Economic Observer Reporter Ren Xiaoning On October 30, Beijing time, the four major technology giants in the United States, Apple , Amazon , Google , and Facebook, released their third-quarter financial reports on the same day. These four giants are also among the top five American technology companies in market value, and the other is Microsoft . Microsoft released its third-quarter financial report on October 28.
As of press time, based on market value, Apple ranked first in the market value, at US$1.99 trillion. Amazon ranked second at $1.61 trillion. Google ranked fourth at $1.07 trillion. Facebook ranked fifth at $800 billion.
: Looking at the performance of several companies in the third quarter, the four giants that issued financial reports on the same day were happy and worried.
Apple Company's net profit declined year-on-year due to lower sales in the Chinese region of iPhone . Although Cook said at the earnings call that the situation will improve after the release of IPhone12 , the current reputation of iPhone 12 is declining, and the current situation of scalpers' price reduction is still unknown.
Amazon 's epidemic bonus period continues. Its two main businesses, e-commerce and cloud services, have both grown rapidly due to the epidemic, and revenue, profit, members, and new customers have all increased this quarter. For Amazon , the most important problem now is that it is necessary to solve the contradiction between the growing demand for online shopping for foreign people and the current situation of insufficient warehousing of Amazon . For this reason, Amazon is rapidly recruiting investment logistics and recruiting personnel.
In the third quarter, the foreign advertising market began to recover, driving the growth of both Google and Facebook's revenue and profits. For Google, the antitrust lawsuit just launched by the U.S. Department of Justice is a big problem they have to face at the moment.
Apple iPhone sales were lower than expected , and net profit decreased year-on-year
Apple 's total net revenue in the fourth quarter was US$64.698 billion, an increase of 1% from US$64.04 billion in the same period last year. In terms of net profit, Apple 's net profit for the fiscal quarter was US$12.673 billion, down 8% from US$13.686 billion in the same period last year. After the
financial report was released, the stock price of Apple fell by more than 4% after the market, and its current market value has fallen below US$2 trillion.
Apple 's profit decline is mainly due to the fact that iPhone sales are lower than expected. Apple iPhone revenue for the quarter was US$26.44 billion, down 20.7% year-on-year, lower than the $27.93 billion expected by Wall Street analysts, the lowest in the same period since 2014.
In this quarter, iPhone sales in Greater China declined significantly. Greater China's fourth-quarter revenue was US$7.9 billion, down 28.8% from US$11.1 billion in the same period last year, and lower than US$9.33 billion in the previous fiscal quarter.
CEO Tim Cook explained the reason, saying that no new iPhone was sold in the two weeks in September, resulting in the poor sales figures of Apple in China. He also explained that iPhone inventory in China decreased in the third quarter compared with other regions, which is why the situation in China is different.
html In October, Apple released IPhone12 and IPhone12Pro, and will also release IPhone mini and IPhone Pro Max in the future. Cook said that for all products and services in Apple series, they hope to achieve double-digit growth.The sweet worries of Amazon : Too many orders have led to warehousing capacity not keeping up with
and Apple sales decline. , which benefited from the epidemic, still grows rapidly. According to the financial report, Amazon net sales in the third quarter were $96.1 billion, a 37% increase from $70 billion in the same period last year; net profit was $6.3 billion, compared with $2.1 billion in the same period last year; diluted earnings per share was $12.37, compared with $4.23 in the same period last year, exceeding analyst expectations.
Amazon 's stock price has risen 74% this year, the best performing of the five tech giants with the highest market value in the United States.
Amazon CFO Brian Osavski said in the earnings call that due to a large number of orders in the second and third quarters, Amazon "overdrafted" all storage before the fourth quarter.
Economic Observer Reporter Ren Xiaoning On October 30, Beijing time, the four major technology giants in the United States, Apple , Amazon , Google , and Facebook, released their third-quarter financial reports on the same day. These four giants are also among the top five American technology companies in market value, and the other is Microsoft . Microsoft released its third-quarter financial report on October 28.
As of press time, based on market value, Apple ranked first in the market value, at US$1.99 trillion. Amazon ranked second at $1.61 trillion. Google ranked fourth at $1.07 trillion. Facebook ranked fifth at $800 billion.
: Looking at the performance of several companies in the third quarter, the four giants that issued financial reports on the same day were happy and worried.
Apple Company's net profit declined year-on-year due to lower sales in the Chinese region of iPhone . Although Cook said at the earnings call that the situation will improve after the release of IPhone12 , the current reputation of iPhone 12 is declining, and the current situation of scalpers' price reduction is still unknown.
Amazon 's epidemic bonus period continues. Its two main businesses, e-commerce and cloud services, have both grown rapidly due to the epidemic, and revenue, profit, members, and new customers have all increased this quarter. For Amazon , the most important problem now is that it is necessary to solve the contradiction between the growing demand for online shopping for foreign people and the current situation of insufficient warehousing of Amazon . For this reason, Amazon is rapidly recruiting investment logistics and recruiting personnel.
In the third quarter, the foreign advertising market began to recover, driving the growth of both Google and Facebook's revenue and profits. For Google, the antitrust lawsuit just launched by the U.S. Department of Justice is a big problem they have to face at the moment.
Apple iPhone sales were lower than expected , and net profit decreased year-on-year
Apple 's total net revenue in the fourth quarter was US$64.698 billion, an increase of 1% from US$64.04 billion in the same period last year. In terms of net profit, Apple 's net profit for the fiscal quarter was US$12.673 billion, down 8% from US$13.686 billion in the same period last year. After the
financial report was released, the stock price of Apple fell by more than 4% after the market, and its current market value has fallen below US$2 trillion.
Apple 's profit decline is mainly due to the fact that iPhone sales are lower than expected. Apple iPhone revenue for the quarter was US$26.44 billion, down 20.7% year-on-year, lower than the $27.93 billion expected by Wall Street analysts, the lowest in the same period since 2014.
In this quarter, iPhone sales in Greater China declined significantly. Greater China's fourth-quarter revenue was US$7.9 billion, down 28.8% from US$11.1 billion in the same period last year, and lower than US$9.33 billion in the previous fiscal quarter.
CEO Tim Cook explained the reason, saying that no new iPhone was sold in the two weeks in September, resulting in the poor sales figures of Apple in China. He also explained that iPhone inventory in China decreased in the third quarter compared with other regions, which is why the situation in China is different.
html In October, Apple released IPhone12 and IPhone12Pro, and will also release IPhone mini and IPhone Pro Max in the future. Cook said that for all products and services in Apple series, they hope to achieve double-digit growth.The sweet worries of Amazon : Too many orders have led to warehousing capacity not keeping up with
and Apple sales decline. , which benefited from the epidemic, still grows rapidly. According to the financial report, Amazon net sales in the third quarter were $96.1 billion, a 37% increase from $70 billion in the same period last year; net profit was $6.3 billion, compared with $2.1 billion in the same period last year; diluted earnings per share was $12.37, compared with $4.23 in the same period last year, exceeding analyst expectations.
Amazon 's stock price has risen 74% this year, the best performing of the five tech giants with the highest market value in the United States.
Amazon CFO Brian Osavski said in the earnings call that due to a large number of orders in the second and third quarters, Amazon "overdrafted" all storage before the fourth quarter.To this end, Amazon has made a lot of investment this year, expanding its inventory area by 50%.
Amazon member users are also increasing. Osavski said that in the third quarter, the participation of senior members of Amazon increased significantly. Member renewal rates and participation are continuing to rise, and users are increasingly using the membership rights of Amazon to purchase more categories of products.
He said that the problem facing Amazon is that the order volume is too large, but the storage capacity sometimes cannot keep up. I hope that more solutions can be learned during this year's holiday. To this end, Amazon has developed its own logistics network this year and invested in logistics equipment, transportation, etc. Many new employees have also been recruited around logistics and transportation. In September and October, , Amazon continues to recruit new employees.
Amazon cloud platform also benefited from the epidemic. The current epidemic situation abroad is still continuing, and companies in different industries have accelerated the process of electronicization, such as video conferencing, games, distance learning and entertainment. Osavski said many companies have extended their contracts for cloud services with Amazon . They have invested heavily in cloud platforms, but the growth this quarter still hit a record high year-on-year. Amazon ’s cloud computing division Amazon Online Services (AWS) generated $11.6 billion in sales in the quarter, a year-on-year increase of 29%.
The company expects revenue in the fourth quarter to be between US$112 billion and US$121 billion, an increase of 28% to 38%, while analysts expect it to be US$112.47 billion. Because the performance guidance was slightly inferior to analysts' expectations, the share price of Amazon fell 1% after the market closed.
Google All business boosted , but faced pressure on prosecution by the US Department of Justice
Google parent company Alphabet total revenue in the third quarter was US$46.173 billion, an increase of 14% from US$40.499 billion in the same period last year. Alphabet's net profit in the third quarter was US$11.247 billion, a 59% increase from US$7.068 billion in the same period last year. After the financial report was released, Google's stock price soared by nearly 8% after the market closed. Before the release of
's financial report, analysts expected that companies with advertising businesses such as Facebook and Google may be significantly boosted by the recovery of the advertising market.
Google Search is the world's largest search engine company, and it also has Google Cloud, YouTube, Waymo, and other businesses. In the third quarter, Google's revenue was growing. Google Search and Others revenue was US$26.34 billion, a year-on-year increase of 6.5%; YouTube advertising revenue was US$5.04 billion, a year-on-year increase of 32.4%; Google's online membership revenue was US$5.72 billion, a year-on-year increase of 8.9%; Google Cloud revenue was US$3.44 billion, a year-on-year increase of 44.5%; Google's other revenue was US$5.48 billion, a year-on-year increase of 35.3%; Other revenue was US$178 million, a year-on-year increase of 14.8%.
Google Chief Financial Officer Ruth Borat mentioned that in the third quarter, some advertisers returned to the YouTube platform.
Google is also facing pressure from the government recently. On October 21, the U.S. Department of Justice formally filed an antitrust lawsuit against Google, accusing the Internet giant of expanding its dominant advantage in the search and advertising market through illegal business operations, hindering competition and stifling rivals. Analysts expect Google to pay a large fine. Moreover, Google's search algorithm may be subject to some restrictions, but it is not yet possible to tell whether this will affect the company's search advertising revenue.
Alphabet and Google CEO Sundar Pichai said regulation is not new to Google. There are also opportunities in the dialogue with the legislative sector. They will be relatively flexible in their arguments and constantly adjust.
Facebook user and advertising revenue both increased. The next investment focus is VR and AR
Facebook's third-quarter revenue was US$21.47 billion, an increase of 22% compared with US$17.652 billion in the same period last year, exceeding Wall Street analyst expectations; net profit was US$7.846 billion, an increase of 29% compared with US$6.091 billion in the same period last year.
Facebook's growth has also benefited from the epidemic. Facebook Chairman and CEO Mark Zuckerberg said in the earnings call that under the epidemic, people have more time to entertain, and the use of videos and games is increasing.At the same time, people's demand for the community is increasing, and voice calls and video calls have increased. According to financial report data, Facebook's daily active users reached 1.82 billion in the third quarter, an increase of 12% year-on-year; monthly active users reached 2.74 billion, an increase of 12% year-on-year.
However, Zuckerberg also said that it is not clear now whether this is a one-time consumer behavior or a long-term trend that will continue. Looking ahead to 2021, Facebook still faces huge uncertainty.
Facebook mainly relies on advertising for revenue. According to customer data from advertising company Kenshoo, Facebook's advertising revenue growth shows signs of acceleration. It increased by 9% year-on-year in July, by 15% year-on-year in August, and by 22% year-on-year in September.
Facebook's next investment focus is VR, AR, and operating systems for space computing.
Facebook Chief Financial Officer David Weiner also mentioned an interesting number because of the pandemic that its office operations and travel expenses have been significantly reduced. From 2020 to date, they have saved about $1.5 billion in this regard.
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At the same time, people's demand for the community is increasing, and voice calls and video calls have increased. According to financial report data, Facebook's daily active users reached 1.82 billion in the third quarter, an increase of 12% year-on-year; monthly active users reached 2.74 billion, an increase of 12% year-on-year.However, Zuckerberg also said that it is not clear now whether this is a one-time consumer behavior or a long-term trend that will continue. Looking ahead to 2021, Facebook still faces huge uncertainty.
Facebook mainly relies on advertising for revenue. According to customer data from advertising company Kenshoo, Facebook's advertising revenue growth shows signs of acceleration. It increased by 9% year-on-year in July, by 15% year-on-year in August, and by 22% year-on-year in September.
Facebook's next investment focus is VR, AR, and operating systems for space computing.
Facebook Chief Financial Officer David Weiner also mentioned an interesting number because of the pandemic that its office operations and travel expenses have been significantly reduced. From 2020 to date, they have saved about $1.5 billion in this regard.
This article has been certified by "original" original, and the author is Economic Observer. Visit yuanben.io to query [2ZIO9QF7] to obtain authorization information.
