Amazon’s Profits, Income, Stock Price Skyrocket During 2020

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. Continue reading Amazon’s Profits, Income, Stock Price Skyrocket During 2020

Facebook Advertising Revenue Soared in the Latest Quarter

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. Continue reading Facebook Advertising Revenue Soared in the Latest Quarter

Microsoft’s Q3 Sales Jump, Driving Near $2 Trillion Valuation

Microsoft quarterly numbers exceeded analysts’ expectations and drove stock up 50 percent, bringing the company close to a $2 trillion valuation, second only to Apple’s. During the COVID-19 pandemic, the shift to remote working and remote learning drove strong uptake of the company’s cloud computing services and video game units. Although chip shortages are slowing down hardware sales, chief executive Satya Nadella reported that digital adoption curves “aren’t slowing down … they’re accelerating.” Continue reading Microsoft’s Q3 Sales Jump, Driving Near $2 Trillion Valuation

Univision Selects Google for Bundled Cloud Computing Deal

Google has inked an eight-year deal with Spanish-language broadcaster Univision Communications that could exceed $1 billion. Univision chief executive Wade Davis said Google’s offer of benefits on its YouTube video platform and advertising and search services helped close the deal. Microsoft and Amazon have also bundled products in cloud computing deals and lawmakers have expressed concern over the tactic. Google currently faces antitrust suits filed by the Justice Department and several states. Continue reading Univision Selects Google for Bundled Cloud Computing Deal

Intel to Spend $20B on New Chipmaking Factories in Arizona

Intel’s new chief executive Patrick Gelsinger committed $20 billion to build two new semiconductor manufacturing plants in Arizona. Over the years, Intel has failed to keep up with the miniaturization of transistors, giving Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics the lead. These two companies now make chips for Advanced Micro Devices (AMD), Amazon, Apple, and Nvidia but Gelsinger — who hopes for federal incentives — vowed to regain enough ground with the new factories to rival them. Continue reading Intel to Spend $20B on New Chipmaking Factories in Arizona

Twitter Experiences Subscriber Growth and Plans Expansion

Since Twitter banned former president Trump, the company said daily users rose to 192 million from Q3’s 187 million, including one million in the U.S. In January, the social platform gained more daily users than the average month in the last four years. Twitter chief exec Jack Dorsey revealed that 80 percent of its user base is outside the U.S., adding that it is “not dependent upon just news and politics.” The company is looking to expand and continue development of a decentralized social network. With regard to banning Trump, chief finance officer Ned Segal said the decision was well received by advertisers. Continue reading Twitter Experiences Subscriber Growth and Plans Expansion

Google Breaks Revenue Records, Boosts Cloud Investments

Due largely to robust online holiday shopping, Google’s parent company Alphabet reached a record-breaking $56.9 billion in revenue for Q4, up from $43.2 billion in the same quarter last year. The numbers represent an ongoing recovery in ad spending, which was hard hit in early 2020. FactSet reports that analysts predicted the company would post $52.7 billion in revenue, including $42.3 billion from advertising. Chief financial officer Ruth Porat said Google Search and YouTube led the positive performance numbers. Continue reading Google Breaks Revenue Records, Boosts Cloud Investments

Cloud Computing, Gaming and Laptops Drive Microsoft Sales

Microsoft reported its fiscal Q2 net income rose 30+ percent to $15.5 billion, the result of COVID-19-driven remote working, increased video game playing and cloud computing. The company has also seen increased sales of its Surface laptops, which facilitate remote working and learning. Chief executive Satya Nadella has prioritized Microsoft Teams workplace-collaboration software, dubbing this last year as “the dawn of a second wave of digital transformation sweeping every company and every industry.” Continue reading Cloud Computing, Gaming and Laptops Drive Microsoft Sales

Netflix Tops 200 Million Subs in 2020, Lifted by the Pandemic

By the end of 2020, Netflix signed up a record 37 million new subscribers for a total of 203.7 million users, driven by the home-bound people eager for more entertainment during the COVID-19 pandemic. This latest bump in subscriber numbers took place in an increasingly competitive environment with new streaming services, including Disney+, Apple TV+, HBO Max and Comcast’s Peacock. Unlike other TV networks, Netflix has been able to offer more new content during the pandemic, with 500+ new titles in post production or ready to air. Continue reading Netflix Tops 200 Million Subs in 2020, Lifted by the Pandemic

Increasing Demand for 5G Lifts Qualcomm Earnings, Revenue

A major supplier of 5G chips, Qualcomm predicted shipments of 450 million to 550 million 5G smartphones in 2021, a number at least double of what’s expected by the end of this year. Chief executive Steve Mollenkopf revealed that sales of smartphones was a significant part of the company’s latest quarterly earnings. He also noted that Qualcomm is already seeing benefits from Internet of Things devices and networking gear using 5G chips. In addition, Apple’s 5G-enabled iPhone 12 is expected to be a boon for Qualcomm’s modems. Continue reading Increasing Demand for 5G Lifts Qualcomm Earnings, Revenue

Comcast Posts Strong Q3 with Peacock, High-Speed Internet

In July, Comcast reported that its NBCUniversal Peacock streaming service had 10 million subscribers. Now, the company announced, Peacock has 22 million subscribers, adding that it is “a differentiating factor for customers considering Xfinity broadband and is also improving churn.” In the same quarter, Comcast added 633,000 high-speed Internet customers, for its best quarterly results in its history. Comcast stated that, in the first nine months of 2020, cable added more broadband sign-ups than in all of 2019. Continue reading Comcast Posts Strong Q3 with Peacock, High-Speed Internet

Netflix Growth Lags in Q3, Largely Due to More Competition

Netflix revealed it added 2.2 million subscribers in the third quarter, although it predicted in July it would add 2.5 million. The slowdown follows two quarters of growth that was much larger than anticipated and added 26 million net subscribers, nearly its entire subscription growth for 2019. On the news, shares fell 6.4 percent in after-hours trading. To boost growth, Netflix created a new promotion that will offer everyone in a country access to free service for a weekend; the promotion will first launch in India. Continue reading Netflix Growth Lags in Q3, Largely Due to More Competition

Amazon Notes Prime Day Was a Bonanza for Small Vendors

Although it didn’t reveal total Prime Day numbers, Amazon stated that small- and medium-size businesses in its marketplace earned $3.5+ billion during the event, a 60 percent increase from last year’s sales and a record for these vendors. It added that third-party sales on Prime Day grew more than Amazon’s own retail business. Prime Day was launched in 2015 and has become one of Amazon’s more crucial retail and marketing events. This year’s event was pushed from July to October due to the COVID-19 pandemic. Continue reading Amazon Notes Prime Day Was a Bonanza for Small Vendors

Apple Releases iOS 14, Bundles, Watch Series 6, New iPads

Apple’s fall event was all about bundling, with discounts for customers who sign up for multiple plans with recurring payments. The new Fitness+ package, for example, offers workouts that tie in to “all of your Apple equipment” and an Apple One subscription bundles Arcade, Music, TV+ and iCloud. There was no new iPhone or mention of AR, but the Silicon Valley company did unveil iOS 14, a new Watch, a new iPad, and an upgraded entry-level iPad. Apple is also experimenting with an Express store for product pick-ups. Continue reading Apple Releases iOS 14, Bundles, Watch Series 6, New iPads

Big Tech Companies Are Thriving Despite the Current Climate

In the face of the COVID-19 pandemic, the wares and services of Big Tech companies such as Amazon, Apple and Facebook have become more indispensable than ever. As such, they are thriving. Amazon, for example, reported $88.9 billion in sales, with profits doubling to a record $5.2 billion in the quarter ending June, even though it spent $4 billion on its supply chain and worker safety in that time frame. Apple marked an 11 percent increase in quarterly sales, and Facebook sales rose 11 percent to $18.7 billion. Continue reading Big Tech Companies Are Thriving Despite the Current Climate

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