Tuesday, March 28Welcome

Tech earnings show whether ‘bad months’ will last into next year

A woman is checking a bitcoin price chart on a digital exchange on her smartphone, predicting the future price action of the cryptocurrency.


With the earnings of the next big tech company just around the corner, Wall Street is already preparing its quarterly reports. Ten years.

A combination of the Federal Reserve’s complex efforts to curb inflation, continued evidence that a recession may be on the horizon, and spending cuts by both consumers and businesses led to a slowdown in months across the tech sector. For example, in the last week of September alone, technology pioneers such as Intel (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD), Alphabet (GOOG), and Meta Platform (META) have all fallen to 52-week lows and are now barely above these negligible levels.

In a research report looking at what to expect from tech stocks next earnings season, Wedbush analysts Dan Ives and John Katsingris wrote, “It’s been a terrible few months for tech stocks, except for the last few days. ‘ said. “At this point, we are entering a critical third quarter earnings season.”

Now that Ives and Katsingris have said that “positive news is negative news in this market and bad news is seen as Armageddon, sending tech stocks down”, the situation is leveling off.

Ives and Katsingris said not all news on technology stocks is back, and industry checks show enterprise software and cybersecurity stocks are “holding on.” And now some of the “favorite” companies in the software industry include Microsoft (Nasdaq: MSFT) and Salesforce (CRM). Analysts also named Palo Alto Networks (PANW), Fortinet (FTNT), and Cyberark (CYBR) as top picks for cybersecurity.

When it comes to favorite tech companies overall, Ives and Cassinglis are Apple (NASDAQ: AAPL) is on top of the mountain.

Regardless of the companies involved, Ives and Katsingris said many eyes will be trained on the state of companies’ spending budgets and their impact on sales growth. “This is a big problem,” said an analyst. “As dark storm clouds approach his 2023, it’s easy to embark on discretionary projects and tighten IT budgets.”

Analysts added that so many negatives this year have created a situation that is difficult for investors to get excited about, and that sentiment could continue in the coming months.

Ives and Katsingris said next month’s forthcoming earnings report will either “expose underlying negative fundamentals across the tech sector, triggering a significant revenue cut into 2023” or “growth tech. said it testifies to recent negative views about the “end of the world”. It’s too early and many pockets of technology are holding up well. ”

One sector likely to be heavily impacted by corporate budget conditions is semiconductors. In semiconductors, leaders such as Advanced Micro Devices (AMD) and his Nvidia (NVDA) have recently taken a hit from concerns over data center customer spending.

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