All eyes on Silicon Valley as Big Tech braces itself for a tense earnings week
2022 has undoubtedly been a year of turbulence for tech stocks, battling major sell-offs and supply chain woes.
Last week, both Snap and Twitter posted relatively underwhelming results, sending shares across Wall Street tumbling.
All eyes are now on Apple, Amazon, Alphabet, Microsoft and Meta, who are all posting quarterly results this week.
While analysts are bracing themselves for slowing growth from Amazon, Facebook owner Meta and Google owner Alphabet are set to face the pinch of tightening advertising budgets.
TMT analyst at PP Foresight Paolo Pescatore predicted that the cost of living crisis would be “the biggest concern” for Big Tech, with “all prices heading in one direction.”
He told CityAM that Apple was likely to sit as an outlier in this space, “bucking the trend,” having already injected renewed optimism in its most recent earnings.
Tech analyst at Gartner and ex-Apple director Michael Gartenberg told CityAM that Meta was likely to “point a finger at Apple” for its disruptive privacy policy that has rocked the ad sector.
He said Alphabet was likely to post solid results and said: “The economy won’t prevent people from using Google, but they might also be impacted by Apple’s decisions”.
Gartenberg also expects layoffs and hiring freezes to be a leading fixture in the upcoming results.