Lower Earnings To Batter Tech Companies, CNN Business Reports

Earnings have helped prop up the stock market so far this month. But one sector that typically does best, tech, isn't likely to please investors, Paul R. La Monica warned in an analysis for CNN Business.

Photo Insert: Upcoming earnings from the likes of Apple, Amazon, Google owner Alphabet, Microsoft, and Facebook parent Meta may not be too promising.

Results from social media company Snapchat, which issued a dismal outlook, were not encouraging as its stock plummeted 25% as its quarterly revenue was lower than forecast, as CNBC reported.

And as CNN Business' Clare Duffy points out, upcoming earnings from the likes of Apple, Amazon, Google owner Alphabet, Microsoft, and Facebook parent Meta may not be too promising either. Meta and Alphabet also slid 4.7% and 2.6%, respectively.

The slowdown in online advertising will hurt several of these companies, most notably Meta and Alphabet, which also owns YouTube. The strength of the dollar will also eat into all of their international sales and profits.

There are still hopes that these tech titans will have rosier outlooks for the fourth quarter. After all, tech usually shines during the holidays as consumers splurge on gadgets.

But with inflation taking a bite out of household budgets, it remains to be seen how many new iPhones, Pixels, Xboxes, and Quest VR headsets will be coming in those smiley Amazon boxes this December.

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