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Hector Retamal/AFP via Getty ImagesAmazon.com, Facebook, Apple, Twitter, and Google-parent Alphabet all reported earnings after Thursday’s close—and it hasn’t gone very well.
For Twitter (ticker: TWTR), it wasn’t the earnings themselves. Twitter reported a profit of 19 cents a share, beating forecasts 6 cents a share, on sales of $936.2 million, topping expectations for $777.15 million. But Twitter stock has dropped 15% to $44.60 in premarket trading. “As we approach the US election, however, it is hard to predict how advertiser behavior could change,” the company said in a statement.
Apple (AAPL) stock, too, is dropping. It reported earnings per share of 73 cents a share, beating expectations for 71 cents, while sales came in at $64.70 billion, topping forecasts for $63.7 billion. Apple stock has slumped 3.7% to 111.10. Barron’s Eric Savitz blamed the decline on Apple’s decision not to provide guidance.
Amazon (AMZN) reported a profit of $12.37 per share, beating forecasts for $7.41, on sales of $96.1 billion, topping estimates for $92.8 billion. Amazon said fourth-quarter revenue would come in between $112 billion and $121 billion, while analysts had been expecting $112.32 billion. Amazon stock is off 1.4% at $3165. Why is the stock dropping? Barron’s Eric Savitz offers his view: “But Amazon shares were down in late trading Thursday, likely because of investor disappointment over Amazon’s forecast for operating income in the fourth quarter.”
Facebook (FB) stock is doing slightly better. The social-media giant said it earned $2.71 a share on sales of $21.47 billion. Analysts had predicted a profit of $1.90 a share on revenue of $19.8 billion. But the social media giant’s report wasn’t all roses and Champagne, Barron’s Max A. Cherney writes. Facebook cited “a significant amount of uncertainty” in 2021. Facebook stock has dropped 2.1% to $275.05.
Alphabet (GOOGL) is bucking the trend, however. It reported a profit of $16.40 per share on sales of $46.17 billion. Analysts had been expecting earnings-per-share of $11.28 on revenue of $42.8 billion. Alphabet stock has jumped 6.8% to $1,662.10. More from Barron’s Max A. Cherney: Alphabet CFO Ruth Porat said the company’s advertising growth resulted from increased spending for Search and YouTube ads, and said the company’s cloud division and its online app store also contributed.
The five companies together represent nearly 20% of the S&P 500’s market capitalization. Given their earnings, it’s little surprise that S&P 500 futures are down 0.9%, while Nasdaq Composite futures are off 1.2%.
Write to Ben Levisohn at Ben.Levisohn@barrons.com
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October 30, 2020 at 06:12PM
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Apple, Amazon, and 3 More Tech Giants Reported Earnings. What You Need to Know. - Barron's
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