Watch Out For Tech Earnings
Jan 24th 2023, 5:06 pm
- The fourth-quarter earnings season is well underway, and this week numerous large-cap firms, including Microsoft $MSFT, AT&T $T, Tesla $TSLA, Intel $INTC, Visa $V, and American Express $AXP, will announce their results.
- However, the market is more focused on the earnings guidance from management and whatever information they can offer regarding their corporate prospects. Most economic reports have shown that the economy is faltering and that Corporate America's earnings are slowing down.
- As the earnings season for this important sector of the US equities market gets underway, tech stocks drove the market higher, pushing the S&P 500's 10% gain from October to the limit.
- Spotify $SPOT has reduced its personnel by about 6%. Today, Microsoft will announce its financial results as the behemoth prepares to invest billions in OpenAI.
Source: Earnings Whispers
More From Tech
- The activist investor Elliott Management purchased a stake in Salesforce $CRM and stated that it would "working constructively with Salesforce to realise the value befitting a company of its stature." But, of course, Salesforce is hardly the only large-cap tech company. In recent months, activists have also pounded on the doors of $META and $GOOG.
- Due to the increasing demand for its graphics chips, which are required for AI applications like ChatGPT, an open-source chatbot, $NVDA stock has surged 29% since the year's beginning. As demand for additional computational power rises in tandem with the popularity of the bot, Nvidia's goods are in higher demand.
Source: Yahoo Finance
Europe Had A Good Start
- Europe Had A Good Start As traders assessed earnings reports and the likelihood of interest rate increases in the region, European equities increased at the start of the week.
- The Stoxx Europe 600 finished 0.5% higher. As chemical stocks declined as Symrise AG plummeted due to a larger-than-expected margin failure, tech shares took the lead.
- Due to worries about the profitability of the clothes and home sector, Marks & Spencer Group PLC also declined after receiving a downgrade from Numis.
- Corporate restructuring professionals have warned that insolvency risks are becoming a greater threat to the UK due to a mix of inflation and debt accumulated during the epidemic that has increased the number of distressed businesses.
- Bitcoin's value rose to $23,100 on Monday, a 39% increase since January, as traders anticipate a potential interest rate cut by the Federal Reserve. The No. 2 digital coin, Ether, also saw gains, reaching $1,665 on Saturday, the first time it exceeded $1,600 since November 7, 2022. It is currently trading at $1,637.
- Goldman Sachs Group $GS plans to reduce its $59 billion of alternative investments and replace them with outside capital over the next few years. Julian Salisbury, the bank's chief investment officer, said the move would improve earnings.
- LVMH and Kering will announce Q4 results soon; UBS predicts 7% growth for LVMH and a 2% drop for Kering. Hermes is expected to report 17% growth, down from 24% in Q3. In addition, COVID disruptions in China will affect their results.
Source: Yahoo Finance