THE “Big A” tech firms have been handed D-grades after missing the mark in their latest financial updates.
Disappointing results from Amazon, Apple and Google owner Alphabet have added to market fears that it will take a while for tech companies to pull themselves out of a rut.
APTech firms expect more job losses after disappointing results[/caption]
After a boom in the pandemic, they have had billions wiped off their share prices amid slowing sales and bloated costs.
While Amazon sales were higher than expected, helped by a festive marketing blitz, investors were spooked by its biggest annual loss on record.
The firm was already on track to be in the red, but its least profitable Christmas in nine years pushed it below expectations.
Apple reported its first slip in sales in three-and-a-half years after iPhone shipments were delayed due to Covid disruptions at Chinese manufacture Foxconn.
Boss Tim Cook also signalled that sales for the first three months would be below last year, while sales of its more expensive iPads and Macs would be suppressed by the “challenging” environment.
Meanwhile, Alphabet also missed expectations as its Google and YouTube advertising fell short.
All three said they will make thousands of job cuts.
Good and bad
GOOD WEEK:
LYSSA McGowan, the new boss of Pets at Home, who posted a surge in sales and upgraded profits.
BAD WEEK:
CHRIS O’Shea, boss of British Gas owner Centrica — rapped for force-fitting pre- pay meters in homes.
FCA ads curb
THE City watchdog is cracking down on social media influencers who break its advertising rules.
The Financial Conduct Authority is worried about promotions for high-risk products such as crypto currencies.
It forced firms to remove 8,582 ads last year — 14 times as many as in 2021.
Grub’s down
GLOBAL food prices fell for the tenth month in a row.
International costs dropped by 1.8 per cent in January as the price of vegetable oils, dairy and sugar fell, the FAO food price index found.
It means manufacturers will pay less for ingredients, so shoppers should see prices ease soon.