Market Signals

Amazon reported third-quarter results for the period ended Sept. 30, 2026. Net sales increased 11% year over year to $158.9 billion, driven by growth across North America, international segments, and AWS. Operating income rose 56% to $17.4 billion, with AWS contributing $10.4 billion of that total. Net income was $15.3 billion, up from $9.9 billion a year earlier. The company continued to invest heavily in AI infrastructure, including a $4 billion investment in Anthropic and a $2 billion commitment to OpenAI. Amazon also issued $8.0 billion in new senior notes across multiple currencies during the quarter and entered into a new $10.0 billion short-term credit agreement in October. The company faces ongoing antitrust litigation from the FTC and 18 states, as well as a class-action lawsuit over Audible's captioning practices.

Meta Platforms Inc. completed two capital-raising transactions on October 29, 2026, as disclosed in an 8-K filed with the SEC. The company sold 250 million Series A depositary shares, each representing a 1/20th interest in a share of 6.50% Series A Mandatory Convertible Preferred Stock with a $1,000 liquidation preference per preferred share. The offering, underwritten by Morgan Stanley and Goldman Sachs, includes an over-allotment option for up to 37.5 million additional depositary shares exercisable within 30 days. The preferred stock pays cumulative dividends quarterly at 6.50% per annum, beginning February 15, 2027, and will automatically convert into Class A common stock (or, after certain conditions, Class C common stock) on or about August 15, 2029. The conversion rate per preferred share ranges from 1.3620 to 1.6000 shares, depending on the stock's volume-weighted average price during a 20-day averaging period. While the preferred stock is outstanding, Meta cannot pay dividends on or repurchase its common stock unless all accumulated preferred dividends are paid. Separately, Meta entered into forward sale agreements with Morgan Stanley Capital Services LLC and Goldman Sachs & Co. LLC covering an aggregate of 40 million shares of Class A common stock. Under these agreements, the forward sellers borrowed and sold the shares to underwriters, with Meta receiving no initial proceeds. Meta will settle the forward sales by issuing shares of Class A common stock (or, after certain conditions, Class C common stock) at its discretion on or before November 19, 2027. The initial forward sale price is $622.91875 per share, subject to daily adjustments based on the overnight bank funding rate minus a spread. The underwriters have a 30-day option to purchase up to an additional 6 million shares, which would trigger additional forward sale agreements. The transactions were made under a shelf registration statement filed on October 26, 2026.

On October 21, 2026, Tesla Inc. filed a Form 8-K with the Securities and Exchange Commission announcing the release of its financial results for the quarter ended September 30, 2026. The results were made public by posting the company's Third Quarter 2026 Update on its website. The full text of the update is attached as Exhibit 99.1 to the filing and is incorporated by reference. The information is furnished under Item 2.02 of Form 8-K (Results of Operations and Financial Condition) and is not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor incorporated by reference into any other filing unless expressly set forth. The 8-K was signed by Brandon Ehrhart, General Counsel and Corporate Secretary. No specific financial figures or operational metrics are included in the filing itself; those details are contained in the attached shareholder update.

Meta Platforms Inc. on Oct. 19 approved a recapitalization that creates a new non-voting Class C common stock and declared a one-for-one stock dividend of Class C shares for each outstanding Class A and Class B share, contingent on the charter amendment taking effect Jan. 19, 2027. The company also entered a Founder Alignment Agreement with CEO Mark Zuckerberg that restricts his ability to sell most of the Class C shares he receives. Under the agreement, 80% of Zuckerberg's Class C shares are "stapled" to his voting shares: he generally cannot sell them without also selling an equivalent number of Class A or B shares or converting Class B shares. The remaining 20% are freely saleable. The stapling restriction releases gradually over 32 calendar quarters if Zuckerberg remains employed full-time at Meta. The agreement also provides for additional Class C dividends if the stock price doubles from a Sept. 10, 2026 baseline of $580.60 per share and the compound annualized shareholder return reaches at least 10%. Separately, Meta issued a press release on Oct. 21 reporting financial results for the quarter ended Sept. 30, 2026.

On October 2, 2026, Tesla filed a current report on Form 8-K to announce that it had published a press release covering its results of operations and financial condition. The press release is attached as Exhibit 99.1 and is incorporated by reference. The information is furnished under Item 2.02 and is not deemed filed for purposes of Section 18 of the Exchange Act. The filing was signed by General Counsel and Corporate Secretary Brandon Ehrhart.

Tesla on Sept. 29 entered into three new credit agreements totaling $30 billion in commitments, replacing a $5 billion revolving credit facility from 2023. The new facilities include a $20 billion three-year delayed draw term loan, an $8 billion five-year revolver, and a $2 billion 364-day revolver. The term loan can be drawn up to ten times over 18 months, with undrawn commitments stepping down to $10 billion after one year and $5 billion after 15 months. The five-year revolver matures in 2031 and allows for two one-year extensions; the 364-day facility matures in September 2027 with a term-out option. Tesla may increase the revolving facilities by up to $4 billion. Borrowings under the facilities carry variable rates based on Term SOFR, SONIA, or EURIBOR plus a margin tied to Tesla's credit rating. The agreements require Tesla to maintain at least $5 billion in consolidated liquidity. No amounts were drawn as of Sept. 29, and Tesla said it does not plan to draw on the facilities in 2026. The existing $5 billion revolver, which had no outstanding borrowings, was terminated without penalty.