Big Tech’s Big Week

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.

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Another Day, Another Chip Rally

It’s another day, which means investors and traders were buying anything in the semiconductor space that isn’t tied down. Let’s see what you missed. 👇

First up, chip-equipment company Applied Materials soared to new all-time highs after citing “artificial intelligence” momentum during its earnings call. Adjusted earnings per share and revenues both topped expectations, while its current-quarter expectations also beat estimates. 🏭

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Bumble’s Path Of Least Rizz-istance

Dating apps are a tricky business in the post-pandemic world, with investors continuing to swipe left on Bumble after its latest earnings report. 📰

The company behind dating apps Bumble, Badoo, and Fruitz said a slowdown in user spending caused it to miss first-quart revenue expectations. As a result, new CEO Lidiane Jones’ first move is to cut 350 roles, costing $20 to $25 million in one-time charges over the first two quarters. ✂️

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Lyft’s IR Department Just Whiffed

Investor relations departments are the silent heroes of a public company, receiving little recognition for the critical role they play. When they do receive a lot of attention, it’s generally not for good reason. That’s unfortunately what Lyft’s team is finding out today. 😵‍💫

After the bell, ridesharing company Lyft reported fourth-quarter results that were good, not great. But the stock immediately shot up and notched as high as a 60% gain before anyone realized what happened. Did the company just invent a cure for rare diseases? Are they pivoting to crypto or semiconductors? What was the cause of this?

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