Earnings reports for the second quarter dominated tech news this week, with companies like Intel, Microsoft, and Google holding investor calls and issuing detailed spreadsheets on what went right — and wrong — over the past three months.
Needless to say, the news affected investors’ confidence. When the Google reports disappointed expectations, stock prices dipped accordingly.
Let’s take a look at stock prices for companies who reported Q2 results this week:
Five companies involved in hardware had their earnings calls this week.
- AMD beat Wall Street expectations for the quarter, but it still was operating at a loss thanks to sluggish PC sales.
- Again, slow PC sales led to Intel missing revenue targets for Q2.
- IBM beat expectations with a 6 percent income climb, but revenue was down.
- Nokia showed a bright spot with burgeoning Windows phone sales, but the company still reported an operating loss.
- Verizon was alone in turning in a very strong quarter, showing no signs of slowing down at more than 100 smartphone and tablet connections.
The takeaway: You probably already know this, but mobile devices are where it’s at. And while Windows Phone is slowly picking up steam, it’s not yet a contender, especially in the smartphone-saturated U.S.
Here’s a look at the stock movement this week for these companies, shown as percentage change:
We also had four software companies reporting revenues this week. (We were busy bees over here, y’all.)
- Microsoft’s Q4 earnings disappointed, particularly the $900 million loss the company took for its written-off Surface RT tablets.
- Google missed analysts’ expectations. While revenues were significantly up, profitability was slightly down.
- In eBay’s quarterly call, the shining star was PayPal, which showed no signs of weakness amid the onslaught of startups like Stripe and Square.
- Yahoo’s earnings were still strong but showed a slight year-over-year decline.
Dotcom’s oldsters were still mixed, but we’re seeing Yahoo as a front runner for the Comeback Kid title — and investors apparently feel the same way. Overall, under CEO Marissa Mayer’s leadership, Yahoo has had one of its best years yet and more acquisitions and gorgeous product roll-outs than you can shake a stick at.