Halloween is behind us, and the scary part of the market may be over for some investors. October brought spectacular rallies for some stocks, with a few delivering triple-digit gains. But not everyone had a reason to celebrate. While three stocks delivered extraordinary returns, others suffered painful selloffs. As the leaves change and Thanksgiving approaches, investors now wonder whether the worst is over or if more trouble lies ahead.
Here's a closer look at three October winners and three stocks investors may want to approach more cautiously this month.
3 Stocks That Won Big in October
Audioeye (AEYE): Up 88%
Many October rallies, like Bumble (BMBL) and Ultralife’s (ULBI) over 100% surge, were driven by takeover speculation. AudioEye's (AEYE) surge has a more interesting business story. AudioEye develops technology that helps businesses make their websites accessible to people with disabilities.
In the third quarter, the company’s revenue increased 7% year-over-year (YoY) to $11 million. Net income reached $1 million, compared with a loss in the prior year. Adjusted EBITDA climbed 58% to $3.9 million. Management also highlighted two new AI-powered products, Agentic Audits and AudioEye SDK MCP, designed to help developers identify and address website accessibility issues.
November verdict: HOLD. AudioEye’s comeback to profitability and its bold AI product launches spark genuine optimism. Yet, after a staggering 88% rally in October, investors may want to think twice before jumping in. Revenue growth remains modest, and the company must prove its latest innovations can truly ignite sales.
On Wall Street, AEYE has a consensus “Moderate Buy” rating and a high target price of $25, implying an 83% gain from current levels.
Katapult Holdings (KPLT): Up 131%
Every so often, the most dramatic stock rallies come from companies still fighting to earn their place in the spotlight. Katapult Holdings (KPLT) is one such contender, running a technology-driven lease-to-own platform that lets consumers finance purchases at partner retailers.
Katapult surged in October as excitement built around its merger with The Aaron's Company and CCF Holdings. After uniting three consumer-finance brands in August, momentum simply intensified, culminating in a dramatic rally at month's end. Its Q3 earnings on Nov. 12 will give investors a better idea of how the combined business is performing.
November verdict: HOLD. A 131% rally looks exciting. But the Nov. 12 report should reveal whether the enlarged platform can deliver. Until then, waiting looks more sensible than chasing the stock. On Wall Street, KPLT stock has a consensus “Hold” rating.
Nautilus Biotechnology (NAUT): Up 74%
Biotechnology stocks can attract attention even without an approved drug. Nautilus Biotechnology (NAUT) is developing a platform that measures proteins and their forms, which could help researchers better understand diseases and identify new drug targets.
In October, the company celebrated a key milestone by publishing a peer-reviewed paper in Nature Methods that showcased advances in its Iterative Mapping technology. The paper revealed promising early results from its oncology assays and marked a bold step to broaden its proteoform assay portfolio. Nautilus also joined an ARPA-H-funded research consortium, preparing itself to receive up to $6 million over four years. Despite these achievements, the company reported a net loss of $15.6 million on revenue of $234,000. Management noted a strong financial position with $114.3 million in cash and investments, projecting its runway to last into the first quarter of 2028.
November verdict: HOLD. A 74% rally might catch the eye, but it hardly transforms NAUT stock into a low-risk investment. The technology shows potential, but the company is still pre-commercial, and the gap between its bold research goals and real-world revenue remains wide.
On Wall Street, NAUT has a consensus “Strong Buy” rating and a high target price of $4, implying a 64% gain from current levels.
3 Stocks That Lost Big in October
Cerebras Systems (CBRS): Down 36%
Let’s take a look at the companies that struggled most in October. First up is Cerebras Systems (CBRS). This AI infrastructure favorite faced more challenges than many investors expected. Cerebras Systems makes specialized processors and computing systems that speed up artificial intelligence (AI) tasks, especially AI inference. The October selloff showed that investors were increasingly worried about the company’s reliance on OpenAI. Some reports said OpenAI was using Nvidia (NVDA) GPUs for its latest ultrafast inference workloads, which led people to wonder how much business Cerebras would keep. The stock also came under pressure when about 19.4 million more shares became eligible for sale after the IPO lockup expired.
Still, the company is growing fast. In the latest second quarter, it reported core revenue of $209.9 million, up 103% YoY, and has a $25.4 billion backlog of remaining performance obligations.
November verdict: HOLD. Cerebras offers a strong AI infrastructure opportunity, but concerns about customer concentration and its relationship with OpenAI remain. Investors should wait for signs of more diverse demand before seeing October’s drop as a buying opportunity. On Wall Street, CBRS has a consensus “Strong Buy” rating and a high target price of $330, implying a 230% gain from current levels.
CoreWeave (CRWV): Down 38%
The rapid growth of AI infrastructure has opened up many new opportunities, but it has also led to some costly challenges. CoreWeave (CRWV) offers cloud infrastructure that helps businesses and AI developers train and run AI models.
Its October decline was closely linked to concerns about debt, borrowing costs, and whether its enormous infrastructure investments will generate sufficient returns. Investors are especially concerned about CoreWeave's reliance on outside funding as they reconsider the financial outlook for the AI infrastructure boom.
November verdict: HOLD. There is still plenty of growth potential, but balance-sheet risks make it difficult to recommend buying just because the price has dropped. Investors should keep an eye on its operating profitability, interest costs, and cash flow in its upcoming Q3 earnings on Nov. 10 before jumping back in.
On Wall Street, CRWV stock has a consensus “Moderate Buy” rating and a high target price of $250, implying a 371% gain from current levels.
AST SpaceMobile (ASTS): Down 28%
Taking mobile connectivity into space is an ambitious business, and investors are beginning to appreciate just how difficult it could be. AST SpaceMobile (ASTS) is developing a satellite network that connects ordinary smartphones directly to satellite-based cellular broadband.
October stirred up new competition concerns. With SpaceX (SPCX) ramping up its direct-to-cell plans, uncertainty is growing around future pricing and who will get access to precious satellite launch slots. In October, Piper Sandler downgraded ASTS stock from “Overweight” to “Neutral” and reduced its price target from $98 to $54. The firm pointed to uncertainty about satellite deployment schedules and rising competition from SpaceX. However, the long-term opportunity remains.
November verdict: HOLD. AST SpaceMobile has a potentially transformative business, but execution remains the biggest hurdle. The outcome of satellite launches, commercial rollout, and competition will shape whether the stock can bounce back. Investors may prefer to wait for more signs of progress rather than buy in right after the October drop.
On Wall Street, ASTS has a consensus “Moderate Buy” rating and a high target price of $115, implying a 197% gain from current levels.
On the date of publication, Sushree Mohanty did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.