Get ready for a bumpy ride as earning are being released by Big Tech this week. GOOGL GOOG, Amazon.com Inc. AMZN, Apple Inc. AAPL, Facebook parent Meta Platforms Inc. META and Microsoft Corp. MSFT — prepares to report, there are serious doubts about their near future for the first time. All five have signaled that they are cutting costs or plan to soon, as MarketWatch’s Jon Swartz reported. Amazon ripped off the Band-Aid three months ago, and it looks like some of its Big Tech cohorts may look to do the same in this earnings season. Apple has reportedly planned cost cuts for next year, while Microsoft is closing down open positions and making small layoffs. Meta Chief Executive Mark Zuckerberg told employees on the last day of the second quarter that they face one of the “worst downturns that we’ve seen in recent history,” and Alphabet CEO Sundar Pichai warned employees of slowing hiring just a few days after the quarter close. Results last week from Snap Inc. SNAP and Twitter Inc. TWTR show concerns about the digital-advertising business are founded.
Any big moves for those five companies would have major ripple effects in the market. Collectively worth roughly $7.5 trillion despite the declines that have already struck this year, the five companies make up about 23% of the total market cap of the S&P 500 index SPX, according to the Dow Jones Market Data Group. Source