Nasdaq 100 index sits at levels of 13000, up by almost 19% so far in 2023. Do the big tech stocks that led the recent stock market rally have the wherewithal to carry on or the stocks are staring at a correction from the current valuations?
Stocks that led the rally in the index are ready to report their previous quarter’s financial results. Investors will get a dose of reality from big tech earnings this week – have the big layoffs and other cost-cutting measures paid off and how efficiently are they moving ahead? The impact of cost-cutting efforts, such as the sensational large layoffs by Alphabet, Meta, and Amazon, in reducing margin pressure will be keenly watched by investors and analysts.
Analysts predict that IT revenues will experience their greatest decline since 2009 as firms cut back on their expenditures on software, cloud computing, and advertising services in response to inflation and rising borrowing prices.
Any negative surprises will hurt sentiments and an earnings disappointment on already revised-down projections might pose a danger to stock prices. If companies release underwhelming results, issue negative warnings, or offer investors any other cause to sell, their stocks could begin to trend downward, which could also affect the larger equities market.
Microsoft (MSFT) will publish the fiscal year 2023 third-quarter financial results after the close of the market on Tuesday, April 25, 2023, at 2:30 PM – PT.
Alphabet will hold its quarterly conference call to discuss first quarter 2023 financial results on Tuesday, April 25, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
Meta Platforms (NASDAQ: META) first quarter 2023 financial results will be released after market close on Wednesday, April 26, 2023. Meta will host a conference call to discuss its results at 2 p.m. PT / 5 p.m. ET the same day.