The coronavirus crisis could cause widespread economic shock around the world, but the world’s largest technology firms are thriving.
Amazon̵7;s sales rose 40% in the three months to June, and Apple noticed that it bought a lot of iPhones and other hardware.
On Facebook, the number of people on its platforms, including WhatsApp and Instagram, increased by 15%.
The benefits come when firms check their size and power.
At a court hearing in Washington on Wednesday, lawmakers argued that they were abusing their dominance over rival competition, noting a stark contrast between their fate and many other firms.
Their positions are likely to be further strengthened as the pandemic encourages even more online activity, said David Cicilin, head of the Democratic Congress, who heads the committee.
“Before the coronavirus pandemic, these corporations had already stood out as titans in our economy,” he said.
“But after COVID-19, they’re likely to appear stronger and more powerful than ever before.”
Revenue analysts were not surprised – no matter how successful these companies were.
At Amazon, the quarterly profit of $ 5.2 billion was the highest since the company was founded in 1994 and occurred despite high costs for the virus due to safeguards and other measures.
“This is an exceptional quarter on all fronts in extreme circumstances,” Moody’s vice president Charlie O’Shea said of Amazon’s growing popularity.
What were the results?
El. Sales of the trading company in the three months to June 30th. It increased by 40% and amounted to 88.9 billion. USD (£ 67.9 billion) is the highest growth in a year. Profits rose to $ 5.2 billion from $ 2.6 billion in the same period in 2019.
The flood of online shopping has reduced the company’s chances. Amazon has hired about 175,000 people during the quarter and is looking to expand its warehouse space in anticipation of continued growth.
“We ran out of space,” Chief Financial Officer Brian Olsavsky told analysts about the results.
Apple, meanwhile, said quarterly revenue rose 11% year-on-year to $ 59.7 billion.
The shift to telecommuting and school has helped boost demand for new devices such as the Mac and iPad, both of which have increased. Profits amounted to 11.25 billion. USD compared to USD 10 billion. USD for the same period a year ago.
Apple said the low-cost iPhone SE, released in April, helped boost sales and put the electronics giant in a better position, despite the financial impact of the coronavir crisis.
“The last few months have highlighted the importance of better quality devices, communications and services for consumers – and households -” said Paolo Pescatore, a technology analyst at PP Foresight. “Apple smashed.”
Facebook’s revenue grew 11% – slower than other quarters – but still exceeded analysts’ expectations as advertising performance was better than expected. The company’s quarterly profit was nearly $ 5.2 billion.
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Resilience has been boosted by a consumer spike that has made the company more attractive to advertisers, said Sophie Lund-Yates, a stock analyst at Hargreaves Lansdown.
According to the company, in June. Its social media platforms and messaging programs served an average of 2.4 billion people, up 15% from last year. This amounted to almost 1.79 billion daily active Facebook users, which is 12% more than a year.
After the blockade was lifted, Facebook said it was “visible that consumer growth and engagement were returning to normal”, warning that the numbers could fall or fall in the coming months.
Ms Lund-Yates said the company is also vulnerable to social and political pressures that can also quickly distract consumers.
“However, this is not the first time Facebook has browsed for regulatory or social speed changes. It has deep pockets to fix problems, ”she said.
The alphabet, which includes Google and YouTube, was the weakest of the four.
The search giant said revenue was $ 38.3 billion, down 2% from a year ago as the business cut spending on advertising.
It was the first quarterly drop in search giant revenue in a year since Google became a publicly traded company in 2004.
Profits fell about 30% a year, to about $ 7 billion. But even these falls did not impress analysts who expected the damage.
“We expected April to be the bottom of the digital advertising market, with growth growing again in May and June. These results show that the acceleration was stronger than expected, ”said Nicole Perrin, chief analyst at eMarketer.