These reports will cover the period from April through June.
Alphabet GOOGL and Microsoft MSFT will release financial results on Tuesday. In addition, results from Meta Platforms META, Qualcomm (QCOM), and Shopify (SHOP), among others, will be released on Wednesday. Finally, results from Apple AAPL, Intel (INTC), and Amazon.com AMZN are due on Thursday, picking up the tempo from the previous day.
Each of these companies is special in its narrative, but this is a crucial fiscal period. In the following few days, there are significant developments to keep an eye on:
Simply put, how terrible is it in terms of web advertising? After Snapchat’s parent company, Snap, announced its abysmal quarterly results for the June period and refused to offer any projection for the upcoming September period, Snap (SNAP) shares dropped over 40 percent in a single day last week. These findings have raised new worries about the future of internet marketing.
There are three problems, all of which connect in some way. First, Apple’s restrictions on disclosing iPhone users’ app and website activity have further complicated targeting. Second, during economic downturns, advertising expenditures, including digital advertising, tend to decrease. Third, there is rising competition for advertising revenue from companies like Amazon and Apple, which have smaller but expanding ad divisions, and from TikTok, the clear leader in this space. Finally, not all websites that rely on adverts would be affected equally; according to market conjecture, Google’s search ads may not be as vulnerable as Meta’s display commercials.
Can we expect cloud expenditure to continue at current levels? Popular public clouds include Microsoft Azure, Google Cloud, and Amazon Web Services. In addition, companies amid “digital transformations” are shifting more of their IT resources to the cloud, and until recently, Wall Street believed these enterprises would blow right through any slump.
There is a chance, though, that cloud clients may reduce spending or at least decrease expenditure growth if the economy continues to weaken. Many online businesses rely on cloud-based infrastructure, including social networks, video-sharing platforms, and e-commerce platforms. Any significant failure in this area, especially by Azure and AWS, would not go down well with investors.
To what do you see the future of internet purchasing leading? On Wednesday, Shopify will announce its quarterly results, which may show us how poorly Amazon’s e-commerce division performed in the second quarter. However, few people believe that Amazon’s online sales would decrease from the previous year in a positive turn of events.
It is still hard to draw parallels between this year’s online shopping climate and last year’s, which was much more substantial.
But, as interest rates rise, inflation soars, and concerns of a recession spread, brick-and-mortar and online retailers will search for customer demand indicators.
One of the main reasons why most Wall Street forecasts for the June quarter appear overly high is the massive appreciation of the greenback versus the rest of the world’s currencies. Although many businesses anticipated a 2- to 4-percentage-point currency headwind, the effect of the rising dollar would be far more significant for many of them.
For instance, whereas International Business Machines (IBM) expected a 3-to-4 point currency impact, they recorded a 6-percentage-point fall instead. Contrary to popular belief, European corporations are benefiting greatly from favorable exchange rates as their U.S. dollar-denominated income converts into even more of the European currency. While “constant currency” sales are more significant than GAAP results for most corporations, it is lower for European companies like SAP (SAP), which saw an increase of 8 percentage points in profits for the quarter ending in June.
The demand for personal computers and mobile phones is relatively poor. IDC and Gartner statistics and statements from Micron Technology (MU) point to a significant slowdown in sales of personal computers and mobile devices. The public bought a lot of new gadgets during the epidemic, most of which are still functioning normally. However, concerns about the economy, rising prices, and a more competitive job market have caused shoppers to tighten their purse strings. Logitech International (LOGI), a manufacturer of computer accessories, will provide updated information on this front when it releases its quarterly results on Tuesday morning.
Where does the need for corporate IT stand? IBM and SAP concur that demand is healthy despite headwinds. On Tuesday, Microsoft expects to release its financial results; on Wednesday, ServiceNow will provide similar information.
However, shares of the cloud-based software supplier dropped after CEO Bill McDermott cautioned that it would take longer to finalize European agreements.
In addition, you should be aware of the following:
The question is if NCR (NCR) will make a transaction announcement. The producer of automated teller machines and point-of-sale terminals is weighing its options and will reveal its findings on Wednesday. The corporation may soon make a public statement about going private.
The question is whether or not Meta plans to reduce its budget. Mark Zuckerberg, the company’s founder and CEO may rekindle interest in Facebook by scaling back on expensive ambitions to expand into the metaverse. It seems like the best moment to concentrate on what you do best.
Will Andy Jassy, CEO of Amazon, be there for the quarterly earnings conference call? Top executives from Netflix, IBM, Microsoft, Apple, Meta, Intel, and Alphabet attend quarterly earnings calls. However, former Amazon CEO Jeff Bezos was notorious for not showing up to corporate calls, and current CEO Andy Jassy has continued this trend.