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Big tech's earnings problem is estimates may be way too high


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Published in Travel and Leisure on by Fortune   Print publication without navigation

There's little expectation that executives will be able to give estimates with any degree of confidence, given the high level of macroeconomic uncertainty.

The article from Fortune discusses the challenges faced by major technology companies like Apple, Meta, Microsoft, and Amazon in meeting Wall Street's earnings expectations. Despite their significant influence on the stock market, these tech giants are struggling to surpass the high estimates set by analysts, which are influenced by the companies' own optimistic forecasts. The article highlights how these firms, often referred to as the "Magnificent Seven," have seen their stock prices soar due to AI hype and other market dynamics, yet they are now under pressure to deliver results that justify these valuations. The piece also notes that while some companies like Meta have managed to beat expectations, others like Apple have fallen short, leading to fluctuations in their stock prices. This situation underscores the broader market's reliance on these tech leaders and the intense scrutiny they face in maintaining their growth trajectories.

Read the Full Fortune Article at:
[ https://fortune.com/article/big-tech-earnings-problem-estimates-apple-meta-microsoft-amazon-mag/ ]

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