Apr 30, 2021 - Economy

Tech giants show no sign of slowing down

Illustration of a mouse with the wire forming an upward trending market line. 

Illustration: Aïda Amer/Axios

Big Tech crushed earnings this past quarter, proving the resilience of their businesses even as the country begins to emerge from the pandemic.

The big picture: A strong recovery in the advertising market and continued reliance on cloud services and at-home entertainment have given most tech firms a boost.

Details: Despite a few cautious forecasts, the sector shows no sign of slowing down.

  • Facebook's stock hit an all-time high Wednesday after reporting a whopping 48% revenue growth year-over-year.
  • Apple's earnings report blew past Wall Street estimates, as sales of the iPhone, Mac and iPad all came in far ahead of expectations.
  • Amazon blew past analyst expectations for both earnings and revenue on Thursday, as sales surged 44% year-over-year.
  • Microsoft crushed Wall Street expectations and posted its highest revenue growth since 2018.
  • Google's parent company, Alphabet, reported a record profit last quarter. Its video arm, YouTube, brought in a whopping $6 billion in revenue last quarter, more than Snapchat, Linkedin and Pinterest combined.
  • Snapchat beat Wall Street expectations on subscriber growth, earnings and revenue, while also reporting that usage of its AR products hit an all-time high.

Yes, but: Some analysts have warned that the momentum behind these companies could slow down, given the fact that it will be nearly impossible to match the comps from record-high numbers driven by the height of lockdowns last year.

  • Twitter, Netflix, and Pinterest shares dropped amid subscriber slowdowns. Twitter reported weak guidance moving forward.

Bottom line: The pandemic has helped solidify the dominance of Big Tech other sectors, like traditional media and retail.

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