Three of the four largest companies in the Standard & Poor’s 500 (S&P 500) recorded in the third quarter of this year, a drop in their profits ranging from 9% to 26.5%, according to the results reported to Wall Street.
Apple was the only one that registered an increase in its profits, although it was meager, of 0.83% in the cited period. Collectively, the companies, each worth more than $1 trillion, reported combined profits of $55.059 million.
Alphabet’s net income fell 26.54% compared to 2021 (for a total of 13.91 billion dollars) and since its report last Tuesday, its share price on the NASDAQ fell 11.75 percent to 92.6 dollars.
In the case of Microsoft, the utility was reduced 14.38%, to settle at 17,556 million dollars, while its titles fell 9.54% since Tuesday, to be sold at 226.75 dollars at the close of today.
Amazon reported this Thursday a 9% drop in its profits, to settle at 2,872 million dollars. In after-hours trading, it loses 12.7% of its shares and is trading at $96.8 at 7 p.m.
Apple, the manufacturer of the Iphone, was the only one that increased its profits in the July-September quarter by 0.83%, to reach 20,721 million dollars.
And its shares were trading at $145.4 at market close, up 0.41% as of 7 p.m.
“We saw weak reports (in the sector), with important challenges, beyond inflationary pressures and the costs that they could be bringing. They are also companies that, due to their size, find it difficult to continue growing significantly,” said Brian Rodríguez, stock market analyst at Monex Casa de Bolsa.
They are worth less in 2022
The four largest companies on Wall Street have had a 2022 to forget, as they accumulate a loss in market capitalization of 2.7 billion dollars.
Microsoft leads the decline with $835 billion, Alphabet follows with $726 billion, while Amazon and Apple lose more than $560 billion each.
These four companies are each worth more than 1 trillion dollars on the stock market: Apple has a capitalization of 2.3 trillion dollars (bdd); Microsoft, of 1.7 trillion dollars; Amazon, with 1.1 trillion dollars, and Alphabet, with 1.1 trillion dollars.
Carlos Hermosillo, an independent stock market analyst, commented that the reason why these companies have been severely affected on the stock market is that the outlook for the technology sector has changed.
“Results cease to be spectacular without an additional boost from pandemic conditions, and we see fund managers migrating to ‘traditional’ old economy names and strong balance sheets, seeking value in cheap companies,” he said. the analyst. The analysts consulted agreed that the outlook for the four companies is uncertain, since it is not in sight when they can stabilize in the stock market.
