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Meta Impresses Investors With Q1 Earnings Call, Apple and Amazon Expected to Follow & U.S. GDP Weakens, The Fed Is Expected to Take Action

Meta stock surges, following Q1 earnings call

Meta stock surged on Thursday, as markets reacted to the company’s Q1 earnings report.

Following last night’s closing bell, Meta reported both earnings and revenue beat expectations, with traders reacting to this news today.

According to the report, the company recorded earnings of $2.72 per share, which came in better than the estimate of $2.56.

This comes as revenue also increased, coming in at $27.91 billion, versus expectations of a $28.2 billion rise.

Overall, this is a 7% year-over-year increase, which buoyed Meta bulls, who pushed the company’s stock nearly 18% higher.

EURUSD drops to 5-year low, as U.S. GDP weakens

EURUSD dropped to a five year low during today’s session, as data revealed that U.S. GDP had fallen in Q1.

Data released today by the Commerce Department showed that Gross domestic product in the U.S. declined at a pace of 1.4% in the first quarter of the year.

This comes following recent growth in the U.S. economy, which pushed analysts to predict a 1% gain in GDP to start the year.

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These figures are a result primarily due to a record trade deficit and a decline in inventory investment.

Exports dropped 5.9% (from 22.4% in Q4), while imports surged 17.7% (from 17.9% in Q4). Meantime, gross private domestic investment growth slowed sharply (2.3% vs 36.7%).

On top of that, government spending declined further (-2.7% vs -2.6%). On the flip side, consumer spending (2.7% vs 2.5%) and fixed investment (7.3% vs 2.7%), particularly nonresidential, contributed positively to GDP. source: U.S. Bureau of Economic Analysis

However, with inflation continuing to pressure the economy, along with the impact of the war in Ukraine. growth has been halted.

Many now expect the Fed to take more action, with some predicting more rate hikes.

Apple/Amazon shares up, as both set to release quarterly financials

Apple shares were trading higher today, as the company geared up to release its own quarterly figures this evening.

Following on from Alphabet and Meta, Apple will hold its earnings call after today’s closing bell, with some expecting strong numbers.

Markets have projected that the company will report earnings per share of $1.43 on revenue of $94.15 billion. Amazon was also higher today, as the company founded by Jeff Bezos will also report earnings today.

It is expected to announce earnings of $8.37 on revenue of $116.46 billion. Both companies were trading over 4% higher as of writing.

“In the business world, the rear-view mirror is always clearer than the windshield.”

-Warren Buffett.

Eliman Dambell

Senior Market Analyst