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Tech Giants’ Murky Forecasts Make Investors Nervous

Nov 06, 2023 - pymnts.com
Recent earnings reports from big tech companies such as Apple, Meta, Tesla, and Alphabet have caused concern among Wall Street investors. Factors such as Apple's lukewarm holiday forecast, Google's cloud sales, and Tesla's suggestion of diminished electric car demand have contributed to investor anxiety, despite a strong performance by the Nasdaq 100 Stock Index. The seven largest tech stocks are reportedly down an average of 9% from 52-week highs, with Apple's market value declining by over $300 billion.

However, Bloomberg's intelligence indicates that profits for the S&P 500's largest "grown companies" including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla are projected to rise by 50%. Despite this, Scott Colyer, CEO at Advisors Asset Management, predicts more difficulties for some larger growth stocks. Meanwhile, Walmart's shares reached their highest point since going public 51 years ago, partly due to confidence in its holiday performance.

Key takeaways:

  • Recent earnings reports from big tech companies like Apple, Meta, Tesla, and Alphabet have reportedly caused concern among Wall Street investors.
  • The seven largest tech stocks are down an average of about 9% from 52-week highs, with Apple’s market value declining by more than $300 billion.
  • Despite these concerns, Bloomberg's intelligence shows profits for the S&P 500’s largest “grown companies” are on track to climb 50%.
  • Apple's holiday sales forecast fell below Wall Street estimates due to reduced demand for iPads and wearables, sparking concerns about overall holiday demand.
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