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The big three do not fulfill the expectation.

 Last night, Apple missed Wall Street’s expectations for profit for the first time in almost seven years

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after production disruption in China knocked quarterly sales of its iPhone. Shares in the business dropped by 3.3 per cent to $145.90 during out-of-hours trading in New York last night after it revealed that its revenue had fallen by 5 per cent to $117.2 billion in the three months to December 31. In addition, net income fell by 13 per cent to $30 billion. With a market value of $2.4 trillion, Apple is the world’s most highly valued public company.

Tim Cook, 62, its chief executive, said that production disruption, caused mainly by lockdowns in China, had persisted for «most of December» but since then had returned to «where we want it to be». In addition, Amazon revealed that it had beaten sales expectations for the last quarter after a marketing blitz during the holiday period helped to attract shoppers. However, the world’s largest retailer tapered Wall Street’s expectations for the current quarter, and shares in the group dropped 4.8 per cent, or $5.21, to $112.91 in after-hours trading after it guided first-quarter sales that were below market expectations. Net sales rose 9 per cent to $149.20 billion in the fourth quarter, compared with analysts’ forecasts of $145 billion, according to Refinitiv.

The retailer expected net sales of between $121 billion and $126 billion for the first quarter. Analysts have forecast $125.11 billion. Revenue at Alphabet rose by 1 per cent to $76.05 billion in the last quarter. However, net income declined by 33 per cent to $13.6 billion.

Its shares dropped 3.7 per cent, or $3.99, to $103.75 during after-hours trading. Sundar Pichai, chief executive of Alphabet, highlighted its «long-term investments in deep computer science», which he said had ensured the group was «extremely well-positioned» in artificial intelligence. It comes after Meta Platforms, which owns Facebook and Instagram, eased concerns around its outlook by forecasting a robust first quarter, cutting its spending projection and boosting a stock buyback plan by $40 billion. Shares in the social media group rallied by 23.3 per cent, or $35.65, to $188.77 yesterday.

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Comments

  1. Alonso3 February 2023 at 10:36

    All major players will keep investing heavily in AI and related technologies in the next 2-3 years, at least. It will be one of the best investments to make in this time frame.

    ReplyDelete
    Replies
    1. Elmer3 February 2023 at 14:06

      One of the better investments to make by anyone, companies and regular people alike. Investing in AI will probably be the next Bitcoin (when it first appeared and rose to it's highest prices).

      Delete
  2. Don3 February 2023 at 15:00

    @Elmer It's a great time to be alive, that's for sure! It's never been more affordable and possible to make a lot of money in a short amount of it. AI will speed things up, in a lot of businesses and offer lots of people the opportunity to become rich.

    ReplyDelete
  3. William T.3 February 2023 at 17:22

    2023 will probably be a stagnating year for the big 3 when it comes to profits. Now is the time to invest. Profits will come later.

    ReplyDelete

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