What Happened This Week: Twitter, Tech Wreck And Apple – Earnings Week To Remember

 | Oct 28, 2022 22:45

A heavy earnings week is always a busy time for the markets, but is “busy” really the word to describe the past week?h2 First, Let’s Talk About Twitter/h2

Well, the question was finally answered: Elon Musk did, indeed, buy Twitter (NYSE:TWTR). The deal to turn the platform into a private company was sealed last Thursday. By Friday, the stock was no longer trading. And today, well, shareholders are just waiting for their cheques to arrive. Musk agreed to pay $54.20 a share, just above where the stock stopped trading on Thursday at $53.70.

Everybody except investors is left to wonder what will happen next – for now. That is because this is not the last the markets will hear from Twitter. The bird will come back to roost. It will be a publicly traded company again. Musk has big plans. And that will take, well, you know, big money. And not even the richest man in the world will do it on his own completely.

h2 Now, Let’s Tackle The Tech Wreck/h2

First, it was not a total wreck. Sure, Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META) are assessing the damage while they await a tow truck to get themselves out of the ditch after their latest earnings reports sent them careening off their designated routes. But Apple (NASDAQ:AAPL) stayed on the road, and continues along its merry way, upward and onward.

The hit Amazon stock took yesterday is not just about past earnings, though. Although the online retailer’s figures were below analysts’ expectations, they did see growth, as third-quarter revenue hit $127.1 billion, up about 15% on a year-over-year basis.

The real hitch came with statements that outlined fourth-quarter guidance. Amazon stated the upcoming Christmas season fourth quarter is expected to hit between $140 billion and $144 billion, a substantial bit below the expected target of $155 billion. But this shouldn’t be a surprise.

Back in September, FedEx (NYSE:FDX) saw its stock take a hefty blow, dropping 22%, marking its biggest loss in more than four decades. The U.S. package-delivery service is a bellwether performer for the U.S. economy, and it offered an early warning for the related industries. And when it comes to delivering packages, how much closer related can a company be than Amazon ?

When FedEx has what was described as an “ugly quarter,” investors have to pay that heed.

Coincidence that Amazon saw its market cap dip below the $1-trillion mark in intraday trading for a time this week? Consumers are feeling the squeeze.