Tech investors are feeling the heat after a disappointing earnings report from Meta Platforms Inc. sent shockwaves through the market. The tech giant’s weaker-than-expected sales forecast and increased capital expenditures caused a massive selloff, wiping out $400 billion in market value from the Nasdaq 100 Index.
Meta’s stock plummeted by as much as 16%, while other tech giants like Alphabet Inc., Microsoft Corp., and Amazon.com Inc. also saw significant drops in their share prices. The results have raised concerns about the impact of heavy spending on artificial intelligence and whether the returns on these investments will meet expectations.
Analysts and investors are now questioning the future of the AI trade, with some wondering why companies like Meta are struggling to meet revenue expectations despite their focus on AI technology. The disappointing results from Meta, International Business Machines Corp., and ServiceNow Inc. have added to the overall gloom in the tech sector.
Despite the losses, some see this as a buying opportunity, with portfolio manager Fares Hendi noting that Meta is on his fund’s watch list. He sees the current weakness as a potential entry point for investors looking to capitalize on the market downturn.
As technology earnings season continues, all eyes will be on upcoming reports from some of the biggest players in the industry. The results from these companies will likely have a significant impact on the overall market sentiment and could determine the direction of tech stocks in the coming days.
With uncertainty looming, investors will be closely monitoring the tech sector for any signs of recovery or further downturns. Stay tuned for more updates as the story unfolds.
