Tech Earnings Suggest It's A Stock Picker's Market
Investors remembered one thing when it came to technology breakthroughs this week. It has now become a stock-picking market.
what do you mean? This means that companies with good performance are rewarded by investors. Those who do not show good results are mentioned. So do your homework and choose the right one.
There were many examples during the week.
Meta shares rallied after earnings showed that Zuck's house is coming back to life. Meanwhile, Snap ( SNAP ) did nothing, and the stock market fell.
PepsiCo's ( PEP ) earnings were more impressive than Coke's ( KO ) and the stock was rewarded accordingly. In April, Amazon (AMZN) reported weakness in its cloud services, and investors sold the stock.
I suspect this stock picker story will continue next week. Hey Apple's ( AAPL ) May 4 earnings report is full of artificial intelligence.
Snack statistics
Amazon reported that AWS net sales increased by about 11% in April. This represents a 16 percent slowdown in the first quarter.
Snap reported a 6 percent year-over-year decline in second-quarter revenue. Meta predicts sales growth of about 7% in the second quarter.
Meta ended the first quarter with 77,100 employees, down 11 percent from the previous quarter.
Shares of Bed Bath & Beyond are scheduled to be delisted on May 3 after filing for bankruptcy.
Tesla shares fell 16 percent last month amid earnings woes.
Income fluctuates.
Insights from this week's earnings reports were disappointing about everything from consumers (PepsiCo, Chipotle) to demand for cloud services (Amazon).
"The uncertain economic environment and continued inflationary pressures continue to be factors, and we believe this will continue to encourage consumers to spend more cautiously ," said Brian Olsovsky, Amazon's chief financial officer. "This means our customers are looking to stretch their budgets further and are looking for value. We've seen some modest spending in luxury categories, as well as a healthy shift in demand for lower-priced items and essentials like accessories and cosmetics."
"We have completed two of the three waves of layoffs and layoffs we've planned this year for our hiring and technology teams so far," said Mark Zuckerberg, CEO of Meta. "In May, we will conduct the third wave in our business groups. This process was very difficult, but once it is completed, I think we will have a more stable situation for our employees. "
"We're seeing some pressures that lead us to believe that our outlook for the macro economy is correct," McDonald's CEO Chris Kempinski said. For example, anyone has added fries to their order, how many items they buy per order, most of our markets around the world, but it still hasn't taken off. ".
"And despite all this, we will continue to closely monitor the acceptance of our award," Kempczynski added. “I'm really proud of the way our system has held up in the face of double-digit inflation. But price resistance in some areas, we are seeing more resistance than before. So I think all of this again reflects a more complicated macro environment.
Weekly schedule
Looking for a good quarter and upside for Snap, here's a chart from Jefferies technical analyst Brent Thiel.
Brian Sozzi is an editor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and LinkedIn . Advising on transactions, mergers, strategic situations or something else? Email brian.sozzi@yahoofinance.com
Click here for the latest stock market news and in-depth analysis, including stock market developments.
Read the latest financial and business news from Yahoo Finance
First published
