Pandemic boosted Amazon, Apple, Facebook and Google
Tech Giants Shares Rise As Companies Benefit From Covid-19 Pandemic.
Tech giants Amazon, Apple, Facebook and Google released results Thursday that showed how much the sector has benefited from the coronavirus pandemic, causing already high stock prices to continue to rally..
On the day the US announced that overall economic growth had plummeted to a record 32.9%, Amazon reported $ 5.2 billion in quarterly profit and $ 88.9 billion in sales, up 40% from the same period. last year. Amazon Web Services, the company’s cloud computing arm, reports $ 10.8 billion in revenue for the quarter – driven by company growth and consumer growth during the pandemic.
«This is an exceptional quarter on all fronts in extreme conditions», – said the vice president of Moody&# 39; s Charlie Oh&# 39; shi on the growing popularity of Amazon.
Facebook weathered a hate speech ad boycott in July, surpassing analyst estimates for quarterly earnings. Advertising sales, which account for nearly all of Facebook’s revenue, rose 10% to $ 18.3 billion in the second quarter. Facebook shares jumped 8% on published reports.
The company’s 11% revenue growth was the slowest since Facebook went public, better than analysts’ expectations, who predicted a decline to 3%, according to IBES data from Refinitiv..
Mark Zuckerberg, Facebook CEO, on Thursday called investors, reporting a record high of 9 million advertisers for the quarter. About 1,000 advertisers took part in the July boycott.
Zuckerberg criticized the government’s response to the global pandemic and said Facebook employees won’t return to offices for the foreseeable future.
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«This is incredibly disappointing because it seems that the US could have avoided the current surge in the pandemic if our government had dealt with it better.», – he said.
Zuckerberg added that as the pandemic looks set to continue into election season, Facebook’s role in providing accurate in-app information on elections and eliminating voter suppression «more important than ever».
The CEO has repeatedly touted Facebook as a supporter of small business and highlighted its role in the burgeoning internet market, saying that its «worried» calls to regulate company activities or curb targeted online advertising.
«This would diminish small business opportunities so much that it is likely to be felt at the macroeconomic level, he said. – This is really what politicians want in the middle of a pandemic and recession?»
Apple’s Fiscal Third Quarter Revenue of $ 59.7 Billion, Beating Wall Street Expectations.
Apple Says Launching Cheap iPhone SE In April Helped Increase Sales And Put The Electronics Giant In A Better Position Despite The Financial Fallout Of The Coronavirus Crisis.
«Apple’s record June quarter was driven by double-digit growth in both products and services and growth in each of our geographic segments, said Tim Cook, CEO of Apple. “In turbulent times, these numbers are a testament to the important role our products play in our customers’ lives and Apple’s relentless innovation».
Google parent company Alphabet revenues fell 2% to $ 38 billion – the first decline in company history – but still better than analysts expected.
Thursday’s results came a day after Congress accused tech companies of possessing «too much power» at the hearings of the antitrust committee. Complaints against tech giants were varied, but criticism centered around using their dominant position to suppress competitors and inflate prices for consumers and companies for services that depend on them..
«Facebook may still be a winner when it comes to its audience, but the world is changing and companies are looking more and more at their behavior, says Tamara Littleton, analyst and CEO of social strategy company Social Element. – It may not be this year or even next, but in the long run, if Facebook fails to prove to advertisers and governments that it is capable of acting responsibly and ethically, we can make sure that there is no such thing as “too big to fail” (too big to fail)».
The coronavirus appears to have been a boon for tech giants. Amazon sales rose as consumers turned to online shopping, and Facebook announced it now has 2.7 billion monthly users, slightly higher than analysts predicted. The company currently has 3.14 billion monthly users across its family of apps, including Instagram, Messenger, and WhatsApp..
«We expected April to bottom out the digital ad market and rebound in May and June, and these results suggest that the acceleration was stronger than expected.», – says chief analyst at eMarketer Nicole Perrin.