Apple, Amazon Performance Exceeded Expectations

  • On Thursday, a number of Wall Street star technology companies intensively released the latest quarterly earnings data.
  • Technology companies have exceeded market expectations during the epidemic.
  • The coming American presidential election increases uncertainty about the future development of technology stocks.

Affected by expectations of better earnings data from companies such as Apple, Amazon, and Facebook, technology stocks generally rose. Apple and Netflix earnings rose 3.7%, Facebook rose nearly 5%, Google rose 3.05%. On Thursday, a number of Wall Street star technology companies intensively released the latest quarterly earnings data.

Microsoft and Amazon Rose More than 1%.

Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services.

In general, technology companies have exceeded market expectations during the epidemic, and major companies are also confident in their future development.

“The earnings season so far has resulted in significant positive earnings surprises,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

“We think that’s helping to fuel today’s rally in anticipation of positive surprises from these companies.

By Apple, Amazon, Facebook and other companies’ earnings report data are expected to be affected, and technology stocks generally rose. Microsoft, Amazon earnings rose more than 1%.

However, the current point of view, the uncertainty of the impact of technological companies face, the industry is optimistic about the prospects for the development of the company’s own technology. At the same time, it faces certain regulatory policies.

Apple’s Financial Report Data is Dazzling

The attention Apple has received is undisputed. After its just released version 5G iPhone 12, the company’s financial statements now is also exceptionally compelling. On Thursday, Apple announced the financial report data for the fourth quarter of the 2020 fiscal year as of September 26.

During the quarter, the company achieved revenue of $64.7 billion, higher than market expectations of $63.7 billion. Earnings per share of $0.73 were also higher than market expectations of $0.70.

Apple company headquarters

Many other Wall Street star technology stocks also collectively showed their “family status.” On the whole, the revenue and profitability of Amazon, Google, and Facebook have also exceeded market expectations.

Amazon’s revenue in the third quarter was $96.1 billion, a year increase of 37%, exceeding market expectations of $92.7 billion. Earnings per share were $12.37, higher than market expectations of $7.17, this year increase of nearly 200%. The company expects net sales in the fourth quarter to be $112 billion.

Amazon is one of the biggest beneficiaries of the epidemic, because of consumers who flock to the Internet to buy necessities. It is expected that during the holidays, Amazon will also face greater user demand, and shoppers may choose to buy gifts online instead of going to physical stores.

Citi believes that the US stock technology sector performed very well during the epidemic. The industry’s balance sheet strength and long-term earnings prospects are attractive, especially for large technology companies.

At the same time, with the popularization of new 5G mobile phones with the latest chip designs, the industry has huge room for development. Digitization, network security and financial technology are long-term unstoppable development trends.

However, the regulatory environment in the United States and the European Union has brought operational uncertainty to large technology companies. In view of the high previous gains, Citigroup maintains a neutral allocation proposal for the sector.

The coming American presidential election increases uncertainty about the future development of technology stocks. Before the U.S. election, technology stocks had a relatively sluggish performance recently.

Industry analysts believe that for American technology companies, different election results mean different development prospects.

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Joyce Davis

My history goes back to 2002 and I  worked as a reporter, interviewer, news editor, copy editor, managing editor, newsletter founder, almanac profiler, and news radio broadcaster.

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