Minor Stock Market Gains for Nasdaq, Major Gains for Meta
Stocks are only slightly elevated for Thursday, but Meta Platforms is a standout with more than 8% in gains after their earnings report.
Quick overview
- The stock market saw minor gains on Wednesday, with Meta Platforms reporting strong earnings and a stock price increase of 8%.
- Microsoft experienced a 7% drop in stock price due to disappointing cloud growth in their quarterly earnings report.
- Tesla's stock rose 2% as they shift focus from EV production to robotics, despite a decline in annual revenue.
- The Federal Reserve maintained interest rates, indicating that market growth will rely on its own momentum without external support.
The stock market indices added only minor gains on Wednesday as Magnificent Seven stocks started to report their earnings, but Meta gained 8% after a strong report.
Meta Platforms (META) performed well in the most recent quarter, with revenue forecasts higher than Wall Street expected. Their stock price jumped from $669 to $727 as the market closed on Wednesday, but investors should expect some pullback as the stock price stabilizes.
Microsoft (MSFT), on the other hand, suffered a 7% stock price drop after they posted quarterly earnings that showed their cloud growth was not as expansive as expected. This had been their strongest area of growth in recent quarters.
Meta Impresses as Stocks Shift Slightly
This is a big week for quarterly earnings reports, as several major tech companies have already reported their earnings, and a few more still remain. Tesla (TSLA) stock rose 2% as they announced they would be ending production on several EV models and turning their focus to robotics. Their earnings report demonstrated that annual revenue was down, but investors chose to focus on the positives.
Tensions are on the rise in Iran between that country and the United States, and the conflict there could hurt the market in the coming weeks. For now, crude oil futures are up and the stock market is near record highs.
The Federal Reserve held a monetary policy meeting on Wednesday, and the outcome was predictable. The Fed decided not to issue a rate cut and to keep interest rates as they are, which was in line with expectations. That means that the market will have to grow on its own speed for now without any help from the Fed.
It is technology stocks like Meta that will drive most of the investment interest for now. The company posted impressive revenue figures and announced plans for heavy AI investment. Their revenue climbed 24% for the quarter, and that brought their earnings per share to $8.88. With revenue of nearly $60 billion, the company is looking good, and the company anticipates that its total expenditures for the current will come up to about $162 billion, with around $120 billion in capital expenditures.
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