Netflix, Intuitive Surgical tumble premarket

Investing.com - U.S. stock index futures fell sharply on Friday, pointing to a second straight day of losses on Wall Street as investors continued to reassess lofty technology valuations following a string of disappointing corporate updates tied to artificial intelligence spending.

By 07:21 ET (11:21 GMT), S&P 500 futures had dropped 67 points, or 0.9%, while Nasdaq 100 futures tumbled 490 points, or 1.7%. Dow Jones futures fell 331 points, or 0.6%.

Technology stocks remained under pressure after IBM’s historic 25% collapse earlier this week intensified concerns that soaring AI infrastructure spending is beginning to crowd out traditional enterprise software budgets.

The sharp selloff followed the company’s quarterly revenue miss, reinforcing fears that businesses are prioritizing investments in servers and chips over software purchases.

Streaming giant Netflix led Friday’s decliners, sliding 9.3% in premarket trading after its quarterly results failed to impress investors despite a modest earnings beat.

The company reported second-quarter revenue of $12.56 billion, narrowly missing analyst expectations, while earnings per share of $0.80 came in just above forecasts. Investors instead focused on weaker-than-expected third-quarter guidance, raising fresh questions over the sustainability of subscriber and revenue growth following a prolonged rally in the stock.

Medical device maker Intuitive Surgical fell more than 12% after maintaining its full-year procedure growth outlook for its da Vinci robotic surgery platform and cautioning that changes to certain U.S. insurance plans could weigh on demand. The conservative outlook disappointed investors who had anticipated stronger growth, particularly after Abbott Laboratories dismissed concerns that Affordable Care Act enrollment trends would materially affect demand across the medical technology sector.

Gene therapy developer Regenxbio slumped 16.6% after announcing plans to raise $100 million through an underwritten public offering, with investors reacting negatively to the prospect of shareholder dilution.

Automotive safety supplier Autoliv declined 5.8% after reporting quarterly results that were overshadowed by a sizeable restructuring charge tied to the closure of manufacturing operations in Türkiye. The company had previously flagged a pre-tax charge of roughly $142 million related to the restructuring.

STAAR Surgical slipped 5.6% after preliminary second-quarter sales came in broadly in line with analyst expectations. While revenue more than doubled from a year earlier, investors appeared to take profits after the update failed to deliver a meaningful upside surprise.

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