On Wall Street US futures at attention waiting for the publication of the third quarter accounts of the US Big Tech. At approximately 13.35 Italian time, the futures on the Dow Jones are down by 0.34%, those on the S&P 500 are down by 0.24%, while those on the Nasdaq are flat.
The sentiment becomes more uncertain, after the spread of some rumors according to which Amazon, among the Big Tech expected to enter the markets, is planning to freeze hires.
The attention remains alive also on Meta: the title of the giant known as Facebook has lost about 60% since it decided to change its name to Meta and more than 60% since the beginning of the year. Since the beginning of the year, the flight from Meta shares has resulted in a drop of -61.5%, compared to the decrease of about 30% in the Nasdaq 100 index, while from the day of the announcement concerning the decision to change the name from Facebook to Meta, or from 28 October 2021, the fall was equal to -59%.
Confirming the disappointment and frustration of the shareholders, the letter to the company of the long-term shareholder Altimeter Capital Management, signed by the president and CEO of the investment company, Brad Gerstner, has arrived in the last hours. Gerstner wrote in black and white that Meta has too many employees and that it is moving too slowly in trying to maintain (and it should be said, also restore) investor confidence. Altimer’s number one has consequently unsheathed his care to ensure that the giant gets back his “mojo”, or his magic, asking the top to proceed with a scissor cut of his workforce equal to -20% and a cut of investments in the metaverse, which has become the obsession of the ceo Mark Zuckerberg.
Enough of Zuckerberg’s mega investments in VR software and hardware aimed at creating the metaverse, various avatars and other attached and connected virtual realities:
“Meta needs to restore the confidence of investors, employees and the tech community in order to attract, inspire and retain the best people in the world. In a nutshell, Meta needs to get in shape and get back to focus, ”wrote Gerstner.
Today, after the end of the session on Wall Street, the quarterly reports of Alphabet and Microsoft are expected, while Meta will release the accounts tomorrow, followed Thursday by Amazon and Apple.
Meta goes up in the premarket by about 0.50%, Amazon is down by 0.24%, Apple -0.33%, Alphabet + 0.40%, Microsoft + 0.22%.
Meanwhile, other Corporate America financial results have been released.
The market is looking favorably on the accounts of the soft drink giant Coca-Cola, which announced that it has finished the third quarter of the year with better than expected profits and revenues. The group thus revised its outlook for the full year upwards.
The American giant Coca-Cola reported an EPS on an adjusted basis of 69 cents compared to the 64 cents expected by the consensus of the analysts interviewed by Refinitiv. Revenue was $ 11.05 billion on an adjusted basis, versus an expected $ 10.52 billion. For 2022, the group announced that it expects EPS growth on an adjusted basis of 6-7%, compared to the previously expected increase of 5-6%.
The Coca-Cola stock reacts in the premarket on Wall Street with a jump of 2.8%.
Focus also on the auto giant General Motors, which announced that it reported in the third quarter an adjusted earnings per share of $ 2.25, compared to the expected $ 1.88 and a disappointing turnover, equal to $ 41.89 billion, compared to $ 42, 22 billion provided by the consensus. The stock jumped by more than 5%.