Profits, profits, profits.
It seems that no matter what area of technology you’re interested in, this is the week for earnings to take center stage, as more of the sector’s biggest leaders have delivered a mixed bag of quarterly reports.
Two of the the biggest name reporting results is Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM), and chipmakers initially received mixed responses from Wall Street investors.
AMD ( AMD ) already lowered its third-quarter forecasts nearly a month before releasing its official results on Nov. 1, and then went on to report earnings and sales that fell just shy of its lowered estimates . However, investors put more faith in AMD’s fourth-quarter outlook than its third-quarter report, and gave the chipmaker’s shares a slight boost in response.
Meanwhile, Qualcomm (QCOM) saw its shares take a hit after the communications chipmaker said its mobile handset business will decline at a higher-than-expected rate by the end of the year. The company has been moving to diversify its business beyond mobile phones, but the magnitude of the negative reaction from investors suggested just how important mobile phones are to Wall Street when it comes to Qualcomm (QCOM).
Other noteworthy earnings reports came from streaming TV platform operator Roku ( ROKU ), which fell due to a disappointing fourth-quarter outlook; Electronic Arts (EA), which slipped after cutting its booking forecast; Warner Bros. Discovery (WBD), which provided some more details about its future streaming plans, but still hasn’t found immediate favor with investors; Fortinet (FTNT) and Rapid7 (RPD), which both fell after giving a weaker-than-expected business outlook, and led other security company shares in the red, and FuboTV (FUBO), which gained after beat revenue expectations and provide an upbeat outlook on the business.
ServiceNow (NOW) also got on the good side of Wall Street, as its shares climbed more than 14% immediately after the release of its third-quarter earnings reports.
But, Twilio (TWLO) may have had the worst of any of the earnings-related declines, as its shares fell more than 34% on Friday as Wall Street chastised the communications software company for its third quarter results were weaker than expected. fourth quarter outlook.
But, earnings reports weren’t the only thing happening in the tech sector during the week.
Ride-sharing company Lyft (LYFT) confirmed in a regulatory filing that it will cut 13% of its workforce, or fewer than 700 jobs, in the second round of job cuts since July. Lyft’s ( LYFT ) layoff announcement comes less than a week before the company is scheduled to deliver its own third-quarter earnings report.
Chinese tech companies like Alibaba (NYSE:BABA), JD.com (JD) and Baidu (BIDU) ended the week on a positive note due to reports that Beijing may be considering easing some of its Covid restrictions.
However, uncertainty remained about Beijing’s intentions, especially following reports of a widespread Covid-related lockdown in an area where Foxconn, which is one of Apple’s (NASDAQ: AAPL) largest producer of iPhones, is located.
And possibly in response to ongoing issues that continue to affect its product lines in China, Apple (AAPL) is reportedly adding new manufacturing facilities in India for the iPhone 14.