In normal times, car companies and other multinationals that sell physical goods are more sensitive to dollar fluctuations than Big Tech. But with interest rates soaring alongside inflation expectations, these are hardly normal times.
as a “currency shock [that’s] muddled an earnings period that was being closely studied for signs of a weakening global economy.”to see big tech cite currency volatility as an issue. Most of them sell software-based services, rather than physical goods like cars or: Still, foreign exchange volatility is “a headwind for Big Tech with 35% to 40% of sales in Europe, and strong dollar a 400 [basis point] top-line headwind,” veteran tech analyst Dan Ives tells Axios in an email.
“As they sell in local currency this will be a negative theme over the coming year with a strong greenback,” he added.
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