Big Tech Earnings Are Being Punished. Will the Bad Mood Spread to Amazon?

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Ford nears UAW deal, Meta revenue jumps on ad rebound, new House Speaker elected, and other news to start your day.

Google parent Alphabet lost $166 billion in market value Wednesday, the fifth largest decline by a U.S. company in history. That came after the tech giant beat earnings expectations.

Newsletter Sign-up It’s not just Big Tech. Companies reporting positive earnings surprises in the third quarter have seen their shares fall an average of 1% in the period from two days before earnings through two days after, according to FactSet’s latest scorecard. That data doesn’t even include Alphabet’s post earnings stock performance.Another area of the tech sector, the payments space, sold off Wednesday, highlighting the current mood.

***Meta Platforms Notches Revenue Bump on Ad Rebound Facebook and Instagram parent Meta Platforms reported a 23% jump in quarterly revenue, its third consecutive quarter of rising revenue in a turn around from 2022. Demand for advertising grew and its cost-cutting and artificial intelligence technology development efforts helped boost results.

What’s Next: An agreement with Ford could put pressure on GM and Stellantis to also reach deals. A 25% wage increase over four years replicated across the industry could raise costs for the Detroit Three manufacturers by a cumulative $4 billion a year by the end of the contract.***Barbie Dolls Boost Mattel After Movie Success The Barbie doll and her eponymous Warner Bros.

 

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