Big Tech Emperors Parade Their Earnings Power

What timing. On Wednesday, the CEOs of four of the biggest U.S. technology companies downplayed the market power of their respective firms in a landmark antitrust hearing before a House subcommittee. Then just a day later, the same companies posted blowout earnings that demonstrated why they are the envy of world — and the target of scrutiny.

Late Thursday, Apple Inc., Amazon.com Inc., Facebook Inc. and Google parent Alphabet Inc. all reported better-than-expected financial results, with each generating billions of dollars in earnings for the June quarter. The numbers showed the resilience of their respective businesses, illustrating how these behemoths can generate large profit pools amid a pandemic. The four companies’ stocks spiked higher in after-hours trading, adding to their healthy gains this year.

Apple made the most money out of the bunch, posting a net profit of $11.3 billion and generating $59.7 billion in revenue for its fiscal third quarter. There were two major positive contributors for the smartphone giant. First, the company said sales for the $399 iPhone SE model launched in April were extremely strong. In a more uncertain economy, Apple’s release of a lower-cost smartphone seemed perfectly timed. Further, revenue from Apple’s App Store revenue surged to a record as the company’s services segment increased sales by 15% in the quarter.