Tech investors focus on profits after layoffs; companies to highlight AI
A quarter into record layoffs, investors in U.S. tech giants will scrutinize if the cost cuts boosted profits to their satisfaction, while the companies emphasize how artificial intelligence will be their next growth driver.
Microsoft Corp (MSFT.O), Google parent Alphabet Inc (GOOGL.O), Instagram owner Meta Platforms Inc (META.O) and Amazon.com Inc (AMZN.O) all report quarterly results this week.
Together, they command more than $5 trillion in market capitalization, or more than 14% of the value of the S&P 500 (.SPX) index.
Between Microsoft, Alphabet and Meta, analysts expect profits to rise 4.5%, on average, from the immediately preceding quarter, led by an 11.8% jump in Meta’s bottom line, according to Refinitiv. From a year earlier, profit is expected to slump nearly 16%, on average, with Microsoft expected to perform the least poorly with a 0.5% slip.
These three companies, along with Amazon, said between November and March they would slash 70,000 jobs in a rapidly weakening economy, following a pandemic-led hiring boom. Meta has announced two rounds of layoffs.
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