Tech Rally Slows before Earnings Releases
Tech stocks are in decline today before many of these companies release their quarterly earnings statements.
Quick overview
- The tech market experienced a decline on Tuesday, with the S&P 500 falling 1.3% and the Nasdaq Composite down 1.6%.
- Major tech companies, including AMD, Uber, SuperMicro, and Spotify, are set to release their quarterly earnings, making this week crucial for the industry.
- AMD's earnings report is highly anticipated due to its recent partnerships and significant stock increase, while Uber faces competition from Tesla's new automated taxi service.
- Spotify beat Q3 earnings estimates but has a mixed outlook for the current quarter, leading to a slight dip in its stock.
After a strong showing early Monday, the tech market dipped early on Tuesday with the S&P 500 and Nasdaq indices falling ahead of the glut of earnings statement releases.
The S&P 500 fell 1.3% and the Nasdaq Composite declined by 1.6%. The Dow was already down on Monday and fell a further 1% on Tuesday in early morning trading. It looks like the tech rally that continued from the end of last month is slowing down dramatically.
Can the tech rally keep going or will artificial intelligence boom die out? Of course, AI is not the only tech niche driving the rally, and if high tariffs and rapid inflation work together to stifle the economy, tech stocks will be some of the first ones to suffer.
Tuesday Earnings to Watch
For Tuesday, there will be several major tech stocks reporting their quarterly earnings. These include AMD, Uber, SuperMicro and Spotify. This week is one of the most important for both the stock market and the tech industry for this quarter with so many top companies releasing their earnings statements.
Advanced Micro Devices (AMD) just signed major deals with Oracle and OpenAI, and its earnings statement today is poised to be one of the most impactful. This is a company that is leading the AI train, and if they can demonstrate incredible profitability in this niche, then that is an indicator to other tech companies that this market is still very lucrative.
In the past few weeks, AMD stock has shot up 57%, which is partly why so many eyes will be fixed on the company’s earnings this week. They may not be able to maintain that momentum, but can they at least retain their gains? In premarket trading. AMD stock fell 2.26% to $253 per share.
Uber Technologies (UBER) stock has climbed about 65% of the year so far, and they will hope to keep that upward movement going this week with the release of their quarterly earnings statement. The company is facing growing competition from other rideshare services, including Tesla (TSLA), which launched an automated taxi service this summer.
SuperMicro Computers (SMCI) is also down today, dipping 1.81% in premarket trading as the company prepares to release their quarterly earnings statement. The company missed their Q1 revenue estimates, and the challenge now is to reassure shareholders with a good showing today.
Spotify (SPOT) is also trending down in early morning trading for Tuesday, with a dip of 1.71%). The music streaming service released their quarterly earnings already this morning, beating the estimates for Q3. They have a mixed outlook for the current quarter, but their stock should rise throughout the day due to a relatively strong performance.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save