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What Happened This Week: Twitter, Tech Wreck And Apple – Earnings Week To Remember

Published 28/10/2022, 21:45

A heavy earnings week is always a busy time for the markets, but is “busy” really the word to describe the past week?

First, Let’s Talk About Twitter

Well, the question was finally answered: Elon Musk did, indeed, buy Twitter (NYSE:TWTR). The deal to turn the platform into a private company was sealed last Thursday. By Friday, the stock was no longer trading. And today, well, shareholders are just waiting for their cheques to arrive. Musk agreed to pay $54.20 a share, just above where the stock stopped trading on Thursday at $53.70.

Everybody except investors is left to wonder what will happen next – for now. That is because this is not the last the markets will hear from Twitter. The bird will come back to roost. It will be a publicly traded company again. Musk has big plans. And that will take, well, you know, big money. And not even the richest man in the world will do it on his own completely.

Now, Let’s Tackle The Tech Wreck

First, it was not a total wreck. Sure, Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META) are assessing the damage while they await a tow truck to get themselves out of the ditch after their latest earnings reports sent them careening off their designated routes. But Apple (NASDAQ:AAPL) stayed on the road, and continues along its merry way, upward and onward.

The hit Amazon stock took yesterday is not just about past earnings, though. Although the online retailer’s figures were below analysts’ expectations, they did see growth, as third-quarter revenue hit $127.1 billion, up about 15% on a year-over-year basis.

The real hitch came with statements that outlined fourth-quarter guidance. Amazon stated the upcoming Christmas season fourth quarter is expected to hit between $140 billion and $144 billion, a substantial bit below the expected target of $155 billion. But this shouldn’t be a surprise.

Back in September, FedEx (NYSE:FDX) saw its stock take a hefty blow, dropping 22%, marking its biggest loss in more than four decades. The U.S. package-delivery service is a bellwether performer for the U.S. economy, and it offered an early warning for the related industries. And when it comes to delivering packages, how much closer related can a company be than Amazon?

When FedEx has what was described as an “ugly quarter,” investors have to pay that heed.

Coincidence that Amazon saw its market cap dip below the $1-trillion mark in intraday trading for a time this week? Consumers are feeling the squeeze.

Amazon Weekly Chart.

Source: Investing.com

Alphabet (NASDAQ:GOOGL) and Meta also took significant hits to their stock prices this week in the wake of their earnings reports as they missed on revenue and profit estimates.

Again, investors need to look beyond the immediate numbers, especially in the case of Meta. They need to listen to what is being said. And Meta sent a clear message this past week, and it should not be a surprise: It is all in on the metaverse. And that could be a bit of a trudge before the investment pays off. Creating something new is never an easy undertaking.

Meta stock went from a high last week of $138.12 to close yesterday at $99.20, a 28% drop. It could have farther to go.

Meta Weekly Chart

Source: Investing.com

One thing to keep in mind: Meta, Alphabet, Microsoft (NASDAQ:MSFT) and Amazon dipped below what many analysts would describe as “major support levels” this past week. And all for different reasons.

As for Apple, it posted record revenues for its fourth quarter. Its stock gained 7.5% yesterday, earning it two other points to boast about – the best day since the onset of the pandemic in 2020 and the second best performer on the Dow Jones on the day.

So How To Sum It All Up

So maybe “busy” really is not the word to describe the past week? How about we go with “prophetic?” But that, of course, is a choice.

Top Winners And Losers Of The Week

Again, for all those out there who are keeping score, here are the top gainers of the past week:

On the S&P 500

  • Universal Health Services (NYSE:UHS): +30.04%
  • DexCom Inc (NASDAQ:DXCM): +26.33%
  • Enphase Energy (NASDAQ:ENPH): +21.13%
  • Raymond James Financial (NYSE:RJF): +18.07%
  • MSCI Inc (NYSE:MSCI): +18.05%

On the NASDAQ Composite

  • Sellas Life Sciences Group Inc (NASDAQ:SLS): +68.11%
  • Altra Holdings Inc (NASDAQ:AIMC): +57.33%
  • Mullen Automotive Inc (NASDAQ:MULN): +37.57%
  • Data I/O Corporation (NASDAQ:DAIO): +36.69%
  • Limestone Bancorp Inc (NASDAQ:LMST): +29.31%

And the biggest losers:

On the S&P 500

  • Meta Platforms Inc (NASDAQ:META): -23.70%
  • DaVita Healthcare Partners (NYSE:DVA): -21.61%
  • Edwards Lifesciences Corp (NYSE:EW): -16.58%
  • Amazon.com Inc (NASDAQ:AMZN): -13:33%
  • Align Technology (NASDAQ:ALGN): -9.17%

On the NASDAQ Composite

  • Thermogenesis Holdings Inc (NASDAQ:THMO): -60.47%
  • AcelRx Pharmaceuticals Inc (NASDAQ:ACRX): -31.06%
  • Pineapple Holdings Inc (NASDAQ:PEGY): -27.13%
  • FormFactor Inc (NASDAQ:FORM): -24.67%
  • Horizon Bancorp (NASDAQ:HBNC): -20.46%

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