Google, Apple Disappoint as Tech Earnings Hit by Gloom

A customer stands underneath an illuminated Apple logo as he looks out the window of the Apple store located in central Sydney, Australia, May 28, 2018. (Reuters)
A customer stands underneath an illuminated Apple logo as he looks out the window of the Apple store located in central Sydney, Australia, May 28, 2018. (Reuters)
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Google, Apple Disappoint as Tech Earnings Hit by Gloom

A customer stands underneath an illuminated Apple logo as he looks out the window of the Apple store located in central Sydney, Australia, May 28, 2018. (Reuters)
A customer stands underneath an illuminated Apple logo as he looks out the window of the Apple store located in central Sydney, Australia, May 28, 2018. (Reuters)

Google and Apple on Thursday reported downbeat results for the last quarter of 2022 as Amazon beat expectations, but warned that the coming months would be uncertain in a difficult moment for Big Tech.

The tech titans posted earnings as shares in Meta skyrocketed a day after it reported better results than expected and signaled spending and job cuts, AFP said.

The results follow weeks of unprecedented layoff rounds in the usually unassailable tech sector amid pessimism about the economic outlook.

The souring mood followed a long spell of outsized growth during the peak Covid-19 period when consumers went online for work, shopping and entertainment.

"Big Tech calls from Apple, Amazon, and Alphabet painting a much different picture of demand environment than the tech bears were hoping for," tweeted Wedbush analyst Dan Ives, referring to investors who believe shares are on a downward path.

While earnings reports show there is "caution in the air" there are signs that the companies could be heading for soft landings, the analyst added.

Google parent Alphabet's revenue of $76 billion in its fourth quarter and profit of $13.6 billion were below what it made in the same period a year earlier, with share prices falling more than 3 percent in after-market trade.

Google saw a slump in its crucial advertising sales, which were slightly better than analysts had projected, according to data compiled by Factset.

"It's clear that after a period of significant acceleration in digital spending during the pandemic, the macro economic climate has become more challenging," Google CEO Sundar Pichai said in an earnings call.

Pichai last month announced a plan to lay off 12,000 employees in order to reverse pandemic over-hiring and focus on new areas, especially artificial intelligence.

Google was caught off guard by the sudden rise of user-friendly AI such as ChatGPT, which is seen as a potential rival to Google's popular search engine.

Apple is the only US tech giant that has not announced major layoffs in recent weeks.

The world's biggest company in terms of market value reported a fall in quarterly revenue and profits for the final three months last year, hit by a drop in sales of its flagship iPhones.

Apple sales were hit by curtailed production at factories due to China's zero-Covid policy that was only recently lifted.

"COVID-19 related challenges" that "significantly" reduced Apple's supply of iPhone 14 Pro and iPhone 14 Pro Max lasted through most of December, Apple chief executive Tim Cook said on an earnings call.

- 'Unprecedented circumstances' -
Apple's revenue was $117.1 billion, down 5.4 percent from a year ago for the same quarter a year earlier, missing what analysts had forecast.

"The world continues to face unprecedented circumstances, from inflation to war in Eastern Europe, to the enduring impacts of the pandemic and we know that Apple is not immune to it," Cook said.

Amazon meanwhile reported an inflation-fueled increase in sales despite the company announcing a massive round of layoffs to correct for a hiring binge during the pandemic when business growth ramped up.

"During periods of economic uncertainty, consumers are very careful about how they allocate their resources and where they choose to spend their money," Amazon chief financial officer Brian Olsavsky said on an earnings call.

"We saw them spend less on discretionary categories and shift to lower priced items in value brands in categories like electronics."

Last month, the company said it would let go more than 18,000 employees after the workforce swelled by 800,000 employees during the peak years of the pandemic period.

Amazon's sales figures of $149.2 billion in the quarter were better than initial forecasts by analysts polled by Factset, but its profit took a massive hit, falling to near zero.

"In the short term, we face an uncertain economy, but we remain quite optimistic about the long-term opportunities for Amazon," said CEO Andy Jassy.

The Big Tech earnings dump came a day after Meta said quarterly sales dropped one percent, which beat expectations, and announced that the number of daily users on Facebook hit two billion for the first time.

Shares in Meta ended the formal trading day up 23 percent.



Roblox Launches IP Licensing Platform, Partners with Netflix, Lionsgate

 The Roblox logo is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York City, US, July 15, 2025. (Reuters)
The Roblox logo is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York City, US, July 15, 2025. (Reuters)
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Roblox Launches IP Licensing Platform, Partners with Netflix, Lionsgate

 The Roblox logo is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York City, US, July 15, 2025. (Reuters)
The Roblox logo is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York City, US, July 15, 2025. (Reuters)

Roblox launched a licensing feature on its videogame platform on Tuesday, allowing intellectual property holders to integrate their characters and worlds into its games.

It has signed licensing partnerships with companies such as Netflix, which would allow developers to use characters and names from the streaming giant's popular shows "Stranger Things" and "Squid Game" in their games.

Other licensing partners include Lionsgate, Sega and Japanese publisher Kodansha.

Roblox has been aggressively trying to grab a larger share of the videogame market and expand its revenue sources by diversifying beyond gaming and turning the platform into a hub for socializing, commerce and advertising.

Introducing a platform for licensing property with popular characters and names from highly recognizable media could draw more people to its games, which appeal to a large cohort of Gen Z users.

"We have a goal to have 10% of all gaming content revenue flowing through the Roblox ecosystem and benefiting our community," said Manuel Bronstein, chief product officer at Roblox.

"This will require having a wide range of experiences and giving creators the opportunity to partner with rights holders of the most recognizable IP," he said.

Roblox had previously worked with media companies such as Warner Bros Discovery, launching special advertising campaigns and games around a specific property to drive consumer engagement.

The License Manager would enable rights holders to register and create licenses, offering them quickly to creators in days or hours rather than months, Roblox said.

The company also plans to onboard more IP holders throughout the year and aims to open the License Manager to all eligible IP holders in the coming months. It is even exploring additional license types.