Apple picker Press Release: Leading technology companies reported their quarterly financial results last week. Alphabet, the parent company of Google, released its earnings first, and although it delivered revenue growth, the decline in profit was so significant that shares were down over 11% after the data was released. By the end of the week, they corrected their losses to only -6%. Another large technology company was Microsoft, which is also growing from the point of view of sales, but here too there is a decrease in profit, in addition with a negative outlook.
On Thursday, the company Meta announced its economic results, which surprised the markets very negatively with its numbers. Significantly rising costs combined with falling sales led to a more than 50% drop in profits, which necessitated dramatic sell-offs and a drop in Meta's share price of more than 20% below the psychological level of $100 per share. Even though the interest of advertisers is slowing down, the company invests intensively in research and development. This entails significant risks, but also opportunities. Is this the right strategy and will it lead to an increase in the value of the company in the future? they discussed on the last broadcast of the Talk about Markets cycle Jaroslav Brychta, Tomáš Vranka and Martin Jakubec.
Apple, which reported its data on Thursday, was the only major technology company to positively surprise. Apple increased its revenue by 8% and profit by 4% despite the increase in input costs. So far, the premium consumer electronics sector appears to be less affected by the global economic slowdown than other technology firms. Shares gained almost 5%.
The last major tech company to report results last week was Amazon, whose shares closed down -6%. Although Amazon also managed to deliver year-on-year sales growth, Of issued a very negative outlookfor the following period. Amazon will also face higher costs, but efforts to diversify its activities may make the company less sensitive to a recession.
A number of these otherwise resilient stocks have fallen to relatively low levels, and it's fair to ask the question, whether to buy, buy, sell or hold shares. As part of the regular Talking about markets with Jaroslav Brychta and his colleagues, analyzed these titles in detail and discussed the possible future risks and opportunities of these titles.
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