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Google, Apple and Microsoft advised to report record profits | Google

Google, apple, Microsoft On Tuesday night, the company is expected to report record quarterly sales and profits as it continues to benefit from the pandemic that created the “perfect positive storm” for Big Tech.

Google’s parent company Alphabet is expected to generate $ 56 billion (£ 41 billion) in second quarter revenue. That’s a 46% year-over-year increase, which means the company raised an average of $ 622 million a day between April and June. Earnings per share (profit scale) is expected to increase 90% year-over-year.

In one of the busiest weeks of quarterly US earnings results to date, Apple and Microsoft will report bumper results after the closing bell on the New York Stock Exchange on Tuesday.Big Tech’s explosive revenue Facebook Amazon on Wednesday and Thursday.

Overall, the market value of the five companies is more than one-third of the total S & P 500 index of the 500 largest trading companies in the United States due to the soaring stock prices during the pandemic.

Thomas Phillipon, an economist and finance professor at New York University, said The biggest financial winner from a pandemic The global blockade has led to more businesses and consumers using the service.

“They were already on the rise and lasted for most of the decade, and the pandemic was unique,” Philippon said. “For them, it was a perfect positive storm.”

Analysts at Morgan Stanley expect Alphabet to achieve an annual net profit of $ 65 billion, up 59% from 2020. Banks estimate annual sales of $ 243 billion, an increase of $ 60 billion from last year.

Alphabet’s share has risen 75% over the past year to a record $ 2,670, despite analysts threatening to curb control of the Internet search market by regulators around the world. , I predict that it may rise further. Morgan Stanley said stock prices could reach $ 3,060 and are unlikely to fall below $ 1,800 in the worst-case scenario.

Brian Nowak, an analyst at Morgan Stanley, said the blockade of the pandemic was boosted. Google Because consumers have spent more time investigating potential purchases online. According to survey data, 54% of retailers ranked Google search products, including YouTube, as “the first place to research products online, from 50% of past surveys.”

“Google website growth is believed to be driven by ongoing innovations such as mobile search, strong YouTube contributions, and map monetization, so in 21 years It may recover, “Nowak said in a note to the client.

Analysts expect Apple’s key service sales to grow 24% in the third quarter to $ 16.3 billion in the App Store and Apple Music accounts for more than one-fifth of all income. Total revenue is expected to increase from $ 59.7 billion in the year-ago quarter to $ 73 billion.

Apple has made so much money that it has repurchased $ 421 billion worth of shares in the last eight years, but there is still about $ 80 billion in cash on its balance sheet.

Microsoft’s quarterly revenue is expected to be $ 44.25 billion, compared with $ 38 billion in the year-ago quarter. Earnings per share are projected to rise from $ 1.46 to $ 1.92 in the same quarter of 2020.

When Microsoft reported a 31% increase in profits in its last quarter, CEO Satya Nadella said it was “just the beginning” as the transition to digital technology was “accelerating” rapidly. I did.

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The rise in stock prices of major tech companies has created billions for their super-rich founders and early investors. Recently calculated Forbes magazine There are 365 billion billionaires who have made a fortune in technology compared to 241 before the pandemic.

In summary, global technology billionaires own $ 2.5 trillion in personal property, up 80% from $ 1.4 trillion in March 2020.$ 180 billion by Tesla co-founder Elon Musk, $ 151 billion by Microsoft co-founder Bill Gates, Facebook Mark Zuckerberg For about $ 138 billion.

Zuckerberg believes that the Internet will play an even greater role in people’s daily lives in the future, and instead of interacting with the Internet via mobile phones, people will be immersed through virtual reality headsets. He said Facebook will move from a social media platform to a “metaverse company” where people can work, play and communicate in virtual environments. Zuckerberg said it would be “a materialized Internet that is there, not just displaying content.”

Google, Apple and Microsoft advised to report record profits | Google

Source link Google, Apple and Microsoft advised to report record profits | Google

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