INSUBCONTINENT EXCLUSIVE:
Aug 03 2024 | 7:28 PM IST
After a jam-packed week of earnings reports from megacap technology companies one thing is clear: as profits
They want to see results.
With six companies inside a group known as the Magnificent Seven already having reported, year-over-year earnings
growth has slowed to nearly 30 per cent in the second quarter, down from 50 per cent in the prior period
Analysts expect that rate to decelerate further, to about 17 per cent for those companies in the third quarter.
Results from Microsoft
Corp., Meta Platforms Inc., Amazon.com Inc
this week signaled that the biggest companies in the world are still heavily investing in artificial intelligence
is due to release results later this month
The latest prints and commentary this week added to existing volatility.
Investors had already been shifting from large, trusted stocks
into smaller, riskier parts of the market to lessen exposure to Big Tech
The earnings results, combined with the Federal Reserve signaling that a September rate cut may be on the table and a weaker-than-expected
jobs report sent the Nasdaq 100 Index spiraling.
On Friday, the tech-heavy index closed down 11 per cent from its July peak, entering a
signaled a weakening US consumer, adding to concerns about a weaker macroeconomic backdrop, she said.
Investors were already concerned
about hype-versus-reality in the tech sector, which contributed to sharp reactions when major companies underperformed, said Burns McKinney,
Chief Executive Officer Mark Zuckerberg that signaled investments in AI helped drive targeted ad sales
Advanced Micro Devices Inc
by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)First Published: Aug 03 2024 | 7:28 PMIST
