Even today, the stock market collapse of a “tech” giant came to play spoilsport. Amazon, in the Top 5 of global capitalizations, plunges more than 10% on Wall Street after the publication of quarterly accounts which show that its “e-commerce” division is losing money again, where its cloud service remains largely beneficiary. Amazon’s end-of-September results came in well below consensus expectations. But, what strikes investors above all, “this is the estimated holiday revenue of about $140-148 billion, versus about $155 billion forecast” anticipated by the Stock Exchange, explains Ipek Ozkardeskaya, market analyst for Swissquote. Because of inflation, Amazon vice president and chief financial officer Brian Olsavsky said during the conference with the financial community that“During the third quarter, we saw slower sales growth across many of our businesses, as well as increased currency headwinds, and we expect these impacts to persist throughout. of the fourth quarter. »
the Bedroom 40 ends up 0.46%, at 6,273.05 points, as the idea of a central bank “pivot” gains ground, reinforced yesterday by statements from the ECB interpreted as a “dove”, a figure from the US GDP seen as recessive and before the Fed’s monetary policy decision on Wednesday. Without the collapse of Amazon, the rise of the Parisian index would have been more marked. It still rose 4% over the week, especially thanks to a 2% gain on Tuesday, after the publication of figures showing that real estate prices in the United States fell over a month, the sign, hopes the stock market, that the US Federal Reserve’s monetary tightening is beginning to bear fruit and that, perhaps, the central bank would not be forced to go much higher in raising interest rates. It should also be noted today, in the same spirit, that promises to sell in the United States, according to the latest statistics published by the National Association of Realtors, fell by 10% in September, the rise in interest rates penalizing the sector. The index is at its lowest since June 2010 if we exclude the April 2020 outlier.
“A relatively safe port in the middle of a storm”
Of the five Gafam (Google, Apple, Facebook, Amazon and Microsoft) which revealed their figures at the end of September, only Apple did not plunge on the stock market. While Alphabet fell by 9% following its publication, Microsoft fell by 8%, Meta sank by 25% and Amazon is today sharply returned below the threshold of 1,000 billion dollars in capitalization (after having failed to become the third company in 2021 to cross the 2,000 billion dollar mark), the shares of the apple brand gained 7% (+5% over the week). This insolent outperformance allows the American indices – Apple is the only American value to be present in the Dow Jones, the S&P 500 and the Nasdaq Composite – to progress by around 1.5%.
However, the iPhone manufacturer (which has published its annual results for its staggered fiscal year) is not spared the economic difficulties of the moment either: inflation which is eating away at purchasing power, production complicated by political zero Covid in China and above all – there was a lot of talk about this during the management conference with financial analysts – the surge in the dollar which increases the price of iPhones (more than 50% of Apple sales) in Europe and in emerging countries.
Apple’s growth is slowing (+8% after +31% over the previous financial year) even though its profits and its 2021-2022 turnover have reached record levels (almost 100 billion dollars in profits for a turnover of business of almost 400 billion). iPhone sales increased (+10% almost year-on-year) but at a rate lower than analysts’ expectations who, likewise, expected better for the services division in which Apple TV is housed in particular. and the App Store. However, compared to other Gafam, Apple “looks like a relatively safe harbor in the middle of a storm”, reacts, in a note, Shannon Cross, financial analyst at Credit Suisse. Already, unlike Google, Facebook or even Snap, the Cupertino giant, the largest listed company in the world with a capitalization of more than 2,000 dollars, is not dependent on an advertising market that has become cautious due to the prospects of a global recession.
Apple, 20% of STMicroelectronics sales
In mid-October, just two weeks after the launch of the iPhone 14 Plus, reports from the specialized press indicated that Apple had reduced production of its new premium smartphone. In fact, low demand is for lower-end models, David Wong, head of tech research at Nomura, said in a note today. The bank’s supply chain monitoring team observes a “considerable reduction” production in October. “Given global inflation, rising interest rates and continued macroeconomic uncertaintywrites David Wong, we are not surprised to see the weakening of demand in tech spreading”which will materialize, according to him, by a stock market low point for the values of the sector ” In the coming months “.
On the Paris Stock Exchange, the chipmaker STMicroelectronics, which has Apple as its top customer (just over 20% of its revenue in 2021, down from 24% in 2020, according to FactSet), is still down almost 7% today on the Cac 40, after having already yielded so many yesterday. Thursday morning, when publishing its quarterly accounts, the Franco-Italian company warned to expect a slowdown in sales growth in the fourth quarter. Consumers, forced to arbitrate in their spending, favor essential products to the detriment of electronics. STMicroelectronics’ stock price shows an 84% correlation with Apple over the past three months, according to FactSet data.
Among the best performances of the Cac 40 today, Danone gained almost 3%. The agribusiness giant has raised its financial targets for the current year after posting a strong increase in sales in the third quarter, driven by price increases.
Sanofi ends up 3.2%, the pharmaceutical group having revised its net profit forecasts for 2022 slightly up, after sales in the third quarter supported in particular by anti-flu vaccines.