Faisal Ghaffar 
Investors are prepping for terrible news as the best tech companies make preparations to reveal their quarterly profit reports starting next week.
Several US new tech firms have made hiring freezes and laid off workers over the last week, as well as the problems are expected to worsen. That’s not a good time for technologies in terms, says Paul Verna, an expert at market research company Insider Intellectual ability.
Netflix, Meta, Google, Twitter, and Tesla have all arranged earnings reports in the upcoming days. The findings will be released as concerns of a downturn grow as the price level keeps rising. The US Department Of labor started releasing information on Wednesday displaying that consumer prices rose 9.1 percent in June compared with the same month the previous year, the biggest increase since 1981.
If indeed the Fed persists to increase interest rates, the US economic system will enter a downturn over the next twelve months, he predicted. it’s the actual reason we observe a huge sell-off in elevated equities as depositors turn their money to more safe market segments.
Most of those high-growth equities are in the technology sector. A few investors are predicting a tough earnings report, with Factset predicting 4.3 percent annual growth inside the S&P, the lowest rate ever since the final quarter of 2020
For months, the industry has been having trouble. Amazon executive Bezos approved a strong warning in April that now the tech bubble that occurred during the disease outbreak would shortly come to end.
Apple lost its position as one of the most beneficial businesses in the world earlier in 2022, contributing to a 13 percent drop within the bigger Nasdaq Composite in May. – a decrease of much more than 30 percent from historic highs the past year.
In the meantime, several more large technology companies have declared staff cuts or freezes. Alphabet, Google’s parent organization, announced in June that this would slow the speed of employment until 2023. As per Bloomberg, Spotify is reducing its hiring proposals by 25%.
Investors will be observing Meta’s earnings release on July 27 for seeing if there’s been any constructive retrieval from the firm’s disastrous news stories in late 2021 as well as early 2022. The operating cash flow fell by a career-high $230 billion as a consequence of a rebranding and changes to its business strategy.
