Ipek Ozkardeskaya
Swissquote Bank Ltd
Meta fell 15% in the afterhours trading despite earnings beat as investors didn’t like the weaker-than-expected revenue forecast for the current quarter and even less the news that the company will be spending more money to improve its AI capabilities. Tesla jumped 12% regardless of revenue miss. Google, Microsoft and Intel are due to report today.
So far, we observe that the high expectations have played tricks on stock valuations and the first set of earnings reactions warn that even strong results from Big Tech may not suffice to send their stock prices higher – if we start seeing growth expectations level out. (I am looking at you Microsoft and Nvidia.)
Zooming out, the stumbling giant Meta is weighing on the mood this morning. US futures are down and the technology-heavy Nasdaq is leading losses with more than 1% fall at the time of writing.
The macroeconomic landscape is complex, with investors balancing between robust GDP growth and high earnings expectations for the Big Tech companies, all while considering the fading expectations for a Federal Reserve's (Fed) rate cut. All eyes on US Q1 GDP today.
In the FX, the USDJPY continues its advance above 155 defying expectation of a direct FX intervention in the next few hours.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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