CNBC Daily Open: Big Tech needs to go beyond beating earnings expectations

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Investors don’t just expect those companies to beat estimates. They also want Big Tech to drive markets, which depends more on growth prospects than…

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribethird-quarter earnings and revenue

. While the company's cloud division missed revenue expectations, it's growing faster than it had in the same period last year.in October after a reading in September that indicated contraction. The Caixin/S&P Global manufacturing purchasing manager's index came in at 50.3, beating the median estimate of 49.7 in a Reuters poll. The index tends to measure private sector companies and exporters, compared with the official PMI data, which tracks bigger state-owned firms.

Therein lies the outsized burden on Big Tech. Investors and analysts don't just expect those companies to beat estimates. They also want megacap companies to drive markets, which is contingent more on growth prospects than earnings. In essence, Big Tech, more than any other sector, has to satisfy expectations for both the past and the future at the same time.

 

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CNBC Daily Open: For Big Tech, beating earnings expectations is not enoughInvestors don’t just expect those companies to beat estimates. They also want Big Tech to drive markets, which depends more on growth prospects than…
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