grappling with a new reality: breakneck profit growth is no longer something they can count on.
Analyst estimates for 12-month forward earnings-per-share for stocks on the Nasdaq 100 Index fell about 0.2% last week on aggregate. That was the first drop in weekly estimates since December. The same measure for S&P 500 company earnings, meanwhile, rose about 0.1%. Recent quarterly results represent the “end of euphoria” for tech, Savita Subramanian, head of US equity and quantitative strategy at BofA Securities, said in a 1 May report, with the sector’s weakness among the most notable trends of the quarter.
Less-than-stellar results from some of the Nasdaq 100’s biggest companies have also hurt. Last week, Amazon plunged in an historic rout amid slowing e-commerce growth and disappointing forecasts, while shares in Apple also dropped after the iPhone maker warned that supply constraints would hurt sales by billions of dollars. Alphabet also released first quarter revenue that fell short of analysts’ expectations.And analysts aren’t just cutting profit expectations.