nearly 7% in October, while the S&P 500 Equal Weight gained 5% and the Consumer Staples index surged 11.4% [1].

• Tech Underperformance: Nasdaq-100 down 7% in October [1].
• Staples Outperformance: Consumer Staples index up 11.4% in October [1].
• Analyst View: Cramer recommends 'camping out in the staples for a bit' [1].