Posted on 07/26/2018 6:40:56 AM PDT by Red Badger
The tech-heavy Nasdaq Composite and S&P 500 opened lower on Thursday after a sharp decline in Facebook sent tech shares lower.
Facebook shares dropped more than 20 percent in the premarket, a day after its quarterly revenue missed expectations. Global daily active users, a key metric for the social media giant, also disappointed investors. Additionally, Facebook said it expects its revenue growth rates to slow down from last year. Facebook's earnings per share, however, topped Wall Street estimates.
"It's all about tech and Facebook," said Tom Essaye, founder of The Sevens Report. "Facebook earnings and guidance were a disaster and at one point the stock was down 25% overnight. Now, the question is how much will Facebook weakness pull down the entire market?
The decline in Facebook's stock dragged down the entire tech sector, with shares of Amazon, Apple, Netflix and Alphabet all trading lower before the bell.
Facebook's negative results offset strong earnings from NBCUniversal-parent Comcast, Allergan, Qualcomm and Advanced Micro Devices. Comcast shares rose 4.1 percent, while Allergan's stock gained 0.7 percent. Qualcomm and Advanced Micro Devices both jumped about 7 percent on the back of better-than-expected earnings.
The decline in Facebook also overshadowed positive news on trade. On Wednesday, President Donald Trump announced that the U.S. and the European Union had initiated a "new phase" within their relationship, explaining how both regions would start collaborating in order to lower tariffs and avoid a potential trade war.
"We agreed today, first of all, to work together towards zero tariffs, zero non-tariff barriers and zero subsidies for the non-auto industrial goods," Trump said at a press conference with Juncker. The U.S. leader, however, did not comment on whether carmaker tariffs had been dealt with; meaning, automakers will be in focus on Thursday. Trade concerns surrounding China however still remain tense.
Trump's announcement comes after trade relations between the U.S. and EU had been strained in recent months. Shares of Caterpillar rose 0.5 percent. Caterpillar is a company sensitive to trade tensions given its large exposure to overseas revenue. Caterpillar's gains helped lift the Dow Jones Industrial Average.
Treasury Secretary Steven Mnuchin also told CNBC on Thursday a deal on NAFTA is coming in the near future. "We hope to have an agreement in principle, clearly, very soon. That's the first priority," Mnuchin said on "Squawk Box."
—CNBC's Michelle Castillo contributed to this report
All these companies with few tangible assets no income....................
Young people are abandoning FB.
It has become ‘Granny Book’....................
Yes, it seems to be all about Insta and maybe Snapchat.
FB starting to be a dinosaur. I quit it years ago.
It has become a real life Chinpokomon.
“Young people are abandoning FB. It has become ‘Granny Book’....................”
Any industry that predicates its success on adolescents and the equivalent of millennial age customers is going to have issues with staying power - for the same reason that the popularity of entertainers waxes and wanes. Not much that begins as a popular fad stays ‘cool’ forever.
The only useful thing that Facebook has...is WhatsApp. The rest of it...particularly this guiding of news to me....is a total waste.
It’s the modern day “GeoCities.”
ummm...just who do you think acquired Instagram six years ago?
Hey Zuck, remember MySpace? Bwahahaha!
Facebook owns Instagram.
Who in their right mind thought that a medium where your friends, mother, father, brothers, sisters, uncles, aunts, cousins and ALL their friends and relatives are constantly watching everything you type, say or do would be a good long term investment?..............Enjoy the Schadenfreude!..........
To be honest, part of their lost revenues may be from liberals who are angry at Facebook for ‘allowing the Russians to place political ads’. I know liberals who blame Facebook for the election.
Compuserv and Prodigy as well..................
Like a sand castle at high tide......
Granny Book
Conspiracy Book
Political Book
Or my favorite
FakeBook
Compuserv, Prodigy, America OnLine, MySpace, Facebook..........................
Maybe he could prop it up with its vast assets
It’s not entirely a laughing matter. Facebook has destroyed lives. 63% of all divorce filings worldwide specifically mention Facebook. People have been raped and murdered due to Facebook. People have committed suicide due to bullying on Facebook. Global swindlers and criminals have used it to wipe people out.
One of the founders admitted that they knew it would do those things, but they went ahead anyhow because the money was just too good.
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