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We’re now into the busiest week of this earnings season, and among others, tech giants like Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta Platforms (META) will release their quarterly reports this week. Notably, it hasn’t been a good earnings season for tech companies so far; Tesla (TSLA), Netflix (NFLX), and Alphabet (GOOG) all fell after their Q2 reports.
In Alphabet’s case, Google's parent fell despite better-than-expected earnings. One plausible reason behind the recent tech sell-off has been the group's demanding valuations, because these companies need a lot more than merely a “beat” on the headline numbers to justify those premiums.