Amazon: Rising Revenue and Technical Operation Challenges

With the coronavirus pandemic spurring online buying, Amazon saw its revenue for the quarter ending March rise 26 percent from a year earlier to $75.5 billion — the highest ever reached for what is ordinarily Amazon’s slowest quarter. According to FactSet, profit fell 29 percent from a year earlier to $2.5 billion, disappointing analysts’ average estimate of $3.26 billion. Amazon hired 175,000 new warehouse and delivery employees, and chief executive Jeff Bezos told investors this is “the hardest time” the company has faced. Continue reading Amazon: Rising Revenue and Technical Operation Challenges

Facebook Ad Sales Pick Up, Resulting in Strong Q1 Revenue

With the coronavirus pandemic, advertising plummeted on many online sites, including social media giant Facebook. The company’s chief financial officer David Wehner declared that factor “largely attributable” to the 16 percent decline in average price of ads purchased in March. But gaming and e-Commerce companies picked up the slack by spending more, taking advantage of less competition in the company’s ad auctions. As a result, Facebook chief executive Mark Zuckerberg told analysts the company would “remain in growth mode.” Continue reading Facebook Ad Sales Pick Up, Resulting in Strong Q1 Revenue

Pandemic Tests Big Tech Firms, Slows VC Money for Startups

This week, big tech companies such as IBM and Intel will report quarterly earnings, followed by Apple, Facebook, Alphabet, Amazon and Microsoft next week. Some companies — such as Amazon, Intel, Micron Technology and Microsoft — are doing well, even growing, whereas Facebook and Alphabet deal with a dramatic plunge in advertising. Even Apple issued a “rare profit warning.” The pandemic is hitting startups particularly hard, as venture capital money dries up and they are forced to lay off staff. Continue reading Pandemic Tests Big Tech Firms, Slows VC Money for Startups

Coronavirus Transforms Facebook into Major News Hub Again

With millions of Americans stuck at home, Facebook’s usage — especially messaging and video calls — has skyrocketed, and driven traffic to purveyors of coronavirus news. So much so that, as of a week ago, more than 50 percent of the articles being read on Facebook in the U.S. were coronavirus-related, and U.S. traffic from Facebook to other sites also soared 50+ percent due “almost entirely” to the coronavirus. But the social media companies aren’t spared the economic impact of the virus: a decrease in marketing dollars. Continue reading Coronavirus Transforms Facebook into Major News Hub Again

Roku Reports Robust Growth in Q4, Predicts Future Success

Roku, which posted 52 percent growth and generated $1.13 billion last year, predicted that revenue will increase 42 percent to $1.6 billion in 2020. The growth is, in part, a reflection of the explosion of streaming video services with the recent additions of Disney+, Apple TV+ and upcoming Peacock and HBO Max. Strategy Analytics reported that Roku is the U.S. market leader in connected TV devices. At the end of Q4, Roku stated it had 36.9 million active accounts, a 36 percent increase from the previous year. Continue reading Roku Reports Robust Growth in Q4, Predicts Future Success

Shares Rise as Twitter’s Revenue Passes $1B for First Time

Twitter revealed that, in Q4, revenue rose 11 percent to $1.01 billion, the first time that quarterly revenue topped the billion-dollar mark, and surpassing the $992 million projected by Wall Street analysts. The company stated that income was $118.8 million, with costs rising 22 percent from a year earlier. Its operating income, a closely watched number, was $153 million, down from $207 million the previous year and lower than the $161 million predicted by analysts surveyed by FactSet. Shares rose about 15 percent. Continue reading Shares Rise as Twitter’s Revenue Passes $1B for First Time

Alphabet Reports Robust Growth For YouTube and Cloud

Alphabet revealed Q4 operating income of $9.3 billion, well short of a “consensus projection” of $9.9 billion. FactSet reported that this is the ninth out of 10 quarters that the company missed projections on that metric. Its Q4 revenue, $46.1 billion, also fell short of analyst expectations of $46.9 billion. In after-hours trading, shares dropped 4.7 percent, but were up 11 percent for the year by Monday’s end. The news wasn’t all grim: for the first time, Alphabet revealed growth numbers for YouTube and cloud computing. Continue reading Alphabet Reports Robust Growth For YouTube and Cloud

Amazon Reports Booming Sales, Profits, and Share Prices

Amazon broke previous records with its Q4 sales, and shares skyrocketed 10 percent in after-hours trading, adding $100 billion to its market value. Profits rose 8 percent to $3.3 billion during the holiday quarter, after suffering a 25 percent decline in Q3 due to the expenses of one-day shipping for Prime members. Q4 revenue rose 21 percent to $87.4 billion from the same period a year earlier.  A FactSet survey showed that earnings per share were $6.47 whereas analysts had predicted $4.04. Continue reading Amazon Reports Booming Sales, Profits, and Share Prices

Microsoft Commercial Cloud Business Drives Record Sales

Microsoft’s gross margins for its commercial cloud business (including Azure and Office 365) grew to 67 percent, driving the company’s robust fiscal Q2 earnings on record sales. Microsoft chief executive Satya Nadella revealed that revenue from this sector grew 39 percent to $12.5 billion. Company executives told analysts that the gross margins percentage will increase this year while margins rose for the fourth consecutive quarter, noting that this reflects the “huge opportunity” selling cloud products and infrastructure. Continue reading Microsoft Commercial Cloud Business Drives Record Sales

Facebook Revenue Strong, Despite Facial Recognition Suit

Facebook’s revenue rose 25 percent to $2.11 billion for the quarter, beating analysts’ expectations of $20.9 billion. Its 2019 revenue rose almost 27 percent, with Q4 profits a 7 percent lift to $7.35 billion. The company reported that, even as expenses grew, its user base grew 9 percent from a year earlier to 1.66 billion, topping FactSet’s prediction of almost 1.65 billion. Not all is rosy, however: Facebook agreed to pay $550 million to settle an Illinois class-action lawsuit over use of its facial recognition technology. Continue reading Facebook Revenue Strong, Despite Facial Recognition Suit

Intel Earnings Rise with Increased Data Center, PC Demand

Starting in Q4 2019, chipmakers — including Intel and Taiwan Semiconductor Manufacturing — began enjoying an upswing in demand that led to better sales and earnings. Data centers and personal computers appear to be fueling the increased demand. Intel, for example, reported that “adjusted earnings per share in [that] quarter rose to $1.52 from $1.28 in the year-prior period.” FactSet analysts predicted only $1.25 per share on an adjusted basis and $19.23 billion in sales. In fact, sales rose 8 percent to $20.21 billion. Continue reading Intel Earnings Rise with Increased Data Center, PC Demand

Facebook Has Strong Q3, Settles Cambridge Analytica Suit

Facebook chief executive Mark Zuckerberg predicted a “tough year” ahead with the lead-up to the 2020 presidential elections, but the company showed strong Q3 earnings. FactSet said Facebook enjoyed $17.7 billion in total sales and $6.1 billion profit, exceeding Wall Street expectations. In after hours trading, shares rose 5 percent, having already risen more than 43 percent to date. Facebook also agreed to pay U.K.’s privacy regulator a £500,000 ($643,000) fine for its role in the Cambridge Analytica scandal. Continue reading Facebook Has Strong Q3, Settles Cambridge Analytica Suit

Twitter Tackles Abusive Tweets, Ad Glitches Hurt Revenue

Twitter’s shares dropped 20 percent with the news that revenue and profit in Q3 were below Wall Street expectations. The company added six million more users in Q2 — for a total of 145 million — likely due to changes that allow users to follow content of greatest interest to them. Twitter also reported that its machine learning-enabled tools now remove fully half of all the abusive tweets on its platform without relying on anyone to report them. This change is much welcomed given the platform’s persistent problem of abuse. Continue reading Twitter Tackles Abusive Tweets, Ad Glitches Hurt Revenue

Microsoft Experiences Robust Growth With Intelligent Cloud

Much of the focus has been on Amazon, Facebook and Google in recent weeks, obscuring the fact that Microsoft is in fact the largest tech company and the largest publicly traded company, with a market capitalization if $1+ trillion. Its quiet success continued with the company’s latest quarterly report indicating sales grew 12 percent to $33.7 billion. The company also enjoyed $13.2 billion in profits in the same quarter, in part due to $2.6 billion in one-time tax benefits and inked its “largest commercial deal ever” with AT&T. Continue reading Microsoft Experiences Robust Growth With Intelligent Cloud

Microsoft’s Fiscal Q3 Boosted by Growth in Cloud Computing

Microsoft enjoyed a strong fiscal Q3, ending March 31, with revenue rising 14 percent from a year earlier to $30.57 billion, due largely to a 41 percent growth in cloud computing (now almost one-third of its sales) and a 9 percent uptick in sales of its Windows operating system to PC makers. A 5 percent decline of Windows sales in the previous quarter was due to a dearth of Intel computer chips, depressing PC sales. Chief financial officer Amy Hood said Microsoft also saw “unexpected good performance” in Japan. Continue reading Microsoft’s Fiscal Q3 Boosted by Growth in Cloud Computing

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