Dow Jones Futures Fall, Techs Dive As Facebook Crashes, Spotify Skids

Dow Jones futures fell slightly overnight, while S&P 500 futures and especially Nasdaq futures sold off. Facebook parent Meta Platforms (FB), Spotify (SPOT) and Qualcomm (QCOM) headlined after-hours earnings.

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The market rally rose modestly Wednesday as Google parent Alphabet (GOOGL) and AMD stock jumped on earnings, offsetting PYPL stock and weak overall breadth.

Google stock broke out after the open on strong earnings and a 20-for-1 split, but pulled back below the 3,019.43 buy point. Shares still jumped 7.5% to 2,960. The relative strength line for GOOGL stock hit a new high. Advanced Micro Devices (AMD) popped 5.1% on hot results and guidance, but is still below its 50-day line.

Meanwhile, PayPal (PYPL) and Dynatrace (DT) were among several earnings losers Wednesday. PYPL stock crashed nearly 25% to the lowest point since May 2020. DT stock skidded 18%, hitting a 52-week low. They also triggered big losses in beaten-down growth stocks that have tried to rebound. Shopify (SHOP) and Snowflake (SNOW) fell sharply. Tesla stock retreated modestly, still comfortably above its 200-day line.

The video embedded in this article reviewed the market rally and analyzed Google, AMD stock and Equity Residential (EQR).

Meta Earnings

Meta Platforms earnings unexpectedly fell 5% while revenue narrowly beat. The Facebook parent also guided lower on Q1 revenue.

FB stock crashed 23% in extended trade, signaling at least an 11-month low. That’s after rising 1.25% Wednesday in reaction to Google earnings.

SNAP stock sold off more than 10% while Twitter (TWTR) and Trade Desk (TTD) retreated significantly. Even Google stock fell modestly. Snapchat parent Snap (SNAP) reports Thursday.

Other Key Earnings

Qualcomm earnings were better than expected while guidance also appeared solid. QCOM stock fell modestly overnight after an initial tumble. Shares had popped 6.25% to 188.20 on Wednesday, powering back above the 50-day line. The RS line hit a record high, but it’s not clear what a good Qualcomm stock buy point would be.

Another chipmaker, MaxLinear (MXL), had a beat-and-raise report as well. MXL stock edged higher in extended action. Shares climbed 1.4% on Wednesday to 61, rising for a fourth straight session after finding support at its 200-day line.

Spotify results were roughly in line, but paid subscriber guidance was a little light. Spotify is dealing with some musicians pulling their content, claiming Covid misinformation by podcast host Joe Rogan. SPOT stock plunged 11% overnight.

Tesla (TSLA) is on IBD Leaderboard. Google stock is on IBD Long-Term Leaders. Tesla and MXL stock are on the IBD 50. Google was IBD Stock Of The Day.

Dow Jones Futures Today

Dow Jones futures fell 0.1% vs. fair value. S&P 500 futures sank 1.05%. Nasdaq 100 futures plunged 2.25%. FB stock is weighing on Nasdaq futures, but many other techs are losing ground.

Crude oil futures fell slightly.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily…