Disappointing GDP Growth and Inflation Data Send Stocks Tumbling: A Look at the First Quarter Economic Report and Meta Platforms' Earnings

New York, New York, USA United States of America
Core inflation rate increased to 3.7% annually, higher than expected and up from previous quarter's 2%.
Dow Jones Industrial Average dropped by 1.8%, S&P 500 and Nasdaq Composite declined by up to 1.5% and 1.9% respectively.
Meta Platforms daily active people increased by 7%, operating margin improved due to advertising growth and cost cuts.
Meta Platforms reported Q1 earnings with revenue of $36.5 billion, a 27% increase from previous year.
U.S. economy raised concerns with disappointing 1.6% GDP growth rate in Q1, lower than forecasted 2.4%.
Disappointing GDP Growth and Inflation Data Send Stocks Tumbling: A Look at the First Quarter Economic Report and Meta Platforms' Earnings

Stocks experienced a turbulent week as two major economic reports raised concerns about the health of the U.S. economy. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all saw significant declines following disappointing GDP growth and inflation data.

First Quarter Economic Data: The U.S. Bureau of Economic Analysis reported that the country's gross domestic product (GDP) expanded at an annualized rate of 1.6% in the first quarter, significantly lower than the forecasted 2.4%. This marked a sharp slowdown from the previous quarter's growth rate.

Adding to investors' worries was a higher-than-expected inflation rate. The core personal consumption expenditures (PCE) price index increased at an annualized pace of 3.7% in the first quarter, up from 2% in the last quarter and above economists' expectations.

Stock Market Reaction: The Dow Jones Industrial Average dropped by as much as 1.8%, while the S&P 500 and Nasdaq Composite declined by up to 1.5% and 1.9%, respectively, before recovering slightly.

Meta Platforms' Q1 Earnings: Separately, Meta Platforms reported its first-quarter earnings with revenue of $36.5 billion, a 27% increase from the previous year and higher than expected. The company also reported a 7% increase in daily active people and improved operating margin due to advertising growth and cost cuts.

Despite these strong results, Meta Platforms stock plunged by as much as 15% after hours on the update, with investors seemingly concerned about the company's massive spending on AI research and data centers.

Market Outlook: The latest economic data and earnings reports have raised concerns about a potential slowdown in the U.S. economy, while persistent inflation continues to weigh on investor sentiment. The Federal Reserve is expected to closely monitor these developments as it decides whether to continue raising interest rates.


Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image

Confidence

95%

No Doubts Found At Time Of Publication

Sources

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Dow closes lower by more than 370 points as inflation, growth worries resurface: Live updates

CNBC News Brian Evans Thursday, 25 April 2024 14:40
  • Unique Points
    • GDP growth was lower than expected at 1.6% instead of forecasted 2.4%.
    • Inflation rate was higher than expected at a pace of 3.4% instead of the previous quarter’s 1.8%.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

80%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Meta Platforms Stock Just Plunged. Should You Buy the Dip or Run for Cover?

Yahoo Finance Jeremy Bowman, Saturday, 27 April 2024 20:31
  • Unique Points
    • Meta Platforms reported Q1 earnings with revenue of $36.5 billion, a 27% increase from the previous year and higher than expected.
    • , Meta reported a 7% increase in family daily active people.
    • Operating margin improved from 25% to 38% due to advertising growth and cost cuts.
    • GAAP EPS was $4.71, up 114% YoY and above expectations.
  • Accuracy
    • Meta Platforms reported a 7% increase in family daily active people.
    • The company's guidance for Q2 revenue was below analyst consensus at $36.5 billion to $39 billion.
    • GDP growth was lower than expected at 1.6% instead of forecasted 2.4%.
    • Meta plunged 10.5% after issuing light revenue guidance for the second quarter.
  • Deception (30%)
    The article contains selective reporting and emotional manipulation. The author focuses on the negative reaction to Meta's guidance, implying that investors are skeptical about the company's spending on its metaverse project and AI. However, the author fails to mention that Meta's first-quarter results were strong, with revenue growth of 27% and improved operating margin. The author also uses phrases like 'boondoggle,' 'seemingly little benefit,' and 'disappointment' to manipulate the reader's emotions towards Meta. Furthermore, the author mentions that Meta's valuation has gotten richer, but does not provide any context or evidence to support this claim.
    • The recent results show that the Quest 3 has been a disappointment
    • On the surface, the increase in expense guidance is modest, but investors may be skeptical about another boondoggle
  • Fallacies (85%)
    The author commits an appeal to authority fallacy by referencing the analyst consensus for second quarter revenue and implying that it is a reliable indicator of Meta's financial performance. Additionally, the author makes a dichotomous depiction by framing investor sentiment as either being concerned with guidance or focusing on strong first-quarter results.
    • Meta called for only modest sequential revenue growth in the second quarter of $36.5 billion to $39 billion, or $37.75 billion at the midpoint, which was below the analyst consensus at $38.29 billion.
    • Investors should be prepared for a further pullback, but for long-term investors, the current sell-off looks like a buying opportunity.
  • Bias (95%)
    The author expresses a neutral tone towards the company's financial performance and provides an objective analysis of the quarterly results. The bias, if any, is towards providing investors with information to make informed decisions about Meta Platforms stock. However, there are some instances where the author expresses a negative sentiment towards Meta's Reality Labs segment and its metaverse project due to its high expenses and losses.
    • Meta called for only modest sequential revenue growth in the second quarter of $36.5 billion to $39 billion, or $37.75 billion at the midpoint, which was below the analyst consensus at $38.29 billion.
      • Meta said the increase in expense guidance was due to higher infrastructure and legal costs, and that operating losses would continue to increase meaningfully in Reality Labs.
        • The increase in expense guidance is modest, but investors may be skeptical about another boondoggle.
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication

        97%

        The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
        (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

        A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

        Meta’s investors are worried about the billions it’s spending on AI—but its advertising empire makes it a positive, Deutsche Bank says

        Fortune Media Inc. Friday, 26 April 2024 00:00
        • Unique Points
          • Meta is raising its estimates for capital expenditures, which includes spending on AI training and data centers, by billions of dollars.
          • CEO Mark Zuckerberg announced that the company anticipates capital expenditures will continue to increase in 2025.
          • Deutsche Bank argues that Meta’s strong position in advertising makes it a prime contender to benefit from its investments in AI long-term.
          • 30% of posts viewed on Facebook are AI-recommended, and this number rises to 50% for Instagram, demonstrating the effectiveness of AI in driving engagement and revenue for Meta’s platforms.
        • Accuracy
          • Meta has already invested close to $50 billion into its metaverse initiatives with no clear benefits yet.
        • Deception (100%)
          None Found At Time Of Publication
        • Fallacies (100%)
          None Found At Time Of Publication
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (0%)
          None Found At Time Of Publication

        87%

        The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
        (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

        A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

        Stock markets fall after sharp US growth slowdown

        theguardian.com Article URL: https://www.theguardian.com/world/2024/feb/13/ pakistan-·coalition-·agrees-to-form-government Callum Jones Thursday, 25 April 2024 20:47
        • Unique Points
          • US economic growth slowed down to an annualized rate of 1.6% in Q1 of 2024
          • Inflation, as measured by the core personal consumption expenditures (PCE) price index, rose by 3.7% in Q1 of 2024
        • Accuracy
          • The Dow Jones industrial average and S&P 500 both experienced significant declines on Thursday
          • The technology-focused Nasdaq also declined on Thursday
        • Deception (70%)
          The article reports on the US economic growth slowdown and rising inflation. While there is no overt deception in the article, there are instances of selective reporting and emotional manipulation. The author focuses on the negative aspects of the economic data, such as the slower-than-expected GDP growth and higher-than-anticipated inflation rate, without mentioning that both figures were still positive. This creates a sense of doom and gloom around the US economy, which may not be warranted based on the data alone. Additionally, the author quotes economists expressing concern about the economic data and uses their quotes to further emphasize the negative aspects of the situation. However, these economists' opinions are not presented as such, leading readers to believe that they are facts rather than interpretations of data.
          • But as high interest rates take their toll on the world’s largest economy, inflation continues to loom large.
          • The first quarter’s core inflation reading could spook the Fed a little.
          • The same measure rose by 2% in the last quarter of 2023. While economists had expected an acceleration, the reading was higher than the average 3.4% forecast.
        • Fallacies (85%)
          The author makes an appeal to authority when quoting Ian Shepherdson and Ryan Sweet. He also uses inflammatory rhetoric by stating that 'inflation continues to loom large' and 'prices still remain far higher than where they stood before the pandemic'. However, he does not provide any specific fallacious arguments or statements made by the author himself.
          • Ian Shepherdson, chief economist at Pantheon Macroeconomics, predicting that core PCE inflation ‘will rise at an annualized rate much closer to 2%’ over the next few months.
          • Ryan Sweet, chief US economist at Oxford Economics. ‘The core PCE deflator rose 3.7% at an annualized rate in Q1, nearly double the clip seen in each of the prior two quarters and stronger than either we or the consensus anticipated.’
          • inflation continues to loom large.
          • prices still remain far higher than where they stood before the pandemic.
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication