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Nasdaq heads for first five-week losing streak since 2012

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MicrosoftThe company surpassed earnings expectations and provided a more positive forecast. So did Intel. Apple TeslaThe results exceeded all expectations, and subscription software vendors also performed well. ServiceNow, Qualtrics AtlassianAll posted decisive beats.

This week, all of that took place. The Nasdaq’s losing streak extended to five more weeks as of Friday midday, its longest since the end 2012. Even Friday’s close, the tech-heavy index lost 1.5% in five consecutive days. Apple-fueled rally.

The tech earnings season is over billed as the most important in a decadeInvestors wrestle with highest inflation in 40 yearsThe likelihood that a number of them will be upcoming rate hikesFederal Reserve. The Federal Reserve has been busy hammering cloud software, ecommerce, trading app, and chip stocks as a result of a move away from the top bull markets performers to areas that are safer, such as energy, financials, and towards areas that can be regarded more secure like finance.

With the exception of NetflixWall Street has been assured that the best tech companies will deliver, and they are able to do so because of their high-quality performance. power through supply chain concernsTight labor markets and increased capital costs. Late Thursday, Apple announced that it had increased its revenue for the latest quarterEarnings per share rose 11% year-over-year, surpassing the average analyst estimate of $1.89. These numbers show that the company continues to grow while reducing costs.

Canaccord Genuity analysts wrote in a report that they received after Apple’s announcement, “Despite component shortages,” the company continued to show the strength of its product platform with wide-based growth throughout its range. They have maintained their stock buy rating.

Apple, the US’s most valuable company, rose almost 6% Friday. This helped lift the Nasdaq to 1.6%. However, the Nasdaq index suffered big losses on Thursday and Tuesday. It is now down 13% for January. The index will be closing out its worst month since 2008

The mega-cap tech company and other tech suppliers will all report their quarterly results next week. All eyes are on that.

AlphabetThe Tuesday kicks off, and is followed by MetaOn Wednesday, AmazonThursday: Chipmakers AMD QualcommAlso, next week’s report will be available. To start the year, they were down between 9 and 28%.

Next week, tech companies will report

Alphabet was amongst the five companies that posted gains this week. It rallied with Apple on Friday. Google ads and YouTube advertising are driving the growth of the company, which is likely to see another quarter at nearly 27%. However, analysts expect some moderation in this year’s results to the teens.

Google’s Tuesday commentary and Meta’s numbers on Facebook the following day should give investors a better understanding of how online ads are developing and whether large spenders feel any pinches. Meta will see revenue growth of around 19% for the fourth quarter. This is its slowest growth rate since mid 2020. Analysts expect annual growth to drop to between 18% and 19% by 2022.

Google and Facebook both have shown they can handle all manner of obstacles in recent years. This includes regulatory pressures, pandemic shutdowns, and even regulatory pressure. Apple’s iOS privacy changes. This is because they have the greatest influence on internet audiences. Marketers can cut their spending but still invest their money in ways that reach as many consumers online and via mobile devices.

Last week, Argus Research said in earnings preview that Meta’s greatest near-term dangers stem from regulatory inquiries and critical media coverage.

However, the firm maintains a buy recommendation and has set a $410 price goal. That’s a 38% higher than Friday’s stock price.

Argus said that Meta could be better positioned for the storm, due to “the secular tendency of advertisers moving digitally from other channels” and as a result of much of its revenues coming from direct-response ads on ecommerce sites.

Amazon’s Thursday results will include the crucial holiday period. The fourth quarter will see a 10% increase in sales compared to a year ago, according to analysts. However, investors are persuaded that Amazon’s dominance over the online e-commerce market means that they can rely on one website for quick and cheap deliveries, as well as Facebook and Google.

Amazon will see a 17% increase in growth by 2022. This is a small drop from the 22% that Amazon saw last year.

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