A devastating week for tech stocks ended after a disappointing earnings report from Amazon and Appel, Inc.
Due to a global supply and demand crisis, apple stock prices are down by 16 % annually. Following the release of Appel’s fourth fiscal earnings report, Wall Street opened lower on Friday. Appel, Inc`s revenues were expected to exceed $88,84 billion; fortunately, Apple set a new high of $90,15 billion. However, the stock was down due to low iPhone sales and revenues. Last month, Apple released its latest addition to the series, Apple 14, and the sales were expected to reach at least $72,67 billion.
For that reason, Appel’s stock was down by 3% just hours after releasing the earnings report. However, in today’s session, Appel stock jumped higher by 6%, helping prevent any additional losses in the Nasdaq feature.
On the other hand, Amazon failed to deliver a satisfactory sales report, and the company’s stock sank by 20%. Currently, as of Friday at 10:09 AM EDT. At the market opening, Amazon Inc. stocks were up 10% from the previous trading day and down 10% from today’s trading day.
Amazon is expected to surpass $155 billion in its fourth fiscal year, but it appears to be stuck between $140 billion and $144 billion. The company’s revues have peaked. Company officials are finding it challenging to increase company revenues. On top of that, interest rate hikes and higher consumer index prices result in low buying activity. Investors had high hopes that Amazon’s chance to drive up its stock value was on Prime Day. Yet, its results came lower than marketers’ analysis. Still, from year to year, company sales are up by 15%.
The S&P 500 declined by 0,74%, Nasdaq opened lower by 1,24%, and the Dow Jones features moved back by 0,21%. Arguably, the tech market is at its lowest level for the first time since 2020. During that time, the surrounding circumstances were unusual. However, the current circumstances are undesirable.
Inflation is still too high in all markets. The European market is on the verge of crashing.
It’s been a bad week for tech companies. Higher inflation and squeezed buying activities are affecting the tech sector. Even before the disappointing results of Amazon and Appel, other stocks were already in the med trying to get their way up.
Marketers believe that the FED’s tightening policy has squished tech stock growth potential in the last three quarters.
The chipmaker giant, Intel Inc., had another opinion. Intel stocks rose by 7% after announcing chip cuts. The chip supply and demand shortage was a business night for tech companies, including Apple, Intel, and Nvidia.
Meta continued to take blows. Mark’s vision to spread the metaverse has cost the company more than $100 billion. Meta stock sank hours after releasing a lighter-than-expected earnings report.
The semiconductor war continues between the two largest economic forces, the U.S. and China. which may result in a higher decline in tech stocks in the next fiscal year. That said, any further declines will only increase the probability of a bearish market or even a recession.