Growth in Meta Results has Boomed the Stock
Facebook recovered from a calamitous drop in user numbers earlier this year, and its parent company Meta reported a profit ahead of Wall Street targets, defying low investor expectations with a quarterly report that sent shares up 19% in after-hours trading.
Meta CEO Mark Zuckerberg also stated that the company would cut costs and invest in artificial intelligence tools to improve recommendations and ads, indicating that Meta is focusing on making money while also working on its long-term goals of building the metaverse.
The Meta (NASDAQ: FB) stock rocketed 19% after-hours trading on Wednesday, currently priced at $207 a share.
MACROECONOMIC DATA ANALYSIS
According to Reuters polls of over 500 experts, the global economy would grow more slowly than projections formed three months ago, amid climbing commodity prices and an escalation in the Russia-Ukraine conflict potentially prompting another downgrade. World economic output was already under strain due to monetary tightening as central banks struggle to contain growing inflation, but it took a hit when Russia invaded Ukraine on Feb. 24, sending commodity prices skyrocketing and sparking waves of economic sanctions.
The Swiss National Bank reported a loss of 32.8 billion Swiss francs ($33.75 billion) in the first quarter, owing to lower bond prices and a stronger Swiss franc, the central bank said on Thursday. The bank lost 36.8 billion francs on its foreign currency investments made during the franc's taming operation. Renowned as a safe-haven currency, the Swiss franc lost some of its ground against the U.S. dollar, with the USD/CHF currency pair trading 0.02% higher.
The U.S. dollar was soaring on Wednesday morning, approaching levels not seen in two decades. The euro was slammed by a building energy crisis in Europe, while investors absorbed the Bank of Japan's (BOJ) latest policy decision which directed the yen to 20-year lows. The U.S. dollar index which compares the greenback against a basket of six other major currencies, escalated by 0.44% to 103.412.
Gold prices sunk to a 10-week low on Thursday, as demand for the dollar-denominated precious metal was harmed, and the metal's appeal as an inflation hedge was weakened by an imminent Federal Reserve interest rate hike. The safe haven inched 0.14% higher to $1,888 per ounce.
Oil prices inched slightly higher on Thursday, despite declining fuel demand in China, the world's largest oil importer, as a result of COVID-19 regulations and restrictions. Crude stocks increased by only 692,000 barrels last week, falling short of estimates, while distillate inventories, which include diesel and jet fuel, plummeted to their lowest level since May 2008. Brent futures inched 0.20% higher to $105.17 a barrel, and WTI oil futures edged 0.37% higher to $102.41 per barrel.
USA: S&P500 +0.21%, Dow Jones Industrial Average +0.19%, Nasdaq Composite -0.05%
Europe: FTSE 100 +0.95, DAX +1.85%, CAC 40 +1.98%
Asia: Nikkei 225 +1.75%, Hang Seng +1.65%, CSI 300 +0.66%, Nifty 50 +1.66%
Shares of social media stocks, including Meta & Twitter plunged, the Snapchat stock collapsed by more than 40% on Tuesday’s trading session. The Snapchat parent of the popular social media platform has warned that it expects to miss profit & revenue estimates due to macroeconomic deterioration.
As a result, the company's market capitalization has plummeted to $20.92 billion, almost three-fold away from its highest levels of the year; nearly $82 billion in early February. The Snapchat stock (NYSE: SNAP) fell sharply from $22.49 to $12.79 on Tuesday, down from its debut price of $17 in 2017.
Samsung Electronics announced shall invest 450 trillion won ($356 billion) over the next five years to bolster growth in semiconductors, biopharmaceuticals, and other next-generation technologies.
Samsung stated on Tuesday that the investments will aid the firm in achieving long-term growth in pivotal spectrums like the chip industry, while also promising aggressive expenditures in the biopharmaceutical industry to make it as successful as its chip segment.