What a way to start the week! A whirlwind Monday in the markets may have you wondering, what did the stock market do today? Dive in with InvestorPlace below.
- The S&P 500 closed lower by 1.04%
- The Dow Jones Industrial Average closed lower by 0.1%
- The Nasdaq Composite closed lower by 2.55%
So what did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Sell Tech Stocks.
Tech stocks had a really bad day. In fact, the Nasdaq Composite lost 2.6%, its worst single-day performance since March.
Palantir (NYSE:PLTR) was one such loser, dropping 6.5% ahead of earnings tomorrow. It seems that investors are gearing up for disappointment. As InvestorPlace contributor Chris MacDonald wrote, even positive guidance and an earnings beat might not be enough to cheer Wall Street up. Interest rate concerns, valuations and the reopening narrative have been weighing on tech stocks.
Although this broad narrative is certainly at play, there were a few other catalysts sinking the Nasdaq on Monday.
To start, the U.S. Department of Defense said it may walk away from its $10 billion JEDI contract. This would be a hit to Microsoft (NASDAQ:MSFT), the contentious winner. Regulators are pushing Facebook (NASDAQ:FB) away from its planned Instagram Youth app, and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) dipped thanks to poor ad guidance.
What is the bottom line? As we saw with Palantir, stumbles by Big Tech companies will have far-reaching ripple effects. However, MacDonald believes there is still a lot to like about these powerhouses. Investors should look to the April jobs report as a sign of hope for growth investments, he writes, and wait for expectations to balance out with the reopening narrative.
These Winning Cryptos Really Look Like the Medina Spirit
At the beginning of the month, Medina Spirit won the Kentucky Derby.
Now, a failed drug test could take that victory away, and cast long-term doubts on the winning horse.
In many ways, InvestorPlace Assistant News Writer Brenden Rearick says this situation is similar to what is happening with cryptocurrencies right now. In the last few weeks, altcoins have shot up. Ethereum (CCC:ETH-USD) has been leading the way, setting a new record high above $4,000. Eager for the next big opportunity, investors have been piling into altcoins of all levels of legitimacy.
Some of these cryptos really look like winners in 2021, garland of roses and all. However, as Rearick highlights, they face upcoming tests that could expose them as Medina Spirit. For instance, XRP (CCC:XRP-USD) has been sparkling thanks to an ongoing lawsuit. Court proceedings appear favorable for Ripple in its case with the U.S. Securities and Exchange Commission, bolstering XRP prices. However, if investors receive bad news from the judge, XRP could crash and burn.
Underneath this playful reminder is the reality that not all cryptos are destined to be the next Bitcoin (CCC:BTC-USD). Some deserve their exponential gains, and others deserve to fail their next tests. Read more about four other cryptos in the crosshairs here.
Can ByteDance Take a Bite Out of Alibaba?
ByteDance is prepping for its initial public offering, and it is set to debut with a $250 billion valuation.
That would make the short-form video specialist a truly giant public company, riding its TikTok and Douyin to great success. Before it comes public, however, ByteDance is looking to take a bite out of one of its top competitors.
If you are not familiar with ByteDance, you are likely familiar with TikTok, its viral short-form video app. Douyin is its Chinese counterpart, pairing short skits with viral songs and dance trends. These apps drew in massive followings during the pandemic. Importantly, these apps have also made ByteDance a social media and internet leader in China.
Now, ByteDance wants to use its short-form video platforms to sell products — clothing, makeup, accessories, you name it! This method is incredibly popular with Alibaba (NYSE:BABA), and was a huge component of its 2020 Singles Day holiday. Brands work with influencers to market their products and deliver livestreamed sales pitches. Customers get personal shopping ads woven into their social media consumption.
So what does this mean for investors? It appears that this experiment is already working for ByteDance, which sold about $26 billion of products in 2020. By 2022, it wants to sell $185 billion. Alibaba may have an early lead on this space, but there is clearly still opportunity. Keep this in mind as you do some (portfolio) shopping of your own.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.