U.S. stocks continued to move lower on Friday as the technology sector struggled and hotter-than-expected producer inflation data weighed on investor appetite. The major averages - the Dow, the S&P 500, and the Nasdaq - were all set to close the week in negative territory, while several individual companies generated pronounced intraday swings.
Netflix jumps after ending competitive bid for Warner Bros
Netflix shares climbed sharply on Friday after the company indicated it would not raise its bid for Warner Bros Discovery, following Warner Bros.' determination that a competing proposal from Paramount Skydance Corp constituted a superior offer under the terms of Warner Bros.' existing merger agreement. As of 13:12 ET, Netflix had risen 12.3%.
"Netflix declined to raise its offer, thus effectively ending the bidding war for WBD," analysts led by Ric Prentiss at Raymond James wrote in a note.
That development prompted Raymond James to cut Warner Bros to an Underperform rating. The brokerage team added that, because it does not expect further topping bids, Warner Bros Discovery effectively trades more like a traditional arbitrage spread stock, and they see more attractive potential returns elsewhere in their coverage universe.
Nvidia slips despite strong results
Nvidia's shares fell even after reporting robust quarterly results. The stock declined more than 5% on Thursday and was down an additional 3.1% on Friday, leaving it roughly 3.9% lower over the past week.
Investors appear to be wrestling with questions about capital allocation tied to building out the broader AI ecosystem and the timing of returns on those investments. Goldman Sachs analysts suggested multiple explanations for the pullback, including profit-taking after recent gains, sector rotation dynamics, and concerns about the scale and sustainability of hyperscaler capital expenditures.
"Why is the stock underperforming after a strong beat-and-raise? 'Sell the news' dynamics, prot taking, and market rotation after several quarters of rotating into Semis and out of Software," the Goldman Sachs analysts wrote. "Another culprit - and the more likely - is the now familiar concern about hyperscaler capex, not just how much are they spending, but also the sustainability of spending growth, and perhaps a little bit of 'is this too good to be true?' when it comes to NVDA."
Block rallies after major workforce reduction announcement
Block's stock surged more than 15% on Friday, pushing the company roughly 20% higher over the past week, after it disclosed plans to eliminate nearly half its workforce as part of an effort to integrate artificial intelligence deeper into its operations. The planned reductions are expected to affect over 4,000 roles and reflect a broader trend of companies translating AI adoption into headcount adjustments.
Dell posts strong quarter and sees analyst support
Dell Technologies delivered quarterly results that topped expectations, and the shares rallied more than 21% on Friday and about 25% on the week. The company benefited from an accelerating corporate shift toward AI-related infrastructure spending.
Following the results, JPMorgan analyst Samik Chatterjee raised his price target on Dell to $165 from $155 and kept an Overweight rating. The analyst noted increased confidence in the AI-driven compute investment cycle, which should help branded server names even though drivers for other parts of the business remain mixed and tied to the broader macro backdrop.
"While DELL is unlikely to be perceived as a primary beneficiary of an AI investment cycle, we expect all server companies to benefit," Chatterjee said. "We see upside to DELL shares stemming from attributing a higher target valuation multiple to the shares relative to its historical average on account of the leverage to AI investments, while a strong rebound in PCs as well as uplift from adoption of AI PCs can provide further upside to our estimates."
CoreWeave tumbles after mixed financial print
CoreWeave's stock plunged following its quarterly earnings release, down roughly 20% in the session and about 16.5% on the week. The company posted revenue that slightly exceeded consensus expectations but reported a wider fourth-quarter loss and a notable miss on adjusted operating margin.
Stifel analyst Ruben Roy observed that while CoreWeave delivered a modest top-line beat in F4Q - $1.57 billion compared with a $1.55 billion consensus - the narrative was dominated by a significant adjusted operating margin miss. The adjusted operating margin came in at 5.6% versus an 8.6% consensus expectation, driven by a substantial, above-guidance increase in capital expenditures.
Stifel lowered its price target on CoreWeave to $110 from $120 while maintaining a Hold rating.
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Overall, the session underscored how macro data and sector-specific dynamics - notably around AI investment cycles, hyperscaler spending, and corporate responses to AI adoption - can drive substantial dispersion across individual stocks even as broader indexes drift lower. The week featured decisive moves tied to M&A activity, capital allocation debates, margin outcomes, and strategic workforce changes.