The latest earnings season kicked into gear this week, with a little something for everyone as the likes of IBM (NYSE:IBM), Netflix (NASDAQ:NFLX) and even Twitter (NYSE:TWTR) gave a look at how the various areas of the tech sector have been performing of late.
IBM (IBM) got things going with its second-quarter report on Monday. And while Big Blue delivered better-than-expected earnings and revenue, it was the company’s cash-flow outlook that raised investors’ concerns. By the time U.S. markets closed on Friday, IBM (IBM) shares had fallen almost 9% during the week.
After IBM (IBM), it was Netflix’s (NFLX) turn to try to get into the good graces of Wall Street following months of speculation about the streaming TV leader’s subscriber numbers. And, Netflix (NFLX) did say it lost 970,000 subscribers during the second quarter of the year, but…Compared to what had been expectations for a loss of 2M subscribers, Netflix (NFLX) was able to call its latest quarterly results a success.
And for his part, Netflix’s (NFLX) Co-Chief Executive, Reed Hastings said there was “one single thing” that could be pointed to that helped with the company’s better-than-expected subscriber numbers.
Meanwhile, prior to Netflix’s (NFLX) results, the company outlined details about methods to monetize passwords that its members share with friends and family outside their homes. Netflix (NFLX) said the new fees will be rolled out in five Latin and South American countries, but didn’t give any details about if of when the program will be expanded to other areas.
Netflix’s (NFLX) results also gave a boost to other companies in the streaming TV industry such as Roku (ROKU), Paramount Global (PARA) and the Walt Disney Co. (DIS).
AT&T (T) had a rough go of it, as, like IBM (IBM), positive sentiment about the telecom giant’s quarterly results was tempered by the company cutting its cash-flow forecast.
Twitter (TWTR) had another busy week, as a judge in Delaware ruled in favor of the company by setting an October trial date for its suit against presumptive buyer Elon Musk. Twitter (TWTR) is seeking to force Musk to go through with his $44B acquisition of the social-media giant.
And at the end of the week, Twitter (TWTR) said it was issues related to Musk, and the online advertising industry, that caused its second-quarter results to fall shy of expectations.
Verizon (VZ) shares fell to a five-year-low on Friday after it reported disappointing mobile-phone subscriber numbers and gave an outlook that effectively foresees no noticeable growth ahead.
And Snap (SNAP)…Oh, Snap (SNAP), what went wrong?
The company’s shares fell more than 39% on Friday after its quarterly results and forecast suggested more weakness ahead in the market for online advertising, which accounts for nearly all of Snap’s (SNAP) revenue.
But, all that dust will barely have settled by the time Monday rolls around and even more big-name tech leaders get into the earnings reporting game.
Intel (INTC), Microsoft (MSFT), Apple (NASDAQ:AAPL), Facebook’s Meta (META) and Google parent Alphabet (GOOG) (GOOGL) are all on the dock and will get investors’ attention with their quarterly reports next week.
Intel (INTC) may find the going rough, as Deutsche Bank cut its estimates on the chip giant due to expected weakness in the PC market. Wall Street will look at signs that Apple (AAPL) is seeing growth in areas such as services and its biggest sales source, the iPhone. Meanwhile, Microsoft (MSFT) trimmed its estimates earlier in the quarter, and some analysts have said the software giant may seen some impact on its results from the growing strength in the U.S. dollar.
Image and article originally from seekingalpha.com. Read the original article here.