Why Retail Traders Couldn’t Take Their Eyes Off These Stocks Last Week: META, MU, BABA, TSLA, RKLB

Artificial intelligence, semiconductors, automotive and space technology dominated headlines during the week.

• Meta faced legal and regulatory scrutiny in the U.S. and India, and Alphabet lost a key EU antitrust appeal.
• Alibaba reportedly moved employees toward its in-house AI coding tool while settling a $600 million U.S. DOJ case.
• Rocket Lab’s $8 billion Iridium Communications acquisition garnered attention.  

Artificial intelligence remained the centerpiece of the technology industry in the first week of July, but it wasn't the only story driving headlines. Major investments in AI infrastructure unfolded alongside antitrust rulings, lawsuits, product strategy shifts and government actions that touched nearly every corner of the technology sector, from cloud computing and semiconductors to electric vehicles and space. 

Meta, Google And Amazon Face Regulatory Hurdles Even As AI Investments Rise

Meta Platforms (META) faced legal pressure in the U.S. after a federal judge allowed much of a lawsuit over Facebook and Instagram's alleged addictive design to move forward. Also, the Indian government raised concerns over Meta introducing usernames on WhatsApp, citing possible cybercrime risks.

On Saturday, India told Meta Platforms to remove all child sexual abuse content from its platforms, including Instagram. 

Meta Platforms’ stock rose over 3% during the holiday-shortened week. On Stocktwits, retail sentiment toward the stock remained bullish. 

Meanwhile, the European Union's highest court upheld a multibillion-euro antitrust penalty against Alphabet (GOOGL, GOOG), while Australian regulators sued Amazon.com (AMZN) over changes to its Prime Video subscription model.

Google's parent, Alphabet, and Amazon each gained 1% over the week. 

Meta is planning to launch an AI cloud business that would rent computing power from its data centers to business customers, helping generate more revenue from its AI investments. Meanwhile, Microsoft drew attention for its new five-year partnership with Haleon (HLN), highlighting the growing use of AI tools such as Microsoft 365 Copilot and Azure in large businesses. 

BABA’s AI Policy Shift And Regulatory Settlement 

Alibaba (BABA) remained in focus after reports said it would stop employees from using Anthropic's Claude Code starting July 10 over alleged security concerns and instead shift them to its in-house AI coding tool, Qoder. 

Separately, Alibaba agreed to a $600 million settlement with the U.S. Department of Justice to resolve allegations of illegal pharmaceutical sales through Alibaba.com, including forfeitures, penalties, and compliance measures.

Alibaba’s stock gained 0.6% while retail sentiment around the stock remained in ‘bearish’ territory. 

Micron Hit With DRAM Lawsuit 

The semiconductor sector drew attention after a proposed class-action lawsuit accused Micron Technology (MU), Samsung Electronics and SK hynix of coordinating DRAM production to keep prices elevated. 

Micron stock slumped 14% over the week, while retail sentiment toward the stock remained in ‘bullish’ territory. 

Separately, Amazon continued investing in custom chips for consumer devices, while Amazon Web Services announced a $1 billion commitment to a new engineering initiative supporting enterprise customers.

Apple's (AAPL) semiconductor supply chain also drew attention after reports that the company was seeking approval to source memory chips from Chinese manufacturer CXMT. Apple stock recorded a weekly gain of 9%. 

Tesla Delivers Strong EV Growth 

Tesla (TSLA) reported stronger-than-expected second-quarter deliveries, delivering 480,126 vehicles, up 25% from a year ago and above Wall Street estimates. Most deliveries were Model 3 and Model Y vehicles.

The company also had a strong quarter in China, where June sales of Shanghai-built Model 3 and Model Y vehicles rose 24.4% year over year to 89,091 units, marking its best monthly performance of 2026.

The company also said production capacity for its legacy Model S and Model X lines has been updated to manufacture Optimus humanoid robots. Despite the strong numbers, Tesla stock tumbled 4% over the week while retail sentiment around the stock remained in ‘bullish’ territory. 

Space Industry Sees Lunar Mission Awards And M&A Activity 

NASA selected Firefly Aerospace (FLY), Intuitive Machines (LUNR) and Astrobotic to help with future Moon science missions under its Moon Base program. The move shows that NASA continues to rely on private space companies to transport equipment and scientific payloads to the Moon. 

While Intuitive Machines tumbled 6%, Firefly Aerospace stock slipped 0.5% over the week. 

Rocket Lab’s plans to buy Iridium Communications in an $8 billion cash-and-stock deal to create a fully integrated space company stoked investors’ interest. The acquisition would combine Rocket Lab's rocket launches and satellite manufacturing with Iridium's global satellite communications network, helping the company expand into services such as satellite internet, direct-to-device communications, and navigation. 

Rocket Lab stock gained over 2% in the week and retail sentiment around the stock turned to ‘neutral’ from ‘bullish’. 

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