A pandemic-hit period, ad boycotts and probes over anti-competition practices, data privacy and security did not stop the four Big Tech firms (Amazon, Apple, Facebook and Alphabet with a combined market cap of almost USD5 trillion) from posting healthy profits in the June quarter. Amazon shares rose 5 per cent in the after-hours trade.
"This was another highly unusual quarter, and I couldn't be more proud of and grateful to our employees around the globe", said Amazon founder and chief executive Jeff Bezos. In the second quarter, Amazon said, its revenues grew 40% to $88.9 billion, while net income doubled year-over-year to $5.2 billion, or $10.30 per share.
"This phenomenal set of results from Amazon underlines how much shopping habits shifted during the pandemic period both in the U.S. and around the world", Neil Saunders of the research firm GlobalData Retail said.
The latest quarter marked the first time that Amazon Web Services (AWS) surpassed $10bn in quarterly revenue, but for the first time, the cloud service's growth rate dipped below 30pc to 29pc.
A day after their leaders faced five hours of interrogation in Congress over allegations their power and influence is out of control, four of the biggest American tech companies saw their combined market value swell by US$250 billion thanks to earnings that shocked even Wall Street.
During Apple's earnings call, the company announced a four-for-one stock split, saying that each Apple shareholder of record at the close of business on 24 August will receive three additional shares for every share held on the record date.
Apple Inc. alone will add at least 150 points to the Dow Jones Industrial Average at the start of trading, thanks to the stock's 6% pre-market rising following last night's blowout earnings report, which included almost $60 billion in revenues and a better-than-expected bottom line of $2.58 per share.
"Apple's record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments", said Apple CEO Tim Cook.
iPhone revenue: $US26.4 billion, up 1.7% from $US25.9 billion in its fiscal third-quarter 2019.
Earnings per share were $ 2.58, compared to an estimate of $ 2.04.
Google parent company Alphabet reported revenue of $US31.6 billion minus traffic acquisition costs, a decline of roughly 2% year-over-year.
Profit slumped some 30 percent to 6.96 billion USA dollars from a year for the online giant that relies on digital advertising for most of its income. Facebook said that across its "family" of apps, which includes Instagram and WhatsApp, it had 3.14bn monthly users at the end of Q2.
"We're working to help people, businesses and communities in these uncertain times", said Alphabet and Google CEO Sundar Pichai.
Google Cloud registered revenue of USD3 billion (a massive 43 per cent growth).