Money GAFA: $ 28 billion profit in the crisis and still not in a party mood

19:13  31 july  2020
19:13  31 july  2020 Source:   t3n.de

USA / Competition: Gafa bosses heard Wednesday in Chamber

 USA / Competition: Gafa bosses heard Wednesday in Chamber USA-TECH-COMPETITION-CONGRESS: USA / Competition: Gafa bosses heard Wednesday in Chamber © Reuters / REUTERS FILE PHOTO USA / COMPETITION: LES PATRONS DES GAFA HEARD WEDNESDAY AT CHAMBER WASHINGTON (Reuters) - The leaders of Amazon, Apple, Google and Facebook will be heard on Wednesday by a subcommittee of the American House of Representatives responsible for competition, it said on Saturday .

Die GAFA-Chefs vor ihrer Befragung. © dpa The GAFA bosses before their survey.

Your companies have generated billions again. Nevertheless, just one day after the hearing before the US Congress, the heads of Apple, Amazon, Facebook and Google don't really want to be happy about it.

A day after Apple CEO Tim Cook, Amazon founder Jeff Bezos, Facebook boss Mark Zuckerberg and Google CEO Sundar Pichai were asked in front of a US Congress committee whether their respective tech companies might have too much market power, all four companies submitted their quarterly reports. In the survey, the four company heads had of course vehemently denied the allegations and repeatedly referred to an apparently extremely threatening competition. However, these competitors should have deep pockets, because the four Internet giants made a combined profit of $ 28.6 billion last quarter - and that during a global economic crisis.

Strong cloud business: Microsoft exceeds expectations in the fourth fiscal quarter

 Strong cloud business: Microsoft exceeds expectations in the fourth fiscal quarter © DEFAULT_CREDIT microsoft-logo Revenue increases 13 percent to $ 11.2 billion. However, the profit declines by 15 percent. The balance sheet for the fiscal year 2020 nevertheless shows a profit increase of 13 percent. Microsoft has released the balance sheet for the fourth quarter of 2020. The company increased its sales by 13 percent to $ 38 billion. Meanwhile, net income and earnings per share shrank 15 percent to $ 11.2 billion and $ 1.46, respectively.

Apple CEO Tim Cook is holding back from celebrating

Apple increased its sales in the corona crisis by eleven percent to more than $ 59 billion. Profits even increased twelve percent to $ 11.25 billion. Both values ​​clearly exceeded the expectations of analysts, and yet CEO Tim Cook did not want to be happy about it when the figures were presented. The Apple CEO held back the usual praises of Apple and instead spent a lot of time talking about the corona tracing cooperation with Google and the development of masks for medical personnel. Quite an unusual reluctance for the boss of a company to have a live audience consisting of employees and journalists applaud every increase in sales of equipment or services in regular advertising events.

Bezos-Ex MacKenzie Scott donates $ 1.7 billion

 Bezos-Ex MacKenzie Scott donates $ 1.7 billion © dpa Back then: Amazon CEO Jeff Bezos and MacKenzie Scott, formerly Bezos. Amazon boss Jeff Bezos' ex-wife, MacKenzie Scott, said he donated $ 1.7 billion to various nonprofits - a total of 116. Since Amazon boss Jeff Bezos divorced, his ex -Woman around four percent of the shares in in the e-commerce giant - and is currently the second richest woman in the world. MacKenzie Scott, formerly Bezos, has also benefited from the fireworks of Amazon shares in recent months.

"We don't have a zero-sum approach to prosperity, and especially in times like these, we focus on making the cake grow and making sure that our success isn't just our success," the Apple boss told investors and stayed thereby remaining true to its defense strategy before the US Congress. Cook's argument: Apple's ecosystem has created countless jobs. The fact that these jobs are sometimes dependent on Apple's moods logically doesn't bother Cook. In view of the record quarterly results, Cook's statement that one is in a “street fight for market share in the smartphone business” is not particularly credible. Especially since Apple was able to increase iPhone sales in the midst of a worldwide pandemic, while competitor Samsung reported a noticeable drop in sales in this division.

Amazon and Facebook also save on pat on the back

The Amazon leadership was also rather modest the day after the hearing before the US Congress, at which CEO Jeff Bezos was asked about a possibly unfair dealings with small retailers. This is despite the fact that sales rose 40 percent year-on-year to almost $ 88.9 billion and the profit of $ 5.2 billion is about twice as high as last year. Instead, Bezos preferred to talk about how to create jobs and invest in employee safety in the corona crisis. The company founder also emphasized that the growth in marketplace retailers had increased more than in Amazon itself. However, since Bezos did not want to rule out to the US MPs that his employees could use the sales data of these retailers to provide them with Amazon offers To compete is probably only a small consolation for these providers.

Microsoft deeper after the exchange: Microsoft does not convince despite good figures - Lower revenues expected in the first quarter

 Microsoft deeper after the exchange: Microsoft does not convince despite good figures - Lower revenues expected in the first quarter The software giant Microsoft gave investors a look at the figures for the past quarter on Wednesday evening after the US stock market closed. © Provided by Finanz.net GmbH SAEED KHAN / AFP / Getty Images Microsoft grew again thanks to strong cloud business in the fourth business quarter. Revenue climbed 13 percent to $ 38 billion in the three months ended June at the end of June. In all business areas, the group achieved growth compared to the previous year. Net earnings fell to $ 11.2 billion,

The same game continued on Facebook. Revenue rose to $ 18.69 billion from $ 16.89 billion in the year-ago period and was also above expectations. Last but not least, company boss Mark Zuckerberg also used the presentation of the quarterly figures to emphasize the supposedly positive impact of his group. Just like he did before the committee of inquiry the day before. "We are pleased that we can provide small businesses with the tools they need to grow and succeed online in these difficult times," said the Facebook boss.

The most important statements by the tech bosses before the US Congress

Zuckerberg also emphasized that the boycott of many companies would also have had a negative effect on sales due to the spread of hate messages via his platform. Considering the investigation of a possibly too large market power of his company, a gratifying narrative: If Facebook can be boycotted successfully, does an antitrust investigation need to be carried out at all? Especially since it can hardly be determined in the end what percentage of the boycott really had. After all, we are in a global economic crisis and advertising spending has been cut in many places anyway.

This is shown not least by the figures of the fourth company, which is at the crosshairs of US politics: advertising giant Google or its parent company Alphabet. For the first time in the company's 22-year history, he had to deal with an eight percent drop in advertising sales. Profits decreased from $ 9.95 billion in the prior year period to $ 6.96 billion. But here too, the result was enough to exceed analysts' expectations. They had expected the corona crisis to have worse consequences. Speaking of the Congressional Committee's investigation, Alphabet boss Sunar Pichai said: "We have obviously been operating under surveillance for a while and we are aware that, given our size, this is appropriate."

Read more: Amazon and Apple - Tech - Giants defy the corona crisis with billions in profits

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