The S&P 500 (SNPINDEX:^GSPC) slipped 0.17% to 6,969.01 and the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.72% to 23,685.12 on tech weakness today. The Dow Jones Industrial Average (DJINDICES:^DJI) inched up 0.11% to 49,071.56, holding near record territory. Market movers Mega-cap tech dominated trading as Microsoft (NASDAQ:MSFT) fell 9.99% to $433.50. According to Bloomberg, the $357 billion wipeout was the second-largest loss in a single session. Strong results from Meta Platforms (NASDAQ:META) helped ...

Core Insights - Meta Platforms reported strong Q4 results, showcasing significant revenue growth and earnings beat, while providing optimistic guidance for future performance [1][3][9] Financial Performance - Q4 sales reached $59.89 billion, a nearly 24% increase from $48.38 billion in the same quarter last year, surpassing estimates of $58.59 billion by 2% [3] - Q4 EPS was $8.88, up 11% from $8.02 a year ago, beating expectations of $8.21 by 8% [3][4] Capital Expenditures - Meta announced a significant increase in capital expenditures (CapEx), expecting it to be between $115-$135 billion in 2026, up from $72.22 billion last year and more than 200% from $37.26 billion in 2024 [7] - The increase in CapEx is aimed at scaling AI infrastructure, including data centers and the "Meta Superintelligence Labs" [4][6] AI Impact - AI has been a primary contributor to Meta's growth, enhancing ad targeting, driving higher engagement, and strengthening advertiser demand [2][6] - The robust growth in Meta's family of social media apps, higher ad impressions, and improved ad pricing were key factors in the strong Q4 performance [2] Future Guidance - Meta provided positive revenue guidance for Q1 2026, expecting sales between $53.5-$56.5 billion, exceeding Wall Street's expectations of $51.38 billion [9][10] - Year-over-year growth estimates for the upcoming quarters indicate a strong outlook, with anticipated growth rates of 21% for the current quarter and 18.6% for the next quarter [10] Return on Invested Capital (ROIC) - Meta's ROIC stands at 27%, indicating a strong ability to convert invested capital into profits, which is favorable compared to the S&P 500 average of 15% [11] Valuation - Meta is positioned as one of the most attractively priced high-growth tech stocks, with a forward P/E valuation of 22X, which is lower than its peers in the Mag 7 [13] - Despite a high stock price of over $700, the valuation presents a discount compared to other major tech companies [13] Market Position - Following the strong Q4 report, Meta stock holds a Zacks Rank 3 (Hold), with potential for a buy rating due to favorable guidance, valuation, and ROIC [15] - Anticipated EPS revisions for FY26 and FY27 could further catalyze upside in Meta stock, with double-digit growth expected [16]

In New York, the Dow Jones industrial average was up 55.96 points at 49,071.56. The S&P 500 index was down 9.02 points at 6,969.01, while the Nasdaq composite was down 172.33 points at 23,685.12.Microsoft was the heaviest weight on the U.S. market by far, and the tech giant tumbled 10% even though it reported stronger profit and revenue for the latest quarter than analysts expected. Investors honed in instead on how much Microsoft is spending on investments, whether growth in its Azure cloud business will s ...

January Strength Signals Potential New HighsJanuary looks likely to confirm a bullish reversal on the monthly chart with a close at a three-month high, above $711. Once confirmed, the chance to eventually rise above the record high at $796.25. During January’s ascent, the 10-month average was reclaimed, a sign of strength.Remaining above the 10-month average may lead to a similar advance as seen following the 2022 low. In February 2023, the 10-month average was reclaimed and a strong rally followed, with it ...

that do not rely heavily on technology. A significant portion of assets will be concentrated in securities in related industries, and may be similarly affected by adverse developments and price movements in such industries. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small and medium c ...

Over the last few months I have mentioned multiple times my intention to pile up some cash, and this is what I did. I don’t think there are currently many opportunities to seize; therefore, I am waiting on the sidelines. However, as the cash pile getsPassionate about geopolitics and macroeconomics, I express my opinion through my articles and enjoy engaging with all of you. I also write about companies that catch my attention, particularly those in my portfolio. For me, Seeking Alpha is a way to expand my k ...

[Chart courtesy of MarketWatch.com][Chart courtesy of MarketWatch.com]Moving the marketThe major indexes opened sharply lower, dragged down hard by Microsoft after its latest earnings miss.The stock tanked 11%—its worst day since March 2020—on slower cloud growth and soft margin guidance for the next quarter.That sparked fresh worries that AI might disrupt even Microsoft’s core business model, so software names got hit too: ServiceNow dropped 12% (even after beating estimates), Oracle fell 5%, and Salesforc ...

Market Overview - The stock market closed mostly lower, with the Dow managing to finish slightly in the green, while the NASDAQ experienced its worst day in several months [1][2][3] - The S&P 500 ended with a minor loss of about 13 basis points, while the Russell 2000 small-cap index was also slightly down [3] Company Performance - Microsoft saw a significant drop, down approximately 10% at its lows, marking its worst performance in several months [4] - Tesla also declined by 3%, while Meta's stock rose by 10%, contributing to a strong performance in the communication services sector [4][5] - SanDisk reported a revenue of $3.03 billion, exceeding expectations of $2.68 billion, and its earnings per share came in at $620, significantly higher than the expected $344 [22][23] - SanDisk's stock has surged over 90% year-to-date, driven by high demand for memory products in the AI sector [24][25] Sector Analysis - The communication services sector reached a record high, while technology was the worst-performing sector, down 1.6%, primarily due to poor performance in software stocks [5][6] - The software industry faced widespread declines, with companies like SAP down 15% and Atlassian down 10% [6][7] - In the semiconductor space, companies like Lamb Research and KLA saw gains of about 3.5%, indicating a mixed performance within the sector [7] Geopolitical Impact on Oil - Crude oil prices rose to their highest levels since September, influenced by President Trump's threats of military action against Iran, which has led to a risk premium in the oil market [11][12] - Analysts noted that the market is not currently pricing in a full-scale conflict but is reacting to operational signals and geopolitical tensions [12][13] Housing Market Insights - US mortgage rates are holding steady at 6.1%, the lowest in three years, but housing affordability remains a challenge due to high home prices [44][45] - The "lock-in effect" is causing homeowners with low-rate mortgages to keep their homes off the market, contributing to tight inventory levels [48][50] - New home listings have increased, but they are still 20% below pre-pandemic levels, indicating a slow recovery in housing supply [50][56] Future Outlook - Analysts expect continued high demand for memory products, particularly in AI infrastructure, but caution against potential oversupply in the future as production ramps up [39][42] - The housing market may see improvements in inventory levels, but significant policy changes at the state and local levels are needed to address long-term supply issues [52][56]

Microsoft, Meta, Tesla, Joby Aviation, Royal Caribbean, and More Stock Movers - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# These Stocks Are Today's Movers: Microsoft, Meta, Tesla, Joby Aviation, SAP, Royal Caribbean, and MoreBy [Mackenzi ...

Hello and welcome to Market Domination. I'm Josh Lipton live from our New York headquarters. There's just an hour to go now until the closing bell and stocks are lower as Microsoft's plunge weighs on the S&P 500 and NASDAQ.Jared Blickery standing by with all the headlines. Jared, thank you. Josh, if you're just looking at the quotes right now, it doesn't look that bad, but it was kind of scary in the morning.Here's the Dow. And by the way, the Dow wasn't doing too bad. It was really centered in tech, the se ...