Analysis of Stock Market Performance and Major Company Movements in 2024 Stock Market Reaches New Highs, Tesla Stumbles, Netflix Takes Flight: A Weekly Market Review

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By Ronald Tech

This week, the three major U.S. stock market indices jointly reached new record highs, propelled by bullish sentiment towards AI-related investments and the anticipation of upcoming Fed rate cuts.

The U.S. economy continues to outpace growth expectations, driven by robust spending, while easing inflation presents an ideal scenario for stock investors.

It was a stellar week for internet entertainment service provider Netflix Inc. (NASDAQ:NFLX), which achieved its best weekly performance in over a year. Conversely, it was a tumultuous week for electric vehicle manufacturer Tesla Inc. (NASDAQ:TSLA), as disappointing quarterly data led to a six-week downward spiral in its stock price, a first since 2016.

Netflix’s WWE Deal

Netflix’s fourth-quarter results surpassed revenue expectations but fell short of earnings per share estimates. Despite this, the streaming service concluded the year with a total of 260.28 million global paid members. Analysts have highlighted the potential transformative impact of Netflix’s 10-year deal with WWE to stream “Raw” live, beginning in 2025, in terms of boosting audience and advertising revenue.

Tesla Downgraded

Following Tesla’s disappointing fourth-quarter results, analysts have revised their projections for the stock, citing concerns over vehicle delivery growth and margin pressures. The stock was labeled as “egregiously overvalued” this week, with analysts expressing skepticism about Tesla’s short-term prospects.

Musk’s Wealth Decline

Tesla’s stock decline post-earnings report has caused Elon Musk’s net worth to drop below $200 billion, narrowing the gap between his financial standing and that of Jeff Bezos, who trails behind in wealth rankings.

Microsoft Hits $3-Trillion Valuation

Microsoft Corp. (NYSE:MSFT) has achieved a market valuation of $3 trillion, driven by optimism surrounding artificial intelligence and robust financial performance. This milestone poses a challenge to Apple’s position as the world’s most valuable company.

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Alibaba’s Strong Revival

Alibaba Group Holdings Ltd (NYSE:BABA) witnessed a stock surge of over 7% as co-founders Jack Ma and Joe Tsai significantly invested in shares, boosting market confidence in the Chinese e-commerce giant. This move coincides with China’s plans to support capital markets, offering a positive outlook for the company.

Trump-Linked Stocks Soar

Stocks linked to Donald Trump, such as Phunware and Digital World Acquisition Corp., experienced a substantial surge as a result of his growing momentum in the 2024 White House race.

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