Apple, Microsoft, and Alphabet, the parent company of Google, reported combined profits of more than USD 50 billion in the April-June quarter, demonstrating their unrivaled influence and success in reshaping our lives. Despite the fact that these companies make money in a variety of ways, the results served as yet another reminder of their power and why government regulators are increasingly concerned about whether they have become too powerful.
The massive profits pouring into each company also demonstrated why they have a combined market value of USD 6.4 trillion, which is more than double what they were worth 16 months ago when the COVID-19 pandemic began.
When the pandemic began to bite consumer spending and its partner, advertising, Google’s earnings improved significantly year over year. Now that vaccines have freed people from the pandemic’s shackles and allowed them to splurge once more, a large portion of that pent-up demand has prompted advertisers to spend more, with a large portion going to Google and its corporate parent Alphabet Inc.
Microsoft announced a profit of USD 16.5 billion for the fiscal fourth quarter, up 47% from the same period last year. The company’s net income of USD 2.17 per share was higher than Wall Street’s expectations. The software company also beat expectations with revenue of USD 46.2 billion in the quarter that ended on June 30, up 21% from the same period last year.