The Big Four Tech Companies Released their Quarterly Earning Report
Despite the shutdown of many businesses and economic disruptions caused by Covid-19, the big Four Tech US companies' earnings show that they are doing better than their expectations.
The revenue and profits made by the “The Big Four”, which includes Google, Amazon, Facebook, and Apple insinuate the dependency of daily lives and businesses on the online platform regardless of business shutdowns and layoffs during the pandemic.
Amazon reported a 40% increase in sales to $88.9 billion in the second quarter of 2020 compared to $63.4 billion in the same quarter of last year. The profit doubled to $5.2 billion in the second quarter of this year compared to $2.6 billion in the same quarter as last year despite spending $4 billion on coronavirus-related measures in the second quarter of 2020. The company’s sale was forecasted to be $81.56 billion. The company expects net sales to be between $87.0 billion and $93.0 billion for the third quarter, reflecting growth between 24% and 33% in comparison to last year. The company forecasts an operating income between $2.0 and $5.0 billion while also expecting another $2 billion in costs related to Covid-19.
Facebook generated $18.69 billion in revenue compared to $16.89 for the same period as last year, representing an 11% growth. Similar to Amazon, its profit roughly doubled from $2.62 in 2019 to$ 5.18 billion this year for the same three months ending on June 30. The company expects a similar growth rate for the next quarter earnings of about 10% because of the slow recovery from the coronavirus impact, but also expecting that some places may begin to reopen. There are also advertising impacts from top advertisers, reducing their spendings because civil-rights groups accused Facebook mismanages the trend of hate speech on its platform.
Apple released an earning of $ 59.69 for its third quarter of the fiscal year 2020, an 11% growth compared to $53.81 for the same period of last year. The company’s Board of Directors approved a cash dividend of $0.82 per share for its common stock, which will be paid on August 10 of this year. The Board of Directors also agreed on a stock split of four-for-one to make the stock price more accessible to other investors. This means that eligible Apple shareholders will receive 3 additional shares for every share they own.
Last, but not least is Google. Different from the other big Three, Google is the only tech company to post a decline in its revenue from $38.94 billion in 2019 to $38.30 billion, a 2% drop in the same quarter of 2020. Its net income drops to $6.96 billion from $9.95 billion. Its Board of Directors has approved the company to repurchase its Class C shares up to $ 28.0 billion.
The quarterly earnings are released a day after the CEOs of the four companies were questioned at a congressional hearing on Wednesday regarding business practices and antitrust concerns.
Sources: Investor Relations Page of Google, Amazon, Facebook, and Appl, and CNBC
By: Noeut Sokhoeun