Record quarter by Apple, Alphabet, Microsoft gives way to growth scepticism
Three of the world’s largest companies -- Apple Inc., Microsoft Corp. and Alphabet Inc. --
reported about $57 billion in combined profit in a record-busting quarter,
riding a resurgence in consumer and business spending.
Yet markets responded coolly. In part, investors were skeptical
that these companies can continue to post double-digit growth for quarters to
come.
The world’s largest tech companies have gotten larger at a torrid
rate. Their market valuations have skyrocketed this year as world economies
rebounded from pandemic lows -- with both Apple and Microsoft topping $2
trillion in market value -- adding pressure to keep up the pace. All the
companies were bullish about their prospects, but investor optimism was
tempered by signs that the momentum of the past year may be ebbing.
“All three of these companies -- Apple, Microsoft, Google -- are
just performing phenomenally,” Jeremy Bryan, a portfolio manager at Gradient
Investments, said in an interview with Bloomberg TV. “They just look really
good. They’re executing perfectly, their customers are coming back in droves.”
Even though all the companies were bullish about their prospects,
investor optimism was tempered by signs the momentum of the past year may be
ebbing.
Microsoft was
first out the gate Tuesday, reporting sales that topped analyst expectations
for the 10th straight quarter.
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