Big Tech is bracing for a tumultuous week marked by quarterly results likely to show resilience despite the pandemic, and fresh attacks from lawmakers ahead of the November 3 election.
Robust quarterly earnings results expected from Big Tech will"highlight the outsized strength these tech behemoths are seeing" but"ultimately add fuel to the fire in the Beltway around breakup momentum," Wedbush analyst Dan Ives said in a note to investors. The four giants drawing the most scrutiny – Apple, Amazon, Facebook and Google – have been wildly successful in recent years and have weathered the economic impact of the pandemic by offering needed goods and services.
"For the most part, tech companies know how to do this dance," said analyst Rob Enderle of Enderle Group."They don't spend a lot of time bragging about how well they have done any more.""For one, regulators at home and abroad are gunning to rein in some of the largest US technology names," Yardeni said in a research note.
Economic and social disruption from Covid-19 also looms over tech firms, which benefited early in the pandemic as people turned to the internet to work, learn, shop and socialize from home. Amazon has seen booming sales on its platform during the pandemic, and viewing surge at its Prime streaming television service.