I expect a weak Q1 earnings season later this month across the Technology sector, including Enterprise Software.
Companies may report in-line Q1 Revenues & EPS (perhaps modest EPS beats), but the pace of new sales activity will have fallen off year-over-year during the quarter, especially during the 2nd half of Q1. There is simply too much macro uncertainty and companies have cut too many heads across Sales & Marketing to have had a robust quarter in terms of new sales / bookings activity.
I have zero faith in Government-reported numbers for jobless claims, CPI, GDP, you name it. Rather than spend time on today’s jobless claims figures, we included the below charts that display Tech layoffs over the past several years. Layoffs are clearly trending in the wrong direction.