Apple and Amazon Miss Analyst Estimates, Crypto Tanks

Apple and Amazon Miss Analyst Estimates, Crypto Tanks

Apple and Amazon: Bitcoin Y Ethereal fell after earnings from Apple and Amazon announced their latest financial results in after-hours trading.

Bitcoin fell sharply from $20,621.23 at around 4 p.m. ET to $20,293.40, while Ethereum declined from $1,561.40 to $1,515.33. Since then, Bitcoin has recovered to $20,362.

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ADA fell from $0.401457 to $0.390022 and DOGE fell from $0.082271 to $0.078966.

Apple fails to meet analyst expectations

In its full-year earnings, iPhone maker Apple announced that iPhone sales rose 9.7% from a year earlier to $42.6 billion. This amount represents approximately half of the cupertino company income. It missed analyst expectations by $400 million.

company annual income it is 8% higher than a year ago at $90.1 billion. Net income reached 20.7 billion dollars.

Before the full-year earnings announcement, analysts predicted that Apple would have benefited from higher demand for its latest two iPhone 14 Pro models. In July 2022, CEO Tim Cook said the company had no substantive data. suggesting that difficult macroeconomic conditions significantly affected the company’s smartphone sales.

While PC maker Intel is facing stiff headwinds, the iPhone maker has seen significant popularity of its professional models. Recently, consumers have been willing to shell out more for 5G technology. Apple introduced 5G in 2020.

But one analyst at bernstein research believes that rising interest rates could affect demand for Apple products. This demand adjustment could occur while inflation and the Fed’s rate hikes keep consumers locked in a delicate dance. And with the Fed poised to reduce the frequency and size of its interest rate hikes, demand for Apple hardware could be renewed.

Amazon revenue is hit hard

Amazon has seen substantial growth in its Amazon Web Services cloud computing division.

But third quarter earnings revealed that Amazon’s revenue increased 15% to $127.1 billion compared to last year. This number was slightly below Wall Street estimates. the e-commerce giant‘s net profit fell 0.3% to $2.9 billion this year, including non-operating income stemming from a partnership with electric car company Rivian.

CEO Andy Jassy said: “…there is a lot going on in the macro environment, and we will balance our investments to optimize these without compromising our key long-term bets.”

Shares of the company fell 20% in after-hours trading after it announced a revenue forecast of $140 billion to $148 billion. Wall Street expected more than 155,000 million dollars.

Cloud competitor Alphabet reported $39.5 billion in search revenue in the third quarter, a 4% increase from the previous quarter. Considering that search was previously a consistent revenue source, analysts suggest the moderate numbers show that small businesses are pulling back from advertising on the platform. Google’s cloud business had $6.9 billion in revenue in the third quarter, up 37.6% from the second quarter.

Shares of Cupertino-based Apple closed the trading day down 3% at $144.80, and Amazon’s share price fell 4.06% to $110.96.

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The Nasdaq Composite is down 3% at 11059.8.

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Given the recent correlation between tech stocks and cryptocurrencies, a drop in the Nasdaq Tech Composite and tech stocks themselves could indicate that cryptocurrencies may experience a slight bearish turn in the coming days.

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