Big Tech Earnings Recap – Winners & Losers
Another Big Tech Earnings Season is in the Books
Let’s Recap the Results and Take a Look at This Season’s Winners and Losers
It has been a tough first half of the year for tech investors. As the world comes out of the pandemic and adjusts to the new normal, people are sitting home and using various tech platforms less. Online shopping, which boomed during the pandemic while people were quarantined, is starting to slow its growth as people shop in person more and more.
Some of the largest tech companies reported some of the issues the companies are facing and how they’re affecting them financially in their recently released earnings report.
- Revenue: $97 billion, up 8.6% YoY
- Net Income: $25 billion, up 5.8% YoY
- Earnings Per Share: $1.52
- View Earnings Press Release
Apple was one of the few tech companies to beat earnings expectations. The company acknowledged that the recent COVID-19 lockdowns in China disrupted their supply chain, but they were still able to grow both revenue and net income. While Apple has not given future guidance since the beginning of the pandemic, management believes the future is bright, as they increased the dividend by 4% and upped their share buyback to $90 billion.
Shares of Apple are currently changing hands at $152.42 per share, down -3.09% on the day. YTD, AAPL stock is down -16.25%.
Learn more about Apple: Website | Investor Deck | AAPL Chart
- Revenue: $68 billion, up 23% year over year (YoY)
- Net Income: $16.4 billion, down 8.3% YoY
- Earnings Per Share: $24.62
- View Earnings Press Release
While the company continued to grow revenues, growth slowed somewhat thanks to less than expected Youtube ad revenue. Meanwhile, a reduction in Google Play fees hurt the company’s net income. Also contributing to the net income shortfall was the company’s cloud division. Despite growing revenues by 44% YoY, the division still lost $931 million in the quarter.
Shares of Alphabet are currently trading at $2,270.11 per share, down -1.94% on the day. YTD, GOOGL stock is down -21.72%.
Learn more about Alphabet: Website | Investor Deck | GOOGL Chart
Also Read: Elon Musk Buys Twitter in $44 Billion Blockbuster Deal, Plans to Take Company Private
- Revenue: $49 billion, up 18% YoY
- Net Income: $20.5 billion, up 48% YoY
- Earnings Per Share: $2.22
- View Earnings Press Release
The OG of big tech, Microsoft, is still managing to reinvent itself and churn out impressive earnings. Its cloud services division has become their breadwinner, bringing in $19 billion, up 26% YoY. Microsoft’s flagship brands, Windows and Xbox, continue to show double-digit growth, with an 11% YoY increase. Most impressive, though, is their Net Profit Margin; their 42% margin is nearly double that of the other companies on this list.
Shares of Microsoft last traded at $265.49 per share, down -3.36% on the day. YTD, MSFT stock is down -20.69%.
Learn more about Microsoft: Website | Investor Deck | MSFT Chart
- Revenue: $116.4 billion, up 7% YoY
- Net Loss: $3.8 billion, down 146% YoY
- Loss Per Share: Loss of $7.56, down 148% YoY
- View Earnings Press Release
Amazon reported its first quarterly loss in seven years despite increasing revenues yet again. That loss includes an $8 billion non-cash loss related to their investment in Rivian (NASDAQ: RIVN); excluding this loss, Amazon would have posted a $4.2 billion profit. This adjusted gain is still about half of what the company posted in the prior-year period. Management blamed the profitability shortfall on COVID-19 and the war in Ukraine, disrupting supply chains and rising costs.
Amazon is currently trading at $2,181.34 per share, down -4.97% on the day. YTD, AMZN stock is down -35.94%.
Learn more about Amazon: Website | Investor Deck | AMZN Chart
* Attention readers on mobile or tablet, if you cannot view the above chart in its entirety, please rotate your device sid ways. Make sure you have your portrait orientation lock switched off.
Follow Wealthy VC on Social Media: Facebook | Instagram | Twitter | LinkedIn | GETTR
????Join the Discussion in the Wealthy VC Investor Group
????Have a Stock Tip or News Story Suggestion? Email us at Invest@WealthyVC.com
Disclaimer: Wealthy VC does not hold a position in any of the stocks mentioned in this article.
