What’s Next for Big Tech?
Google’s Digital Ad Dominance
A number of large tech companies recently reported earnings. Here is an overview of what they shared and what may be coming next for these tech giants.
Alphabet Inc. (GOOGL), Google’s parent company, reported its highest-ever quarter for profit and sales. Its Q2 revenue was $61.88 billion, which marked a 62% year-over-year improvement. Much of this growth was due to companies pouring money into digital advertising on Google’s flagship search engine and other platforms which it owns, including YouTube and Maps.
Though Google is the leader in the digital ad space, other companies including Twitter (TWTR) and Snap Inc. (SNAP) are vying for market share. Retailers like Walmart (WMT) and Target (TGT) are also working to up their digital advertising capabilities. Investors will be interested to see if Google’s digital ad dominance continues.
Amazon’s Post-Pandemic Conundrum
Amazon also shared strong quarterly results, despite the fact that its ecommerce business slowed as many consumers returned to shopping in person. Amazon raked in nearly $30 billion in profits over the past year. Investors are concerned that the tech giant will have difficulty matching or surpassing its performance in 2020 now that restrictions on businesses have eased.
Other arms of Amazon’s business besides ecommerce are seeing strong growth. Its cloud computing unit and its digital ad business is growing. The company is hopeful that these branches of its business will help make up for the downturn in ecommerce sales.
Apple and Facebook Look Ahead
Apple (AAPL) also beat expectations with its earnings and shared that its sales increased 36% year-over-year, with sales of its iPhones surging by almost 50%. But despite the earnings beat, Apple’s stock price fell due to concerns about how chip shortages could impact the company’s supply chains in the coming months.
Meanwhile, Facebook (FB) also surpassed expectations with its earnings report, though its shares fell on news that the company expects revenue growth to taper in the coming months. Facebook’s user numbers also climbed last quarter. In Q2 it had 3.51 billion monthly active users across Facebook, Instagram, and WhatsApp—up from 3.45 billion in the first quarter. Tech companies have had a wild ride over the past year and a half as the pandemic altered consumers’ habits around the world. Investors will be eager to see how each of these tech giants continue to navigate volatile market conditions.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.