Meta joined Alphabet and Microsoft in releasing disappointing quarterly financial statements, following the company’s second-quarter earnings call. In a week of disappointment for massive stocks, the trio all lost revenue and earnings expectations, as Meta saw its first-ever quarterly drop in sales.
Due to the current global economic slowdown, markets have predicted that massive dividends representing 40% of the Nasdaq and 30% of the S&P 500 could face a bloodbath.
However, although earnings disappointed and came in worse than expected across the board, some analysts suggest the situation may have been more dire.
The International Monetary Fund (IMF) recently announced that it is in the process of revising its forecast for global GDP for 2022, from 3.6% at the beginning of April, to now forecast 3.2% growth for the remainder of the year.
This appears to be reflected in the earnings report released by three of the world’s largest technology companies.
Alphabet, Google’s parent company, was one of the first to release earnings this week, with numbers below expectations.
The company announced that second-quarter revenue rose 13% to $69.7 billion, less than the expected $70.8 billion.
Second-quarter earnings came in at $1.21 per share, below the consensus of $1.27 per share for the quarter.
Microsoft also missed expectations, with both earnings and revenue numbers disappointing in the second quarter.
The company founded by Bill Gates reported earnings of $2.23 per share, versus public expectations of $2.29 per share.
Quarterly revenue was reported at $51.87 billion, lower than the $52.44 billion the analyst had expected.
Finally, Meta, formerly known as Facebook, reported disappointing financial results for the second quarter of the year.
They confirmed total revenue of $28.82 billion for the month of April-June, slightly lower than the expected $28.94 billion.
EPS, earnings per share were reported at $2.46, versus hopes of $2.56 per share, which comes despite Facebook’s daily active users rising to 1.97 billion versus the expected 1.95 billion.
After the earnings call, CEO Mark Zuckerberg stated, “It looks like we’ve entered a recession that will have a broad impact on the digital advertising business.”
As for Amazon and Apple, the two largest stock companies that will announce their earnings later today, do you expect this trend to continue?
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