With the next big round of tech earnings on the horizon, Wall Street is already preparing itself for a raft of quarterly reports that reflect a sense of negativity unlike any seen in the sector in more than adecade.
A combination of the Federal Reserve's mixed efforts to tamp down inflation, ongoing evidence that a recession could be on the way and spending reductions by both consumers and enterprises has resulted in months of weakness across the tech sector.
Wedbush analysts Dan Ives and John Katsingris recently said in a research report that the earnings reports that are set to roll in "will either expose the negative underlying fundamentals across the tech space and cause massive earnings cut into 2023" or prove that the recent negativity about "the demise of growth tech was premature and many pockets of tech are holding up well."
Banks including JPMorgan has reported last week, but investors all focus on the Apple as bellwether of global conditions.
According to Bloomberg’s forecast, Tesla and Amazon are expected to have a larger increase on revenue, while Nvidia and Meta Platforms will experience a larger decline in net profit.
