The quarterly revenue announced by Facebook on Thursday exceeded analysts’ expectations, as the company took advantage of its digital advertising tools to take advantage of the growing use of the Internet in the midst of the Corona virus pandemic.
Revenue has grown 11 percent, the slowest pace since the company went public, but it exceeded analysts’ forecasts that it would plunge 3 percent, according to IPS data from Refinitiv.
Advertising sales, which make up most of Facebook’s revenue, increased ten percent 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.
Investors were bracing for difficulties in the second quarter, the first time that the full effect of the virus containment closures was apparent. Facebook said in April it was seeing signs of stabilization in sales for the first three weeks of the quarter after a sharp decline in March.
Total costs and expenditures rose 4 percent to $ 12.7 billion in the second quarter, while analysts expected 12.5 billion.
Net profit was $ 5.2 billion, or $ 1.80 a share, in the three months to June 30. Analysts had expected $ 1.39 a share.
Net profit was $ 2.6 billion a year ago, but that involved a settlement of two billion dollars in a privacy protection case with the Federal Trade Commission.
Also on Thursday, Amazon.com announced its biggest ever profit since its founding 26 years ago as its online sales grew during the Corona virus pandemic.
While traditional stores have been forced to stop during government-imposed closures, Amazon has employed 175,000 people in recent months and has seen a strong increase in demand for its services. The company said revenue jumped 40 percent from 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 gear for workers and other expenses linked to Covid-19. But the company made $ 5.2 billion profit, twice the net profit a year ago.
Internet store sales jumped 48 percent to $ 45.9 billion in the second quarter. The company expected net sales between 87 and 93 billion dollars for the third quarter. Analysts on average expected revenues of $ 86.34 billion, according to EBS data from Refinitiv.
Also, Apple announced strong quarterly results on Thursday, as it achieved annual increases in various sales categories and regions as consumers resorted to their products and services to work and learn from home during the Covid-19 pandemic.
The results exceeded market expectations, and included increases even for some shaded product categories such as the iPad tablet and Mac computers.
IPhone sales increased nearly four billion dollars above analysts’ expectations, according to results that coincide with the announcement of data showing the collapse of the gross domestic product of the United States 32.9 percent year on year in the second quarter of the year, in economic performance is the worst since the Great Depression.
The company said iPhone revenue was $ 26.42 billion, while analysts’ forecasts were $ 22.37 billion, according to IPS data from Refinitiv. Apple accounts for 60 percent of its sales in foreign markets.
The company’s third-quarter revenue was $ 59.69 billion and earnings were $ 2.58 a share, while analysts expected $ 52.25 billion and $ 2.04 a share.
Additionally, quarterly sales of Alphabet, Google’s parent company, for Apple, declined for the first time since it went public 16 years ago, but the decline came in less than expected as many advertisers clung to the most popular search engine on the Internet amid the pandemic.
Revenue fell 2 percent year-on-year in the second quarter of the year to $ 38.3 billion, while analysts expected an average drop of 4 percent to $ 37.367 billion, according to Revinitiv.
About 66 percent of Alphabet’s revenue came from Google and YouTube search engine advertising, but advertisers were affected by large-scale layoffs and other cuts in the midst of the pandemic, as marketing budgets are often at the forefront of cuts, especially for large customers such as airlines and hotels.
Total costs and expenditures increased about seven percent from a year ago to $ 31.9 billion in the second quarter, after a 12 percent jump in the previous quarter.
The quarterly profit was $ 6.96 billion, or $ 10.13 a share, while analysts expected an average of $ 5.645 billion, or $ 8.29 a share.