Audio By Carbonatix
From a pure entertainment perspective, I am genuinely sorry that the House’s antitrust hearing targeting the big four tech companies — Amazon, Apple, Facebook and Google — took place Wednesday instead of next week. Because literally a day after a meeting attempting to determine if Big Tech was too big, three of the four companies in the hearing got bigger. (Google’s parent company, Alphabet, had a decline in revenue of about 2 percent, mostly due to a decline in search ads — but this was still better than analysts predicted.)NONE OF THESE COMPANIES WANTED THEIR EARNINGS NUMBERS READ ALOUD TO THEM BEFORE QUESTIONING BEGAN
The hearing was about how tech companies have consolidated their power. The coronavirus seems to be making that consolidation even easier. No wonder, when it became clear the antitrust hearing would be delayed, that the rescheduled hearing took place before earnings. None of these companies wanted their earnings numbers read aloud to them before questioning began. Those four companies combined took in $28.6 billion in profits in just one quarter.
Look, I’m not going to pretend it’s a surprise that during the first full coronavirus quarter, the tech behemoths did well. Most of us are staying home if we can! There’s a virus out there! Of course we’re looking for other ways to amuse ourselves — just check out those YouTube numbers. Despite a massive decline in advertising spending, YouTube revenue rose to $3.8 billion this year from $3.6 billion last year. Facebook’s business is largely ad-based as well — and its revenue also rose to $18.7 billion as its users doomscrolled their way through the pandemic, even though several companies publicly boycotted the platform.
Meanwhile, Amazon doubled its profit as more people ordered delivery to their homes: $5.2 billion this quarter, from $2.6 billion last year. And Apple, which had many of its stores closed for chunks of the quarter, still made $11.25 billion in profit as people bought devices to entertain themselves.
The rest of the economy isn’t doing too hot, though. The overall US economy contracted 32 percent last quarter from 2019. It’s a grim record, the worst-ever quarter in the 70 years we’ve kept track. Compared to the overall contraction in the economy, you can see why Alphabet investors thought a 2 percent decline in revenue was a win.BIG TECH IS COMPOSED OF PRECISELY THE COMPANIES THAT STAND TO BENEFIT FROM REMOTE WORK
It’s worth remembering that tech companies — including ones that didn’t report earnings today, such as Microsoft, which is also having a profitable pandemic — responded quickly to COVID-19 by closing offices and stores. Google said Monday it doesn’t expect its workers back in the office until July 2021 at the earliest; Facebook said in May it expected to have a larger remote staff as a permanent feature. Most Apple employees will work from home until 2021, CEO Tim Cook told Bloomberg.
If other workplaces follow this trend, Big Tech is composed of precisely the companies that stand to benefit from remote work. Amazon, for instance, was buoyed by the video chat client Zoom, since its cloud services division AWS hosts a chunk of Zoom. AWS even earned a shout-out in the Zoom earnings call! Because of the rapid uptick in Zoom use during the pandemic, the company couldn’t scale its own data centers quickly enough. Zoom CEO Eric Yuan thanked AWS in his prepared remarks for “provisioning the majority of the new servers we needed, sometimes adding several thousands a day for several days in a row.”
Back in March, my friend, colleague, and drinking buddy Casey Newton noticed that the pandemic had provided these companies with a wave of good news: they reacted quickly and decisively. “In a dramatic change from only weeks before, news about Big Tech has been a bright spot at a time of great fear — and, increasingly, of grief,” Casey wrote. “Increasingly, journalists are asking whether the backlash against technology companies that has defined coverage of them for the past three and a half years might have come to an end.”
The antitrust hearing suggests that the answer to that is no. Americans are simultaneously more reliant than ever on Big Tech — and less trusting of it. The newly-released emails from Mark Zuckerberg, for instance, show Facebook trying to kneecap its competitors any way it can. Another batch of hearing-related emails, from Jeff Bezos this time, suggest Amazon bought Ring for “market position.”
As more people become more dependent on the web for work, school, and social contact, it seems likely that scrutiny over the tech giants’ anti-competitive practices will increase. But not, as this quarter shows, before these companies make a hefty chunk of change.
Latest Stories
-
Allied Health Professions Council cautions GFA on the practice license of Black Stars’ physiotherapist Carlos Lozano Romero
3 minutes -
PBC announces reopening of all buying centres; ready to clear excess cocoa beans
4 minutes -
GMTF Cardiothoracic Centre project at KATH shows early progress after goundbreaking
5 minutes -
‘Difficult’ Russia-Ukraine peace talks end without breakthrough
12 minutes -
NPP announces detailed timetable for branch and regional executive elections
21 minutes -
Black Starlets beat Port City 1-0 in pre-AFCON friendly
26 minutes -
Baby stolen from Mamprobi Polyclinic was running temperature after rescue – Gender Minister reveals
28 minutes -
Farewell, Dr. Abubakari Sidick Ahmed – A doyen of Ghanaian media
33 minutes -
It’s time to treat the OSP as what it was meant to be: An institution, not an experiment
44 minutes -
Police urge vigilance in health facilities following baby theft incident at Mamobi
48 minutes -
Ghana must invest in security intelligence to protect traders from terror—Security Analyst
52 minutes -
GITAC President warns Burkina Faso attack could hit Ghana’s agricultural trade
54 minutes -
Mali Sports Ministry orders Football Association to sack Tom Saintfiet
54 minutes -
Minority threatens to summon Finance Minister over cocoa payment delays
59 minutes -
Don’t share or download viral video circulated by foreign national – Sam George warns public
60 minutes
