News and Commentary

As Earnings Season Continues, Big Tech Rakes In Big Profits

   DailyWire.com
The logo of US tech giant Apple can be seen on an Apple store in Munich, southern Germany. - Apple said it planned to invest more than one billion euros ($1.2 billion) in Germany and open Europe's biggest research facility on mobile wireless semiconductors and software. The company said it would make Munich its "European Silicon Design Centre", creating hundreds of new jobs at a facility for 5G and wireless technologies.
CHRISTOF STACHE/AFP via Getty Images

Big Tech companies are revealing record profits for the second quarter of 2021.

Over the past weeks, many firms’ earnings significantly surpassed analysts’ predictions — in large part due to the return of consumer demand following COVID-19 and the lockdown-induced recession.

Twitter:

  • Earnings: $0.20 per share versus $0.07 expected
  • Revenue: $1.19 billion versus $1.07 billion expected

Apple:

  • Earnings: $1.30 per share versus $1.01 expected
  • Revenue: $81.41 billion versus $73.30 billion expected

Alphabet (Google):

  • Earnings: $27.26 per share versus $19.34 expected
  • Revenue: $61.88 billion versus $56.16 billion expected

Amazon:

  • Earnings: $15.12 per share versus $12.30 expected
  • Revenue: $113.08 billion versus $115.2 billion expected

Facebook:

  • Earnings: $3.61 per share versus $3.03 expected
  • Revenue: $29.08 billion versus $27.89 billion expected

Microsoft:

  • Earnings: $2.17 per share versus $1.92 expected
  • Revenue: $46.15 billion versus $44.24 billion expected

Twitter witnessed 74% revenue growth between the second quarters of 2020 and 2021 as it saw the number of monetizable daily active users on the platform expand by double digits. Facebook likewise saw an average revenue per user of $10.12, exceeding the $9.66 projected by analysts.

Meanwhile, Apple experienced 50%, 16%, and 12% year-over-year revenue growth for the iPhone, Mac, and iPad, respectively. Google saw 69% ad revenue growth over the same period.

Amazon was the only Big Tech company to slightly miss revenue forecasts.

The record earnings come as federal officials weigh the possibility of enacting new antitrust policies. While Democrats are concerned about the growing power of large corporations in the United States, Republicans emphasize technology platforms’ willingness to censor conservative-leaning content.

Last month, a group of House members from both parties introduced a suite of regulations that would break up Apple, Amazon, Facebook, and Alphabet.

The five bills were as follows: 

Many conservative lawmakers are also concerned about the Biden administration’s willingness to coordinate with social media companies to discourage the spread of purported “misinformation.”

On Monday, nine Republican senators sent a letter demanding specifics on the administration’s policy, as recently unveiled by White House Press Secretary Jen Psaki:

The public is already aware of efforts by the media and the executive branch to silence information that is unflattering to this Administration under the guise of “disinformation.” For example, unnamed intelligence officials, the media, and social media platforms engaged in a coordinated effort to censor stories about Hunter Biden’s laptop and his questionable financial dealings under the false label of “disinformation.”

Demanding that the administration “halt any actions it has or is currently undertaking to censor Americans’ speech,” the lawmakers asked President Biden to provide the legal justification for his flagging of misinformation.

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