Big Tech Giants Report Massive Combined Profits Despite Pandemic Economic Slump
Alphabet, Amazon, Apple, and Facebook collectively earn $28.6bn in Q2 net profits as pandemic lockdowns drive unprecedented user engagement and online spending.
Alphabet, Amazon, Apple, and Facebook collectively generate $28.6bn in net profits during the second quarter as the Covid-19 pandemic keeps people at home. Following a high-profile antitrust hearing where tech CEOs defend their market dominance, these companies release financial reports that show remarkable resilience and growth. In after-hours trading, Apple, Amazon, and Facebook shares all rise significantly as investors react positively to the better-than-expected results.
Alphabet experiences its first ever revenue decline, dropping slightly from $38.9bn to $38.2bn year-over-year, but still manages to beat Wall Street expectations. The company sees a 9.8pc drop in its core search and ad business due to tightened marketing budgets, while YouTube ad revenue reaches $3.81bn. Meanwhile, Alphabet's cloud business surges by 43pc to bring in $3.01bn, and its hardware and Google Play revenues grow by 25.6pc to $5.12bn.
Amazon experiences a massive 40pc jump in sales to reach $88.9bn in quarterly revenue, with net profit doubling to a record $5.2bn compared to the same period last year. Amazon Web Services surpasses $10bn in quarterly revenue, though its growth rate dips below 30pc for the first time. Amazon CEO Jeff Bezos describes the performance as "another highly unusual quarter" driven by the dramatic shift in consumer behavior during the global health crisis.