It was an unprecedented week in the stock market as all three major U.S. indices collectively achieved new record highs. The surge in investor confidence was attributed to growing excitement over AI-related investments and the widespread anticipation of imminent Federal Reserve rate cuts.
The U.S. economy has outperformed expectations, underpinned by robust spending and an easing inflationary outlook. This favorable backdrop has stoked optimism among stock investors, fostering a buoyant market atmosphere.
While Netflix Inc. NFLX witnessed its most stellar weekly performance in over a year, Tesla Inc. TSLA experienced a turbulent week marred by disappointing quarterly data, leading to six consecutive weeks of decline – a first for the electric vehicle stock since 2016.
Here’s a roundup of the week’s pivotal market developments:
Netflix’s WWE Deal
Netflix‘s fourth-quarter results surpassed revenue forecasts but fell short of earnings per share estimates. The streaming service concluded the year with 260.28 million global paid members. Analysts underscored the transformative potential of Netflix’s decade-long partnership with WWE to live stream “Raw” from 2025 onwards, as it is expected to bolster audience engagement and advertising revenues.
Tesla Downgraded
Following Tesla’s subpar fourth-quarter performance, analysts revised their projections for the stock, citing apprehensions surrounding vehicle delivery growth and margin pressures. They went as far as to deem the stock “egregiously overvalued” and expressed reservations about Tesla’s near-term prospects.
Musk’s Wealth Plunges
Tesla’s stock debacle post-earnings report has pushed Elon Musk’s net worth below $200 billion, narrowing the gap with Jeff Bezos, who lags behind in wealth rankings.
Microsoft Hits $3-Trillion Valuation
Microsoft Corp. MSFT reached a $3-trillion market valuation, bolstered by buoyant sentiments around artificial intelligence and robust financial performance. This milestone has posed a challenge to Apple’s preeminence as the world’s most valuable company.
Alibaba’s Strong Revival
Alibaba Group Holdings Ltd BABA witnessed a more than 7% surge in its stock, as co-founders Jack Ma and Joe Tsai made substantial share purchases, fostering renewed market confidence in the Chinese e-commerce behemoth. This strategic move aligns with China’s efforts to bolster capital markets, presenting a promising outlook for the company.
Trump-Linked Stocks Surge
Stocks associated with Donald Trump, including Phunware and Digital World Acquisition Corp., soared this week in tandem with the escalating momentum of his prospective 2024 White House bid.
Read Next: Tesla Stock Rescue Plan: Analyst Lays Out 10 Items For Musk To Consider Including AI, Buyback, Acquisitions
Photo: Shutterstock
