In today’s breaking world news, the tech giant, Apple delivered disappointing Q1 2023 results. It is the first in four years amid production disruptions at its plants in China and cooling demand for its flagship iPhone after reporting excellent results in three years driven by demand during the pandemic.
Apple reported revenues of $117.2 billion in Q1 2023, a YoY drop of 5%. CEO of Apple, Tim Cook, said the company is focusing on navigating the challenging environment using its best line of services and products to deliver the best results in the long term. The company has an installed base of over 2 billion devices and accomplished a significant milestone in the December quarter.
Declares a cash dividend of $0.23
The CFO of Apple, Luca Maestri, said the company is set to achieve a target of $20.8 billion from its services business despite major constraints in supply and a difficult macroeconomic environment. He further claimed the company had achieved consistent growth in its revenues. The company is investing in its long-term growth while reporting an operating cash flow of $34 billion. It delivered a cash flow of more than $25 billion for the stakeholders in the quarter. The board of directors of Apple has declared a cash dividend per share of $0.23.
Revenues at Google declined to $59.04 billion
Struggling with the digital ad business because of the economic slowdown, Alphabet Inc., the parent company of Google, reported a drop in its quarterly revenues. Corporate spending has declined, and tech companies have laid off their employees as part of cost-cutting measures to stabilize their businesses and improve efficiency.
Google, which earns a major chunk of its revenues through advertising on YouTube and in search, reported a drop in revenues from $61.24 billion to $59.04 billion. It is against advertisers reducing their spending on digital ads together with recession fears, higher interest rates, and high inflation.
Meta Platform Inc. Stock Soars Amid Buyback Plans
In today’s latest news, Mark Zuckerberg, CEO of Meta Platforms Inc., said 2023 is a year of efficiency with stricter cost controls. Its shares soared on Wednesday amid the flash news of share buyback plans, reaching a staggering $40 billion.
Meta, the parent company of Facebook and Instagram, has struggled with a fall in digital advertising after the pandemic. It is making significant efforts to persuade users to click on digital ads, taking cues from ad targeting systems and making changes to the content based on AI (artificial intelligence) inputs.
Indulges in cost-saving measures
Meta is engaged in saving $5 billion in 2023, for a total of $95 billion. It is a steep decline from the previous forecast of $100 billion. The company hinted at posting stellar results in Q1, beating the estimates of Wall Street. In the after-hours trade, Meta stock rose by 19% on Wednesday. The stock settled at $188.77 with a gain of 23.28% at 4 PM on Thursday. Its market cap reached a high of $494.99 billion. Meta will reduce spending on data center construction this year. It is facing challenges from Apple and TikTok in the digital ad business. The company laid off 11,000 employees in November 2022.