admin Big Tech’s earnings boom stretched into the third quarter, with the pandemic surge in cloud computing, and a strong rebound in digital advertising, all but confirming 2021 will be a banner year for the sector. Major tech companies registered a significant boost in investments this quarter.
Details on the Gain
Quarterly revenues of the technology giants Microsoft and Google parent Alphabet soared beyond Wall Street’s expectations, according to figures published recently. According to calculations, together, the duo posted revenue of $110.4 billion — a combined growth of 33 per cent on last year’s third quarter.
Microsoft Corp’s cloud-based software helped drive robust sales and profit growth, which topped analysts’ estimates for an 11th straight quarter. Revenue in the first quarter, ended September 30st, 2021 and climbed 22 per cent to $45.3 billion, the Redmond, Washington-based software maker said Tuesday in a statement. That exceeded the $43.9 billion average estimate of analysts polled by Bloomberg. Profit excluding a tax gain rose to $2.27 a share, compared with predictions for $2.07. Sales forecasts by division for the current period also topped projections.
Google & Twitter’s Gains this Quarter
Meanwhile, Google parent Alphabet Inc. reported quarterly sales that topped Wall Street estimates, reflecting robust advertiser spending, but disappointing results from its YouTube and cloud-computing divisions weighed on the stock. Third-quarter revenue, excluding payments to distribution partners, was about $53.6 billion, the company recently announced in a statement. Analysts projected $52.6 billion, according to data compiled by Bloomberg. Google CEO Sundar Pichai also confirmed the launch of the JioPhone Next smartphone by Diwali during the earnings call of Alphabet.
Twitter reported its quarterly revenue grew 37 per cent and avoided the brunt of Apple Inc. privacy changes on advertising that hobbled its rivals, sending its shares up 3 per cent. The social networking site has been working to add new features such as audio chat rooms to attract users, and also rolled out improvements to its advertising capabilities to reach its goal of doubling annual revenue by 2023. Advertising revenue was $1.14 billion during the quarter that ended September 30st, in line with consensus estimates.
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