in

The Bloodbath in Tech Stocks Might End Next Week

Good news?

It would be a bit of good news if the results from the big tech companies looked good next week, because the bloodbath in tech stocks is a major part of the recent huge selloffs we’ve been seeing in the stock market:

Microsoft, Alphabet (Google’s parent), Amazon, Snap Inc (Snapchat), Twitter, Facebook, Apple and Spotify are all scheduled to report quarterly results between now and the start of November, with four of them making their announcements on the same day.

The results will come after a difficult month for the tech companies. Just over two weeks ago, the worst drop in the Dow Jones average in eight months was led by sharp declines in technology stocks, mirrored on the Nasdaq. That Wednesday, the best-performing stocks over the past year – which include the so-called Faang companies: Facebook, Apple, Amazon, Netflix and Google – took some of the biggest losses. Amazon was down 6.2% and Netflix 8.4%.

There were several factors contributing to the drop, concerns over trade tensions between the US and China and rising interest rates being the most prominent. Tech companies tend to be highly leveraged, so can be vulnerable to rising interest rates. The EU’s planned tax on technology firms is also putting them under pressure.

One of the most eagerly anticipated results will be Facebook’s: its third-quarter results will be reported on 30 October. In the summer, the company said that revenue growth would continue to slow in the second half of this year. Daily and monthly active users on the site fell for the first time in the second quarter of this financial year.

When Apple reports on 1 November, the focus will be on whether the high price of the iPhones has affected the demand for the handsets. Hargreaves Lansdown analysts say they are hopeful of a strong result, but warn that a slowdown in the US market’s first $1tn company would not be taken well on the markets.

 
Doomberg

Written by Doomberg

I am Doomberg, one of the original founding members of Sparta Report, and have been here since the beginning. I am an insatiable news junkie and enjoy reading and writing about the US territories, the Caribbean, video games, smartphones, and of course conservative politics in general.

I also really like pictures of gas stations and claim full responsibility for the silly gas station motif. I'm presently trapped behind enemy lines in a blue state with no hope of escape! The ride never ends.

8 Comments

Leave a Reply

Leave a Reply

Loading…

Do Search Results Suggest Interest is Declining in New Model iPhones?

Trump’s Approval Surges In Leadup to November