Big Tech earnings-palooza arrives as Alphabet reports quarterly sales
Big Tech had a record 2020. The party might not be over.
What's new: Alphabet just reported record first-quarter sales.
- "Over a year into the pandemic, digital adoption curves aren’t slowing down. They’re accelerating, and it’s just the beginning," Microsoft CEO Satya Nadella said in conjunction with a better-than-expected earnings report.
- Up next: Earnings for Facebook and Apple (both tomorrow), along with Amazon (Thursday).
Flashback: Lockdown was a boon for technology companies — leading to a surge of new devices, streaming, cloud hosting, online shopping and a digital advertising bonanza.
What they're saying: "The pandemic accelerated the movement of advertising dollars away from traditional media. It should continue post-pandemic. I don't think we go back to where we were before," says Craig Huber, analyst at Huber Research Partners.
- Snap, for one, expects a revenue surge next quarter on the back of the continued ad boom, though it warned that Apple newly asking users to opt in to an app’s tracking could crimp that.
- The reopening could also help Google's search business, as travel and physical store visits pick up.
The other side: "We're right now in the best of all possible worlds for companies serving a consumer who's online more than ever before," Barton Crockett, a tech analyst at DCFstocks, tells Axios.
- "This is really the last hurrah, and then we'll get back down to real business in a couple of quarters," says Crockett, referring to the economic reopening and return to normal.
- Just ask Netflix. The company came back down to post-pandemic reality: It expects to add just 1 million subscribers this quarter — after a pandemic surge that pulled in millions of new watchers.