Weekly Summary: 9 January 2025 – Trudeau Resignation, Oil Surge, US Markets
Thursday 09 January 2025
Nasdaq Hits Record, Salesforce Beats Earnings Estimates
Tech stocks are finding favour among some investors again as the Nasdaq index, which includes many of the best-known and fastest-growing technology companies, struck a record high on Tuesday, 3 December.
The Nasdaq composite closed at 19480.91, while the Nasdaq 100, composed of the 100 largest cap stocks listed on the Nasdaq, closed at 21,229.32.
Among the top gainers on the Nasdaq were Artificial Intelligence (AI) stock favourites Meta Platforms (META) and Palantir Technologies (PLTR). In what could give support to extended gains as the market opens on Wednesday, 4 December, Salesforce (CRM) released well-received Q3 earnings after the close on Tuesday, taking the shares up as much as 10% after hours.
Nasdaq 100 Price Breaks Out
A close above the former record close reached earlier this month took the Nasdaq 100 into fresh territory on 3 December. The stock has been in a steady uptrend all year, with the price finding support at its 200-day moving average in August and September and, more recently, its 50-day SMA.
Palantir and Meta Drive Nasdaq Gains
Palantir surged over +6% following the announcement that it received US government authorisation for two of its cloud services.
Not only does the company’s use of artificial intelligence make it one of the ‘AI darlings’ that has outperformed this year, but it has also become a ‘Trump trade’ amid speculation for higher defence spending under the new administration.
Social media giant Meta Platforms, the owner of Facebook, Instagram and WhatsApp, rose 3.5% on 3 December, extending its multi-day uptrend since CEO Mark Zuckerberg met with US President-elect Donald Trump on 27 November.
Salesforce Spikes After Earnings
The expected gains in Salesforce shares at the open of trading on Wednesday, 4 December, could be seen as a reaction to its strong results and its CEO’s comments on its progress with AI.
Salesforce shares rose 10% on Tuesday after hours, having reported fiscal third-quarter results that beat revenue expectations and included strong fourth-quarter guidance. The company posted adjusted earnings per share of $2.41, slightly below the $2.44 analysts anticipated, while revenue reached $9.44 billion, surpassing the $9.34 billion estimate. Revenue grew 8% year-over-year, and net income climbed 25% to $1.5 billion.
For the fiscal fourth quarter, Salesforce expects revenue between $9.90 billion and $10.10 billion, aligning with analysts’ projections. It also forecasts earnings per share in the range of $2.57 to $2.62, just shy of the $2.65 analysts expected.
In the following earnings call, Salesforce CEO Marc Benioff touted ‘Agentforce’ - the company's AI solution as being “at the heart of a groundbreaking transformation.” (Source: CNBC)
Conclusion: Nasdaq Shows Tech Back in Favour
The Nasdaq’s record close on December 3 highlights renewed investor enthusiasm for technology stocks, driven by strong performances from companies like Salesforce, Palantir, and Meta. With robust earnings reports and the groundswell of optimism around AI, the sector appears poised to sustain its upward momentum as year-end approaches.
