GAFA (Google, Apple, Facebook, Amazon) unveiled their quarterly results Thursday, July 30, 2020. These technological giants display insolent health even though a good number of companies are cruelly affected by the crisis resulting from the Covid-19 pandemic . Amazon is celebrating with an explosion in sales, as is Apple, whose sales of iPhones and Macs continued well during the pandemic. Facebook also reports rather good results in view of the context. The only small quack is on the side of Alphabet (parent company of Google) which shows results in very slight decline.
Apple continues to sell
Apple reported improving results for its third quarter. The Cupertino company has a turnover of 59.7 billion dollars, an increase of 11% compared to the same period last year. His net profits amount to $ 11.3 billion.
Apple specifies that international sales account for nearly 60% of its turnover. “Apple’s record quarter was driven by double-digit growth in its product and service divisions, as well as growth in each of our geographic segments.”, comments Tim Cook in a statement. Consumers have not shied away from iPhones and Macs despite the economic situation, with sales amounting to $ 26.4 billion and $ 7 billion, respectively.
Lower ad revenue for Facebook and Google
Facebook reported revenue of $ 18.7 billion for the second quarter of 2020, up 11% from the same period the previous year. Its profits are $ 5.18 billion. Good results, despite a weak increase in advertising revenue. The latter, which stand at $ 18.3 million, therefore only increased by 10% compared to the same period last year.
Slow growth for Facebook, which is accustomed to advertising higher rates. This seems logical in view of the current period which is pushing companies to make cuts in their marketing and advertising budgets. Notably, a high-profile boycott in the United States, joined by several large companies, does not seem to have had much effect. These advertisers are seeking stricter moderation of hate content from Facebook.
For its part, Alphabet achieved a turnover of 38.3 billion dollars for the quarter, a decrease of 2% compared to the same period last year. These results can be explained by a drop in advertising revenue which was not offset by the Google Cloud and Other Revenues divisions. Even though Alphabet’s reported net profit declined slightly, this amounts to $ 6.96 billion (compared to $ 9.9 billion the previous year). A rather encouraging result for a company very dependent on advertising revenue.
Amazon at the party
Amazon posts net profits of $ 5.2 billion during this quarter. They are driven by net sales up 40% compared to last year, reaching $ 88.9 billion against $ 63.4 billion. Amazon says its online grocery sales have tripled and increased its delivery capacity by more than 160% for those products.
AWS, the cloud division, has revenue of $ 10.81 billion, an increase of 29% from the same period last year. Logical growth for the period: cloud services have become essential for many companies whose employees have teleworked.