Google and Facebook are at the forefront of home stone beneficiaries in the time of Corona

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The global economy is in a state of paralysis due to the emerging Corona virus, with a dangerous rise in deflation rates and diminishing advertising revenue, but technology giants led by Google, Facebook and Amazon are achieving record usage rates that promise a bright future.

Between Tuesday and Thursday, these groups, like Apple and Microsoft, publish their financial results for the first three months of the year, which were marked by global changes resulting from the Covid-19 epidemic and the economic crisis.

However, the services of Facebook, the world’s leading social network, are very popular, as the number of contacts recorded through the WhatsApp and Messenger applications doubled a month ago to record levels similar to those recorded during New Year’s celebrations, which usually constitute the annual peak. .

The number of connections via Microsoft’s TIMS video conferencing service increased by 1,000% in March.

In light of the large rise in unemployment rates, “Amazon” created 175 thousand additional jobs in the United States of America to meet the huge increase in orders online through the adoption of the principle Social spacing.

As for “Google” and “Apple”, they will launch new tools, digital or real, among them, providing basic services such as tracking human operations to combat the outbreak of the new Corona virus.

With domestic quarantine measures, e-commerce services on Amazon attracted many users, even those who were unimpressed by these activities. Also, elderly people started playing video and social media opponents were forced to use it in the absence of other options available to them to communicate with friends.

The children imitate their parents, all on their screen, while working from home. Many families have re-subscribed to “Netflix”.

However, the scene with major technology companies is not entirely rosy … advertising, which is the backbone of the war at Google and Facebook, is one of the first budgets to shrink in light of the difficulties faced by companies.

Digital companies must provide essential service with dwindling resources. Corporate employees work from their homes or even warehouses that are difficult to protect from The virus.

There is a delay in the production of electronic devices (such as smartphones) and the contents dedicated to streaming platforms (such as series and video games).

The groups have successively announced a reduction or withdrawal of financial forecasts for 2020.

“The first quarter numbers will not reflect what is really going on,” said Bob O’Donnell of Tech Analysis Research, noting that “the problems did not start until March. The real question revolves around demand during the second quarter.”

In an indication that good numbers are not always a good sign, Netflix announced this week new records in new subscriptions, with great caution and stress that foggy damage is expected for the rest of the year.

And those who benefit from home quarantine measures caution to give the impression of benefiting from the health crisis, especially in light of the difficulty of monitoring long-lived habits and those that will disappear quickly with the end of the crisis.

“Until now, these platforms have been providing such platforms,” ​​says Carolina Milanese of Creative Strategies Zoom service. But when we come back we can visit friends for dinner, we’ll stop spending time with video conferencing. It will not be without price. ”

However, there is no concern for the future of major technology companies.

Offensive strategy

“All the sector related to the ads will suffer, but it has enough inventory to resist,” explains David Seidbautom, an analyst at Futuresource.

Regardless of the crisis, these groups adopt an offensive strategy.

Apple launched its new music service, Apple Music, in 52 new countries, with 6 months free for new subscribers. Google also made it possible for Stadia to play video games on cloud computing for free for two months.

Facebook also recently launched a video game application in direct competition with the “Twitch” owned by “Amazon” or “Mixer” of “Microsoft”, as well as a new video communication platform called “Messenger Rooms” that allows “diving” by default in the living room Friends, to be a rival of Zoom.

The groups compete with each other on the level of social responsibility, with the publication of data on the protection of their employees and efforts to combat false news related to the Covid-19 epidemic and their donations to charitable organizations.

Google and Apple, the two most widely used operating systems on mobile devices in the world, go as far as proposing an unprecedented coalition to provide digital tracking to individuals who come close to living with HIV.

“This is amazing. It could have a decisive impact on the entire planet,” says Bob O’Donnell. “This shows its power and influence, as no government in the world can influence this number of people at the same time.”





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