Get All Access for $5/mo

Great Earnings Numbers Push Facebook Stock Higher, While Lousy Earnings Drive Down Tesla The Entrepreneur Index™ was down on the day.

By Andrew Osterland

Opinions expressed by Entrepreneur contributors are their own.

David Paul Morris | Getty Images

Great earnings pushed Facebook shares up nearly six percent while lousy earnings drove down Tesla's stock more than four percent.

With the reporting season now in the middle innings, it's clear that the earnings recession feared by investors -- when profits actually decline -- will not come to pass this quarter. Profit growth has slowed significantly for companies across the economy but on average, it hasn't gone negative.

Facebook, as it did last quarter, blew away analyst estimates for earnings and revenues. Despite all the angst about user and regulator backlash over privacy issues, the social media giant continues to deliver stellar financial results. First quarter revenues were up 26 percent and monthly users were up eight percent for the quarter. The stock, up more than ten percent in pre-market trading, closed the day with a gain of 5.85 percent.

Facebook's good numbers and equally strong results from Microsoft helped the tech-heavy Nasdaq Composite index post a gain of 0.21 percent. The S&P 500 and Dow indexes, however, had losses of 0.04 percent and 0.51 percent respectively.

The Entrepreneur Index™ also declined 0.49 percent on the day as other companies on the index, including Tesla, O'Reilly Auto Parts and D.R. Horton reported disappointing financial results.

Tesla's first quarter was shockingly bad. It lost $702 million, more than twice analyst expectations, after reporting a profit in the last two quarters. The stock was down 4.4 percent today. The vehicle maker ended the quarter with just $2.2 billion in cash and will likely have to raise more capital from currently skeptical investors. Yields on the company's debt have surged and Tesla shares are down 25.6 percent this year.

Homebuilder D.R. Horton and retailer O'Reilly Auto Parts were also hammered after reporting financial results. D.R. Horton beat earnings and revenue expectations for the quarter but issued guidance for the year significantly below expectations. The stock was down 4.76 percent today. O'Reilly, meanwhile, blamed bad weather for a revenue miss in the quarter and also issued soft guidance for the year, sending its shares down 4.21 percent.

Chipotle Mexican Grill, on the other hand, continued to roll, handily beating earnings and revenue estimates. The stock, however, fell 4.46 percent after the company revealed it was served a new subpoena last week relating to an outbreak of illness in Ohio last year that left hundreds of customers sick. An e coli outbreak in 2015 sent sales and the company's stock price plummeting. Chipotle has been on a tear recently. The shares are up 57 percent this year and 99.7 percent over the last twelve months.

Fedex Corp. also had a major decline after competitor UPS reported poor results. UPS also blamed bad weather for the weak results, but the shares were down more than eight percent. Fedex fell 4.54 percent on the day. It will next report earnings in June.

While Facebook shares were strong, other technology stocks struggled. Chip-makers NVIDIA Corp. (-4.8 percent) and Analog Devices (-1.94 percent), were both down sharply. Netflix (-1.58 percent) and Twitter (-2.01 percent) were also down.

The healthcare sector continued to recover from a sharp fall last week. Medical device-maker Boston Scientific was down yesterday after missing earnings and revenue estimates but was up 4.2 percent today. Drug-makers Regeneron Pharmaceuticals (2.8 percent) and Alexion Pharmaceuticals (4.3 percent) were also up nicely.

Other notable gains included Comcast (2.58 percent) and salesforce.com (2.21 percent). Ford Motor Co. was down on the day but rose sharply after the closing bell when it reported earnings.

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.

Andrew Osterland is a contributing writer for CNBC.com. He specializes in capital markets, personal finance and taxes.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Growing a Business

How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read

Wondering how long your marketing emails should be? Here's what consumers say — so you can send them exactly what they like.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.