BREAKING NEWS District Attorney Mike Ramsey says that Chico State professor Laird Easton has not been charged by his office Full Story

Tech reckoning: Stocks are in for a rough Thursday

Tech stocks had never been higher. Then Facebook reported earnings. Thursday's going to be ugly.Facebook's sto...

Posted: Jul 26, 2018 6:50 AM
Updated: Jul 26, 2018 6:50 AM

Tech stocks had never been higher. Then Facebook reported earnings. Thursday's going to be ugly.

Facebook's stock tumbled as much as 24% in after-hours trading Wednesday, after its chief financial officer warned that its sales growth would slow.

Concerned that the problems facing Facebook aren't unique, investors sold off the whole tech sector Wednesday evening. Twitter fell 6%. Amazon and Google were down 2%. Microsoft and Apple fell 1%.

Tech stocks have been on fire in 2018, lifting the broader market along with them. The Nasdaq hit another record high Wednesday, and it's up 15% this year.

Related: Facebook 'puts privacy first' and stock plunges 20%

The best-performing stocks in the S&P 500 read like a list of apps on your phone: Netflix is up 86% this year. Twitter is up 76%. TripAdvisor, AMD, Amazon, Adobe and Salesforce are all in the Top 20.

Just two days ago, the tech sector looked like it may never come down again. Google's earnings were great, even after it got hit with a $5 billion antitrust fine from the European Commission. Last week, Microsoft said its cloud business is going gangbusters.

These are healthy companies, and investors are looking for growth in a market that has been rattled by a looming trade war. Automakers got rocked Wednesday after revealing that steel and aluminum tariffs were crushing their bottom lines. Whirlpool, Harley-Davidson and many other manufacturers reported they had a rough quarter.

Compared to those manufacturers, Facebook is extremely healthy, too. Its sales soared 42% between April and June.

But Facebook's revenue badly missed Wall Street's expectations, and its warning about slower sales growth in the future freaked out investors.

Ross Sandler, an internet analyst at Barclays, called Facebook's deceleration "fairly dramatic."

Some of the issues are Facebook-specific, including changing the way it promotes content on its network. But Facebook said its customers are demanding better privacy protections after the fallout from the Cambridge Analytica scandal. The company said it plans to put "privacy first," which could hurt traffic.

The privacy issue could be a problem for Google, Apple, LinkedIn-owner Microsoft and especially Twitter.

California Coronavirus Cases

Data is updated nightly.

Cases: 3147735

Reported Deaths: 36846
CountyCasesDeaths
Los Angeles106550515184
San Bernardino2628581594
Riverside2585322777
San Diego2255582344
Orange2214932625
Santa Clara964351181
Kern89095590
Fresno847441043
Sacramento828611157
Alameda69693886
Ventura64404507
San Joaquin59395808
Contra Costa54416487
Stanislaus43938788
Tulare42759531
Monterey37285259
San Mateo33731340
San Francisco30027278
Santa Barbara26514264
Solano26494111
Imperial25562493
Merced25048324
Sonoma24761247
Kings19760160
Placer17675188
San Luis Obispo16437151
Madera13781151
Santa Cruz12687130
Marin11930163
Yolo11014138
Shasta9920129
Butte9711134
El Dorado800259
Sutter792783
Napa782847
Lassen526916
San Benito514348
Yuba504929
Tehama446846
Tuolumne344340
Nevada329674
Mendocino325635
Amador304232
Lake268132
Humboldt249425
Glenn198522
Colusa18549
Calaveras167223
Siskiyou148413
Mono11354
Inyo100729
Del Norte8732
Plumas6055
Modoc3873
Mariposa3464
Trinity3054
Sierra880
Alpine730
Unassigned00
Chico
Cloudy
41° wxIcon
Hi: 51° Lo: 33°
Feels Like: 34°
Oroville
Cloudy
44° wxIcon
Hi: 50° Lo: 41°
Feels Like: 41°
Chico
Cloudy
41° wxIcon
Hi: 44° Lo: 35°
Feels Like: 34°
Red Bluff
Cloudy
41° wxIcon
Hi: 32° Lo: 14°
Feels Like: 35°
Red Bluff
Mostly Cloudy
41° wxIcon
Hi: 46° Lo: 32°
Feels Like: 35°
Chico
Mostly Cloudy
41° wxIcon
Hi: 50° Lo: 33°
Feels Like: 34°
Several inches of rain along with multiple feet of snow will fall Tuesday through Friday with the biggest winter storm so far this season. A widespread hard freeze will be seen in the valley Monday night.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events