These reports will cover the period from April to June.
Alphabet GOOGL and Microsoft MSFT will release financial results on Tuesday. In addition, results from Meta Platforms META, Qualcomm (QCOM), and Shopify (SHOP), among others, will be released on Wednesday. Finally, results from Apple AAPL, Intel (INTC), and Amazon.com AMZN are due on Thursday, picking up the tempo from the previous day.
Each of these companies is special in its story, but this is an important financial period. Over the next few days, there are significant developments to watch out for:
In other words, how terrible is it in terms of web advertising? After Snapchat’s parent company, Snap, announced its poor quarterly results for the June period and declined to offer any projections for the upcoming September period, shares of Snap (SNAP) fell more than 40 percent in one day last week. These findings have raised new concerns about the future of internet marketing.
There are three problems, all of which connect in some way. First, Apple’s restrictions on the disclosure of iPhone users’ app and website activity further complicate targeting. Second, during economic downturns, advertising costs, including digital advertising, tend to decrease. Third, there is increasing competition for advertising revenue from companies like Amazon and Apple, which have smaller but expanding ad divisions, and from TikTok, the clear leader in this space. Finally, not all websites that rely on ads will be affected equally; according to market speculation, Google search ads may not be as vulnerable as Meta display commercials.
Can we expect cloud spending to continue at current levels? Popular public clouds include Microsoft Azure, Google Cloud, and Amazon Web Services. In addition, companies in the midst of “digital transformations” are moving more of their IT resources to the cloud, and until recently, Wall Street believed that these businesses would explode in any downturn.
However, there is a chance that cloud clients may reduce spending or at least reduce spending growth if the economy continues to weaken. Many online businesses rely on cloud-based infrastructure, including social networks, video-sharing platforms, and e-commerce platforms. Any significant failure in this area, especially by Azure and AWS, will not bode well for investors.
What do you see in the future of the Internet shopping leader? On Wednesday, Shopify will announce its quarterly results, which may show us how poorly Amazon’s e-commerce division performed in the second quarter. However, some people believe that Amazon’s online sales will decrease from last year in a positive turn of events.
It’s still hard to draw parallels between this year’s online shopping climate and last year’s, which was bigger.
But, as interest rates rise, inflation rises, and worries of a recession spread, brick-and-mortar and online retailers will be looking for indicators of customer demand.
One of the main reasons why most Wall Street forecasts for the June quarter appear too high is the greenback’s massive appreciation against other world currencies. While many businesses expect a 2- to 4-percentage-point currency headwind, the impact of a rising dollar will be more significant for many of them.
For example, although International Business Machines (IBM) expected a 3-to-4-point impact on currency, they recorded a 6-percentage-point drop instead. Contrary to popular belief, European corporations benefit greatly from favorable exchange rates as their US dollar-denominated income converts to more of the European currency. While “constant currency” sales were more meaningful than GAAP results for most corporations, they were less so for European companies like SAP ( SAP ), which rose 8 percentage points to earnings for the quarter ending in June.
The demand for personal computers and mobile phones is quite poor. Statistics and statements by IDC and Gartner from Micron Technology (MU) point to a significant slowdown in sales of personal computers and mobile devices. The public bought a lot of new gadgets during the epidemic, most of which work normally. However, concerns about the economy, rising prices, and a more competitive job market have caused consumers to tighten their wallets. Logitech International (LOGI), a maker of computer accessories, will provide updated information on this front when it releases its quarterly results on Tuesday morning.
Where does the need for corporate IT stand? IBM and SAP agree that demand is healthy despite headwinds. On Tuesday, Microsoft expects to release its financial results; on Wednesday, ServiceNow will provide similar information.
However, shares of the cloud-based software supplier fell after CEO Bill McDermott warned that European agreements will take longer to finalize.
In addition, you should know the following:
The question is whether NCR (NCR) will make a transaction announcement. The producer of automated teller machines and point-of-sale terminals is weighing its options and will announce its findings on Wednesday. The corporation will soon make a public statement about privacy.
The question is whether or not Meta plans to cut its budget. Mark Zuckerberg, the company’s founder and CEO could rekindle interest in Facebook by scaling back expensive ambitions to expand into the metaverse. It seems like the best moment to focus on what you do best.
Will Andy Jassy, CEO of Amazon, be there for the quarterly earnings conference call? Top executives from Netflix, IBM, Microsoft, Apple, Meta, Intel, and Alphabet attend quarterly earnings calls. However, former Amazon CEO Jeff Bezos was notorious for not showing up to corporate calls, and current CEO Andy Jassy has continued this trend.