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Google, Apple and Microsoft On Tuesday night, record quarterly sales and profits were reported as these companies continue to benefit from a pandemic that created a “perfect positive storm” for large technology companies.
Apple achieved a profit of US$21.7 billion (£15.6 billion) in the three months ending in June, which was the best third quarter in its 45-year history, thanks to the strong sales and service business of the iPhone 12 growth of.
Google’s parent company Alphabet reported revenue of $61.8 billion (£44.5 billion) in the second quarter, an increase of 62% year-on-year, and profit of more than $18.5 billion (£13.3 billion), more than double its profit in the same period last year. The company’s advertising revenue has increased by 69% over last year. .
Microsoft also exceeded expectations, with revenues exceeding US$46 billion (£33 billion) in the quarter—a 21% increase compared to the same period last year.
The result is coming Tesla reports record profits Monday was one of the busiest weeks in the history of US quarterly earnings results. Facebook on Wednesday and Amazon on Thursday continued to generate large-scale technology blowout revenues.
In total, the market value of these five companies accounted for more than one-third of the entire S&P 500 index of the 500 largest trading companies in the United States, as their stock prices soared during the pandemic.
Thomas Philippon, an economist and professor of finance at New York University, said that large technology companies have been The biggest economic winner of the pandemic With the global lockdown, more companies and consumers use their services.
Philip said: “They have been on the rise and have been going on for most of the decade, and this epidemic is unique.” “For them, this is a perfect positive storm.”
Morgan Stanley analysts estimate that Alphabet’s full-year net income is expected to reach $65 billion, an increase of 59% over 2020. The bank estimates that its annual sales are expected to reach 243 billion U.S. dollars-an increase of 60 billion U.S. dollars from last year.
Alphabet’s stock price has risen by 75% in the past year to a record $2,670, but analysts predict that even though regulators around the world threaten to curb its dominance in the Internet search market, they may continue to climb. Morgan Stanley stated that the stock could reach as high as US$3,060, and it is unlikely to fall below US$1,800 even in worse circumstances.
Morgan Stanley analyst Brian Nowak said the pandemic blockade has been boosted Google As consumers spend more time researching potential purchases online. He said that survey data showed that 54% of retailers listed Google search products, including YouTube, as “the first place for their online research products, higher than 50% in previous surveys.”
“The growth of Google’s website may rebound in 21 years because we believe that continuous innovations such as mobile search, YouTube’s strong contribution, and map monetization are driving some undervalued products,” Novak said in a report to customers .
Apple has made a lot of money. In the past eight years, it has repurchased $421 billion worth of stock, but it still has about $80 billion in cash on its balance sheet.
When Microsoft reported a 31% profit growth in its last quarter’s earnings report, its CEO Satya Nadella said that this was just the “beginning” because the shift to digital technology was “accelerating.”
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The rise in the stock prices of large technology companies has earned billions of dollars for their super-rich founders and early investors. Forbes Magazine recently calculated There are now 365 billionaires making their fortunes through technology, up from 241 before the pandemic.
The personal wealth of global technology billionaires totaled US$2.5 trillion, an increase of 80% from the US$1.4 trillion in March 2020.Amazon founder and CEO Jeff Bezos (Jeff Bezos) is still the richest person in the world, with an estimated wealth of US$212 billion, and on the rich list: Tesla co-founder Elon Ma Sk’s 180 billion U.S. dollars, Microsoft co-founder Bill Gates 151 billion U.S. dollars, and Facebook’s rich list mark Zuckerberg About 138 billion U.S. dollars.
Zuckerberg believes that the Internet will play a greater role in people’s daily lives in the future. People will be immersed in immersive experiences through virtual reality headsets instead of interacting with them through mobile phones.He says Facebook From a social media platform to a “Yuanjie Company”, people can work, play, and communicate in a virtual environment. Zuckerberg said that this will be “a specific Internet in which you can not only view content, but also participate in it.”
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