Estimated read time: 3 minutes
Publication date: 29th Apr 2022 12:13 GMT+1
Most investors had trained their guns on the earnings of big tech companies this week. As expected, each of these mega-cap companies was expected to drive markets higher or lower based on their performance in Q1 of 2022. Let’s see how some of the largest companies in the world performed in the quarter that ended in March.
In Apple’s (NASDAQ: AAPL) fiscal Q2 of 2022 (ended in March), the company reported revenue of $97.3 billion and adjusted earnings of $1.52 per share. Comparatively, analysts forecast sales of $93.4 billion and earnings of $1.43 per share in the quarter.
Despite its earnings and revenue beat, AAPL stock is down 2.2% in pre-market trading as Wall Street is worried about supply chain disruptions which will weigh heavily on its top line. In fact, Apple explained its revenue in Q3 might be impacted by between $4 billion and $8 billion due to supply chain constraints.
Despite an inflationary environment, Apple’s iPhone and MacBook sales were higher year over year. Its Services business revenue stood at $19.8 billion, compared to $16.9 billion in the year-ago period.
Microsoft (NASDAQ: MSFT) reported its fiscal Q3 of 2022 (ended in March) results on April 26. Its sales stood at $49.36 billion, with adjusted earnings of $2.22 per share. Wall Street forecast revenue of $49.03 billion and earnings of $2.18 per share in the quarter. Due to its earnings and revenue beat, MSFT stock has gained over 3% in the last four trading sessions.
In Q3, the company’s customer commitments to its cloud platform resulted in commercial booking growth of 28%. Its cloud sales were up 32% at $23.3 billion while LinkedIn sales also grew by 34% year over year.
Meta Platforms (NASDAQ: FB) reported revenue of $27.9 billion with adjusted earnings per share of $2.72 in Q1. Comparatively, Wall Street forecast Q1 sales and EPS at $28.2 billion and $2.56 respectively.
Despite its revenue miss, FB stock rose over 17% yesterday as the company experienced an uptick in daily active users. Its daily active users grew by 4% while monthly active users were up 3% year over year in Q1.
In Q1 of 2022, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) reported revenue of $68 billion and an adjusted EPS of $24.62. Comparatively, analysts forecast revenue at $68.1 billion and adjusted earnings at $25.96 per share.
The tech behemoth explained ad sales rose to $54.66 billion from $44.68 billion in the year-ago period. Comparatively, Google Cloud sales grew from $4 billion to $5.82 billion in the last year. Its traffic acquisition costs stood at $12 billion, compared to $9.71 billion in the year-ago period.
During the earnings call, Alphabet CEO Sundar Pichai stated, “Q1 saw strong growth in Search and Cloud, in particular, which are both helping people and businesses as the digital transformation continues. We'll keep investing in great products and services, and creating opportunities for partners and local communities around the world.”
The final big tech stock on my list is e-commerce heavyweight Amazon (NASDAQ: AMZN) which is down 9% in pre-market trading today. In Q1, Amazon reported an earnings loss of $7.56 per share and revenue of $116.4 billion.
Wall Street forecast sales of $116.3 billion and earnings of $8.36 per share in the quarter. Amazon attributed the net loss to a pre-tax valuation loss of $7.6 billion due to its investment in Rivian.
In Q2, Amazon estimates sales between $116 billion and $121 billion which were below estimates of $125.55 billion.
Disclaimer: The writer is an experienced financial consultant who writes for Finscreener.org. The observations he makes are his own and are not intended as investment or trading advice.
Copyright © 2016-2022 Finscreener.org. All Rights Reserved.
Disclaimer: Before deciding to trade you should carefully consider your investment objectives, level of experience and your risk appetite. Forex and Tradegate data is a real-time with a 30 second refresh. Prices may not be accurate and may differ from the actual market price. Prices on the website are indicative and solely for informational purposes, not for trading purposes or advice. Please be aware of the risks associated with trading the on financial markets, it is one of the riskiest investment forms. Past performance does not guarantee future profits. We take no responsibility for any losses that may arise as a result of the data contained on this website. The content and the website are provided "as is", without any warranties. In no event will Finscreener.org, its employees, owners, directors, affiliates, partners, data provider, third party or anyone else liable to anyone else for any decision made regarding information on this website.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
This could take some time, please wait.