What to expect from revenue from Meta, Apple, Amazon and Alphabet

As four of the largest tech companies in the United States report their results this week, expect to see arrows pointing down.

Meta, the parent company of Instagram and Facebook that posts earnings after market close today (1 February)is about to see her drop in net income due to declining advertising revenue and rising costs.

“Meta finds itself in something of a downward spiral. Costs are rising, ad spend is falling and markets are expecting another drop in earnings in next week’s fourth quarter results, Matt Britzman, equity analyst at Hargreaves Lansdown , writing. “These aren’t small declines either, with operating profit expected to be around $7.7 billion, which would be down 39% year-over-year.”

Given the disappointing third quarter results, Meta focused on cost reduction, starting with its workforce. The company announced it would cut 11,000 jobs in November. Investors, along with Meta’s chief technology officer, Andrew “Boz” Bosworth, are waiting for the company to refocus on basic skillsinstead of throw away billions in the deficit Reality Labs metaverse arm.

Meta won’t be the only one to deliver bad results. When Apple, Amazon and Alphabet come out earnings tomorrow (February 2), things don’t have to be any rosier.

What to expect from Apple, Amazon and Alphabet’s revenue

📱 Apple: iPhone maker set to report first year-over-year revenue decline in four years due to cChina’s ovid-19 lockdowns plus factory unrest hit both supply and demand.

📦 Amazon: Amazon, the everything-retailer and cloud-computing provider, braced investors for lower earnings, citing higher costs amid investments in its ability to execute. With 18,000 layoffs going on in the company, severance bills will also be high.

👨‍💻 Alphabet: Google’s parent company, among the latest to give in with 12,000 job cuts last week, will probably witness a large slip advertising revenue, a figure that continues to grow cloud business cannot compensate. At the end of the last quarter, YouTube released its first fall of advertising revenue, and this activity is likely kept on fighting.

Tech Snap’s coal canary, by the numbers

Snap, the parent company of messaging app Snapchat, reported It is results yesterday (31 January). Just like Google and YouTube from Meta and Alphabet, Snap highly dependent on advertising spend, and its the results painted a grim picture.

  • $1.3 billion: Snap’s revenue was flat in the fourth quarter, missing the expected $1.31 billion
  • 2-10%: How Snap has told investors it expects revenue to decline in the current quarter as it restructures to deal with economic headwinds, Apple’s privacy changes and nascent competition rivals like TikTok.
  • 15%: How many shares of Snap Inc. plunged in after-hours trading after the company missed analyst estimates. It also dragged other ad-dependent actions like Meta and Pinterest down. 2% and 5% respectively. (They both recovered.)
  • 11%: Decline in Snap’s revenue from brand advertising, aimed at promoting a brand’s image.

But there was a bright spot…

  • 4%: Increased Snap direct-response ad activity aimed at driving product sales or website visits – good news for Meta and Google as they lead this segment.

Quote: don’t worry about technology

“I believe we need to zoom out to get a good perspective. These tech titans – who got carried away during the pandemic era amid soaring revenues and profits and are now forced to bundle – still have heaps of money, in some cases hundreds of billions of dollars, and remain hugely profitable.Nigel GreenCEO and Founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations.

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