The daily business briefing: February 3, 2023

Apple, Amazon, and Alphabet report slowing growth, Shell becomes the latest oil giant to report record profit, and more

Apple store
(Image credit: JIM WATSON/AFP via Getty Images)

1. Tech giants report slowing growth, vow to cut costs

Apple, Amazon, and Google parent Alphabet all announced year-end earnings on Thursday that confirmed expectations of slowing growth for the technology industry's giants. Google saw its first advertising revenue decline since the start of the coronavirus pandemic. Alphabet and Amazon both reported slowing growth. Apple's fourth quarter revenue was 5 percent below the same period a year earlier, its first such drop in several years. The CEOs of Amazon and Alphabet, which were among tech giants that have announced layoffs, said they need to continue cutting costs. Facebook parent Meta on Wednesday said 2023 would be the "year of efficiency," and its stock surged more than 23 percent Thursday.

The Washington Post The Wall Street Journal

2. Shell becomes latest oil giant to report record 2022 profit

Shell on Thursday reported a record $41.6 billion full-year profit, adding to the list of oil giants to report windfalls on high energy prices. Shell's net earnings smashed its previous record of $31.4 billion, set in 2008, and brought combined 2022 profits for the three major energy companies — Shell, Chevron, and Exxon Mobil — to more than $132 billion. The oil giants bounced back from losses earlier in the pandemic as China's lifting of coronavirus restrictions increased demand, and Russia's invasion of Ukraine disrupted energy markets and drove up prices. Shell's fourth quarter profit came in at $11.4 billion, up from $11.2 billion in the same period last year.

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The Wall Street Journal

3. Ford reports 2022 loss, vows to cut costs

Ford Motor on Thursday reported that it lost $2.2 billion in 2022 due partly to high costs and ongoing supply chain setbacks. The automaker said problems with two major investments also contributed. Ford wrote down its investments in electric-truck startup Rivian by $7.4 billion, and autonomous-vehicle developer Argo AI by $2.8 billion. Ford has now sold nearly all its stake in Rivian. Without the special expenses, interest, and taxes, Ford made $10.4 billion in profit, about the same as in 2021. The company sold 4.2 million vehicles, up from 3.9 million the previous year. "In simple terms, we need to improve quality and lower costs now," the company's chief financial officer, John Lawler, said in a conference call, according to The New York Times.

The New York Times

4. Stock futures fall after troubling tech earnings ahead of January jobs report

U.S. stock futures fell early Friday after disappointing earnings from tech giants, including Apple and Google-parent Alphabet. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.4 percent and 0.9 percent, respectively, at 6:30 a.m. ET. Nasdaq futures were down 1.5 percent. Alphabet shares were down nearly 4 percent in extended trading. Apple and Amazon, which also reported earnings on Thursday, were down 3.2 percent and 4.2 percent, respectively. The declines came after the tech-heavy Nasdaq surged by 3.3 percent on Thursday, its best day since November. The S&P 500 rose 1.5 percent. Investors on Friday will be watching the January jobs report, which is expected to show that U.S. employers added 187,000 jobs, signaling slowing but still strong hiring.

CNBC

5. Adani Group losses deepen

Shares in most Adani Group companies fell further on Friday, deepening a crisis for the India conglomerate that started with a January report by short-seller Hindenburg Research accusing it of fraud and stock market manipulation. Adani has dismissed the charges as "baseless" and "malicious," but analysts say the conglomerate has not adequately countered the allegations. Shares of Adani's flagship, Adani Enterprises, dropped by as much as 35 percent in Friday trading in Mumbai, before recovering and closing down by 2 percent. The Indian stock exchanges halted trading in five other Adani stocks after they plummeted by the daily limits of 5 percent and 10 percent, CNN reported. Friday's declines brought Adani's total losses in the meltdown to $110 billion.

CNN

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.