Tech earnings tsunami buoys Alphabet, sinks Apple
By Noel Randewich (Reuters) - Alphabet rallied, Apple sank and Twitter tumbled on Thursday after a mixed bag of quarterly reports from top-tier technology companies that investors have relied on this year to power a stock market rally through the coronavirus pandemic. Share swings following the reports from the tech heavyweights after the bell sent exchange-traded funds tracking the S&P 500 and Nasdaq down about 1% each, suggesting Wall Street may open weaker on Friday
By Noel Randewich
(Reuters) - Alphabet
Share swings following the reports from the tech heavyweights after the bell sent exchange-traded funds tracking the S&P 500 <.SPX> and Nasdaq <.IXIC> down about 1% each, suggesting Wall Street may open weaker on Friday.
Mostly upbeat results from Facebook
Alphabet and Facebook both reported strong rises in advertising sales and some caution about the future. Facebook, which often is conservative with forecasts, said that pandemic-related uncertainty could make for a difficult 2021.
Facebook's stock fell 1%, while Alphabet surged 7%.
"These results are testament to the incredible strength of the Google franchise," said Nicholas Hyett, an equity analyst at Hargreaves Lansdown. "Where other marketing driven businesses are struggling as advertisers become more cost conscious, it seems some of the cash is in fact finding its way to the internet search giant."
Apple fell over 5% after its iPhone sales missed estimates, although its quarterly revenue and profit beat analysts' expectations. That wiped $100 billion from Apple's stock market value.
Analysts expect aggregate S&P 500 earnings to drop 13% this quarter, compared to an increase of 4.5% in the tech sector, which includes Apple, Microsoft and many other of the index's largest companies, according to IBES data from Refinitiv.
Twitter reported fewer new users than Wall Street expected, sending its shares 17% lower. If Twitter falls that much in Friday's trading session it will have been its deepest one-day drop since March, when fear related to the pandemic sent global stock markets into a deep selloff.
Amazon reported a record quarterly profit and forecast a jump in holiday sales, but its shares fell almost 2% after it forecast a jump in costs related to COVID-19 .
(GRAPHIC - Big Tech's soaring market value: https://fingfx.thomsonreuters.com/gfx/mkt/oakvenrnapr/Pasted%20image%201603991077530.png)
Thursday's reports come amid turbulence on Wall Street, with soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimming the outlook for an economic recovery and knocking over 3% off the S&P 500 so far this week.
Without Facebook, Apple, Amazon, Netflix
"Due to both the huge weight of these stocks and their outperformance, the market has become more reliant on them than ever before for its gains," according to Bespoke.
(Reporting by Noel Randewich, additional reporting by Munsif Vengattil in Bengalaru; Editing by Lisa Shumaker)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Chuck Mikolajczak NEW YORK (Reuters) - A gauge of global stocks hit a record and oil prices jumped on Monday as the newest positive data for a potential COVID-19 vaccine and signs of economic recovery in Asia boosted sentiment. U.S. stocks advanced, with the Dow Industrials setting a record as it neared the 30,000 mark for the first time, after pharma company Moderna said its prospective vaccine was 94.5% effective in preventing the illness, which has crushed economies across the globe
By Anirban Sen and Joshua Franklin (Reuters) - Airbnb Inc's initial public offering (IPO) registration showed on Monday that the home rental startup turned a profit in the third quarter despite the COVID-19 pandemic, as it gears up for one of the most anticipated stock market debuts in recent years. The filing, published ahead of Airbnb's anticipated stock market debut in December, showed a dramatic recovery in its fortunes, after the coronavirus outbreak dragged down its core home rental business during the first half of the year. The slump forced it to lay off 25% of its workforce in May, suspend marketing activities for the year and seek $2 billion (£1.5 billion) emergency funding from investors, including Silver Lake and Sixth Street Partners, at a valuation of $18 billion
By David Lawder WASHINGTON (Reuters) - U.S. President-elect Joe Biden said on Monday the United States needed to negotiate with allies to set global trading rules to counter China's growing influence but declined to say whether he would join a new China-backed Asian trade pact signed on Sunday.