Thursday afternoon wraps up what has been a sober earnings season for the big tech giants.
The industry’s fortunes began to change last year after several years of profitable growth thanks to strong demand for tech equipment and services during the pandemic. We have dealt with increased competition and reduced demand.
Alphabet, Amazon and Apple are due to report earnings after Thursday’s bell, and we’ll scrutinize the results with all eyes to see how these challenges impacted the crucial December quarter. It will be.
Wall Street doesn’t seem to have high hopes.
What to expect: Apple is expected to record its first quarterly revenue decline since 2019. This is a decrease of 2% compared to the same period last year. Alphabet’s sales are likely to remain flat from last year, while Amazon’s sales are expected to grow just under 6% year-over-year. Earnings for all three companies are expected to decline from the same period last year, with Amazon suffering the steepest decline with his 40.6% decline.
Thursday’s report could be another sign that the tech giant is no longer as immune to economic change as it has been in years past. “Apple has proven more resilient than its big tech peers in the last quarter, but this quarter’s results will be tough,” Joshua Warner, a market analyst at investment firm StoneX, said in a statement earlier this week. It could be,” he said. Most of Amazon’s businesses “are finding it harder to grow in these tougher economic times, and Amazon has already warned that the holiday shopping season will deliver the slowest revenue growth on record. ing.
Many big tech companies such as Microsoft, Google, Meta and Amazon have announced plans to lay off tens of thousands of employees in recent months. (So far Apple is the only major exception to this trend). Thursday’s report gives Amazon and Alphabet shareholders a glimpse at how quickly the tech giant will realize these cost-saving benefits and whether they will be enough to weather the uncertain period ahead. must.