Tech stocks experience significant decline due to disappointing earnings and slowing job growth

From CNBC: 2024-08-02 18:12:31

The Nasdaq slumped 3.4% this week, marking an 8.8% decline over the past three weeks, the worst performance since September 2022. Earnings season has been rocky, with companies like Amazon and Apple showing weaker growth. U.S. job growth slowed unexpectedly, impacting tech giants’ results and stock prices.

Amazon and Apple both reported earnings below expectations, with Amazon’s revenue missing and Amazon blaming customers for buying cheaper goods. Apple’s stock was up slightly after beating estimates but fell the prior two weeks. Microsoft missed expectations and is down 10% over three weeks due to Azure cloud struggles.

Alphabet and Nvidia also faced challenges, with Alphabet’s ad revenue falling short and Nvidia’s stock dropping amid concerns about potential slippage. Intel, once a chip giant, had its worst day in 50 years, plummeting 26% after disappointing earnings and a major restructuring plan. Analysts are cautious about Intel’s future.

Meta, on the other hand, saw stock growth of almost 5% after surpassing estimates and issuing a positive forecast for the quarter. The company credited its AI investments for improving ad relevance and campaign creation. Despite the recent rally, Meta is still down over the past three weeks.



Read more at CNBC:: Tech stocks wrap up steepest three-week slump in two years, led by plunge in Amazon and Intel