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Source: Pixabay

Big Tech Firms Crushed Estimates in Virus-Hit Quarter

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On Thursday after the market bell, Facebook, Apple, Alphabet, and Amazon reported their earnings results for the June ended quarter. Each company reported better-than-expected earnings results. They are the top four tech companies in the world. The companies have a combined market capitalization of nearly $5 trillion.

How big tech did in the second quarter

Facebook stock is trending up in today’s pre-market trading session. The stock has risen 6.4 percent as of 6:51 a.m. ET. The stock rose after the company reported better-than-expected second-quarter results. Facebook reported an adjusted EPS of $1.80 in the second quarter. The adjusted EPS beat analysts’ consensus estimate of $1.39. Meanwhile, the company's revenues of $18.69 billion beat analysts’ consensus estimate of $17.4 billion.

Facebook’s second-quarter revenues rose about 10.7 percent YoY (year-over-year) from $16.9 billion. The monthly active users and daily active users rose 12 percent YoY to 2.7 billion and 1.79 billion users, respectively.

Google parent Alphabet also beat the expectations in the second quarter. The company's adjusted EPS decreased 28.7 percent YoY to $10.13 but beat analysts’ estimates of $8.21. Alphabet's revenues of $38.30 billion beat the estimates of $37.4 billion but declined 1.7 percent YoY.  The company’s cloud revenues increased YoY. Today, Alphabet stock has risen 0.2 percent as of 7:11 a.m. ET.

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Source: Pixabay

Apple beat the top and bottom-line estimates for the third quarter of fiscal 2020 (quarter ended June). The company reported an adjusted EPS of $2.58, which beat analysts’ estimates of $2.04. The company's revenues of $59.7 billion also beat the consensus estimate of $52.2 billion in the third quarter.

Apple’s revenues in the third quarter rose about 10.9 percent YoY from $53.8 billion. The technology company sold about 7.1 million Macs in the quarter due to pandemic-led demand. Today, Apple stock has risen 7.3 percent as of 7:22 a.m. ET.

Amazon's second-quarter results

Amazon shares have risen 5.6 percent in the pre-market session today as of 7:30 a.m. ET due to its solid second-quarter results. The adjusted EPS of $10.30 beat analysts’ estimate of $1.46. The e-commerce company posted revenues of $88.9 billion, which also beat analysts' estimate of $81.6 billion.

Amazon reported an adjusted EPS of $5.22 on sales of $63.4 billion in the second quarter of 2019. There was a significant jump YoY due to people ordering products online amid shelter in place initiatives. The cloud-based revenues of $10.8 billion missed analysts' estimates of $11.0 billion.

Big tech antitrust hearing

Earlier this week, the big tech firms' CEOs faced lawmakers during an antitrust hearing on the digital competition. The lawmakers accused the big tech firms of crushing smaller rivals to boost profits. All four of the CEOs appeared together before lawmakers during the video conference.

According to a Reuters report, “The chairman of the U.S. House of Representatives antitrust panel holding the hearing said afterwards that the four CEOs had acknowledged concerning behavior.”

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