Leading Role for Giant Tech Companies on A Busy Exhibition Day. In an already busy figure week at the American stock markets, this Thursday stands out.
Tech giants Apple, Amazon, Facebook and Google mother Alphabet, are opening the books for the past three months.
The consequences of the “corona quarter” are expected to differ per company.
Apple closed many of its own stores worldwide between April and June. In addition, there is the logic in analysts’ expectations that people who are insecure about their earnings or have lost their jobs will not spend money on things like a new phone, computer, tablet, smartwatch, or expensive earphones. That would mean Apple’s revenues have fallen.
Amazon, on the other hand, is believed to have sold much more now that many Americans are working from home. Shopping for groceries and other purchases online is very useful, and sales rose in the first quarter.
But the web giant also had to incur more costs to protect its employees against the virus. Those costs will come back in the second quarter, CEO Jeff Bezos said last quarter. He thinks Amazon is even losing.
Facebook and Alphabet mainly focus on advertising income. Many companies cut their spending during the corona crisis, advertising being one of the first things to be cut. Alphabet depends for a large part of its turnover on advertisements.
The same goes for Facebook, but the company’s social media users also spent more time online during the lockdown. Facebook is also expected to say something about a boycott of large advertisers for not taking enough action against hate speech and racism.