Wall Street Under Pressure: Tech Heavyweights Disappoint

There is pressure in the stock market as disappointing reports from leading technology companies dampen sentiment. The S&P 500 recorded a decline of 1.6%, while the Nasdaq Composite dropped by 2.5%. The Dow Jones Industrial Average lost 0.64%, and the Russell 2000 Index fell by 0.82%. Microsoft shares fell by 5.5% following a weak revenue forecast. Although Meta achieved better quarterly earnings than expected, it still faced a 4% decline. This was due to missed expectations for user growth and higher planned capital expenditures for 2025. A bright spot is the used car dealer Carvana, whose stock price rose impressively by 24% at midday. The company significantly exceeded the consensus estimate with earnings per share of 64 cents compared to 25 cents, and it raised its earnings forecast for 2024. Revenue in the third quarter amounted to $3.65 billion, surpassing the expected $3.45 billion. Furthermore, Carvana expects an increase in retail vehicle sales in the fourth quarter. Already in the third quarter, 108,651 vehicles were sold, representing a 34% increase compared to the previous year. In contrast, Meta Platforms had to face a setback despite exceeding earnings figures. The company reported earnings per share of $6.03 for the third quarter, while analysts had expected $5.25. Revenue increased by 19% to $40.59 billion but fell slightly short of analyst expectations for user growth with 3.29 billion daily active users.