Meta and others tumble after hours as results point to weak economy
Reuters
Published Jul 27, 2022 05:58PM ET
Updated Jul 27, 2022 06:11PM ET
By Noel Randewich
(Reuters) - Shares of several major U.S. companies tumbled in extended trade on Wednesday following poor quarterly results and forecasts that underscored fears about a potential recession.
Meta Platforms fell over 3% after the Facebook (NASDAQ:META) owner posted its first-ever quarterly drop in revenue and issued a gloomy forecast, echoing a warning last week from ad tech rival Snap (NYSE:SNAP).
Qualcomm (NASDAQ:QCOM) dropped more than 2% after offering a fiscal fourth-quarter revenue forecast that missed analysts' expectations as the mobile chipmaker braces for difficult economic conditions and a slowdown in smartphone demand.
ServiceNow (NYSE:NOW) slumped 6% after the business software seller cut its forecast for subscription revenues, blaming a stronger dollar. Cloud software heavyweight Salesforce (NYSE:CRM) lost over 2% after ServiceNow's report.
Wednesday's slew of late-day quarterly reports came after the Nasdaq rose 4% to post its biggest daily percentage gain since April 2020.
Most of the Nasdaq's gains came after the U.S. Federal Reserve raised interest rates by 75 basis points, as expected. Some investors viewed comments by Fed Chair Jerome Powell as signaling the Fed's fight to tame decades high inflation could be done by year-end.
Data due out on Thursday will show how much the U.S. economy expanded - or shrank - in the June quarter.
Also after the bell, Best Buy fell 2% after the electronics retailer warned of a deeper-than-expected drop in annual sales, showing that consumers are feeling the pressure of inflation and higher interest rates, and curbing spending on discretionary items such as computers and TVs.
Teladoc (NYSE:TDOC) Health, the fifth largest holding in star investor Cathie Wood's Ark Innovation ETF, collapsed by 20% after the virtual healthcare company reported a quarterly loss of $3.1 billion, with almost all of that from writing down the value of its goodwill. That compared to a loss of $133 million in the year-ago period.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.