David Bridges
Maja Hitij/Getty Images News
Earnings reports from big-name tech leaders such as Nvidia (NASDAQ:NVDA), Salesforce (NYSE:CRM) and Dell (NYSE:DELL) continued to grab investors’ attention this week, and the latest goings on between Elon Musk and Twitter (NYSE:TWTR) showed that case has plenty of drama left before it reaches any conclusion.
In the seemingly never-ending tech earnings season, Nvidia (NVDA) found the road bumpy as it reported second-quarter results that were solid, but gave a third-quarter outlook that showed weakness ahead in its gaming and PC businesses.
However, some analysts remained upbeat on Nvidia (NVDA) despite its outlook. For example, Atif Malik, of Citi, said Nvidia’s (NVDA) gaming business should start heading back upward in early 2023 due the company’s slate of new products slated of later this year.
Salesforce (CRM) joined the parade of companies that have cited a strong U.S. dollar and foreign exchange rates as having an impact on their revenue results. The cloud-based business software giant trimmed its full-year revenue forecast, and also report second-quarter sales that barely beat Wall Street analysts’ estimates.
Salesforce’s (CRM) outlook was enough to leave some analysts believing that a broader slowdown in the software industry could be on the way.
Dell (DELL) also did little to boost the enthusiasm of investors as the computing giant reported second-quarter sales that just missed Wall Street’s expectations, and also gave a third-quarter forecast for earnings and revenue to decline from the same period a year ago. Dell’s (DELL) outlook led to investors selling off shares of PC companies at the end of the week.
Zoom Video Communications (ZM) had a rough go of it, as the company often called one of the stars of the Covid-19 pandemic cut its fiscal-year sales forecast following what was a mixed second-quarter business report.
Activity in the Twitter v. Musk legal case heated up late in the week, as Musk subpoenaed former Twitter (TWTR) CEO Jack Dorsey in the matter, and a former Twitter (TWTR) security chief turned federal whistleblower in the case.
Meanwhile, the judge overseeing the upcoming trial ruled that Twitter (TWTR) needed to give Musk some limited discovery with regards to 9,000 user accounts, but also said Musk’s overall demands for information were “absurdly broad.”
And by the end of the week, Musk was reportedly seeking a delay in the trial in order to get more time for discovery in the case.
Apple (AAPL) began cranking up the enthusiasm and expectation for what it has planned for the next version of the iPhone, as the company began sending out invitations to the media for a company event to be held in person, and online, on Sept. 7. And the U.S. Department of Justice was said to be in the early stages of drafting an antitrust complaint against Apple (AAPL) that could be filed in early 2023.
AMC Entertainment Holdings (AMC) swooned early in the week, and continued acting like a meme stock as its new class of preferred stock began trading under the stock ticker symbol APE (APE). The debut of the APE (APE) shares had the effect of adding to some confusion over the value of AMC’s (AMC) stock.
And speaking of movies…MoviePass, the one-time subscription service that let people see a unlimited number of movies in a month for a set fee, prepared to make a comeback on Labor Day.
