Twitter Did Not Pay $136,260 Rent, Microsoft Reported Its Worst Quarterly Results In Years
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Twitter has been struggling with new problems since the beginning of the year. This time he was accused of not paying the rent. Other tech companies are also having problems. 2022 was not the best year for Meta or Mircrosoft stocks.
Twitter has another problem
While Elon Musk has been working to cut costs on Twitter since he took over the company in October. More problems arise.
Recently there has been an inflromation that the social platform will experience technical difficulties in using the computer version. Today there was information about financial problems.
The owner, Columbia Reit-650 California LLC, says the social media company failed to pay $136,260 in owed rent for office space at 650 California St.
The lawsuit alleging breach of contract was filed in the California Supreme Court in San Francisco.
Other companies, including a software provider and a transportation company, have also sued Twitter in recent weeks in an effort to recover overdue payments.
Can this prove that under the leadership of a businessman, Twitter is struggling with serious financial problems. What's more, according to Twitter data, hasn't booked an annual profit since 2019.
Even though the new year has brought some shocking news about Twitter, its shares are above 50 and thus are the highest.
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It was a tough time for tech stocks
The future outlook is an important aspect when buying stocks, especially if you are an investor looking for growth in your portfolio.
For most of the past decade, investors have focused on high-growth tech stocks whose strong year-over-year returns have convinced them they have no choice but to grow. Soaring stocks like Facebook's parent company Meta Platforms Inc., Amazon.com Inc., Apple Inc., Netflix Inc. and owner of Google Alphabet Inc. caused the major indices to hit dozens of new highs.
The trade has become so popular that it has its own acronym: FAANG.
Meta dropped 64% in 2022; Netflix dropped 51%; the other three shares fell at least 27%. Together, FAANG shares have lost more than $3 trillion in market value, helping to pull the wider stock market down with it.
As consumers and businesses tighten their belts to prepare for a potential recession, tech companies that seemed immune to the economic woes of the pandemic have seen their revenues plummet. Companies like Microsoft reported their worst quarterly results in years. Amazon and Meta announced layoffs.
When interest rates were close to zero, investors were more willing to pay for growth stocks and risky assets in search of higher returns. However, with the Fed raising interest rates at the fastest pace since the 1980s, the market environment began to favor investments, which now generate cash for the holder.
Even after tech stocks ran out last year, the sector still looks expensive compared to the wider market.
Although the tech stock market has not been positive lately, MSFT prices have kept their prices above 200. The second half of last year was quite weak for this company's stock and mostly in a downtrend, but prices remained mostly above 225.
MSFT share price
Meta shares also had their worst period recently, with the price mostly staying around 120.
Meta share price
Source: wsj.com, finance.yahoo.com
