While the US economy continues to add jobs and the nonfarm payroll came in at 372,000 in June, ahead of estimates, Big Tech companies have either been laying off employees or going slow on hiring. Apple has reportedly joined the list of companies that are going slow on hiring
2022 has been tough for stock markets and FAANG stocks are no exception. Netflix is the worst performing S&P 500 stock. With a YTD loss of around 50%, Meta Platforms is also among the top S&P 500 losers. Amazon has also lost almost a third of its market cap this year and is underperforming the markets.
Apple and Alphabet have been relatively better off and have lost 17.2% and 24.7% respectively so far in 2022. Apple is the best-performing FAANG stock of the year. It was the second best performing FAANG last year and the best performer in the previous two years. Apple started 2022 on a positive note and hit a market cap of $3 trillion on the first trading day itself. Since then, it has looked weak amid the sell-off in growth stocks.
Apple stock is outperforming not only the FAANG peers but also tech names in general. Most Wall Street analysts see Apple stock as a buy and even Warren Buffett added more shares in the first quarter of 2022.
FAANG Companies Have Gone Slow on Hiring
FAANG companies have gone slow on hiring. Netflix has announced layoffs amid sagging growth. During their Q1 2022 earnings call, Amazon also admitted that the company is overstaffed as it added extra capacity during the pandemic. However, as the topline growth has come down, it finds itself overstaffed now.
Meta Platforms has also gone slow on hiring, and so has Alphabet. Now, reportedly, even Apple looking to slow hiring at some of its verticals. This is however not a company-wide slowdown in hiring, Bloomberg reported.
Other tech companies have also been impacted. Uber’s CEO Dara Khosrowshahi said in an internal email earlier this year that it would treat hiring as a “privilege.” Tesla has also slashed its employed workforce but is adding more salaried workers. Tesla’s CEO Elon Musk has backed out of buying Twitter now. He is facing a lawsuit from Twitter. While Twitter wants the courts to expedite the lawsuit, Musk wants the trial to begin next year.
Apple is Expected to Launch Several New Products
Apple is rumored to launch a flurry of new products over the next year and might ditch the iPhone’s mini version for the new non-pro Max model. Also, as is the case with new iPhone models, the iPhone 14 is expected to have a better camera and display.
Apple is also rumored to launch its AR/VR set. For the last few months, analysts have been speculating the possibility of Apple launching an AR/VR headset but so far, the company hasn’t made any concrete announcement. The entry into AR/VR headsets would help the company increase its addressable market.
Apple might also upgrade its iPad and iPad Pro. The company might also launch the updated Apple Watch. Apple TV might also get an upgrade and even a cheaper version. We might get more details when the company releases its earnings later this month. The quarter is expected to be tough for Apple amid the supply chain issues and the lockdowns in China.
Many analysts see a recession on the horizon that might hurt sales of smartphones. JPMorgan is particularly bearish on the economy while Bank of America sounded relatively bullish during their second-quarter earnings release. Bank of America stock gained yesterday despite mixed earnings.
Related posts
- Apple Rumored to Launch Flurry of New Products amid Sagging Stock Price
- Bank of America Stock Rises After Q2 Earnings Release
- How to Buy Tesla Stock for Beginners – With Low Fees
Battle Infinity - New Metaverse Game
- Listed on PancakeSwap and LBank - battleinfinity.io
- Fantasy Sports Themed Games
- Play to Earn Utility - IBAT Rewards Token
- Powered By Unreal Engine
- Solid Proof Audited, CoinSniper Verified