Money tech giants defy the corona crisis with billions in profits
IHF postpones the Club World Cup indefinitely
The handball club World Cup was postponed indefinitely due to the corona pandemic. The world association IHF announced on Friday. © imago images They faced each other in the final of the Club World Cup in 2019: THW Kiel (white jerseys) and FC Barcelona to Aron Palmarsson. Originally the tournament should have been held in Saudi Arabia from October 6th to 10th. Since the continental club competitions have not yet ended due to the corona crisis, not all participants have been determined anyway.
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.
employers expect economic recovery by 2022
© Wolfgang Kumm / dpa / Archive "Demand for our goods and services has not collapsed": Ingo Kramer. The employers' association expects the German economy to return to its old strength in the year after next. "I believe that in 2022 we will be back to the level of performance before Corona, as we experienced in February," said employer president Ingo Kramer of the "Augsburger Allgemeine". "The need for our goods and services has not collapsed," he said.
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.
fund manager: Buffett wouldn't get a job with a hedge fund today
Warren Buffett is considered a stock market legend, but in the opinion of a fund manager, he wouldn't be good enough to get a job with a top hedge fund these days. © Provided by Finanz.net GmbH ASIF HASSAN / AFP / Getty Images • Warren Buffett is considered a stock market legend • Investors trust the strategies of Berkshire CEO • According to Sir Paul Marshall, Buffett could not keep up with top hedge fund managers Warren Buffett is considered the Omaha Oracle for a reason.
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.
Patriots in need! More and more stars because of Corona away
© Getty Images Dont'a Hightower (number 54) and Patrick Chung (23) will be missing from the New England Patriots in the coming season More and more NFL players will refrain from the upcoming due to the corona virus pandemic Season - now an absolute top star. With the three-time Super Bowl champion and pro-bowler Dont'a Hightower from the New England Patriots, the most prominent professional to date announced on Tuesday that he would be suspended for safety reasons in the coming season.
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.
Thomson Reuters with slight losses in the corona crisis .