The FTSE 100 was flat to modestly lower in early trading, reinforcing the feeling the markets are getting into a bit of a funk despite strong earnings from the tech sector.
AJ Bell investment director Russ Mould said: “Inflation continues to stick like glue and the economy is starting to show signs of real strain, while the impact of the big increase in interest rates is being felt in a financial system which continues to creak.
“Not all tech names are created equal. While the big names have largely been outmatching subdued expectations, those without their scale, brand strength and financial heft are finding life a lot harder. Snapchat owner Snap is a prime example of this, as key metrics like revenue and average revenue per user came in lower than expected.
“The company is heavily exposed to a wider drop off in online ads and any slump in user numbers will only reinforce the idea that the platform itself is starting to lose relevance, which will have its own knock-on effect on advertisers’ decision making.”