Six major tech giants — Meta, Amazon, Apple, Alphabet (Google), Netflix and Microsoft — concluded their earnings reports last week.

What’s the takeaway? It’s evident a slowing economy is taking a toll on them — all feeling the pain of lower consumer demand — some worse than others.

• Microsoft’s sales grew 12% — the slowest in two years.
• Meta reported its first sales decline ever.
• Amazon posted its second straight quarter of losses.

Despite the slowdown, with the exception of Meta and Netflix, these stocks have been more resilient than the tech-heavy NASDAQ index — which is down 22% this year.

Damage done? Compound Kings’ Portfolio Manager Robert Cantwell thinks these are the “worst growth rates you’re going to see from these companies for the next few years” — and that these companies have hit a bottom (WSJ).

But others expect more pain ahead…

• Crescat Capital’s Chief Investment Officer sees a “massive deceleration in revenues, earnings, and free cash flow of all the FAANG+ stocks” (MW).
• He’s continued adding to his bets against these companies and expects the “current period of negative real growth is likely to be very drawn out and is only just getting started.”

Who to believe? Look at the economy — which seems like it’s on the verge of collapsing but also looking strong at the same time based on other data points. Not very helpful.

July’s inflation report could tip it over the edge of either side — released next week (August 10). Investors will be closely watching for signs of peak inflation.

Watchlist: Why investors should soon pay attention to Netflix.