3 Big Tech Stocks Sliding: What’s Behind the Drop?

Key Points

• Amazon, Oracle and Palantir are down 12%–18% since Nov. 1 as rising rates, slowing cloud demand, and concerns about AI monetization pressure tech valuations.
• Amazon faces concerns about AWS deceleration, Oracle confronts cooling cloud infrastructure adoption, and Palantir contends with government-contract delays tied to shutdown fallout.
• Despite the sell-off, each stock is approaching long-term support levels, offering potential buying opportunities if momentum reverses.

November has been another "tech wreck" month for the markets. At the time of this article, the S&P 500 is down about 2% since Nov.1. By contrast, many technology stocks are down much more, including some high-performing names.  

Investors saw something similar in February, when tech stocks melted down over China’s DeepSeek open-source large language model (LLM). 

While concerns over the growth of artificial intelligence (AI) persist in both cases, investor anxieties have shifted slightly this November. The DeepSeek pullback was based on fears that U.S. companies might lose their edge and pricing power. What if international rivals developed GPUs to make U.S. firms like NVIDIA Corp. NASDAQ: NVDA obsolete?

That concern was alleviated when hyperscalers such as Meta Platforms NASDAQ: META and Microsoft Corp. NASDAQ: MSFT continued to invest billions of dollars in the development of their respective AI infrastructures.

Today, investor concern is centered on when companies will begin to see a return on their investment. Valuations for many technology stocks have become sky-high. That means the markets aren’t just looking for good results—they’re looking for exemplary results. So far, analysts have been underwhelmed.

However, whenever there’s a pullback, it could create an opportunity. That’s why it’s essential to look at what’s driving the downturn in several of the sector’s top names.

Amazon Faces Pressure on Both Sides of Its Business

Amazon.com Inc. NASDAQ: AMZN was staging a strong comeback in 2025. However, AMZN stock has fallen about 12% since Nov. 1, following the release of the company’s third-quarter earnings report in late October.

Analysts are concerned about the slowing tailwinds for cloud optimization. They believe Amazon Web Services (AWS) growth could decelerate in the current quarter and into 2026.

They are also concerned about the company’s e-commerce business, which a decline in discretionary spending could impact. Initial indications suggest that consumer spending is expected to remain robust. However, the price action in Amazon stock suggests that investors want to wait until the next quarterly earnings report before rewarding Amazon for those sales.

For the time being, AMZN stock may have a little further to fall. The stock fell below the 50-day simple moving average (SMA), and with the moving average convergence divergence (MACD) indicating bearish momentum, the stock could easily drop near its 200-day SMA. That, however, has been a level of support on two recent occasions, and if supported by a reversal in momentum, could be a buying signal.

Oracle’s Cloud Infrastructure Momentum Is Cooling as Bears Take Control

Oracle Corp. NYSE: ORCL stock has fallen 13% since Nov. 1. While some of the decline reflects a natural correction after a steep October rally, expectations may have outpaced real data.

Recent channel checks indicate that adoption of the company’s cloud infrastructure may take longer than initially planned, meaning it could take Oracle longer to turn its AI backlog into meaningful revenue.

Since the pullback, the stock is almost at its 200-day SMA. However, in this case, the MACD reversal appears to be nearly complete, suggesting that stabilization may be incoming. 

Palantir’s Momentum Was Slowed by the Shutdown

Palantir Technologies Inc. NASDAQ: PLTR has declined by over 18% since Nov. 1. Considering that it has one of the more eye-popping valuations in the sector, it’s not a surprise. Investors were looking for a reason to sell.

Government shutdowns gave them a reason to do so. Markets dislike uncertainty, and so do those in procurement who must authorize government contracts.

With budgets in flux, investors are rightly concerned that it may take longer than expected for Palantir to achieve some of the predicted revenue.

That means that Palantir’s fourth-quarter earnings report may not be quite as impressive as the ones the company has been delivering. The long-term narrative for Palantir remains in place.

PLTR stock has been known to drop much more than 18%. A bearish MACD makes further selling likely. However, another 15% drop from its current level would put it right around its 200-day SMA, making it down 35% from its all-time high (ATH) and would likely be a buying opportunity.