Market Movers: Tech Giants Report Earnings
Disappointment in Redmond
Microsoft’s latest earnings report sent shockwaves through the market, causing its shares to plummet over 6% after Wednesday’s close. This lackluster performance is nothing new, as MSFT has been stuck in neutral over the past year, underperforming the Nasdaq 100 (QQQ) since late 2023. Despite this, analysts remain bullish, with 53 buys, four holds, and no sells.
Meta’s Meteoric Rise
In stark contrast, Meta’s earnings report was met with enthusiasm, sending its shares soaring 1.6% to an all-time high. The company’s strong technical foundation and relative strength versus the QQQ since its 2022 low have made it a darling of the market.
Tesla’s Tepid Response
Tesla’s earnings report was met with a lukewarm response, with its shares rising almost 3% before finishing off their intraday highs. The company’s stock has largely tracked the QQQ over the past four years, failing to break out of its established trend.
IBM’s Resurgence
IBM, on the other hand, was a clear winner, jumping 13% to an all-time high. This is a far cry from the IBM of old, with the company’s transformation efforts clearly paying off.
NOW’s Nosedive
NOW’s earnings report was a different story, with its shares plummeting 11%. However, this decline comes on the heels of a remarkable two-year run, and investors remain optimistic about the company’s long-term prospects.
Market Outlook
The S&P 500 has nearly filled the gap from Monday, with the top of the gap sitting at 6,089. A close above 6,120 could pave the way for further gains in the current uptrend, which began on January 13. Conversely, a loss of Monday’s lows at 5,963 could set up a test of the mid-January lows between 5,773 and 5,827.
QQQ Struggles
The QQQ is struggling to find its footing, hovering near a five-day low. As the market continues to digest the latest earnings reports, investors will be watching closely to see which direction the QQQ will break.
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