Stocks sell off as tech falls and investors question frothy valuations
Stocks tumbled and the VIX rose as investors worried about a broader pullback.
The S&P 500, Nasdaq 100, and Russell 2000 sank as stocks got speed checked by various factors, including a sell-off in Palantir despite an objectively stellar quarter for the software giant, vague warnings from the CEOs of Goldman Sachs and Morgan Stanley about a broader pullback, and a filing showing that Michael Burry of “The Big Short” fame has bet that Nvidia and Palantir will tumble. Tech was the worst-performing sector ETF.
Moving higher:
iHeartMedia surged on reports that Netflix wants its video podcasts in an attempt to compete with YouTube in the streaming wars.
Apple is designing a new sub-$1,000 Mac laptop to challenge Google Chromebooks.
Moving lower:
The negative reaction to Palantir’s positive earnings spread to smaller, volatile segments of the market also beloved by the retail community like fuel cell company Bloom Energy; no-revenues nuclear company Oklo; neoclouds Nebius and CoreWeave; quantum stocks like D-Wave Quantum, Rigetti Computing, IonQ, and Quantum Computing; and other story stocks like SoundHound AI, Rocket Lab, and Opendoor Technologies.
Uber fell after reporting solid earnings but mixed guidance, with its Q4 adjusted EBITDA outlook falling short of estimates. In its earnings call today, the company said markets where it has autonomous vehicles are outperforming markets without them.
Delta Air Lines, United Airlines, American Airlines, and Southwest Airlines sank after Transportation Secretary Duffy said parts of US airspace could close if the government shutdown continues.
Spotify dipped as investors digested the streaming giant’s Q3 earnings, in which the company reported that it added more than 70 million monthly active users, posted revenues that were up 7% from last year, and improved profitability.
Hims & Hers dropped after reporting third-quarter earnings results yesterday that missed Wall Street estimates but revenue that blew expectations out of the water.
Pfizer ticked lower after reporting an earnings beat, as the company is embroiled in a bid-off for obesity biotech Metsera.
Starbucks dipped following news that it’s selling control of its China business for $4 billion.
In crypto news, Bitcoin hit its lowest price since June and meme coins like shiba inu, Cats in a dogs world, Pepe, popcat, pnut, bonk, dogecoin, dogwifhat, Floki , and Moo Deng faced a steep meltdown amid a broad market decline.
