Nonetheless, investors seemed thrilled even with these middling overall results, which sent both the S&P 500 and Nasdaq 100 on an upward trajectory through most of July. With time for a deeper retrospect, investors gave up their optimism, sending both indices on a marked downtrend in August.
Even amid a broadly sluggish quarter, there were some companies that did shine. Here’s a look at some of the outperformers of the second quarter.
Tech Takes the Lead, Again
While the US-China chip war has cast dark clouds on the AI aspirations of industry majors, tech stocks have climbed almost 30% year to date.
Meta Platforms not only reported double-digit revenue growth for the first time in five quarters, but also projected a higher-than-expected range for the third quarter. Last year had been particularly gloomy, with Meta’s ad targeting capabilities being hit by Apple’s iOS privacy changes. Investors rewarded the Facebook parent by sending its stock 5.5% higher, the third biggest earnings-reaction-day rally in its history.
Meta Platforms continues to focus on improving the operational efficiency of all its platforms, especially its AR/VR-based Metaverse. Investors eagerly await more updates from Llama 2 and Quest 3 as well as new AI products in Meta’s pipeline. That’s the reason sentiment remains bullish, as reflected by Acuity’s AssetIQ widget, despite the stock’s steep rally so far this year.