A big tech week with ups and downs
It was both ups and downs during the week with many big tech companies presenting quarterly reports. Amazon reported a loss for the first time in 15 years; Meta’s Facebook has stopped losing users, Google-owner Alphabet disappointed markets and shortage of computer chips worries Apple.
Alphabet’s net income was USD 16.4 billion and down by 8.3% year-on-year but revenues were up by 23% from the same quarter last year to USD 68 billion. The war in Ukraine has hurt ad sales at YouTube and the company warned that a stronger US dollar could hurt sales even more in Q2.
Microsoft’s results were better than analysts had expected with revenues of USD 49.4 billion, up 18% from the same period last year. Net income was USD 16.7 billion. The company forecasts double-digit revenue growth for the next fiscal year explained by demand for cloud computing services.
Meta reported that daily active users of Facebook increased by 4% year-on-year to 1.96 billion in Q1 and share price was up by close to a fifth in post-session trading. However, Meta also reported its slowest quarterly sales growth in ten years but revenues were anyway up 7% year-o-year to USD 27.9 billion.
Amazon noted post-pandemic effects and reported its first quarterly loss since 2015, USD 3.8 billion. The loss is partly explained by decline of 3% in online sales, rising costs and investment in electric vehicle startup Rivan that has lost a lot of share value lately. Overall revenues were up 7% year-on-year compared with 44% over the same period in 2021, when the pandemic created a boom in online shopping.
Apple said that supply-chain problems could diminish revenues by USD 4 billion to USD 8 billion in Q2. Revenues in Q1 grew by 9% year-on-year to USD 97.3 billion. The company explained its warning for Q2 with chip shortages and difficulties in Chinese manufacturing centres that have covid problems.
Spotify Technology said currency fluctuations and a big increase in hiring will mean an operating loss in Q2 and shares fell11% despite that the company’s revenue for Q1 was better than expected.
The company estimates an operating loss of Euro 197 million euros for Q2 but said investments will lead to growth in the decade ahead. Total number of monthly active users was up19% to 422 million in the first quarter.
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