Big Tech earnings roll in – Huge profits for Google, Microsoft and more! 

Huge profits for Google, Microsoft and more!

Major big tech companies have released their quarterly earnings. We look at how some of the world’s biggest businesses performed so far this year! 

 

 Google, Microsoft, YouTube All eyes are on the technology market as “Big Tech” reports their earnings for 2021 so far. As expected, profits accrued by some of the world’s biggest companies are truly staggering, however, investors will be keen to see how these businesses are adapting to a world forever changed by the ongoing pandemic. Remote working, cloud-based solutions, online shopping are just some of the sectors that have heavily influenced Big Tech in 2021. 

We look at how some of the world’s biggest businesses performed so far this year! 

Microsoft – “The Cloud” makes it rain billions 

Microsoft reported earnings of $15.46 billion ($2.03 a share, up from $1.40 a share a year ago) and revenue of $41.7 billion (up from $33.06 billion compared to the same quarter in 2020). 

Microsoft reported its largest revenue growth since 2018, driven in part by PC, console, and video game sales. Huge gains were made of Xbox, with the release of its new Xbox Series X and Series S consoles as well as millions turning to gaming during the pandemic. 

The biggest winner is Microsoft’s Cloud. Many businesses sought online solutions with ongoing lockdowns and remote working now the norm. Azure, Microsoft’s cloud-based product, saw its sales increase by 50% in the first three months of the year. 

Amy Hood, executive vice president and CFO of Microsoft, said: “The Microsoft Cloud, with its end-to-end solutions, continues to provide compelling value to our customers generating $17.7 billion in commercial cloud revenue, up 33% year over year.” 

Future of Microsoft – Expanding The Cloud   

Satya Nadella, CEO of Microsoft, said: “Over a year into the pandemic, digital adoption curves aren’t slowing down. They are accelerating, and it is just the beginningWe are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform.” 

Alphabet – Google and YouTube see huge revenue growth 

Alphabet, parent company of YouTube and Google, saw its earnings grow across its businesses. It should be noted that the tech giant’s board approved a stock repurchase of up to $50 billion on April 23. Overall, total revenues of $55.3 billion were reported in the first quarter. 

Shaking off an anti-trust probe in 2020, YouTube saw its revenue grow by $6 billion (+50%) as its “search ads” business model pays off as well as millions turning to watching videos on its platform during the pandemic. The biggest winner however is Google Cloud; with remote working increasing, the search giant’s online work solution saw $4.047 billion in revenue (up from $2.777 billion in revenue). 

Future of Google – Investing in the Cloud, taking on TikTok 

Like Microsoft, Google is heavily investing in its cloud-based solutions as this tech service provides a steady revenue stream to hedge against its ad-based modelYouTube’s TikTok competitor, Shorts, is growing rapidly; from 3.5 billion in January to 6.5 billion daily views by April 2021. 

Sundar Pichai, CEO of Google and Alphabet, said: “Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained. We have continued our focus on delivering trusted services to help people around the world. Our Cloud services are helping businesses, big and small, accelerate their digital transformations.” 

Advice for buying tech stocks 

Buying into big tech company such as the ones mentioned in this article can be incredibly appealing. Technology’s biggest strength is also its biggest weakness – it is forever changing. Historically, the tech sector can offer booms (as was the case earlier in 2021) and disastrous drops (such as the dot-com crash of 2000). Tech companies can skyrocket and plunge with the times. 

If you are interested in investing in your favorite technology company, you need to ask yourself the following: 

  • Do you understand how the company works? 
  • Does it have a competitive advantage over rivals? 
  • Can you trust the management or parent company? 
  • Is it growing? 

If you answer YES to all these questions you might have spotted a great company to buy some shares in.  

 Discover more opportunities with CMTrading   

CMTrading offers more than 150 tradable assets including the top-performing stocks available in the markets. CMTrading clients get access to global brands, exceptional trading conditions and robust safety and security under the auspices of the Financial Sector Conduct Authority (FSCA) in South Africa.        

Being a retail brokerage that specializes in CFDs (Contracts for Difference), CMTrading provides clients with unique advantages such as powerful leverage, which allows traders with smaller accounts to gain exposure to much larger positions. This translates to higher profit potential; however, it should be noted that leverage also increases your exposure to downside risk.       

While leverage typically adds a certain degree of risk to any investment, CMTrading also offers negative balance protection, thereby guaranteeing that potential losses will never exceed your invested capital.        

If you are interested in learning more about how you can take advantage of price movements in stocks, currency exchange rates, commodities, or cryptocurrencies, you will find that CMTrading’s unique offering of innovative services and diverse account types are suitable for both beginner and experienced traders.       

Start trading the financial markets today with an award-winning broker. Join CMTrading, the largest and best-performing broker in South Africa.       

 

Register here to get started today! 

 

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on email
Email

Recent .

meta trader 4
MetaTrader 4 app: How you can start trading the markets on the go

MetaTrader 4 app: How you can start trading the markets on the go  The markets are always on the move and therefore, traders who aim to take advantage of …

Read More →
Dogecoin is going to the moon… literally!

Dogecoin is going to the moon… literally!  While the cryptocurrency markets have been put through the mill the past few weeks, Dogecoin managed to steal the spotlight …

Read More →
Stock of the Week: Apple in huge demand, beats estimates by billions.

Stock of the Week: Apple in huge demand, beats estimates by billions. Apple beat estimates for quarterly earnings by billions of dollars. We look at …

Read More →
Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!  

Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!   It has been a momentous week for Facebook CEO Mark Zuckerberg who …

Read More →
MetaTrader 4 vs MetaTrader 5 – which is the better platform?
Bitcoin bounces back: Is buying the dip worth the risk?

Bitcoin bounces back: Is buying the dip worth the risk?  Bitcoin has recovered some of its losses following its fall from a record high of $65,000. Considering the crypto king’s astonishing performance in 2021, should …

Read More →
Oil summit: Waste of time
Oil market outlook: bumpy ride ahead?

2020 has been disastrous for the oil markets, however, it appears that oil has recovered most of its losses and is now hovering near pre-pandemic levels. In today’s article we will take a look at oil’s recent performance and explore the opportunities that may lie ahead.

Read More →
˄