Alphabet, Microsoft lead bear-market earnings season

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Investors are facing a make-or-break week for some of Wall Street’s most influential tech stocks in a historic year for the group marked by a plunge into bear market territory.

The superlatives have followed one after another in 2022’s wild ride. Shares of Meta Platforms Inc have lost 61%, their biggest drop since the company went public a decade ago.

Here’s a look at the Big Tech stocks slated to report this week and what investors are keeping an eye on.Investors are concerned about the strength of the ad market in a weaker economy, a theme that was underlined by weak growth out of Snap Inc. last week. However, analysts are still penciling in full-year revenue growth for Alphabet of about 12%, slightly faster than the S&P 500, with double-digit increases also expected for the next three years.

While demand for its cloud and business software products is expected to be durable, even in the event of a recession, the 9.4% quarterly revenue growth expected by analysts would be its slowest pace since 2017. Full-year revenue for is seen falling 0.7%, making it the only company of the five expected to report a decline. This is also set to be the first year of falling revenue in the company’s history. Meta stock trades near its cheapest level on record, though that hasn’t been enough to entice bulls.Amazon reports Thursday afternoon, and the report will be scrutinized as a bellwether across industries.

 

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