Apple, Alphabet, Amazon, and Facebook reported their impressive Q2 earnings, one day after testifying in front of the House Judiciary’s antitrust subcommittee.
The takeaways:
- While all four tech companies reported better-than-expected earnings, Alphabet reported its first-ever revenue decline reflecting its reliance on ad revenues.
- The four companies, along with Microsoft, are the five most valuable publicly-traded companies on the S&P 500.
- The group’s flying earnings reports are especially impressive given that they came at a time in which the US economy contracted, meaning that together, their relative share of the U.S. economy has increased significantly.
Close look:
Apple:
- Reported Q2 revenue of $59.7 billion, up 11% from last year ($52.25 billion expected).
- Its stock was up 5%, passing $400 per share for the first time in after-hours trading.
Alphabet:
- Reported Q2 revenue of $38.3 billion, down 1.5% from last year (but ahead of an expected of $37.36 billion).
- The company’s earnings per share also fell, from $14.21 in the year-ago quarter to $10.13 per share. It was, however, ahead of an expected result of $8.34.
Amazon:
- Reported Q2 revenue of $88.9 billion, up 40% from last year (ahead of an expected result of $81.53 billion).
- Earnings per share almost doubled compared to last year, at $10.30 vs $5.22 in Q2 2019.
Facebook:
- Reported Q2 revenue of $18.7 billion up 11% from last year (ahead of an expected $17.4 billion).
- Facebook beat Wall Street estimates for daily active users (1.79 billion vs. 1.74 billion forecast). These impressive figures sent its stock soaring 8% in after-hours trading.
The roll-up: The figures show the tech giants have so far not only survived but also thrived through both a historic Congressional hearing and global pandemic. If uncertainty and criticism on a global scale have not yet fazed them, it’s unclear what could.
