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Earnings Freefall for Tech Companies Looks Set to Pause a While

  • Analysts now see a decline in tech earnings for 2023
  • Apple is the only megacap to avoid major negative revisions
Updated on

Wall Street has given up on the hope that technology companies will report higher earnings next year, potentially setting up their shares to at least stabilize if not stage a short-term rally now that the third quarter reporting period is winding down.

The drop in the outlook has already been precipitous. Analysts now see profits for the industry declining 0.2% next year, compared with a prediction in late June for an increase of 10.5%, according to data compiled by Bloomberg Intelligence. While expectations have come down across a number of sectors, tech stands out: The overall S&P 500 is still expected to report earnings growth in 2023.