Technology tech giants defy the corona crisis with billions in profits
New EU police force to track down financial fraudsters in the corona crisis
© Reuters / Yves Herman FILE PHOTO: European Union flags fly outside the European Commission headquarters in Brussels Brussels (Reuters) - The EU is increasingly expecting financial crime in the corona crisis and is bringing in a new investigative force in position. The European Center for Combating Financial and Economic Offenses (EFECC) started on Friday. Among other things, it is intended to help Member States uncover aid fraud in the wake of the current economic downturn.
The business of the big tech groups shows enormous resilience in the corona crisis. Amazon benefited massively from the online shopping boom in the past quarter, Apple surprised with a plus in the iPhone business.
Online advertising is less rosy: Google recorded a drop in sales for the first time and Facebook grew much more slowly than usual. However, all four industry giants continued to make billions in profits and exceeded market expectations.
Amazon clearly stands out as the winner of the crisis from the other tech heavyweights. Revenue soared 40 percent year-over-year to $ 88.9 billion in the second quarter, the world's largest online retailer announced on Thursday after the U.S. closed. At $ 5.2 billion, the profit was about twice as high as a year earlier - even though Amazon spent $ 4 billion on corona measures such as protective equipment, cleaning and employee bonuses in the quarter.
Andreas Schager: The situation is very bad for many colleagues
The celebrated hero tenor Andreas Schager calls for more help for freelance artists in the Corona crisis. "The situation is very bad for many colleagues," said the Austrian opera singer in an interview with the "North Bavarian Courier". © Photo: Markus Scholz / dpa The singer Andreas Schager calls for more help for freelance artists in the corona crisis. "You have been without any income for half a year." Schager advocated paying out contracts that had already been concluded for short-time work
In addition to online trading, the cloud platform AWS also remained a lucrative business for Amazon - among other things, because the increased number of home jobs increases the demand. The Amazon share rose in pre-exchange trading on Friday by more than five percent.
Apple's iPhone sales rose 1.7 percent year over year to $ 26.4 billion. Analysts had only expected $ 21 billion in revenue. According to calculations by the analysis company IDC, Apple also managed to increase iPhone sales by a good 11 percent - while the smartphone market slumped overall by 16 percent, which was the most violent slump in the industry to date. Apple helped, among other things, the reissue of the cheaper model iPhone SE.
Finance ministers discuss EU billion package
The billion dollar reconstruction plan for Europe after the Corona crisis concerns Federal Minister of Finance Olaf Scholz and his EU colleagues on Tuesday. © Photo: Arne Immanuel Bänsch / dpa EU finance ministers discuss the billion dollar plan against the corona crisis. The economics and finance ministers advise, among other things, how much money is needed to restart the economy after the pandemic and whether crisis countries have to pledge reforms in return for aid.
Apple’s revenue grew 11 percent to $ 59.7 billion in the past quarter, which was a record high for the June quarter. Profits increased 12 percent to $ 11.25 billion. At the same time, Apple announced that the new iPhone models will not go on sale this year in September as usual, but "a few weeks later". This had been speculated since spring in view of the effects of the corona crisis on the manufacturing chain. Apple's stock rose by around six percent on Friday.
Facebook's business is meanwhile growing much slower than before amid the corona crisis and a boycott of advertising customers in protest against hate speech on the platform. Last quarter, sales increased 11 percent to $ 18.8 billion. There was similar growth in the first weeks of July. Before the crisis, growth rates of over 20 percent were the order of the day in Facebook's business. The stock gained around six percent pre-exchange.
Jason Mraz: How he copes with the corona crisis
© Bang Showbiz Jason Mraz Jason Mraz has spoken about coping with the corona crisis. The 'I'm Yours' singer is currently trying to get the corona crisis behind like many others. Nevertheless, he also sees something good in it, as he revealed in an interview with the 'Abendzeitung München': "If I look for the good in this crisis, I come to the conclusion that it stimulates mankind to rethink. About us work the way we work, consume and interact. Mindfulness is important.
Facebook earns its money almost exclusively from advertising - and the corona crisis hit many small companies hard, which as a result put fewer ads. In July, more than 1,000 advertisers - including heavyweights like Coca-Cola and the consumer goods giant Unilever - followed the boycott calls by civil rights groups and temporarily stopped ads on the world's largest online network.
At the same time, the number of users on Facebook continues to grow rapidly. Another 100 million monthly active users were added in the last quarter - now there are a total of 2.6 billion. 3.14 billion users accessed at least one Facebook product - the group also includes the Instagram photo platform and the WhatsApp chat service. That was an increase of 150 million within three months. However, Facebook warned that the growth in user numbers will likely slow down if the restrictions on going out in different regions of the world are relaxed.
Meanwhile, Google’s parent company Alphabet was hit by higher costs and falling advertising revenue. Profits plummeted from $ 9.95 billion to $ 6.96 billion year on year. Alphabet's money machine - Google's advertising business - suffered a blow in the crisis. For the first time in the company's 22-year history, revenue decreased 8 percent to $ 29.9 billion. Alphabet CFO Ruth Porat, however, emphasized that the advertising business had recovered at the end of the quarter. The Alphabet share only rose by a comparatively meager 0.62 percent on Friday.
The four technology giants released their numbers the day after a US House of Representatives hearing at which MPs accused companies of abuse of market dominance and promised tougher regulation.
tech stocks soar: Mark Cuban warns of parallels with the dotcom bubble .
Despite rising corona infection numbers and ongoing uncertainty, international stock markets have shown a rapid recovery since the dramatic slump in March. The US tech stocks index NASDAQ Composite is at one high after another - all just a bubble? © Provided by Finanz.net GmbH Thomas Lohnes / Getty Images • NASDAQ Composite breaks record • Mark Cuban draws parallels to the dotcom bubble • Bubble could last for years The corona virus is still the dominant topic on the world markets .