Forecasting is a futile exercise since human action is driven by randomness.
Nevertheless, given the Fed’s ongoing interest rates hiking and monetary tightening, a recession seems inevitable.
In fact, the interest rates hikes have already negatively impacted tech stocks valuations — Nasdaq is 30%+ below its December 2021 peak.
In addition, as a consequence of a weaker economy, one would expect tech companies’ earnings to get slammed.
So, now that the third quarter reporting period has ended, let’s gaze at some headline news on the performance of selected US tech stocks.
* Solid earnings beat sends Adobe’s stock higher
* DocuSign’s stock soars as it crushes earnings and revenue estimates
* Broadcom’s stock rises on solid earnings beat as chip sales stay strong
* C3 AI beats Wall Street’s expectations after completing new business model shift
* Enterprise investments in ‘infrastructure as code’ power rapid growth at HashiCorp
* Mobileye’s first quarterly results since IPO top analyst expectations
* MongoDB’s stock soars as cloud consumption trends power strong revenue growth
* Couchbase reports better-than-expected third quarter results
* Sumo Logic’s stock soars on strong earnings beat and guidance
* GitLab’s stock jumps 20% on solid earnings beat and positive guidance
* UiPath’s stock rises on impressive earnings beat and strong guidance
* Oracle’s stock posts small gain as cloud powers strong revenue growth
* Zscaler shares plunge despite strong earnings and revenue beats
* Pure Storage and Nutanix post solid earnings results
* Splunk beats expectations and edges closer to profitability, sending its stock higher
* Despite earnings beat, light revenue guidance sends Snowflake’s stock down
* Box hits $1B revenue run rate amid record operating profitability
* Monday.com beats Q3 earnings and revenue estimates
We always believed in the transforming force of technology.
Indeed, even in the middle of a fearful market, several tech stocks are managing to beat market expectations.
This is good news for tuned investors because lower valuations give the best potential for long-term returns.
The (to be launched) Fabrica Ventures Fund II shall take advantage of this timing and surf the US tech high tide that is being formed in the deep ocean of valuations.