Today after the bell, Apple, Alphabet, Facebook and Amazon have reported their earnings results. Everyone has exceeded expectations and everyone but one has risen sharply in after-hour trading.
Coming in the wake of a day of congressional hearings in which the four companies highlighted the competition and minimized their position on the market, the results are high. The earnings rates raised by the group are particularly impressive as they arrived during a quarter in which the economy contracted, which means that their combined relative share of the U.S. economy grew significantly over the period.
Let's talk about each one to collect high-level results and check on Apple split news that will surely make Wall Street talk for days to come.
Apple
Apple reported second-quarter 2020 revenues of $ 59.7 billion, up 11% from a year earlier. This was ahead of schedule, with the road forecasting $ 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 last year's quarter. This also exceeded expectations, with investors still expecting slimmer $ 2.04, according to Yahoo Finance data.
And Cupertino has announced that it will divide its shares four by one, which Apple has said will make its "shares more accessible to a broader investor base". In the era of fractional investment, the move seems somewhat insignificant. The Dow Jones Industrial Average, however, is price-weighted and Apple is a component, so perhaps it has something to do with choice.
Apple stocks rose 4.7% in after-hour trading after earning more than one point during normal hours.
Alphabet
Alphabet it's a slightly more complicated story, with the company actually shrinking on an annual basis, while continuing to meet expectations.
The research giant reported revenues of $ 38.3 billion in the second quarter of 2020, ahead of an expected result of $ 37.36 billion. Given that Alphabet posted $ 38.9 billion in the quarter a year ago, Alphabet was smaller this year than the last one.
The company's earnings per share also decreased, from $ 14.21 in the prior year quarter to $ 10.13 per share (GAAP, diluted). Once again, however, it was ahead of the expected $ 8.34 result. Alphabet's actions are roughly flat after his relationship.
Why is your stock falling despite lower expectations? Because the shrinkage is not exceptional, and perhaps because its "Other Bets" asset collection posted a negative operating result of $ 1.12 billion in the quarter, worse than in the second quarter of 2019. This is a big spending.
Amazon
Amazon had a killer quarter, including revenues of $ 88.9 billion, up from $ 63.4 billion in the prior year quarter and ahead of an expected result of $ 81.53 billion.
The company also managed to earn $ 10.30 per share (GAAP, diluted), far ahead of an expected result of $ 1.46, according to Yahoo Finance data.
The only possible sign against Amazon was that AWS, the company's cloud computing service, grew by only 29% in the quarter. This was slower than 33% during the first quarter of 2020 and, as CNBC notes, it was significantly slower than what Microsoft's competing Azure product managed when it reported recently.
However, Amazon shares rose by around 4.9% in after-hour trading, after gaining 0.6% during regular trading.
of Facebook fourth was a single finger extended to those who sought to push the social giant to shake its content policies. The company reported revenues of $ 18.7 billion, up 11% from the previous year's $ 16.9 billion result. Investors expected only $ 17.4 billion on the front lines.
Not surprisingly, in the wake of that beating of revenue, Facebook outperformed earnings per share, bringing back $ 1.80 in earnings per share, up nearly 100% from the previous year's result of $ 0.91 per share. share, and far ahead of $ 1.39 expected.
Facebook shares rose nearly 6.5% in after-hour trading, after gaining about half a point during regular trading.
Summary?
Damn, technology is doing better than the rest of the economy as millions of people are out of work and Congress can't understand whether supporting its population during a global pandemic and an economic crisis is a good idea. These results will do nothing exactly to quell the concern that Big Tech is too big.