a make or break week for some of Wall Street’s most influential technology stocks in a historic year for the group marked by a plunge into bear market territory.
“They are essential to the sentiment around tech, no doubt,” said Neil Campling, an analyst at Mirabaud Securities. “Investors are now focused on the bottom line and want evidence of lower costs, disciplined spending and not chasing revenue growth at all costs.” The stock weakness arguably has made Alphabet a bargain, as it trades at just 17 times estimated earnings, a discount to its 10-year average and the Nasdaq 100 overall.The software giant, which also reports after the close on Tuesday, trades at 23 times earnings, a slight premium to its average over the past decade.
The Facebook parent has been besieged by stalling user growth, competition from TikTok and an Apple privacy policy that has diminished its ability to target ads. Also, it’s facing the same weak ad market that pressured Snap.