Are Big Tech earnings losing sheen?
Dwindling ad revenues and softer growth in cloud computing divisions are to blame for dreary third-quarter results of global tech giants.
Why read this story?
Editor's note: A slew of earnings reports from large technology companies in the US landed last week, and to use the go-to phrase of news channels for such events, it was, well, a “bloodbath” on Wall Street. Big Tech stocks dropped this past week as the majority of the tech firms posted lackluster earnings, leading to hundreds of billions of dollars being wiped from their market values. Meta, Amazon, Microsoft, Alphabet, Apple and Netflix have already lost a combined market value of more than $2.5 trillion so far this year, Reuters reported last week. There are broadly two key reasons: Flagging demand for digital advertising (affecting Meta and Alphabet) and softer growth in cloud-computing divisions (for Amazon and Microsoft). Microsoft is also hit by a rapidly shrinking market for personal computers due to dwindling consumer spends and rising inflation as well as post-COVID adjustments. The shrinking digital advertising spends have had Alphabet and Meta worried. Alphabet reported its fifth consecutive quarter of slowing sales growth—the company saw YouTube revenue fall for the first time since it began reporting the unit’s performance in …
More in Internet
You may also like
Abu Dhabi’s $16 billion push to become a finance magnet
Highlights from Abu Dhabi Finance Week, Qatar’s new (and bolder) AI ambition and the bid for Warner Bros. Discovery.
Sanchar Saathi was never the cure
Even though the government of India did a U-turn on the mandatory pre-installation of the anti-fraud app on all mobile phones sold or imported in the country, the larger problem of petty cybercrime remains grim.
Groww strikes a conservative note
The first quarterly results since going public show the online stockbroker is on course to grow its new line of businesses. But investors need to be patient.
