The Covid boom times are coming to an end for tech companies. After reporting eye-popping growth throughout 2020 as more people turned to technology to work and play during pandemic lockdowns, companies from Apple to Roku are now warning the party is just about over.
This however does not mean that they will have no growth whatsoever or that they will face a fall. But you need to understand that it is not going to be as much as it was during the pandemic situation where all the stocks were going up.
Roku saw a huge drop in streaming and grappled with supply chain issues. Roku shares were down 6% as of Thursday morning after the company said in its earnings report Wednesday that total streaming on its platform fell by 1 billion hours from the previous quarter.
Etsy reported a drop in face mask sales and warned growth would slow. Etsy also beat expectations in its second-quarter earnings report Wednesday. Several reports have been made regarding the same and that is why Etsy is warning the people or rather the public about the possible outcome in the recent future.
Apple warned chip shortages could impact iPhone and iPad sales. Even Apple, which has a sterling reputation for managing its supply chain, isn’t immune to chip shortages. The company warned that supply constraints could impact iPhone and iPad sales. Apple also said it doesn’t expect to post the same kind of growth it did in 2020, which sent shares lower.
Amazon reported a rare revenue miss and also warned growth would slow from 2020 highs. Even though Amazon reported its third $100 billion quarter in a row, it tamped down expectations for growth in the third quarter.
Meta’s revenue has taken a hit, and the stock price has dropped by about half since February as a result of investors’ continued scepticism about the company’s prospects.
Analyst Debra Aho Williamson said, “The good news, if we can call it that, is that its competitors in digital advertising are also experiencing a slowdown.”
For instance, Snapchat’s parent company reported a loss for the most recent quarter that nearly tripled to $422 million despite reporting 13 percent growth in revenue despite “more challenging” than anticipated market conditions.
Snap, based in California, said in a letter to investors last week, “We are not satisfied with the results we are delivering, regardless of the current headwinds.”
