Heading into first-quarter earnings, Wall Street expected a bumpy ride. But Big Tech’s rebound helped soften the landing, and analysts believe it will take similar support to save results ahead.
The tech industry’s growth disappointed analysts through much of 2022, as digital demand sputtered after surging early in the COVID-19 pandemic, leading to a wave of layoffs. But since then, investors have largely done a 180 as companies like chip maker Nvidia Corp. NVDA have ridden AI hype through the stratosphere, while Apple Inc. AAPL put up a surprise increase in iPhone sales. Microsoft Corp. MSFT in April offered an upbeat offered an upbeat outlook, sending shares higher. Amazon.com Inc.
Those estimates only rose modestly — 1.3% and 1.7%, respectively. But FactSet Senior Earnings Analyst John Butters said in Thursday’s report that Microsoft, Apple, Intel and Nvidia were all “substantial contributors” to keeping the index’s profits from falling more. Amazon, part of the consumer discretionary sector, was also a “significant” contributor on that front.
This week in earnings RV-maker Thor Industries Inc. THO reports this week, amid a slowdown in RV demand. Elsewhere, results from United Natural Foods Inc. UNFI — Whole Foods’ main distributor — J.M. Smucker Co. SJM and Campbell Soup Co. CPB will offer context on the trajectory of grocery prices. Online fashion marketplaces Stitch Fix Inc. SFIX and Rent the Runway Inc. RENT will also report, following mixed results from other clothing makers or retailers. Gitlab Inc. GTLB and DocuSign Inc.