🍎Covid- Here with us🔫

According to Dr Fauci, US chief medical advisor, according to infectious diseases expect, the Covid-19 virus is unlikely to be removed, and re-infection is likely. This comes as President Biden is also tested positive, and so is tens of millions of Americans who had been infected. 

This is a timely reminder that businesses will still struggle with the existing supply chain woes for some time and that the market will likely remain at elevated volatility. 

📉Snap: the earnings truly snapped!📱

US futures declined after Snap registered disappointing 2Q earnings that had collateral damages across social media giants such as Meta Platforms and Twitter. Snap’s result could be a fore-warning for companies relying heavily on advertising dollars for revenue. 

As macroeconomic challenges grew, many industries were disrupted, and with increasing competition for advertising clients, Snap’s revenue growth slowed rapidly. 

Pika World will be on the sideline to observe if the collateral damage will be spelt across other tech sectors. 

🕹Amazon: Time for re-evaluation🌴

Analysts are now preparing themselves for a weaker growth rate in Amazon’s upcoming earnings report. Projected sales are likely to be between $116 billion to $121 billion, with operating income hitting a $1 billion loss to a $3 billion gain. 

Why so? The slower e-retailing market and a softer advertising spending outlook are the short-term performance clouds. In addition, with the onset of regulatory scrutiny, there is less appetite to break barriers. Moreover, its star business, Amazon Web Services, may see moderate growth if spending on enterprise technology slows as the economy creeps into recession. 

Pika World maintains a positive outlook on AMZN, as tricky waters do not overshadow its role as a beneficiary of a digital transformation. Nonetheless, we are also mindful of a more treacherous geopolitical landscape that can be daunting. 

We have come to the final trading day of the week. Pika World is staying on a lighter note as we embrace the mega tech earnings next week, which is likely to be a tipping point for equities where the earnings recession narrative is building.