The global economy might be in record decline, however the four big tech companies that make up a fifth of the S&P 500's market value, reported for the first time on the same day, and all posted better than expected figures.
Amazon announced knockout results, including both massive top line and double-digit revenue growth year-over-year, due to surging online sales amid the virus. Earnings per share came in at $10.30 vs an expectation of approximately $1.50 with revenue coming in at nearly USD89bn vs belief of less than USD82bn.
Apple reported results that were also impressive with revenue gains across every category and in every geography as millions were told to work and learn from home. Market analysts had been expecting around USD52.5bn in revenue and earnings per share of just over $2.00, however, Apple crushed those predictions with USD59.7bn in revenue, and EPS of $2.58. The company also announced it will have a 4-1 stock split later this month.
Facebook was not as impressive, reporting its slowest revenue growth since it went public in 2012, however, the numbers were still above analysts’ expectations. Revenue improved by over 10% to USD18.69bn from USD16.89bn a year ago with EPS at $1.80. The calls had been for revenue at approximately USD17.3bn and EPS at $1.39. Monthly active users came in at 2.7 billion, compared with the 2.63 billion estimates.
Lastly, Google’s parent company Alphabet beat expectations for its second quarter earnings, however, reported its first revenue decline in the company’s history as the pandemic slowed advertising. Revenue came in at USD38.3bn vs USD37.37 estimates, with EPS at $10.13 vs $8.21. It also announced the company’s board had authorised the company to repurchase up to USD28bn of its Class C shares.