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Meta Has a Disappointing Q2, S&P 500 Climbs to Multi-Week High & Amazon Prepares for Earnings Call

Meta shares down, following disappointing Q2 earnings

Shares in Meta were lower on Thursday, as the company reported disappointing Q2 earnings figures.

The company, which held its earnings call after yesterday’s closing bell, announced that both revenue and earnings were lower than expected.

It was revealed that revenue totalled $28.82 billion for the quarter, which was marginally lower than the expected $28.94 billion.

In addition, earnings per share came in at $2.46, which was lower than the $2.59 per share expected.

Nevertheless, daily active users for Facebook rose, coming in at 1.97 billion versus 1.95 billion expected.

CEO Mark Zuckerberg stated that, “It was good to see a positive trajectory on our engagement trends this quarter coming from products like Reels and our investments in AI”.

S&P 500 Climbs to Multi-Week High

The S&P 500 rallied to its highest level since June, despite data today showing that the United States has entered recession.

GDP figures released today showed domestic production in the country declined by 0.9% year-on-year, marking the second straight quarterly.

This now puts the U.S. economy in contraction territory and comes following a slowdown in the global economy.

Following the release of the data, the Bureau of Economic Analysis stated, “The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and non-residential fixed investment that were partly offset by increases in exports and personal consumption expenditures”.

Despite this, the benchmark S&P 500 is up 1.22% higher as of this writing.

Amazon Stock Up, Ahead of Earnings Call

Amazon was marginally higher on Thursday, ahead of the company’s quarterly earning call.

The company founded by Jeff Bezos is set to hold its earnings call after today’s closing bell, with many expecting a slowdown in sales.

It is expected that Amazon will report earnings per share of 13 cents, that will come on revenue of $119.2 billion for the quarter.

This week has seen Meta, Microsoft, and Alphabet all post disappointing numbers, with Amazon potentially set to join them.

As of writing this, the company’s stock is 1.21% higher.

“The fundamental law of investing is the uncertainty of the future.”

-Peter Bernstein.

Eliman Dambell

Senior Market Analyst