Apple is the only bright spot in $477bn Big Tech rout

The iPhone maker’s revenue and profit both topped analysts’ estimates while most large technology companies struggle

Apple shares rose 7.6 per cent on Friday and added more than $150 billion in market value after the iPhone maker’s revenue and profit topped analyst estimates. Reuters
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In a week when hundreds of billions in market value were wiped from the biggest technology companies, Apple is bucking the trend with another set of resilient results.

Apple shares jumped 7.6 per cent on Friday and added more than $150 billion in market value after the iPhone maker’s revenue and profit both topped analysts’ estimates.

In contrast, shares in fellow megacaps Microsoft, Alphabet, Amazon and Meta Platforms tumbled after reporting results this week, shedding $477bn in combined market value in the trading session after the results.

Apple’s slight beat on revenue in the fourth quarter at a time when most large technology companies are struggling “shows a resilient business model”, said Bloomberg Intelligence analyst Anurag Rana.

Also on Friday, Amazon fell as much as 12 per cent to briefly dip below $1 trillion in market value, as the e-commerce and cloud computing company joined Microsoft in providing weak updates to its cloud business — fast-growing divisions for both tech giants.

Overall, Apple turned out to be this week’s bright spot among many disappointing earnings releases from technology companies, said Peter Garnry, head of equity strategy at Saxo Bank.

“Apple’s performance the past year with a cost-of-living crisis, supply constraints and soaring input costs has been phenomenal and last night’s result confirms that Apple is a fortress that can withstand the volatile environment,” he said.

Updated: October 29, 2022, 4:55 AM
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