Solid performance from cloud providers in particular is set to drive Big Tech earnings higher this year, despite some mixed first-quarter results that rattled investors in April.
Russia’s war in Ukraine exasperated pandemic-stressed supply chains, but analysts pointed to solid underlying performance at Microsoft Corp., Alphabet Inc. and even Amazon.com Inc., which reported its first quarterly loss in seven years. Social media companies Meta Platforms Inc., Twitter Inc.. and Snap Inc. all reported user growth, though the war in Europe took a tool on some advertising revenues. Meanwhile, Elon Musk’s bid to takeover Twitter added to uncertainty about the direction of the social media business in the future.
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