Nasdaq tech stock futures fell more than 1% on Wednesday as disappointing results and warnings from Microsoft and Alphabet sparked losses among megacap companies and raised fears of slowing economic growth.
Microsoft Corp posted its lowest sales growth in five years and forecast second-quarter revenue below Wall Street estimates, while Alphabet reported downbeat ad sales and warned of a slowdown in advertising spending.
Shares of both companies fell around 6% each in premarket trading and weighed on Amazon.com and Apple, which are scheduled to report results later this week. They were down 3.7% and 0.9%, respectively.
Shares of Meta Platforms fell 3.9% and Pinterest 4.1% as they rely on ad revenue. U.S.-listed shares of Spotify Technology dropped 5.7%, as margins came under pressure from a slowdown in ad growth.
MacDailyNews Take: The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics.
Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022
And the same goes for Mac, Apple Watch, and iPad customers.
Analysts’ consensus expects Apple to post earnings per share of $1.27 (vs. $1.24 YoY) on revenue of $88.90 billion, 6.60% growth YoY when the company reports fiscal Q422 earnings after the bell on Thursday, October 27th. As always, we’ll have the results for you right around 1:30pm PDT / 4:30pm EDT as soon as they are released (just check out home page at that time).
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