Tech Roundup: Earnings Show Mixed Messages Across Industry (NYSE:IBM)

The latest earnings season kicks into gear this week, with a little something for everyone from the likes of IBM (NYSE:IBM), Netflix (NASDAQ: NFLX) and even Twitter (NYSE:TWTR) observed how. Various sectors in the technology sector have been performing late.

IBM kept things moving in its second quarter report on Monday. And while Big Blue delivered better-than-expected revenue and earnings, it was the company’s cash flow outlook that raised investor concerns. As U.S. markets closed Friday, IBM ( IBM ) shares were down nearly 9 percent for the week.

After IBM ( IBM ), it was Netflix’s ( NFLX ) turn to get into Wall Street’s good graces after months of record subscriber numbers for streaming TV. And Netflix ( NFLX ) said it lost 970,000 subscribers in the second quarter, but… Compared to expectations for a loss of 2M subscribers, Netflix ( NFLX ) was able to call its latest quarterly results a success.

And for his part, Netflix ( NFLX ) CEO Reed Hastings said there was “something” that helped the company’s better-than-expected subscriber numbers.

Meanwhile, ahead of Netflix’s ( NFLX ) results, the company detailed ways to monetize passwords its members share with friends and family outside their homes. Netflix ( NFLX ) said the new installments will be released in five Latin and South American countries, but did not provide any information on when the program will expand to other territories.

Netflix’s ( NFLX ) results gave a boost to companies in the streaming TV industry, such as Roku ( ROKU ), Paramount Global ( PARA ) and The Walt Disney Company ( DIS ).

AT&T ( T ) had a tougher time, because like IBM ( IBM ), positive sentiment about the telecom giant’s quarterly results angered the company by cutting its cash flow forecast.

Twitter ( TWTR ) had another busy week, with a Delaware judge ruling in favor of the company and setting an October trial date in a lawsuit against speculative buyer Elon Musk. Twitter ( TWTR ) is looking to force the social media giant to pass on its $44 billion acquisition of Musk.

And later in the week, Twitter ( TWTR ) said issues related to Musk and the online ad industry caused its second-quarter results to miss expectations.

Shares of Verizon ( VZ ) fell to a five-year low on Friday after reporting disappointing cell phone subscriber numbers and giving an outlook that effectively predicted no growth going forward.

And Snap (SNAP)…oh, Snap (SNAP), what’s wrong?

The company’s shares fell more than 39% on Friday after its quarterly results and forecasts pointed to further weakness in the online advertising market, which accounts for all of Snap’s ( SNAP ) revenue.

But all that dust will settle when Monday rolls around and even more big-name tech leaders get into the earnings-reporting game.

Intel ( INTC ), Microsoft ( MSFT ), Apple (NASDAQ:AAPLFacebook’s Meta ( META ) and Google parent Alphabet ( GOOG ) ( GOOGL ) are all on the docket and will attract investors’ attention in their quarterly reports next week.

Intel ( INTC ) may find it difficult as Deutsche Bank cut its forecast on the chip giant due to expected weakness in the PC market. Wall Street sees signs that Apple ( AAPL ) is seeing growth in areas such as services and its biggest source of sales, the iPhone. Meanwhile, Microsoft ( MSFT ) raised its estimates for the quarter, and some analysts said the software giant saw some impact on its results from the growing strength of the US dollar.