Nivedita Bal and Tiyasi Dutta
With record job cuts nearing a quarter, investors in US tech giant scrutinize whether cost cuts will push profits to satisfactory levels, companies see artificial intelligence as next growth driver emphasizes that it will
Microsoft Corp, Google parent company Alphabet Inc, Instagram owner Meta Platforms Inc, and Amazon.com Inc all report quarterly results this week.
Together, they have a market capitalization of over $5 trillion, or over 14% of the value of the S&P 500 Index.
while Analysts from Microsoft, Alphabet and Meta expect earnings to rise an average of 4.5% from the previous quarter. According to Refinitiv, the end result of Meta. Year-over-year, earnings are expected to fall nearly 16% on average, with Microsoft expected to be the worst performer with his 0.5% slip.
Together with these three companies, Amazon said it would cut 70,000 jobs amid a rapidly weakening economy between November and March following a pandemic-driven job boom.Meta has announced two rounds of layoffs.
Amazon.com Inc., which reported a sharp decline in fourth-quarter earnings due to a write-down on its investment in loss-making EV maker Rivian Automotive, is expected to see eightfold earnings growth in the first quarter. . compared to the previous quarter.
Amazon’s North American sales are expected to beat Wall Street’s expectations in the first quarter, according to research firm YipitData.
Both companies are likely to provide an update on their AI efforts, a trend notable after the chief executive’s mention of the technology on an earnings call last quarter.
“If last quarter’s message from Big Tech was about improving efficiency and bottom line, this quarter’s message is more about the enormous potential of artificial intelligence,” said Andrew Lipsman, an analyst at Insider Intelligence. It is likely to be positive.
Microsoft integrated OpenAI’s ChatGPT technology into its search engine Bing to take on market leader Google.
Google has launched its chatbot Bard.
AWS, Amazon’s cloud division, the world’s largest, has released a suite of technologies aimed at helping other companies develop their own AI-powered chatbots, and Meta has released individual images from within images. We released an AI model that can select objects from
“The pressure to improve cash flow in a slowing economy is also a double-edged sword,” said Itau BBA analyst Thiago Kaprskis.
“There is an expectation that companies will be able to create and do more with AI…all technology investors expect those companies to be at the forefront.”
Amazon, Google, and Microsoft’s cloud businesses were also more stable than expected, according to analysts.
Shares of Microsoft and Alphabet are up 19% so far this year. Apple and Amazon are up 28% and 23% respectively. Metashare rose nearly 77%.
Apple, the world’s largest company, is set to report earnings on May 4, but it’s dealing with slowing demand for iPhones and MacBooks as consumers curb spending.
