Apr 28, 2016 07:10 AM EDT
Microsoft, Alphabet Disaapoints Nasdaq; Apple’s Report Eyed To Heat Up Cooling Tech Investors
Tech giants Microsoft (MSFT) and Alphabet (GOOGL) Google's parent company equally disappointed Wall Street after scoring double whammy in the their profit reports that fell short from expectations last Thursday's close. The dismay leads to the investor's cold reception to tech stocks.
iPhone maker Apple Inc. (AAPL), amid sales slump in its own, is expected by Wall Street to reboot confidence into the tech sector when it releases its quarterly earnings to beat Tuesday's closing bell. However, Apple, due to slowdown in iPhone sales, is least projected to have a blowout quarter.
Based on Thomson Reuters' earnings tracker, the analysts' latest profit estimates show that there has been boost in income by $2 per share, but drops by 14.2 percent versus $2.33 it earned in the same quarter last year. Revenues for this year's first quarter are likely to drop 10.4 percent to nearly $52 billion versus $58 billion of 2015.
Apple has already warned that quarterly iPhone sales and income against a year ago will go lower than the original forecast, debuting its first-ever decline in iPhone sales. What Wall Street wants to materialize is Apple touching a lowered revenue bar, build up confidence on a core iPhone trailblazer business and bold formula in China, which is a colossal slice to the income pie.
In terms of performance, Apple's supply is lagging huge Standard Poor's 500 batch index so farfetched for 2016. Apple shares, which recorded $105.08 Thursday, are up just 0.2 percent for the year versus a gain by 2.1 percent in the open market gauge. In pre-market trading Tuesday, in advance of today's income release, Apple shares were off 34 cents to $104.74. Apple shares fell 4.6 percent in 2015.
Meanwhile, since its April 18 high, Nasdaq has fallen three successive sessions and is off by 1.3 percent causing Tech investors keep a close eye to the world's most-valuable company.
Apple's gain formula and what it says about forthcoming quarters could give Nasdaq and tech-stock assurance in either reboot or toughen the weak spot which kicked in late last week with misses from Microsoft and Alphabet.
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