Posted Jan 25, 2023, 5:40 PM
Microsoft is it the grain of sand that will hinder the upward momentum of the Parisian market? The American computer giant released its second quarter results on Tuesday, after the close of Wall Street. If the performances are higher than expected, thanks to a sustained demand in the “cloud”, which more than compensated for the drop in sales of computers for individuals, the group warned that its activity would be less dynamic than expected this quarter. Revenue could be more than $1 billion lower than expected. Faced with this slowdown, Microsoft, like many others in the “tech”, will lay off. 10,000 jobs, or about 5% of the workforce worldwide, are threatened. This cast a chill: on the stock market, the Microsoft title fell by 3.3%.
In its wake, it brings Apple (-1.6%) and Alphabet (-3.6%) in New York, as well as, in Paris, Dassault Systems (-1.79%) or Teleperformance (-1%). “ Microsoft’s results paint a more realistic picture of the outlook for the year than investors seemed to have been persuaded. Job cuts, lower-than-expected revenues and pessimistic forecasts are fast becoming the norm observes Craig Erlam, market analyst at Oanda. After the American banks, the Gafams are next on the list and “ if we refer to Microsoft, we are heading for difficult times “, he adds.
Germany should escape recession
At the close, the Bedroom 40 manages to resist, yielding only 0.09%, to 7,043.88 points. However, this is its fourth session of decline since January 1 (for 14 increases). In New York, the Dow Jones loses 1% and the Nasdaq Composite 1.6%. In addition to Microsoft, the American rating sanctions the results of Boeing (-2.5%). The aircraft manufacturer suffered a loss of $663 million in the fourth quarter, affected by problems in the supply chain, but the rebound in sales and aircraft orders supported turnover. IBM and You’re here will release their results after the US close.
Disappointing corporate results overshadowed the pleasant surprise linked to the improvement in the business climate in Germany. The Ifo index indeed came out at 90.2 points in January (+1.6 points), confirming that the leading economy in the euro zone should avoid recession. This is in line with the new forecasts in the German government’s annual economic report, which predicts growth of 0.2% this year and no longer a contraction. Perverse effect, the renewed investor confidence reinforces the European Central Bank (ECB) in the idea that it can continue to raise its key rates to fight against inflation.