Internet giants have mixed performance in the second quarter of 2020

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In the midst of the Corona pandemic crisis, Amazon is achieving the largest profits ever, Facebook revenues exceed expectations, and Alphabet sales have declined.

  • Advertising sales, which make up most of Facebook’s revenue, increased 10% in the second quarter of 2020

Amazon announced yesterday its biggest ever profit since its founding 26 years ago as its online sales grew during the Corona virus pandemic.

The company said revenue had jumped 40% from its level a year ago to $ 88.9 billion.

Amazon had warned of a possible loss in the second quarter of the year due to spending about $ 4 billion in protective equipment for workers and other expenses linked to “Covid-19”, but the company made $ 5.2 billion profit, equivalent to twice the net profit a year ago.

Internet store sales jumped 48% to $ 45.9 billion in the second quarter of this year. The company expected net sales between 87 and 93 billion dollars for the third quarter.

As for the company, “Facebook”, the quarterly revenues announced on Thursday exceeded the expectations of analysts, as the company took advantage of its tools in the field of digital ads to take advantage of the growing use of the Internet in the midst of the Corona virus pandemic.

Revenue grew 11%, the slowest pace since the company went public, but exceeded analyst expectations, who said it would drop 3%.

Advertising sales, which account for most of Facebook’s revenue, increased 10% to $ 18.3 billion in the second quarter of the year. The number of active users increased monthly to 2.7 billion in the second quarter, while it was expected 2.6 billion.

Net profit was $ 5.2 billion, or $ 1.80 a share, in the three months to June 30, while analysts expected $ 1.39 a share.

This comes at a time when the quarterly sales of Alphabet, the parent company of Google, declined for the first time since it went public 16 years ago, but the decline came in less than expected.

Revenues fell 2% year-on-year in the second quarter of the year to $ 38.3 billion, while analysts expected an average decrease of 4% to $ 37.367 billion.

About 66% of Alphabet’s revenue came from Google and YouTube’s search engine advertising, and total costs and expenses increased about 7% from a year ago to $ 31.9 billion in the second quarter, after a 12% jump in the previous quarter.

The quarterly profit was $ 6.96 billion, or $ 10.13 a share, while analysts on average expected $ 5.645 billion, or $ 8.29 a share.

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