
Hold onto your stocks, because the Nasdaq just took a historic tumble!
Last week witnessed the 70th correction in Nasdaq’s 52 years, causing ripples across the tech world.
The index is up about 23% this year but off its July high by 12%.
The index – backed by the Magnificent Seven (Big Tech giants) – is on shaky ground, and investors are getting jittery.
Amazon?
Delivered beats on top and bottom lines, but wait, there’s a twist.
Their cloud growth?
Not up to par with what analysts hoped for.
And speaking of clouds, Google’s parent, Alphabet, faced its own storm as cloud revenues were hit by lightning, falling short by a WHOPPING $190 million.
But wait, Microsoft emerges as the knight in shining armor, not only acing their earnings but also dominating the cloud game.
But the ride isn’t smooth for all.
Tesla?
They swerved way off Wall Street’s track.
And while Apple is yet to reveal its report card, whispers say their device sales in 2023 are decelerating.
Meta and Snap?
Though they beat estimates, they’re treading with caution, hinting at geopolitical chaos affecting their outlook.
Steve Sosnick of Interactive Brokers spills the tea: “It’s the mega-cap tech stocks we’ve relied upon. They’re the double-edged sword, dazzling when they shine but disastrous when they dim.”
These results aren’t necessarily doomsday signals.
They’re reality checks for a market that’s been daydreaming.
Despite the turbulence, Amazon’s stock still soared over 50%, while Microsoft flew close to 40% this year.
But dark clouds are gathering.
Interest rates? Skyrocketing!
Gas prices? Through the roof!
Add to that, the inflation bogeyman isn’t going away anytime soon.
Moreover, the much-hyped AI? Still figuring out its $$$ game.
And here’s the shocker.
Big names like Oracle, Alphabet, and Amazon are scrambling for Nvidia chips, essential to unleash the AI beast.
Even Amazon’s head honcho, Andy Jassy, is brainstorming how to milk more from their cloud services.
So, what should YOU do?
GraniteShares’ big boss, Will Rhind, has some wisdom to share: “For the patient lot, look beyond the here and now. Interest rates are at their zenith and the economy? Still sturdy.”
But if you’re all about the now, be wary of herd mentality.
Ivana Delevska of Spear Invest warns, “When giants like Google stumble, panic ensues. But don’t mistake a price drop for weak fundamentals.”
Flashback: Nasdaq’s stumbles have been milestones, from the 2000 dot-com debacle to the 2020 pandemic havoc.
The market thrives on diverse rallies and narrow ones.
Not so much.
The takeaway?
Don’t put all your eggs in one tech basket.
Steve Sosnick adds the zinger: “When cash exits market biggies and vanishes entirely, that’s when alarm bells ring. And this week? They rang LOUD!”
So, brace yourself, investors, as this tech roller coaster is far from its final loop.