WEAK IPHONE SALES The world's largest publicly traded company's quarterly profit missed Wall Street expectations for the first time since 2016 as it struggled with disruptions to iPhone production in China. "Apple's results are consistent with the broader technology-sector challenges, with a difficult macroeconomic environment slowing sales for digital advertising, e-commerce, and (as reflected by Apple's performance) consumer electronics," said D.A Davidson analyst Thomas Forte.
DIGITAL ADVERTISING SLUMP
The parent company of digital advertising giant Google also missed earnings expectations as businesses dialed back spending on fears of a possible recession. "If a dominant ad player like Google can get hit like this, it is now officially a tough ad market," said Rosenblatt Securities analyst Barton Crockett. SLOW CLOUD GROWTH Amazon's revenue beat for the holiday quarter was largely overshadowed by a warning from the e-commerce giant that its lucrative cloud business was set for slower growth in the next few quarters. "This year is likely to be a difficult year for AWS growth. One of the key advantages of AWS – that it is easy to flex spending upwards – is also one of its key disadvantages when the economy slows down," said Atlantic Equities analyst James Cordwell. POST-EARNINGS STOCK REACTION Shares of the three companies - all of which have market valuations of more than a trillion dollars - were down between 2.2% and 4.5%. The stock slump also dragged the wider market lower. Here is how the stocks have reacted after every quarterly earnings report in 2022: <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Apple's iPhone sales fall for the first time since 2020 Google's ad sales growth in the last 2 years Amazon's cloud growth in the last two years Big tech stock reaction after quarterly results over the past year ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Akash Sriram, Tiyashi Datta and Eva Mathews in Bengaluru; Editing by Saumyadeb Chakrabarty)
