The stock market witnessed contrasting movements on Thursday as Meta's stock price soared while Moderna's shares took a steep decline in response to their respective earnings reports.

Investors showed optimism towards Meta, as its stock price surged by 4.8% at the close of trading. This spike came after the company's second-quarter earnings report exceeded expectations. Meta, previously known as Facebook, reported better-than-expected sales and lower-than-anticipated capital expenditures. Analysts had projected the company's spending to be slightly over $9 billion, primarily driven by its AI plans. However, Meta managed to keep its costs in check, spending $8.4 billion instead.

Meta has been diligently working on incorporating a range of AI tools into its social media platforms like Facebook, Instagram, and Whatsapp. The company's CEO, Mark Zuckerberg, has set ambitious targets, aiming to make their latest AI model, Llama 3.1, the most widely used by the end of 2024 and the most advanced in the industry by early next year. With the positive earnings report, investors displayed confidence in Meta's AI-driven future, leading to the substantial jump in its stock price.

Meanwhile, Moderna, the biotechnology company at the forefront of COVID-19 vaccine development, experienced a significant setback as its shares plummeted by 21% on Thursday. Despite reporting second-quarter revenue that surpassed estimates and a narrower-than-expected loss, Moderna reduced its full-year sales forecast due to lower sales in Europe and anticipated delays in international revenue until 2025. The company's loss per share for the period was $3.33, slightly better than the projected $3.39 loss. Additionally, Moderna's revenue for the quarter reached $241 million, surpassing the expected $132 million.

The news of reduced sales forecast and potential delays in revenue distribution sent shockwaves through the market, resulting in a substantial decline in Moderna's stock price. Investors, who had been hopeful of a reduction in interest rates, were further discouraged by these developments after the Federal Reserve had hinted at such a possibility earlier in the week.

These contrasting movements in the stock market highlight the significance of earnings reports in shaping investor sentiment. While Meta's positive earnings report led to a surge in its stock price, Moderna's revised sales forecast caused a significant drop in its shares. As the market continues to navigate uncertainties, investor reactions to earnings reports are likely to impact the stock market in the days to come.