Big Tech Takes Center Stage
US and European stock indexes opened higher on Monday as investors geared up for earnings reports from Big Tech companies this week, delivered against a backdrop of high inflation and signs of impending monetary policy tightening.
Fresh quarterly numbers from social media giant Facebook are up first, with figures due later in the week from peers including Microsoft and Apple. While most tech companies far outperformed the market last year, they have seen their stock gains cool so far in 2021 amid concerns over rising interest rates, chip shortages, and slowing growth after a surge in online media usage and demand for software during the height of the pandemic.
The anticipated corporate updates come after shares in social media platform Snap slid more than a quarter last week. The company posted revenue forecasts that fell short of expectations, blaming supply chain challenges for its advertiser customer base and privacy-related changes to Apple's iOS operating system weighing on sales and profits. Other tech bellwethers, including Facebook, Pinterest and Twitter, also suffered losses in the wake of Snap’s report.