Billions of pesos of technology disappear

It is considered the oldest companies world technology, Apple, Microsoft, Google, Amazon, Facebook, Tesla and Netflix reported disappointing accounts this week and fueled recession fears. Together, they are withdrawing a decapitalization of 72 billion pesos from the beginning of 2022, profiling themselves as one of the largest gloomy for industry.

This figure exceeds all the products and services it produces Mexico Mr Canada throughout last year, estimated by the International Monetary Fund at 65 billion pesos.

The collapse of the tech giants is equivalent to eight times the wealth of Argentina, whose population reaches 46 million people.

72 billion is enough for construction 180 refineries in Dos Bocas, Tabasco, whose cost is currently estimated at $20 billion, or buy 2,400 Texas refineries like Deer Park.

Read more: 120,000 jobs lost in September, after three months of growth: Inegi

The bursa bleeding it was a consequence of the migration of flows to more defensive sectors, such as industry, Banorte analysts pointed out.

Bad markets reacted to disappointing results in the technology sector and warnings of slowing revenue growth, as fears of a global recession caused by restrictive monetary policy and the war in Ukraine resurfaced, the Mexican bank said.

Last Tuesday, Google and Microsoft published their accounts for the third quarter, the results of which disappointed everyone, while the directors of both companies warned about the effects of inflation and weaker economic growth.

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Read more: US markets open mixed, shares of Facebook and Whatsapp owner Meta down 22.7%

In particular, Google showed weak ad sales and Microsoft’s revenue advanced at its slowest pace in five years, prompting a broad selloff in tech stocks. Google accumulates a disaster in the year of 33.5%, and Microsoft of 29.9%, that is, a decapitalization of 13.2 billion pesos in the first case and 15.3 billion in the second.

Investors awaited the results of other titans, such as Facebook, which also disappointed the next day.

In particular, the social network is spending on capital-intensive projects such as metaverse, at a time when the advertising market is drying up, so its titles have disappeared 71.4% or 13.1 billion pesos since the beginning of the year. Amazon is also not far behind and has lost 38% or 12.8 billion in market value by yesterday after disappointing sales projections for this Christmas.

“We see signs that, once again, human calculations are tight, inflation still high, energy costs are an additional layer on top of those caused by other problems,” said Brian Olsavsky, CFO of the largest online retailer.

“We are preparing for a period of slower growth, like most companies,” he said.

Apple, which is considered the most valuable company in the world, has not been able to save itself from the strength of the dollar and inflation, whose sales of the iPhone, its flagship product, have not met the projections of the sector.

“The wind of the exchange rate was significant. We would have grown in double digits if it weren’t for these currency headwinds,” explained Tim Cook, CEO of Apple.

Apple titles accumulate a contraction in the year of 11.9%, representing 8 billion pesos less.

There are also cases of Tesla and netflix, whose shares were pulled by a bearish wave in the sector.

In the first case, logistical problems increasing the gap in delivery and production ended up complicating things, and in the second, the uncertainty that they will no longer be able to recover lost users in a market as competitive as streaming services.

Tesla shows a collapse of 35.1% or 7 billion pesos and Netflix 50.9% or 2.7 billion.

During the week they also reported that the economy NOW rose 2.6% between July and September, after two consecutive quarters of decline, in what has come to be seen as a technical recession.

The result exceeded the 2.4% growth expected by market participants.

This is the biggest improvement since the fourth quarter of last year.

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