Two of the biggest tech goliaths, Facebook and Amazon, unveiled gigantic profits this week. The surging revenues, driven by digital advertising, gaming and booming use of smartphones and e-commerce even during the pandemic have once again reinforced the dominance of Big Tech.
“Tech wins the day, the week, and seemingly the year,” said Futurum Research analysts as reported by AFP. “The strength of tech is clearly untethered from Covid,” they added.
Powerhouses Facebook, Apple, Microsoft and Google parent Alphabet all reported higher revenues even as they face heightened scrutiny from antitrust regulators.
Amazon, which has been this pandemic’s mainstay as buyers turned to online shopping, reported that second-quarter profit jumped 48 percent from a year ago to $7.8 billion.
Earlier in the week, Apple said its profit in the just-ended quarter nearly doubled amid improving consumer spending and a “growing sense of optimism” as covid restrictions eased.
Facebook also reported its profit doubling in the recently ended quarter as digital advertising surged, but warned of cooler growth in the months ahead in an update which sent its shares sinking. This is expected to some degree as in-person activities gradually resume.
Amazon chief financial officer Brian Olsavsky said that shopping offline and getting out of the house “takes away from shopping time. It’s a good phenomenon and it’s great.”
However, transitions to relying on computing power and services in the internet cloud as well as working remotely are likely to last, playing to the strength of tech giants powering such platforms, according to Wedbush Securities analyst Dan Ives as reported by AFP.
Despite political pressure from government regulators, tech companies continue to expand their services.
Amazon’s deal to buy iconic Hollywood studio Metro-Goldwyn-Mayer for $8.45 billion earlier this year aimed to strengthen its Amazon Prime television streaming service.
Apple is working on self-driving car technology, while Alphabet is already testing a “robo-taxi” service in the United States with its Waymo unit.
From : pk.mashable.com