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Billions in profits for tech companies in the crown crisis | Free Press

New York (dpa) – Big tech companies are benefiting from changing user and advertiser behavior in the corona pandemic. The trend toward online shopping brought Amazon a record profit in the last quarter.

In its advertising business, Facebook is benefiting from the fact that more small businesses are connecting to the Internet to absorb theft caused by the crisis. At Google, among other things, the YouTube video platform is booming, while people are more at home. And at Apple, the business with Mac computers and iPads grew in times of working from home and learning online.

Amazon increased quarterly sales year-over-year by 37 percent to $ 96.1 billion (€ 82.3 billion). The profit tripled from the previous record of $ 6.3 billion. “We see more customers than ever before buying gifts in advance,” said Amazon boss Jeff Bezos. This is an indication that an “unprecedented” Christmas business is imminent.

Amazon has forecast revenue between $ 112 billion and $ 121 billion for the current quarter. It would be the first time the company has passed the $ 100 billion mark in a quarter. With its delivery services, Amazon had already benefited greatly in the previous quarters from the fact that demand for online orders increased dramatically during the pandemic. Amazon’s lucrative cloud business with IT services and internet storage space has recently continued to flourish.

At Facebook, analysts were still worried about business at the beginning of the crisis. Small and medium-sized businesses make up a large proportion of Facebook’s advertisers. Many of them, such as cafes or restaurants, have been severely affected by the pandemic. But it turns out that Facebook’s business is even getting a boost as more companies go online in search of new revenue during the pandemic. The online network’s turnover, which is achieved mainly through advertising, increased by 22 percent to $ 21.2 billion. The end result was a profit of $ 7.85 billion, an increase of 29 percent.

As an example, senior manager Sheryl Sandberg named a family business that sold soaps of her own production at weekly markets. In the pandemic, you are now using Facebook as a platform and have expanded your business. Facebook relies on the argument that the online network plays a worth protecting role for the economy during the crisis and, for example, data protection restrictions could ultimately harm the economy.

The number of daily active users of Facebook increased in three months by 30 million to around 1.82 billion. Every day 2.540 million users access at least one application of the group, such as Instagram and WhatsApp.

Thanks to online advertising, profits for Alphabet, Google’s parent company, soared almost 60 percent to $ 11.2 billion, while revenue grew 14 percent to $ 46.2 billion.

After a setback in the previous quarter, Google’s advertising business was back up and running, contributing the majority of sales at $ 37.1 billion. In addition, the advertising revenue of the YouTube video affiliate flourished, increasing by a third to five billion dollars, as well as the cloud business with IT services on the Internet.

Unlike these companies, Apple still does much of its business selling devices. And here Apple had a problem in the last quarter: the new generation of iPhone was not presented in September as usual, but only a month later. That meant a 7.4 percent drop in earnings for the quarter to $ 12.7 billion.

IPhone sales plummeted year-over-year by a fifth to around $ 26.4 billion. But: The group’s total revenue grew one percent to $ 64.7 billion. This was ensured through increased business with iPads and Mac computers, among other things, as well as subscriptions for streaming and other services.

The exciting question now will be whether the Christmas quarter for the new iPhone 12 is as strong as usual. CFO Luca Maestri said in a conference call with analysts that the group expects growth in the business. Mac sales rose 29 percent in the last quarter to a good $ 9 billion. The iPad business grew 46 percent to $ 6.8 billion.

At the same time, successful tech giants are increasingly coming under fire from competition authorities, including in their home market, the United States, where regulators have so far tended to loosen the reins. The US Department of Justice filed a long-awaited competition lawsuit against Google last week. He accuses the group of using its market power in Internet searches and related advertising in a prohibited way.