Home » Wall Street clings to Apple and Amazon: give them the certainties for Big Tech

Wall Street clings to Apple and Amazon: give them the certainties for Big Tech

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Wall Street clings to Apple and Amazon: give them the certainties for Big Tech

MILANO – Plagued by the specter of recession, the US is clinging to the half-full glass it sees in Apple and Amazon accounts to gain some more time before bandaging its head. From the two technological giants there are accounts, yes, with clear elements of slowdown, but we do not see the collapse that some feared having to register for Big tech.

Apple beats expectations thanks to iPhones

The Cupertino company has released quarterly accounts that with revenues up 2% to 83 billion dollars. Profit fell 10.6% to 19.4 billion, in what is the worst quarter since July-September 2020 or before the launch of the iPhone 5G. The results are slightly above Bloomberg’s consensus analysts’ expectations that Apple can now take the time to revive its product range. “This quarter was a reflection of our resilience and optimism,” said CEO Tim Cook not denying that “We see pockets of weakness here and there” but “we expect revenue to accelerate in September”.

Revenues from iPhone – Apple’s growth engine – rose by 2.8%, well over the -2.5% expected by analysts, while bottlenecks in production chains weighed on those of iPad and Mac. In China, Cupertino did much better than expected and recorded a limited contraction despite the lockdowns. Digital services such as iCloud, AppleCare, Apple TV + and Apple Music grew 12% to 19.6 billion in revenues over the period, becoming Cupertino’s fastest growing business but slightly below expectations (19.7 billion).

“The results continue to demonstrate our ability to manage the business despite the difficult operating environment”, highlighted the chief financial officer, Luca Maestri. Prior to the quarterly, Apple warned that it was going to be a very complicated quarter and to expect a cost of between $ 4 billion and $ 8 billion due to difficulties in supply chains. In the end, as per the tradition of the house, the bill was lower and the results exceeded the expectations generated. Capacity recognized by Wall Street with shares that have risen by more than 4% in the post-market, after the spread of the adventurous accounts to exchanges already closed.

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Second red in a row, but Amazon is doing better than expected

Slowdown, even the second red in a row, but even in the case of Amazon the worst seems averted: its e-commerce and its business in the service sector are able to survive the hyper-inflationary climate of recent months, which worries the families and businesses, and to churn out revenues for the creation of Jeff Bezos.

Despite the second consecutive quarter in the red – two billion in the April-June period -, the e-commerce giant has even managed to earn double-digit after-hours trading, up to 15%.

Revenues are driving up 7% to 121.1 billion. for the third quarter, revenues are expected between 125 and 130 billion. “Despite inflationary pressures in energy and transportation costs, we are making progress on more controllable costs – highlights CEO Andy Jassy -. We are also seeing an acceleration in revenues as we continue to make Prime better for companies. our customers by investing in the speed of deliveries and increasing benefits “. The goal of the former head of AWS is to reduce the cost of space and personnel, which had soared to cope with the e-commerce hangover of the pandemic. Not surprisingly, CFO Olsavsky remarked that Amazon has added workers at the slowest pace since 2019, although it is spending more on AWS engineers and data centers.

The server division beat analysts’ expectations with 19.7 billion in revenues, while advertising services – another generous cash producer – rose 14% to 8.76 billion.

Among the data pinned, also the effects of the increase in prices for the Prime subscription: in the United States it had already started in February, in recent days it was the turn of Europe, including Italy: it did not upset the subscribers, while the revenues from subscriptions rose 14% to 8.72 billion, reversing the trend of three consecutive quarters of slowdown.

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Shock Intel

To remind the sector that, however, it is an extremely delicate moment, and therefore that it is better not to give in to easy enthusiasm, Intel took care of it. The chip company reported an unexpected drop in revenue in the quarter, lowered its full 2022 financial targets and generated a double-digit backlash on post-trading action. Procurement, weakening economic prospects and competitive pressure: this is the mix that worries the largest US chip maker. What stands out is the fact that it’s a quarterly report that goes against the trend of the other big chip companies that have published the accounts in recent days, and according to the FT suggests that Intel has been hurt by exposure to shrinking PC markets and its loss. leadership in cutting-edge manufacturing for TSMC.

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