Updated from 1:37 p.m. ET, Thursday, July 27. 

The Nasdaq gave up gains to trade sharply lower on Thursday, July 27, as Facebook Inc. (FB)  failed to inspire broad gains in tech.

The S&P 500 was down 0.35%, the Dow Jones Industrial Average added 0.1%, and the Nasdaq slid 0.9%.

The major stock indexes closed at records on Wednesday, July 26. The S&P 500 added 0.03% to 2,477, the Dow Jones Industrial Average rose 0.45% to 21,711, and the Nasdaq climbed 0.16% to 6,422. The S&P 500 and Nasdaq traded at records on Wednesday for their second day in a row.

Facebook Inc. was 3.5% higher on Thursday after the social media giant reported second-quarter earnings and sales that topped Wall Street expectations. Facebook earned $1.32 a share in the quarter, surpassing estimates of $1.12. Revenue was $9.32 billion, which exceeded Wall Street estimates of $9.2 billion.

Advertising revenue jumped 47% from a year earlier to $9.16 billion, easily beating projections of $9.02 billion. Mobile ad revenue made up 87% of Facebook's total ad revenue during the second quarter, up from 84% a year earlier. The company reported 1.32 billion daily active users during the quarter and said it had just more than 2 billion monthly active users for the first time ever, which was more than analysts expected.

Facebook is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB? Learn more now .

"Overall, we view this as a great quarter for Facebook," said Cramer and the AAP team. "The company continues to over-deliver on the lofty expectations set by investors, even with the company continuing to spend to grow in scale."

James "Rev Shark" Deporre isn't as optimistic, though. Facebook's recent run is already stretching the Nasdaq, he wrote in his column for our premium site for investors, Real Money. Get his insights with a free trial subscription.

Large-cap tech stocks were largely in the red by mid-afternoon. Apple Inc. (AAPL) , Alphabet Inc. (GOOGL) , Nvidia Corp. (NVDA) and Netflix Inc. (NFLX) were lower, while the Technology Select Sector SPDR ETF (XLK) fell 0.7%. Tech companies have been under pressure since June 9 when a sudden selloff pulled the sector from its lofty heights. Tech, primarily the FAANG stocks (Facebook, Amazon.com Inc. (AMZN) , Apple, Netflix, and Alphabet), has been a major contributor the market gains in the year to date. 

Apple and Alphabet are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL? Learn more now .

Verizon Communications Inc. (VZ) rose 7.6% after reporting a revenue beat in the second quarter on customer gains. Adjusted earnings of 96 cents a share were in-line with estimates, while revenue of $30.5 billion exceeded estimates of $29.81 billion.

Verizon reported a net increase of 614,000 retail postpaid connections in the second quarter. Net phone additions of 358,000 included 590,000 smartphones in the quarter, compared with 86,000 net phone additions, including 336,000 smartphones, in the second quarter of 2016. Analysts polled by FactSet expected Verizon to add 86,100 wireless subscribers in the quarter, after losing more than 300,000 in the first quarter.

Other telecom shares on the rise besides Verizon included AT&T Inc. (T) , Frontier Communications (FTR) , Telefonica S.A. (TEF) , Vodafone Group PLC (VOD) and BT Group PLC (BT) . The ProShares Ultra Telecommunications ETF (LTL) increased 1.8%.

Watch More with TheStreet:

If you liked this article you might like

Zuckerberg, Facebook Directors Settle Delaware Suit Over Voting Rights

North Korea's Nuclear Threat Pressures Wall Street at Trading Week's End

LA Times Tops 100,000 in Digital Subscriptions

Stocks Claw Back From Session Lows as Markets Digest North Korea Threat

North Korea Threat Resurfaces to Drag Stock Futures Lower