Stock Market Hits Record Highs, Tesla Tumbles, Netflix Soars: This Week In The Markets

This week, the three major U.S. stock market indices jointly reached new record highs, driven by investors’ enthusiasm for AI-related investments and expectations for upcoming Fed rate cuts.

The U.S. economy continues to exceed growth expectations, driven by strong spending, and as inflation eases, this creates a welcome scenario for stock investors.

It was a stellar week for Netflix Inc. NFLX, with the streaming giant achieving its best weekly performance in over a year. On the flipside, it was a tumultuous week for Tesla Inc. TSLA, as disappointing quarterly data led to a negative streak of six consecutive weeks in the red for the electric vehicle stock for the first time since 2016.

Here’s a summary of more business news from the week that you need to know:

Netflix's WWE Deal

Netflix‘s fourth-quarter results exceeded revenue expectations but missed earnings per share estimates. The streaming service ended the year with 260.28 million global paid members. Analysts highlighted the transformative potential of Netflix’s 10-year deal with WWE to stream  "Raw" live, starting in 2025, to boost audience and advertising revenue.

Tesla Downgraded

Following Tesla’s disappointing fourth-quarter results, analysts lowered their projections for the stock, citing concerns over vehicle delivery growth and margin pressures. Analysts called the stock “egregiously overvalued” this week and expressed difficulty in remaining optimistic about Tesla's short-term prospects.

Musk’s Wealth Plunges

Tesla‘s stock plunge after earnings report drops Elon Musk’s net worth below $200 billion. This shift brings Musk’s financial standing closer to Jeff Bezos, who trails behind in wealth rankings.

Microsoft Hits $3-Trillion Valuation

Microsoft Corp. MSFT reached a $3-trillion market valuation, driven by artificial intelligence optimism and strong financial performance. This milestone challenges Apple’s position as the world’s most valuable company.

Alibaba’s Strong Revival

Alibaba Group Holdings Ltd BABA’s stock surged over 7% as co-founders Jack Ma and Joe Tsai heavily invested in shares, bolstering 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 Surge

Stocks linked to Donald Trump, including Phunware and Digital World Acquisition Corp., skyrocketed this week following his rising momentum in the 2024 White House race.

Read Next: Tesla Stock Rescue Plan: Analyst Lays Out 10 Items For Musk To Consider Including AI, Buyback, Acquisitions

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