The company has posted growth rates in recent quarters that resemble a much smaller upstart rather than a corporate titan worth nearly $2.5 trillion. Show moreĪpple’s profits nearly doubled in the latest quarter, showing that the world’s richest and most valuable public company is exhibiting little sign of slowing down.Īpple said on Tuesday that its profits increased 93 percent to $21.7 billion in its fiscal third quarter compared with a year earlier, while sales rose 36 percent to $81.4 billion, both outpacing analysts’ expectations. Alphabet hired more than 16,000 people over the last year, bringing its total employment to 144,000. In a conference call on Tuesday, Google executives talked about how the pandemic had pushed YouTube into becoming more of an e-commerce site.Įven the cloud storage business, where Alphabet is a perennial also-ran to Amazon and Microsoft, did well: Revenue jumped 50 percent and losses slowed. YouTube’s ad revenue was up 84 percent in the second quarter from the same period in 2020. This helped not only Google’s main search engine but also the YouTube video division. But it wasn’t down by much and it didn’t last.Īs advertisers realized the world would not end, they returned in force. In the second quarter of 2020, the first full quarter in which the virus was rampant, Alphabet’s revenue was off a bit as advertisers recalibrated. History is probably in its favor.”Īlphabet, like the other big tech companies that offer tools to communicate, shop, be entertained and work remotely, initially was seen as vulnerable to the pandemic. In the interim the company will continue to grow and add value to advertisers. “Regulators at the moment are probably the biggest potential roadblock for Alphabet,” said Dave Heger, a communications analyst for the brokerage Edward Jones. The pandemic profits the companies are making will likely only increase calls for action. House would restrict the big tech firms, and President Biden has named critics of Big Tech to key regulatory positions. Like Amazon and Facebook, it is frequently criticized for wielding its power unfairly, a charge the companies deny. With a market capitalization nearing $2 trillion, Alphabet is about as far from a start-up as is possible. Revenue rose 62 percent to $61.88 billion from a year ago, a level of increase unseen since the company’s rapid growth around 2005, when it was still a start-up. Sundar Pichai, Google’s chief executive, credited “a rising tide of online activity” for the results. Even the most optimistic analyst only forecast $24.43. Analysts did not see it coming, estimating on average that the company would earn only $19.14 a share in profit. As recently as 2015, it made less than that all year. The stellar results pushed shares up modestly in aftermarket trading.Īlphabet said it made a profit of $18.5 billion, or $27.26 a share, for the quarter. The search and advertising company on Tuesday reported record profits and revenue for the second quarter, vindicating the enthusiasm of investors who doubled its value on the stock market since early last year. That is a level of growth that companies of its size rarely if ever achieve, but the pandemic has erased all the limits for tech firms. Total revenue rose 56% to $29.07 billion, driven by companies turning more to digital platforms to sell their wares to individuals.ĭiluted earnings per share more than doubled to $3.61 from $1.80, topping analysts’ expectation of $3.04.Alphabet, Google’s parent company, just made in three months what it took until recently an entire year to earn. The comments outweighed the many positives the second-quarter numbers threw up including a 56% jump in advertising revenue and 7% rise in both daily and monthly active users at the social media giant. He said the iPhone-maker’s iOS updates will have a greater impact in the ongoing quarter than in the second quarter. Wehne spoke of more challenges coming Facebook’s way, most notably the recent update to Apple's (NASDAQ:AAPL) privacy policy which makes it tougher for apps to track users and source their personal data for targeting them with their ads. “We expect year-over-year total revenue growth rates to decelerate significantly on a sequential basis as we lap periods of increasingly strong growth,” Facebook chief financial officer David Wehne said in a release announcing its second-quarter results. That dynamic is widely expected to weaken as economies reopen and people return to work and life as usual. Social media and online platforms have had a scorching run last one year as pandemic-struck users logged on like never before, not just to share their personal lives, but also to watch content and shop while staying home due to fear of stepping out in public. – Facebook (NASDAQ:FB) stock was down more than 3% in Thursday’s premarket trading after the company warned of revenue growth slowing down significantly in the ongoing third and next quarter.
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