Despite an unexpected increase in jobless claims that rekindled some concerns about the economy and brought bond yields lower, technology companies led the way higher in U.S. markets on Thursday. Twitter earnings outperformed views, with revenue increasing by 74%, the highest increase in seven years.
Investors re-entered their favourite tech stocks as optimism about the sector grows ahead of huge earnings releases for some of the sector’s biggest brands next week. Salesforce increased by 2.5%, while Amazon and Facebook increased by 1.4%.
Despite soaring sales growth, Snap and Twitter’s results shattered expectations. In overnight trading, the stocks of Snap and TWTR soared, indicating prospective breakouts. This boosted the stock prices of Facebook (FB), Pinterest (PINS), and Google (GOOG) in the futures market.
READ: Robinhood sets eyes on $35 billion valuation despite the pains of other massive IPOs
Twitter launched its first subscription service in the third quarter, which allows users access to an Undo Tweet button and other features. For users with at least 600 followers, the business also made its Spaces audio chat tool available on mobile devices. It also announced the addition of a Tip Jar function, which will allow users to contribute money to other users on the site.
Twitter outperformed predictions in a variety of categories, including; Earnings: 20 cents per share, adjusted, compared to 7 cents predicted by Refinitiv’s poll of analysts. Also, revenue was $1.19 billion, compared to $1.07 billion as projected by Refinitiv’s polled analysts. Moreover, monetizable daily active users (mDAUs): 206 million vs. 206.2 million as projected by Street Account’s poll of analysts. This caused major movement in the price of Twitter shares as it trended bullish.
READ: Why Twitter Ban is negative in the fight against insecurity and fake news
Quick Market analysis
Apple (AAPL) and Microsoft (MSFT) were among the top movers, but Virgin Galactic (SPCE) and AMC Entertainment (AMC) plummeted once more.
The Nasdaq performed the best of the major indexes. It finished with a 0.36% gain. Immunoprecise Antibodies increased by +136.49%, while Sentage Holdings fell by -62.38%.
The S&P 500 was also up, rising 0.2%. FirstEnergry and Rail stock CSX (CSX) performed most, gaining +4.29% and 3.4% respectively.
Domino’s Pizza (DPZ) was one of the major winners, finishing up 14.6% on its most recent earnings release.
The Dow Jones Industrial Average gained the least of the main indices. It increased by about 0.07%. One of the top components was Apple stock. With a gain of roughly 1%, it moved away from a buying zone.
In overnight trading, Twitter stock rose nearly 6% to 73.50. Because of the good results from Snap and Twitter, PINS shares jumped 4.5% in extended trading, while Facebook rose by 1.13%.
SPCE has been battling to get out of a downward spiral since its stock price fell by about 39% last week. Virgin Galactic’s stock dropped after the company announced plans to sell up to $500 million in equity in a regulatory filing.
