Facebook Facebook logo Sign up for Facebook to connect with Maja Hitij Getty Images News | Getty Images
Microsoft surpassed previous earnings estimates and released better -than -expected predictions. So is Intel. Apple and Tesla topped expectations, while subscription software vendors ServiceNow, Qualtrics and Atlassian posted decisive beats.
Everything happened this week. But it wasn’t enough, as of mid-Friday, to prevent the Nasdaq from extending its losing streak to five weeks, the longest such stretch since late 2012. The tech-heavy index has fallen 1.5% over the past five. day, even after the Apple-fueled rally on Friday.
The profit period on this technology is billed as the most important in a decade as investors grapple with the highest inflation in 40 years and the possibility of a series of upcoming rate increases from the Federal Reserve. Cloud software, e-commerce, trading apps and chip stocks have been beaten amid the rotation of top bull market performers and in areas considered safer such as energy and finance.
So far, with the exception of Netflix, leading tech companies have not only delivered but provided some level of assurance to Wall Street that they will be able to power through supply chain concerns, a tight labor market and the prospect of higher cost of capital. Apple said late Thursday that revenue in the most recent quarter jumped 11% from a year ago, while earnings per share of $ 2.10 flew above the $ 1.89 average analyst estimate, confirming that the company is grows while keeping costs in check.
“Despite the component shortfalls, the company continues to demonstrate the strength of its product ecosystem with broad growth across it,” analysts at Canaccord Genuity wrote, in a report after Apple’s announcement. They maintained their rating on buying the stock.
Apple, the most important company in the U.S., climbed nearly 6% on Friday, helping the Nasdaq rise 1.6%. But the big declines on Tuesday and Thursday were too much to bear for the index, which dropped 13% in January and is poised to close its worst month since 2008.
It all turns to next week, when the rest of the mega-cap tech group, along with other major tech suppliers, will report quarterly results.
The alphabet starts on Tuesday, followed by Meta on Wednesday and Amazon on Thursday Chipmakers AMD and Qualcomm also report next week. Each dropped between 9% and 28% to start the year.
Tech companies reporting next week
Alphabet was just one of five to take advantage this week, rallying alongside Apple on Friday. Driven by Google and YouTube ads, the company is expected to report another quarter of heavy growth at close to 27%, but analysts expect a significant moderation this year among young people.
Between Google’s comment on Tuesday and the Facebook Meta numbers the next day, investors should start to get a clear picture of the trajectory of online ads and whether large spenders are feeling any kind of pinch. Meta is expected to show revenue growth of approximately 19% in the fourth quarter, its slowest rate of expansion since mid-2020, with analysts expecting annual growth for 2022 to be reduced by nearly half to 19% from last year’s level.
Both Google and Facebook have proven that they can face all sorts of challenges over the years, from pandemic shutdowns and regulatory pressure to Apple’s iOS privacy changes. Their dominance over web audiences means that even if marketers withdraw their spending, they continue to invest their dollars in ways that allow them to target the largest number of consumers on the internet and on mobile devices. .
Argus Research wrote in a earnings preview last week that “the most dangerous near-Meta risks come from regulatory investigations and intense critical media coverage.”
However, the company has a recommendation to buy the stock and a $ 410 target price, which represents a 38% increase from Friday’s price.
Meta may be better positioned to weather the storm because of the “secular trend of advertisers switching to digital from other channels and because most of its revenue comes from direct response e-commerce advertising. site, “Argus wrote.
Amazon’s results on Thursday will cover the critical holiday season. Analysts expect to see growth of close to 10% in the fourth quarter a year earlier. But like Facebook and Google, Amazon’s control of the e-commerce market has convinced investors that regardless of any concerns about consumer spending, they continue to rely on one site in particular for their fast and cheap deliveries. .
Amazon’s growth in 2022 is expected to come in at 17%, a slight decrease from approximately 22% last year.
WATCH: What happens to the products when you return them to Amazon
.