This week, the major U.S. stock market indices combined for new record highs. Investor sentiment soared, driven by AI-related investments and anticipation of future Fed rate cuts.
The U.S. economy continues to surpass expectations, buoyed by robust spending and declining inflation, bolstering stock investor confidence.
This week marked a triumph for Netflix Inc., with the streaming powerhouse achieving its best weekly performance in over a year. Conversely, Tesla Inc. faced turmoil as disappointing quarterly data led to a six-week stretch of losses, the longest since 2016.
Here’s a summary of more noteworthy events from the week:
Netflix’s WWE Deal
Netflix’s fourth-quarter results surpassed revenue expectations but fell short of earnings per share estimates. The streaming service closed the year with 260.28 million global paid members. Analysts underscored the transformative potential of Netflix’s 10-year deal with WWE to stream “Raw” live, starting in 2025, as a means to boost audience and advertising revenue.
Tesla Downgraded
Following Tesla’s disappointing fourth-quarter results, analysts revised their projections for the stock, citing concerns over vehicle delivery growth and margin pressures. Analysts labeled the stock “egregiously overvalued” this week and expressed difficulty in maintaining short-term optimism for Tesla’s prospects.
Musk’s Wealth Plunges
Tesla’s stock plunge after the earnings report caused Elon Musk’s net worth to dip below $200 billion. This shift brings Musk’s financial standing closer to Jeff Bezos, who lags behind in wealth rankings.
Microsoft Hits $3-Trillion Valuation
Microsoft Corp. reached a $3-trillion market valuation, fueled by optimism around artificial intelligence and robust financial performance. This milestone challenges Apple’s position as the world’s most valuable company.
Alibaba’s Strong Revival
Alibaba Group Holdings Ltd’s stock surged over 7% as co-founders Jack Ma and Joe Tsai heavily invested in shares, boosting market confidence in the Chinese e-commerce giant. This move coincides with China’s plans to support capital markets, offering a positive outlook for the company.
Trump-Linked Stocks Surge
Stocks linked to Donald Trump, including Phunware and Digital World Acquisition Corp., skyrocketed this week amid his growing momentum in the 2024 White House race.
Photo: Shutterstock