Wishes and Misses – Struggling Economies Affect MAMAA’s Earnings
As one of the arguably biggest earnings weeks is halfway done, bad fortune has hit many of the MAMAA companies. Now, which companies are in MAMAA? It is the acronym that stands for Meta, Alphabet (which is Google’s parent company), Microsoft, Amazon, and Apple. It is the more current form of FAANG, which substitutes Microsoft for Netflix. So far, Microsoft, Google, and Meta have released their earnings, all of which had resulted in massive decreases in their share prices.
Google had not met almost all revenue estimates, thus averaging only a 6% growth in sales compared to the year before’s 41%. Although Microsoft had surpassed numerous analysts’ expectations, they did not release positive company guidance, which forecasted a gloomy fourth quarter ahead. The newest victim was Meta, which had profits plummet 52% year-over-year, weak fourth-quarter guidance, and a sense of refusal to start cutting costs. The earnings results of Google, Microsoft, and Meta caused decreases of over 9%, 7%, and 19% respectively.
Now, the next two MAMAA companies in the spotlight will be Amazon and Apple, who will both post their earnings reports on October 27th after the bell. Both companies have already suffered some losses prior to their earnings release, but nonetheless, everyone will be waiting to see if these two MAMAA companies can reverse the trends seen by their counterparts.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.