Technology
Earnings Scoreboard: A Turbulent Week in Tech [Chart]
Earnings Scoreboard: A Turbulent Week in Tech [Chart]
Amazon and Facebook soar, while Apple, Netflix, and Google whiff
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
For many blue chip companies, earnings season can end up being relatively dry.
For example, yesterday MasterCard reported an earnings “beat” of $0.86 earnings per share (EPS) compared to the $0.85 consensus. The stock inched up 0.7% in afternoon trading and now it’s back down today. In other words, it’s business as usual again.
However, for the world’s technology giants, earnings season can make or break a stock. The reason for this is simple: investors buy technology companies such as Amazon or Netflix for their future growth prospects, rather than their current profitability. In theory, these companies should have an incredible ability to scale, and the market prices this in to make these stocks more expensive.
If a company shows signs that it is growing slower than expected, investors punish the stock with the expectation of a ripple effect on future cash flows.
The Tech Scoreboard
The last week has been particularly eventful on the tech earnings front, and Jim Cramer’s “FANG” stocks were the center of the action. After buoying the market for much of 2015, the stocks went their separate directions.
Netflix kicked it off with a huge whiff. While revenues and EPS were on track for the quarter, its guidance on subscriber growth was the ringing of a big alarm bell. Wall Street was looking for the company to add 3.5 million international subscribers in Q2, but Netflix said it would only be adding two million. The stock has tanked spectacularly ever since, losing -18.3% in value.
Alphabet and Apple, the two most valuable public companies in the world by market capitalization, also showed signs of a struggle. Both stocks are now down close to -10% from pre-earnings, shedding a combined $100 billion in value. Apple posted its first year-over-year decline in quarterly revenue since 2003, while Google’s parent company fell short on both top and bottom lines. Co-founders Sergey Brin and Larry Page have lost a combined $3.8 billion in wealth since the report.
While this is all very dire for the tech sector, Jeff Bezos and Mark Zuckerberg came to the rescue.
Yesterday, Amazon killed it for the quarter, bringing in an extra $1.1 billion of revenue above Street estimates. The company reported its largest quarterly profit, and analysts are now ecstatic about the company’s blowout quarter. The stock is up close to 10% today.
Facebook also helped save face for Silicon Valley, and shares have now hit an all-time high as the company beat projected revenues and earnings.
Brands
How Tech Logos Have Evolved Over Time
From complete overhauls to more subtle tweaks, these tech logos have had quite a journey. Featuring: Google, Apple, and more.
How Tech Logos Have Evolved Over Time
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
One would be hard-pressed to find a company that has never changed its logo. Granted, some brands—like Rolex, IBM, and Coca-Cola—tend to just have more minimalistic updates. But other companies undergo an entire identity change, thus necessitating a full overhaul.
In this graphic, we visualized the evolution of prominent tech companies’ logos over time. All of these brands ranked highly in a Q1 2024 YouGov study of America’s most famous tech brands. The logo changes are sourced from 1000logos.net.
How Many Times Has Google Changed Its Logo?
Google and Facebook share a 98% fame rating according to YouGov. But while Facebook’s rise was captured in The Social Network (2010), Google’s history tends to be a little less lionized in popular culture.
For example, Google was initially called “Backrub” because it analyzed “back links” to understand how important a website was. Since its founding, Google has undergone eight logo changes, finally settling on its current one in 2015.
Company | Number of Logo Changes |
---|---|
8 | |
HP | 8 |
Amazon | 6 |
Microsoft | 6 |
Samsung | 6 |
Apple | 5* |
Note: *Includes color changes. Source: 1000Logos.net
Another fun origin story is Microsoft, which started off as Traf-O-Data, a traffic counter reading company that generated reports for traffic engineers. By 1975, the company was renamed. But it wasn’t until 2012 that Microsoft put the iconic Windows logo—still the most popular desktop operating system—alongside its name.
And then there’s Samsung, which started as a grocery trading store in 1938. Its pivot to electronics started in the 1970s with black and white television sets. For 55 years, the company kept some form of stars from its first logo, until 1993, when the iconic encircled blue Samsung logo debuted.
Finally, Apple’s first logo in 1976 featured Isaac Newton reading under a tree—moments before an apple fell on his head. Two years later, the iconic bitten apple logo would be designed at Steve Jobs’ behest, and it would take another two decades for it to go monochrome.
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