With the dismal performance of many big US firms in the past few weeks, all eyes are on Amazon and Apple, who are due to post their quarterly results today.
Amazon shares have struggled to gain momentum recently, with the e-commerce giant facing margin pressures as a result of supply-chain woes and labour shortages on a global scale.
CEO Andy Jassy recently warned that ongoing macroeconomic headwinds could potentially hit the short-term profitability of the tech behemoth, with the firm expecting net sales somewhere between $112bn and $117bn for the coming quarter.
The saving grace for many analysts is the solid Prime momentum, which boasts more than 200 million members globally, as well as the wider offerings, including Apple Music and AWS.
However, Netflix’s share price horror story last week could signal things to come for Amazon as consumers try to cut down on ‘luxuries’ like streaming subscriptions and non-essential household costs.
Amazon’s first quarter earnings per share are expected to decline from $15.79 in 2021 to $8.13 in 2022, whilst revenue is expected to increase around 11 per cent to $116bn.
By contrast, Apple is expecting yet another record-setting second quarter, with Wall Street expecting revenues of around $94bn and earnings-per-share of $1.43.
It come after a Christmas season boom for the tech giant, with first quarter revenues hitting a record $123.9bn, up 11 per cent year-on-year.
This was particularly impressive considering the supply chain issues and chip shortages that plagued competitors.
Looking forward, Morgan Stanley analyst Katy Huberty said the company was likely to exceed market expectations thanks to the strong product offerings.
Indeed, despite inflation and cost of living concerns battering fellow technologies, Apple have nurtured the strong demand for the iPhone 13 and iPhone 13 Pro models.
Not only has this offset the less successful Apple Wearables and iPad offerings that was seen in the last quarter, but it also frames the firm as well-positioned for additional growth moving forward.
Mac products were also crucial to the company, with shipments of around 7.2 million in the last quarter ahead of analyst expectations of around six million units. Similiar trends are expected in the coming one.
So, whilst the likes of Netflix may have struggled to battle the macroeconomic backdrop, it seems it is all to play for for Amazon and Apple tomorrow evening.