Meta Platforms (META) just delivered a knockout earnings report, sending shockwaves through the market.
Meta Platforms (META) delivered a knockout earnings report, sending shockwaves through the market. The tech giant posted second-quarter results that blew past Wall Street’s expectations, immediately propelling its stock into high gear. Investors were pleasantly surprised, especially considering Meta’s hefty investments in AI and virtual reality—a move some skeptics had previously questioned.
The Nasdaq responded with a 2.6% jump on Wednesday, marking its best day since February. This significant surge came after a six-day losing streak, proving that Meta’s performance was a mighty catalyst for the tech rally. Companies like Tesla, Microsoft, and Alphabet have also come under the market’s magnifying glass, with analysts watching their upcoming earnings reports closely.
Adding another layer of intrigue, Meta’s CEO Mark Zuckerberg is calling for the tech industry to embrace open-source AI technology, spotlighting the company’s latest model, Llama 3.1. This bold move could set a new standard in AI development, possibly prompting other tech behemoths to follow suit. Zuckerberg’s advocacy for open-source AI could revolutionize the landscape of artificial intelligence.
The large weekly losses in SPY and QQQ demonstrate that investors are now acknowledging the long-anticipated ‘higher for longer’ interest rate scenario that they previously disregarded.
Rick Bensignor, Strategist at Bensignor Investment Strategies
Meanwhile, Federal Reserve Chairman Jerome Powell threw a curveball by hinting that a September rate cut is on the table. This is a stark contrast to earlier expectations of multiple rate cuts in 2024, which had been dampened by recent inflation data. Powell’s comments have injected a dose of optimism into the market, calming jittery investors.
Analysts are increasingly focusing on the technology sector, recognizing that corporate earnings from giants like Meta, Tesla, American Airlines, Microsoft, and Alphabet will be crucial in shaping the market in the coming days. These earnings reports are expected to set the tone for future market movements, highlighting the importance of keeping a close eye on tech stocks.
Meta’s stock performance has been nothing short of stellar. It closed at $487.40 after opening at $489.88, hitting a high of $495.22 and a low of $488.15. This significant increase underscores investor confidence in Meta’s future prospects. The stock is expected to continue its upward trajectory, with a 1-year target estimate of $530.03.
The large weekly losses in SPY and QQQ demonstrate that investors are now acknowledging the long-anticipated ‘higher for longer’ interest rate scenario that they previously disregarded.
Rick Bensignor
Meta’s CEO Mark Zuckerberg’s call for open-source AI is heralded as a transformative step forward for both Meta and the broader tech industry.
| Date | Market/Event/News | Change/Notes |
|---|---|---|
| 2024-07-31 | Meta Platforms expected to report earnings | After market close |
| 2024-07-31 | Dow Jones Industrial Average | Rose 0.2% |
| 2024-07-31 | Nasdaq Composite | Jumped 2.6%, best day since February |
| 2024-07-31 | Chicago business activity index (PMI) | Released for July |
| 2024-07-31 | U.S. crude oil stockpiles | Released |
| 2024-08-01 | S&P 500 | Jumped 1.6% to 5,522.30, best day since February |
| 2024-08-01 | S&P 500 Futures | Climb 0.1% |
| 2024-08-01 | Chip stocks | Rallied after upbeat earnings |
Stay tuned to Market Monitors for more insights and updates on this evolving story!
