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Home / Business / Great technology shatters Q2 earnings expectations – TechCrunch

Great technology shatters Q2 earnings expectations – TechCrunch



Today after the Bell, Apple, Alphabet, Facebook and Amazon reported their earnings results. All expectations fit, and all but one are suddenly in the business after hours.

Get the heels of the value of a day of congressional hearings in which the four companies highlighted the competition and dropped their position in the market, the results are strong. The beat of the group’s collected earnings is particularly impressive as they came during a quarter in which the economy contracted, meaning that their relative combined share of the US economy increased sharply over the period.

Let’s talk about each one to gather high-level results, and check on Apple Stock-split news will surely keep Wall Street talking for days to come.

Apples

Image Credits: TechCrunch

Apple reported Q2 2020 revenue of $ 59.7 billion, up 11% from the period a year ago. This was ahead of expectations, with the road anticipating $ 52.25 billion, according to Yahoo Finance averages.

The hardware and software giant also reported earnings per share (GAAP, diluted) of $ 2.58, up 18% from a quarter of a year ago. This also exceeded expectations, with investors expecting a $ 2.04 thinner, again, according to Yahoo Finance data.

And Cupertino has announced it will split its stock four to one, something Apple said will make “its stock more accessible to a wider base of investors. In the age of fractional equity investment, the move feels somewhat meaningless. The Dow Jones Industrial Average, however, is weighted in price, and Apple is a component, so maybe that has to do with choice.

Apple shares are up 4.7% in after-hours trading, after gaining more than a point during regular hours.

Alphabet

Image Credits: TechCrunch

Alphabet it’s a slightly more complicated story, with the company actually declining on a year-over-year basis, though still exceeding expectations.

The search giant reported revenue of $ 38.3 billion in Q2 2020, ahead of the expected result of $ 37.36 billion. Since Alphabet reported $ 38.9 billion in the quarter a year ago, the Alphabet has been smaller this year than last.

The company’s earnings per share also declined, from $ 14.21 in the quarter a year ago to $ 10.13 per share (GAAP, diluted). Again, however, that was ahead of the expected $ 8.34 result. The shares of the Alphabet are roughly flat after his report.

Why is his stock declining despite exceeding expectations? Because the decline is not large, and perhaps because its “Other Betting” business collection brought in negative operating income of $ 1.12 billion in the quarter, a worse result than that recorded in Q2 2019. That it is a great expense.

Amazon

Image Credits: TechCrunch

Amazon had a killer quarter, including revenue of $ 88.9 billion, up from $ 63.4 billion in the quarter last year, and ahead of an expected $ 81.53 billion result.

The company also managed to earn $ 10.30 per share (GAAP, diluted), well ahead of the expected $ 1.46 result, per Yahoo Finance figure.

The only possible mark against Amazon was that AWS, the company’s cloud computing service, grew only 29% in the quarter. This was slower than the 33% it recorded during Q1 2020, and, as CNBC observes, it was dramatically slower than what Microsoft’s competitive Azure product achieved when it recently reported.

Still, Amazon shares are up about 4.9% in after-hours trading, after gaining 0.6% during regular trading.

Facebook

Image Credits: TechCrunch

Facebook’s a quarter was just one, wide on those trying to nudge the social giant to shake up its content policy. The company reported revenue of $ 18.7 billion, up 11% from its year-ago result of $ 16.9 billion. Investors were expecting only $ 17.4 billion at the top line.

Unsurprisingly, aside from following the pace of that revenue beat, Facebook got the best earnings per share, reporting $ 1.80 in profit per share, up nearly 100% from a year’s result. its $ 0.91 per share, and well ahead of $ 1.39 expected.

Facebook shares are up nearly 6.5% in after-hours trading, after gaining about half a point during regular trading.

Summary?

Hot damn, technology is doing better than the rest of the economy as millions are losing their jobs, and Congress can’t figure out if supporting its own population during a global pandemic and economic crisis is, you know, a good idea. These results do nothing precisely to reduce the concern that Big Tech is too big.


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