Q2 profit expectations grew more pessimistic for all but two industries over the past three months, according to FactSet. Both were heavy on big tech.
Heading into first-quarter earnings, Wall Street expected a bumpy ride. But Big Tech’s rebound helped soften the landing, and analysts believe it will take similar support to save results ahead.
The tech industry’s growth disappointed analysts through much of 2022, as digital demand sputtered after surging early in the COVID-19 pandemic, leading to a wave of layoffs. But since then, investors have largely done a 180 as companies like chip maker Nvidia Corp. NVDA have ridden AI hype through the stratosphere, while Apple Inc. AAPL put up a surprise increase in iPhone sales. Microsoft Corp. MSFT in April offered an upbeat offered an upbeat outlook, sending shares higher. Amazon.com Inc.
Those estimates only rose modestly — 1.3% and 1.7%, respectively. But FactSet Senior Earnings Analyst John Butters said in Thursday’s report that Microsoft, Apple, Intel and Nvidia were all “substantial contributors” to keeping the index’s profits from falling more. Amazon, part of the consumer discretionary sector, was also a “significant” contributor on that front.
This week in earnings RV-maker Thor Industries Inc. THO reports this week, amid a slowdown in RV demand. Elsewhere, results from United Natural Foods Inc. UNFI — Whole Foods’ main distributor — J.M. Smucker Co. SJM and Campbell Soup Co. CPB will offer context on the trajectory of grocery prices. Online fashion marketplaces Stitch Fix Inc. SFIX and Rent the Runway Inc. RENT will also report, following mixed results from other clothing makers or retailers. Gitlab Inc. GTLB and DocuSign Inc.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gotion High-Tech Signs MOU for Big Battery Factory in Morocco - CleanTechnicaMorocco has signed an MOU with Gotion High Tech for the development and establishment of an industrial ecosystem for the production of batteries for electric vehicles as well as for stationary storage applications.
Read more »
Big tech's AI hypocrisy: Don't use our content, but we'll use yoursAI hypocrisy: OpenAI, Google and Anthropic won't let their data be used to train other AI models, but they use everyone else's content
Read more »
Majority of EU countries against network fee levy on Big Tech, sources sayA majority of EU countries have rejected a push by Europe's big telecoms operators to force major tech companies such as Google to help fund the rollout of 5G and broadband in the region, people familiar with the matter said.
Read more »
Why AI Is the Next Big Bet for Climate TechOptimized fish farms? Drones to track solar panels? Artificial intelligence is a focus in this $81 million venture-capital fund’s clean-energy investments.
Read more »
Bearish Bets Against S&P 500 Are Surging, Despite Love for Big TechHedge funds and other speculative investors have built up a big bet that the S&P 500 will decline, marking their most bearish positioning since 2007.
Read more »
Why Big Tech execs are swapping the boardroom for the dojoBig Tech execs like Mark Zuckerberg are swapping the boardroom for the dojo. Here's why martial arts are taking hold of Silicon Valley.
Read more »