Bloomberg Stock Movers
2026-11-05 · Hosted by — · Bloomberg / iHeartMedia
Executive Summary
Several companies moved sharply in premarket trading following earnings releases. Qualcomm fell about 9% after issuing a lackluster profit forecast, citing broad-based cost increases for components and manufacturing amid an AI-driven supply shortage; the weakness came despite a robust quarterly sales forecast that came in above estimates. Arm Holdings fell 4% as AI royalty revenue was roughly flat year-over-year despite higher royalty rates, with next-quarter revenue guidance of $1.5 billion falling short of the $1.7 billion some investors had hoped for.
Key Stories & Changes
1. Qualcomm Slides on Weak Profit Forecast
Shares down about 9% in US premarket trading (ticker QCOM)
Company cited a broad-based increase in costs for components and manufacturing, driven by an AI-related shortage
Quarterly sales forecast came in above estimates, aided by Qualcomm's push into new markets including automakers
Reporters noted the weakness echoes a broader industry-wide issue: Apple's earnings this week also showed crimped iPhone sales
2. Arm Holdings Falls on Flat AI Royalty Revenue
Shares down 4% in premarket trading
AI royalty revenue was roughly flat year-over-year despite higher royalty rates
Current-quarter revenue guidance of $1.5 billion came in around estimates, but short of the ~$1.7 billion some investors were hoping for
Reporter Stan Curtis linked part of the move to "blue wave" concerns about a slowing data center buildout following the midterm elections
3. AppLovin Soars on Earnings Beat
Shares up 19% in premarket trading
Third-quarter results beat estimates on both revenue and margins
Stock had already shown a modest bounce heading into the print; today's move extends that trend significantly
4. Zillow Drops on Weak Housing Market Results
QCOM: Qualcomm — -9% — Weak profit forecast on rising input costs despite above-estimate sales guidance
ARM: Arm Holdings — -4% — Flat AI royalty revenue; guidance fell short of bullish expectations
APP: AppLovin — +19% — Beat on revenue and margins, extending an existing bounce
ZG: Zillow — -14% — Weak earnings; CEO warns of toughest housing market in a generation
Zillow shares fell 14% after weaker-than-expected earnings
CEO described current conditions as "one of the toughest housing markets in a generation"
Pending sales of existing US homes fell to a record low in September, reinforcing the weak-housing narrative
Company expects the decline in home sales to continue; both Bernstein and Stonach cut price targets following the report
Trends Identified
1. AI-Driven Input Cost Pressure Is Spreading Beyond Chipmakers
Qualcomm's explicit citation of component and manufacturing cost increases tied to AI-driven shortages signals that the AI boom's demand for chips and materials is now squeezing margins even for companies not purely focused on AI, echoing similar pressure seen in Apple's smartphone supply chain this week.
2. Political Risk to Data Centers Begins Showing Up in Chip Earnings Commentary
Arm's weakness was explicitly tied by the hosts to concerns about a slowing data center buildout following the midterm elections, suggesting the political narrative from Washington is starting to directly inform how investors interpret AI-exposed earnings reports. ---
Sentiment Analysis
Overall Market Sentiment: Mixed, Earnings-Driven
Reaction was sharply divided along company-specific lines, with weak guidance punishing Qualcomm and Arm while a clean beat lifted AppLovin; housing-exposed Zillow faced its own distinct, non-AI-related pressure.
Risk Factors Highlighted
AI-driven component shortages raising costs industry-wide: Qualcomm explicitly cited this as a drag on its outlook, with Apple's iPhone sales also affected.
Data center buildout slowdown risk affecting chip demand: Arm's guidance miss was linked to broader concerns about the pace of AI infrastructure investment post-election.
Housing market deterioration: Record-low pending home sales and Zillow's own warning suggest further weakness ahead for housing-exposed companies.
Analyst price target cuts following weak housing data: Both Bernstein and Stonach cut targets on Zillow, signaling reduced near-term confidence in the housing recovery.
This episode was covered in today's [The Market Signal — 2026-11-05](https://marketsignal.beehiiv.com/p/the-market-signal-2026-11-05), a cross-source synthesis of multiple podcast reports.