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Wall Street and Big Tech: a complex picture
The recent Wall Street session highlighted a climate of uncertainty, despite the higher-than-expected financial results of two technological giants: Amazon and Apple. Both companies reported better-than-expected profits and revenues, but that was not enough to support the stock market, which showed signs of weakness. This phenomenon raises questions about the resilience of Big Tech in a constantly evolving economic environment
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Amazon: growth in the cloud and advertising
Amazon recorded a significant increase in its revenues, thanks mainly to the performance of its cloud computing sector, Amazon Web Services (AWS), and the advertising division. In the third quarter, AWS generated revenues of 27.4 billion dollars, although slightly lower than expected. However, the 19% growth compared to the previous year shows a recovery compared to past slowdowns. CEO Andy Jassy said that the company plans to invest around 75 billion dollars in 2024, highlighting the importance of generative artificial intelligence as a driver of
future growth.
Apple: solid results but uncertain prospects
Apple, under the management of Tim Cook, reported positive results, with a profit per share of 1.64 dollars and total revenues of 94.93 billion dollars. However, the outlook for the next quarter was disappointing, raising concerns among investors. iPhone sales exceeded expectations, but performance in other segments, such as the iPad, was lower. Despite this, Apple demonstrated solid management, with an increase of 12% in adjusted earnings per share on an annual basis, and available cash of 156.65 billion dollars, which
testifies to its financial strength.
Implications for the market and investors
Wall Street’s negative reaction to Amazon and Apple’s results suggests that investors are cautious about the future prospects of Big Tech. Despite the positive results, concerns about the performance of the global economy and the increase in operating costs could influence investment decisions. In addition, competition in the cloud computing industry, with Microsoft and Google recording higher growth rates, could put additional pressure on AWS. Investors will need to closely monitor future developments to assess whether Big Tech stocks will continue to be a viable option in the long term
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