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China Fund News Taylor

Brothers and sisters, please continue to pay attention to the overseas markets tonight. The recent market fluctuations of U.S. stocks are quite large!

Tonight's U.S. stock market, the three major indexes opened high and closed low, the Dow Jones Industrial Average plunged, falling more than 500 points, and the Nasdaq Composite Index fell more than 1%!

The stock price of Meta, the parent company of Facebook, once soared by more than 10%, and then the increase narrowed. Meta announced its second quarter financial report for 2024, with revenue of US$39.071 billion, a year-on-year increase of 22%, higher than the analyst's expectation of US$38.3 billion; net profit of US$13.465 billion, a year-on-year increase of 73%; earnings per share of US$5.16, higher than the analyst's expectation of US$4.74.

Meta's stock price has risen nearly 50% in the past 12 months as breakthroughs in AI technology have improved the company's ad targeting capabilities. These advances in AI helped Meta overcome the challenges posed by Apple's privacy policy changes in 2021, which resulted in a $10 billion reduction in Meta's revenue in 2022.

Meta expects third-quarter revenue to be between $38.5 billion and $41 billion, while analysts surveyed by FactSet expected $38.3 billion.

The stock price of Arm, a well-known chip design company, plummeted by more than 16%. On the news front, Arm announced its first-quarter results. In the first fiscal quarter ending in June, revenue increased 39% to $939 million, far exceeding analysts' forecast of $905.4 million. Although the performance exceeded expectations, the company did not raise its full-year performance guidance, which disappointed investors who had hoped to get a blowout return like Nvidia.

Chief Executive Rene Haas said the company was seeing weakness in some markets. Arm cut its revenue forecast for its key AI business and maintained "tepid" full-year revenue guidance. This has heightened concerns about the market's lack of confidence in its future growth prospects. Before the plunge, the stock had risen 92% this year.

Looking ahead, the company maintained its full-year sales guidance of approximately $3.8 billion to $4.1 billion.

In addition, the Philadelphia Semiconductor Index fell by about 5%, and chip stocks almost collapsed! Qualcomm fell by more than 8%, and Micron Technology fell by more than 6%!

Shares of biotech giant Moderna plunged nearly 20%! On the news front, Moderna announced second-quarter results, with revenue of $241 million, down about 30% year-on-year, and market expectations of $132 million. Among them, product sales of the new crown vaccine fell 37% year-on-year. The company said the decline in revenue was partly due to seasonal factors, with patients usually receiving the new crown vaccine in the fall and winter. With a net loss of $1.28 billion, the company currently expects product revenue in 2024 to be between $3 billion and $3.5 billion, lower than the previous expectation of $4 billion.

Moderna cut its full-year sales guidance due to lower expected sales in Europe, a "fierce competitive environment" for respiratory vaccines in the United States and the potential delay of some international revenue until 2025.