There is a future – and it could not be otherwise for companies sitting on billions (and billions) of dollars in turnover – but for now it can only be glimpsed. The third quarter of 2022 confirmed the delicate phase that the Big Tech giants are going through.
Starting from Halfformerly of Facebook, which gasps with about $ 700 billion in market value burned in a year: after Wednesday’s presentation of the accounts, what Insider Intelligence analyst Debra Aho Williamson called a giant with feet of slipped clay. on the stock market by about 25% and dropped below $ 100 per share, the all-time low since 2016. It happens to be the same year in which Mark Zuckerberg expressed his interest in virtual reality, parading among the unsuspecting guests of the Mobile World Congress in Barcelona – the most important mobile phone fair – who could not see him because they had their faces covered by Samsung viewers: a powerful and somewhat disturbing image at the time.
While today even that whim, which later became a priority, weighs on Menlo Park’s accounts and on investor confidence: the Reality Labs unit, which deals with virtual reality and metaverse, lost 3.7 billion (a year ago 2.63 billion), compared to revenues of 285 million. Zuck got his hands on: 2023 will be characterized by a further increase in spending. This is the field of experimentation. However, Meta’s net profit was also bad, down 52% to 4.4 billion, and revenues, down for the second time in the company’s history and for the second consecutive quarter, by 4% to 27.7 billions. The reasons: macroeconomic conditions, competition from TikTok, Apple’s changes to its operating system that limit the collection of user data and the decline in online advertising.
It was a difficult time for the advertising market summarized Sundar Pichai, CEO of Google and its parent company Alphabet, equally invested by the negative moment (in the last year it lost 36.7%). Revenues saw a 6% increase, to 69.1 billion, the slowest rate of growth since 2013, except for a brief contraction at the start of the pandemic, and below expectations. For the first time, Youtube saw its advertising revenue drop by 2% to 7.1 billion. Alphabet’s video platform also suffers from competition from TikTok, like Meta’s apps.
Microsoft, on the other hand, it exceeded expectations with profits and revenues, but did not hit them with the cloud segment, which generated revenues of 20.33 billion, up 20% but below the 20.36 billion expected. Minus sign for revenues from Windows license sales to device manufacturers (-15% year-on-year, the worst result since 2015) due to the slowdown in the PC market.
Last night, just hours before Elon Musk finalized the Twitter acquisition for 44 billion, Apple lost up to 5% in after hours trading on Wall Street with revenues up 8.1% to 90.15 billion and above expectations, but lower-than-expected growth for iPhone sales (+ 9.7% aa 42.63 billion). Attention to services (Apple Music, Apple TV +, App Store, etc.), which should help the Apple to differentiate, and have slowed significantly to + 5%, compared to + 12% in the previous quarter. Chief Executive Officer Tim Cook was obliged to specify a Cnbc that we would have grown in double digits without the headwinds of exchange rates and announced that it had slowed down hiring, a measure that was also adopted in an even more drastic way (Microsoft, for example) by other giants.
Amazon came to lose 20% (-35.6% in the last year), again in after hours trading, with revenues down by 15% to 127.1 billion, below expectations, and forecasts for the fourth quarter between 140 and 148 billion, less than expected, by analysts, 155 billion. Like his counterparts in other companies, the CEO of the Seattle giant pointed to macroeconomic problems and, in particular, those of Europe linked to the conflict in Ukraine and the energy crisis. Unlike Meta and Alphabet, Amazon saw advertising grow 25% year-over-year to 9.55 billion and well beyond expectations from 9.48. Instead, slow down the cloud.