The Nasdaq closed down just .25% today, but there was a sea of red in certain segments of the market.
Yesterday, all 26 of the Russell 1000 stocks that were up more than 100% year-to-date declined. On average, they were down more than 5%.
That list includes companies like Applovin (Nasdaq: APP), MicroStrategy (Nasdaq: MSTR), Carvana (NYSE: CVNA), and Palantir (Nasdaq: PLTR). Let’s check in on how momentum stocks are performing after yesterday’s sell-off:
As you can see, yesterday’s sell-off on highly appreciated stocks has moderated, but the group is still generally down today. This will continue to be an interesting storyline to watch in the weeks ahead.
Live coverage has ended. The full story is below.
As of 11:00 a.m. ET, the Nasdaq Composite is bouncing back from yesterday’s drop thanks to a major contribution from Alphabet (Nasdaq: GOOGL). However, other major indexes are slightly in the red or flat on a mixed trading day:
Let’s take a look at some of the bigger storylines in the market today.
In 24/7 Wall St’s market update yesterday, we covered the announcement of Google’s new quantum chip, named Willow. The stock of Google-parent company Alphabet barely budged yesterday after Willow’s announcement, but is rising sharply today. Alphabet shares are up 4.80%.
Other Magnificent 7 stocks are also seeing strong returns today. Tesla (Nasdaq: TSLA) is up 4.1%, Meta Platforms (Nasdaq: META) is up 1.5%, Amazon (Nasdaq: AMZN) is up 1%, and NVIDIA (Nasdaq: NVDA) is up .8%. Most categories of technology are performing well today, but there is some weakness largely stemming from earnings releases.
The most followed earnings release last night came from Oracle (Nasdaq: ORCL). The company is up 69% year-to-date amidst optimism its competing well against the largest hyperscalers and can become a major cloud computing company. However, today the company is down nearly 8%.
The headline figure investors are zeroing in on today is Oracle’s revenue. Wall Street expected $14.12 billion in revenue, but Oracle came up short, producing just $14.06 billion. The miss was driven by lower-than-expected sales in Oracle’s cloud services and support business. Another concern for investors was that operating cash flow came in at $1.304 billion, well below expectations of $1.795 billion.
Wall Street opinions on Oracle are mixed this morning. Some banks like RBC Capital are keeping the company at sector perform with price targets below where its trading today. While others like Bernstein see today’s sell-off as a buying opportunity and emphasize Oracle’s long-term tailwinds from the growth of AI.
Another widely followed technology stock trading down today is MongoDB (Nasdaq: MDB). The company stock is off 13% after announcing earnings. MongoDB beat earnings expectations, smashed earnings, and outperformed guidance, so the strong reaction to its earnings are a bit of a surprise.
One reason for Wall Street’s reaction today is the company’s conference call went into details that much of the earnings beat was driven by upfront revenue on multi-year deals. The company may also be a victim of rising expectations in its sector after Snowflake (NYSE: SNOW) soared after releasing its recent earnings.
Contact [email protected] for any questions or corrections.
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
As of 12:30 p.m. ET, markets are largely flat on the day. Here’s a check-in on major indexes: Nasdaq: Up 9.82(+.05%) S&P 500: Down 3.86 (-.06%) Dow Jones Industrial Average: Down 40.55 (-.09%) Russell 2000: -18.48…
Last night we covered NVIDIA‘s (Nasdaq: NVDA | NVDA Price Prediction) earnings in a live blog. The big picture is that results last quarter beat expectations by a respectable amount. EPS of $.89 topped…
This article will be updated throughout the day, so check back often for more daily updates. The winds have gone out of the sails of the markets after President Trump threatened unilateral tariffs in…
In premarket trading, Nasdaq-100 Futures are down about .17% as of 8:25 a.m. ET. The major storylines impacting the index today will include signs the DOJ may get more aggressive on large technology stocks…
Earnings season rolls on, and the biggest story tonight is Amazon (Nasdaq: AMZN) reporting fourth-quarter earnings earnings after the bell. We’ll be updating a live blog during the announcement, so make sure to refresh this page…
This article will be updated throughout the day, so check back often for more daily updates. The markets are celebrating the latest development on the tariff front. President Trump has announced a “comprehensive” trade…
AI stocks are on the move after hours. The primary catalyst is earnings from Alphabet (Nasdaq: GOOGL | GOOGL Price Prediction). While Alphabet shares are off nearly 7%, there was news in their earnings release that…
Can the S&P 500 gain for its fourth consecutive day? Stocks ripped higher yesterday after lower-than-expected inflation data was announced. However, markets are far more muted today. As of 11 a.m. ET major indexes…
As of 11:40 a.m. ET, the Nasdaq-100 is down about 48 points, or -.25%. Yet, the larger market is rallying today. Let’s take a look at how major indexes are performing today. Nasdaq Composite:…
