Recession Fears, Earnings Results Sending Nasdaq Stocks Down: Why It's an Opportunity for Investors
The Nasdaq Composite Index (NASDAQINDEX: ^IXIC) is down almost 238 points, or 2%, as of 1:18 p.m. ET on July 22, as earnings season ramps up. One of today's biggest losers is social media behemoth Meta Platforms (NASDAQ: META), down 7.8%. Joining it in the sell-off are Intuitive Surgical (NASDAQ: ISRG) and SVB Financial (NASDAQ: SIVB), after reporting quarterly results that fell short of expectations. Those two are down 5.5% and 16.7%, respectively, as of this writing.
Meta Platforms, the company behind two of the world's biggest social media platforms in Instagram and Facebook, is seeing its shares fall today after two of its peers, Twitter and Snap, reported second-quarter results that paint a worrisome picture. Snap's revenue increased year over year, but fell from the first quarter, while Twitter saw revenue fall from last year and last quarter.
Investors now are expecting to see similar struggles from Meta. The company is coming off a rough couple of quarters -- at least by its incredibly high prior standard -- and barring a surprise, is unlikely to return to revenue and profit growth in the face of ad buyers pulling back from spending as consumers deal with the pressure of rising interest rates and four-decade-high levels of inflation.
Source Fool.com
