It has been quite a disappointing week for investors in the tech sector.
Facebook, Zynga, & Netflix all reported plummeting share prices and profits. Even Apple disappointed!
The reigning tech king Apple posted the smallest increases in years for the April to June period, failing to meet analyst expectations.
Net income in the fiscal fourth quarter was $8.8 billion, or $9.32 per share. That was up 21% from $7.3 billion, or $7.79 per share, a year ago. Analysts polled by FactSet were expecting earnings of $10.37 per share. Revenue was $35 billion, up 23%. Analysts were expecting $37.5 billion.
Microsoft posted its first loss. An accounting adjustment to reflect a weak online ad business led to its first quarterly loss in its 26 years as a public company. Microsoft took a $6.2 billion charge because its 2007 purchase of online ad service aQuantive hasn't yielded the returns envisioned by management. The charge led to a $492 million loss in the April-June quarter, or 6 cents a share. That compares with earnings of $5.9 billion, or 69 cents, a year ago. Revenue rose 4% to $18.06 billion.
Facebook, the killing has been made. Reality is setting in. Facebook reported its first quarterly earnings since going public today, the company lost $157 million, or 8 cents per share.
Even Twitter hit a glitch yesterday. Tweeters were left to gripe about the technical outage on Facebook when the Twitterverse came to a stand-still for more than an hour yesterday