Apple and Alphabet, among others, are due to post fourth-quarter results this week and are all facing “their own challenges,” said Jeremy Gleason, a technology fund manager. It comes after Microsoft released a disappointing earnings forecast last week, but the stock rose more than expected. Gleeson, who manages the £1.1 billion ($1.5 billion) AXA Framlington Global Technology Fund, said there was enough bad news in Microsoft’s earnings to prompt some investors to sell the stock. Still, the stock’s rise of more than 2 percent is an “encouraging” sign for the rest of Big Tech, Gleason told CNBC’s “Squawk Box Europe.” MSFT 3M Line Apple and Alphabet hold 8.7% and 7.8% respectively of the AXA Framlington Global Technology Fund. Apple’s biggest concern for investors is a lack of demand for Apple products due to supply shortages, Gleason said. Apple, which makes 95% of its products in China, has struggled with supply chain issues since Beijing implemented its zero-covid policy by 2022. However, Gleason believes Apple’s weak fourth-quarter results were a one-off. It does not reflect a long-term dent in consumer demand. The fund’s “sales in Q4 will not be an accurate reflection of what the demand for their product will be because they have some supply constraints — in terms of what they can produce,” the manager said. That said, Gleason remains bullish on Apple. He said there is “very good and healthy demand” for Apple products despite the expected recession and lower consumer spending. “In fact, we’ve seen the last couple of quarters that customers are shopping around in terms of the device they’re buying. They’re not buying low-end products, they’re buying high-end products. It ends up being products from Apple,” Gleason added. The average price target of 41 analysts compiled by FactSet puts the stock at 18% upside. Alphabet In contrast, Gleason struck a more bearish tone on Google-parent Alphabet’s stock. As the global economy continues to falter, the company expects to report “terrible” quarterly numbers and paint a “terrible” outlook for the first half of the year. When companies look to cut costs ahead of a recession, advertising—Alphabet’s most important source of revenue—is often one of the first costs to be cut. The fund manager also said a “dark cloud” was looming over the stock as regulators stepped up scrutiny of the tech giant’s dominance in the online advertising and search technology sectors. “Clearly, the amount of regulatory scrutiny that’s going on around Alphabet is increasing. And that’s probably going to be a dark cloud over them going forward,” he said. Gleason cautioned that any talk of secession now would be premature, but added that the stakes would be higher if Alphabet were to restructure. Analyst consensus estimates compiled by FactSet show a 23% upside over the next 12 months. GOOGL 5Y line