Big Tech failed to ease Wall Street's concerns about slowing growth and the challenges the industry faces amid global economic uncertainty. Shares of Apple (AAPL), Amazon (AMZN), and Google-parent Alphabet (GOOGL) each fell more than 3% in after-hours trading Thursday following their holiday quarter earnings results. Whereas Meta bucked the gloomy trend in technology, delivering better-than-expected results.
Apple shares slid more than 4% on Thursday after the company posted a disappointing first-quarter earnings report, including rare misses on revenue, profit and sales.
Google-parent Alphabet reported a steep decline in profit and nearly flat revenue growth for the final three months of last year. It posted $13.6 billion in profits for the final three months of 2022, a decline of about a third compared to the year prior. Amazon outperformed the rest with a net loss of $2.7 billion for 2022, compared to net income of $33.4 billion a year before.
Why it matters
Big Tech has been feeling pressure recently with both Alphabet and Amazon announcing mass layoffs. The tech space has been a volatile one with a perfect storm of COVID shutdowns in China, rising inflation, an impending recession and a general global slowdown all impacting the three. Apple has thus far avoided the mass layoffs seen by its peers in the tech space - however, CEO Tim Cook has announced that the brand will be cutting costs and becoming increasingly mindful of who they hire.