Tech Stocks in Turmoil: Tesla’s Wild Ride, Microsoft’s Slump and IBM’s AI-Driven Rally
Meta (META) shares gained traction, while Tesla (TSLA) experienced significant volatility late Wednesday as investors digested quarterly financial results from the Magnificent 7 tech giants. Meanwhile, the broader market remained on edge following the AI sector’s upheaval, fueled by Chinese startup DeepSeek’s disruptive advancements.
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The AI-driven selloff that shook chip stocks earlier in the week—impacting Nvidia (NASDAQ:NVDA) and other semiconductor players—continues to be a focal point. Goldman Sachs analysts, however, reassured investors, describing the downturn as a “correction” rather than the start of a prolonged bear market.
“Equity markets entered the year priced for perfection, making them vulnerable to any disappointments,” noted Peter Oppenheimer, Chief Global Equity Strategist at Goldman Sachs, in a market report.
After-Hours Market Movers:
📉 Tesla (TSLA) +2.8% – The EV maker swung between losses and gains after missing Q4 estimates. The company posted earnings per share (EPS) of $0.73, falling short of Wall Street’s $0.72 projection, while margins tightened due to competitive pricing strategies.
📈 Meta Platforms (META) +4.6% – Strong Q4 earnings lifted shares, as revenue, user growth, and profits exceeded expectations. However, the company’s Q1 guidance, with a midpoint of $40.65 billion, fell slightly below analyst projections.
📉 Microsoft (MSFT) -1.9% – Despite topping overall earnings forecasts with an EPS of $3.23, Microsoft shares dipped as revenue from its Azure cloud segment missed expectations, raising concerns about future cloud growth.
🚀 IBM (IBM) +8% – The standout winner of the evening, IBM surged after issuing an optimistic 2025 outlook. The firm’s Q4 revenue of $17.54 billion beat expectations, fueled by efficiency improvements in artificial intelligence and favorable regulatory shifts benefiting its enterprise solutions.
As AI technology continues to reshape the market and earnings season unfolds, investors remain on high alert for further volatility and opportunities across the tech sector.
