For Q1 2021, Amazon reported record profits of $26 billion, more than the previous three quarters combined, with net income more than tripling to $8.1 billion and revenue of $108 billion, surpassing FactSet’s analyst predictions. In addition to Amazon’s successful quarter, Apple, Facebook, Google and Microsoft all enjoyed major upticks in profits and revenues, the result of the increased need for their products and services during the COVID-19 pandemic. Amazon expects that its Q2 sales will reach between $110 billion and $116 billion. Read more

Microsoft just slashed the revenue cut it takes from PC games on Windows from 30 percent to 12 percent, effective August 1, in a move to lure more game developers to its platform. Xbox Game Studios head Matt Booty said that, “a clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so.” The change will not affect Xbox console games. Microsoft’s new revenue split is the same that Epic Games offers to PC game developers. Read more

In the wake of an initial complaint from Spotify, the European Commission has levied antitrust charges against Apple for breaking EU competition rules regarding its App Store policies. More specifically, the EU focused on two rules, one requiring developers to use its in-app purchase system, for which it charges a 30 percent cut, and a second not allowing developers to let users know about other purchasing options. The Commission found that the rules “distort competition” and result in higher prices for consumers. Read more

Google’s YouTube earned $6.01 billion in advertising revenue in Q1, a 49 percent growth from the $4 billion a year ago. In Q4, YouTube’s growth rate was 46 percent. But, more notably, its current growth rate is almost twice that of Netflix’s, which reported a 24 percent revenue bump in Q1 and anticipates 19 percent growth in Q2. Market data provider Refinitiv reported that, should the trajectory continue, YouTube is on track to take in between $29 billion and $30 billion in revenue in 2021, compared to Netflix’s expected $29.7 billion. Read more

Facebook’s advertising revenue rose 46 percent in the last quarter compared year-over-year, to $25.44 billion, and its profit almost doubled to $9.5 billion or $3.30 per share. That growth may not continue now that Apple is allowing users to opt out of being tracked by apps. Facebook chief operating officer Sheryl Sandberg said the company has been preparing for Apple’s new rule. Facebook expects revenue to slow in Q3 and Q4, even as its shares rose 6 percent in after-hours trading, a gain of 16 percent over the past three months. Read more