It might have been a big week for Big Tech stocks reporting earnings, but unfortunately, the results were not nearly as exciting as we’d hoped for. 😩
Five of America’s largest tech companies reported strong earnings this week, then they started tumbling. The reason? Slowing revenue growth forecasts.
The selloff affected Amazon the most, which beat on EPS but fell short on revenue. Analysts expected $115.2B, but ended up with $113B. $AMZN dove 9.4% this week.
Google parent Alphabet brought the strongest performance. The company was expected to report $56.2B in revenue and $19.32/share in EPS. They knocked it out of the park with $61.8B in revenue and $27.26/share. Investors were initially satiated with the results, but the stock pulled back after earnings.
Strong Q2 earnings also came out of Apple, Facebook, and Microsoft. However, none of them avoided the post-earnings blues. 🥶🥶🥶
Investors aren’t sure what a post-pandemic world looks like for Big Tech, but a lot is riding on its success. The five companies which reported this week are the largest constituents in the S&P 500 and Nasdaq-100. In other words, most of America is betting on their continued success — whether they like it or not.