The week that took almost $1 trillion from big tech, news quiz and what matters in the market

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Only Apple and Netflix were saved

The American big techs saw almost evaporate $1 trillion of its combined market value this week. The bad mood of the market, which only spared Apple, came after the disclosure of the companies’ third quarter balance sheets.

What explains: the signs of a global slowdown, which hit the year-end revenue forecasts of Meta (owner of Facebook) and Amazon.

• The same reason knocked down the advertising revenue of Alphabet (which owns Google) and helped put the brakes on Microsoft’s cloud computing business.

this ThursdayAmazon shares plummeted 12% in the aftermarket (which is equivalent to -US$200 billion) after it estimated revenue for the last quarter – the most important for the company – well below what the market expected.

In numbers: Meta, which lives its own astral hell while the bet on the metaverse does not come to fruition, lost a quarter of its market value on this farm alone, or $84.6 billion. In 2022, its stock plummets about 70%.

• Microsoft saw $243 billion evaporate from their market value by the fifth. Google lost about half of that amount.

Beyond Apple, another company of the acronym FAANG (Facebook, Apple, Amazon, Netflix and Google) that was saved from the bleeding of the balance sheets was Netflix, which released its results last week and saw its shares soar 15% in the sequence. The shares, however, still fall 45% in the year.

Letter animates Bolsa, but for minutes

After three consecutive falls, the stock market started a recovery this Thursday.

The day was marked by the repercussion of the letter in which Lula (PT) promises to combine fiscal and social responsibility and which generated a jump in the Ibovespa that lasted just a few minutes.

In numbers: the stock market went up 1.66%at 114,640 points, while the dollar closed with a strong fall, from 1.48%a BRL 5.30.

When the PT document was published, around 4:30 pm, the Ibovespa quickly jumped from 114,700 points to 116,235when it posted the day’s high, but then returned the gains.

Which explains the passing reaction: the agents’ assessment that the text was vague prevailed, although the attempt to align with the market was highlighted by analysts as a positive step.

• “[A carta] It was not negative, but it ended up being zero to zero”, summarized Rafael Pacheco, economist at Guide Investimentos.

In the so-called “Letter to Brazil of Tomorrow”, the former president lists 13 priority points and summarizes promises announced throughout the campaign. Read the letter in full here.

more swings

• Vale recorded a profit of BRL 23.3 billion in the third quarter of 2022, a drop of 18.5% in the annual comparison. The decline follows the fall in the period of 27% in iron ore prices, the company’s main product.

• Ambev reported third quarter net income (BRL 3.21 billion) higher than expected by analysts, thanks to the performance in the domestic market, especially the Spaten and Duplo Malt brands. In reaction, its shares ended the day up 3%.

• Suzano recorded net income of BRL 5.44 billions, reversing losses in the same period of the previous year. The high followed the advance of pulp prices, the company’s main product.

take a break

• To watch: “Sound on the Strip” – Netflix miniseries

Based on the book “The Spotify Play” by two Swedish journalists, the miniseries is set against the backdrop of the creation of Spotify, a streaming app that revolutionized the music market and today has more than 430 million users.

• With six episodes, the production tells in each of them the story of a decisive character for Spotify to have become what it is today – with the exception of the last one, which is about a fictional singer.

Understand: the startup was founded in 2006, at a time when record companies were having a dispute with the Pirate Bay, a pirated website that made available the download of movies, series and music for free.

• Programmer Daniel Ek then decided to create an app that played within the law, but still offered free music. That’s where Spotify came from.

Over the episodes, the miniseries tells how the startup faced common barriers for those starting out: technology bottlenecks, financing difficulties and the battle against large companies.

• In the case of Spotify, the villains are the big techs, who wanted to prevent the app’s launch in the country, which ended up happening thanks to the support of record companies.

In addition to the economy:

• Illustrated Express: Podcast discusses how Milton Nascimento and Clube da Esquina changed music.