Best buying company
CEO Cory Barry said last week that the decline in tech-product demand will soon bottom out, in the second half of the year. For chip maker Nvidia Corp. executives.
The logjam of products that could not find buyers after the outbreak was finally exhausted, he said.
Those are great data points for the tech-focused PC market, which has seen a record decline since a surge in purchases at the start of the Covid-19 pandemic, and this week the public will get a clearer picture of where the chips powering tech and laptops are. and discounted desktops, from PC makers HP Inc.
Dell Technologies Inc. will report quarterly earnings on Tuesday.
It will be reported on Thursday.
Those companies report that amid the tech industry’s move toward artificial intelligence — or at least to talk more about it — digital demand has waned after the pandemic led to a wave of layoffs. 110 S&P 500 between March 15 and May 25, FactSet senior earnings analyst John Butters said in a report on Friday.
Companies mentioned the word “AI” during their earnings calls – the most since at least 2010.
While HP and Dell may play their interests in AI as well, the more important question for them is if they can hide their inventory. Based on the feedback from others involved in the PC supply chain, they need to improve – Barry, at Best Buy
The collapse of that boom-and-bust cycle will soon be in the rearview, he said.
“Based on what we see now, we continue to believe that the decline in demand for technology will be low in calendar 2023,” Barry said.
“Looking ahead, I think we feel you’ll see the turn in the business as you move through the middle of this year and into next year,” she added.
But now analysts at JPMorgan saw only “rapid improvement” in demand for Dell PCs last week. And more prudent spending on technology infrastructure in IT departments will weigh on the company’s focus on cloud and storage operations, he said.
There will also be many cloud-software names after concerns of a growth slowdown were answered with strong results and forecasts this season. Results from big names in cloud services like Salesforce Inc.
Veeva Systems Inc.
and Zscaler Inc.
Finish the week.
The broader backdrop for Salesforce is “not exactly roses and rainbows,” Wedbush analysts said in a research note on Thursday. But at the workplace software company, which owns the communications platform Slack and helps various workplace departments easily track customer data, “there were a number of big changes in the quarter that changed broad agreements,” he said.
This week in earnings
Nine S&P 500 companies are set to report quarterly results next week, according to FactSet. One of those – Salesforce – is a member of the Dow Jones Industrial Average.
Among those set to report are data storage provider Pure Storage Inc.
and AI software provider C3.ai Inc.
The results also benefit outdoor and workwear maker Duluth Holdings Inc.
and PVH Corp.
– the company behind clothing brands such as Tommy Hilfiger and Calvin Klein – after a year of weakened demand as retailers became cautious about stocking their shelves with more clothes.
Call to put on your calendar
Macy’s Results, Department Store Demand: Massey
It reported its first-quarter results on Thursday as higher prices for basics broadened shoppers and left more room to buy clothes and home goods. However, shares of other apparel retailers — such as Gap Inc.
and Urban Outfitters Inc.
– Collected recently, after investors found things they liked in finance. But shares of beauty-products chain Ulta Beauty Inc.
They took a hit following their own results, and executives warned that rivals had begun cutting prices on their own products after the economy’s reopening from the virus weakened demand and pushed up prices.
Number to watch
The low-income impact of dollar gross sales and inflation: The sharp price hikes in the past two years have had a major impact on low-income consumers. Many low-income Americans are skipping meals, and dealing with pandemic-era government assistance. Dollar-store chain Dollar General Corp. results
Set to be published on Thursday, it serves as a proxy for the impact, as well as the extent to which affluent customers turn to dollar stores for cheaper supplies. Big-box discount chain Walmart Inc.
Last week, he said high-income consumers were on the rise, adding that as inflation entered its third year, it was putting families at risk.