The Nasdaq opened slightly higher and fell more than 6% after Arm’s performance
On Thursday, the three major U.S. stock indexes opened with mixed gains, but the Nasdaq quickly turned downward, dropping more than 6% by midday. The S&P 500 saw a slight increase of 0.03%, while the Dow fell 0.15%.
The drop in the Nasdaq was largely attributed to Arm’s disappointing performance. The semiconductor company saw its stock price plummet by 6.1% after reporting a decrease in Q4 shipments. Arm shipped 7 billion pieces in the fourth quarter, down from 7.8 billion pieces in the same period last year. Additionally, the company provided revenue guidance for fiscal 2025 of $3.8 billion to $4.1 billion, falling short of analysts’ expectations of $4.01 billion.
Another notable stock that took a hit on Thursday was Airbnb, which fell 6.7%. The company reported that Q1 accommodation and experience bookings grew by 9.5%, but its second-quarter revenue guidance of $2.68 billion to $2.74 billion was lower than expected.
On the other hand, Alibaba saw a 1.8% increase in its stock price after releasing the Tongyi Qianwen 2.5 model. The new model is said to have superior capabilities in the Chinese context, including text understanding, text generation, knowledge Q&A, life advice, chat & dialogue, and security features that surpass GPT-4.
Overall, the market experienced mixed results on Thursday as investors reacted to the latest earnings reports and guidance from companies like Arm, Airbnb, and Alibaba. The uncertainty in the market is likely to persist as investors monitor the ongoing economic recovery and potential inflation concerns.