October 25, 2023

TLDR

MARKET RECAP → Stocks fell Wednesday as Google-parent Alphabet (GOOG) notched its worst day since March of 2020. The S&P 500 (VOO) fell more than 1%, falling below 4,200–a closely watched chart level–for the first time since May. The tech-heavy Nasdaq (QQQ) fell over 2% for its worst day since February. What went up? Bitcoin (BTC) as enthusiasm continues to ramp for the king of crypto.

META’S TOPS EXPECTATIONS → ? Shares of Facebook-parent Meta (META) rose on a strong Q3 earnings announcement after the bell on Wednesday, topping Wall Street expectations as revenue jumped 23% year-over-year. With the stock up 140% so far in 2023, investors mull whether the tech giant will keep moving higher.

ALPHABET’S CLOUDY DAY → ? Alphabet’s stock dipped 9.6% Wednesday due to Google Cloud’s revenue miss, casting a shadow compared to Microsoft (MSFT) Azure’s performance.

Sean Horgan

Head of Investor Relations @ MoneyLion

$shorgan

Today’s S&P 500 Heatmap

Source: finviz.com

Today’s Top News

META’S TOPS EXPECTATIONS

? Meta (META) reported strong Q3 earnings, with advertising revenue bouncing back impressively. Earnings of $4.39 per share topped an expected $3.63 and revenue of $34.15 billion topped $33.56 billion expected as revenue growth accelerated to 23% year-over-year, up from 11% in Q2.

⚖️ While financial results looked promising, looming regulatory challenges pose a potential threat, casting a shadow on the upbeat results.

? The company’s ambitious dive into the “metaverse” was evident with significant investments, but Reality Labs, Meta’s AR/VR arm, has lost more than $21 billion since the start of the year, underscoring the risks of pioneering future tech.

Source: shutterstock

ALPHABET’S CLOUDY DAY

? Alphabet’s (GOOG) stock experienced its largest drop since March of 2020, declining more than 9% after Google Cloud’s revenue failed to meet analysts’ expectations.

?️ While Alphabet surpassed Wall Street’s revenue and EPS forecasts, its cloud revenue of $8.41 billion was short of the anticipated $8.64 billion. This contrasted sharply with Microsoft’s (MSFT) Intelligent Cloud segment, which reported accelerated growth.

? Analysts expressed concerns about Google Cloud’s performance, especially in comparison to Microsoft Azure’s growth. Google Cloud’s growth rate was 22%, a decrease from the 28% growth in the previous quarter.