Alphabet
The parent company of Google reported a net profit of 13,910 million dollars, a figure lower than the 18,936 million achieved in the same period of 2021.
This translates into a earnings per share of $1.06, below the $1.40 per share in the third quarter of 2021 and also lower than the consensus expectation of $1.25. As for the incomethe entity has reported 69,092 million dollarsup from $65.118 million a year earlier, but lower than the $70.58 billion anticipated by analysts.
Apple and Meta are coming: analysts do not expect such positive results
Netflix, Meta, Amazon, Microsoft, Alphabet and Apple have already lost a combined $2.5 trillion in market value so far this year. “The results of the big technology companies were seen as a determining factor in market sentiment ahead of the third-quarter earnings season in the United States, and both Microsoft and Alphabet have given investors reason to worry,” he said. Laith Khalaf, head of investment research at AJ Bell.
“Investors will prepare for the Meta results with some trepidation, and the common reasoning is that if Google struggles, the rest of the tech group faces a marathon,” said Sophie Lund-Yates, an analyst at Hargreaves Lansdown.
The causes
The rise in rates, the strength of the dollar and inflation caused a sharp increase in costs in the company and a reduction in demand that became notable. The drop in advertising is notable: companies are spending less on marketing precisely to keep up with costs.
The accounts of the big technology companies show that they are not immune to monetary restrictions, inflation, the strength of the dollar or lower economic growth. All this has been reflected in their accounts and is being listed on the stock market. The results of Apple, the company with the largest capitalization in the world, remain to be seen, which will show how consumption is behaving.
Source: Ambito
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