Amazon, Facebook, Alphabet, Apple defy Covid-19 to record earnings successes

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With the earnings report came rumours that Apple's next iPhone is set to ship later than usual, as it looks increasingly unlike the company will meet the usual release window in September.

Wall Street futures extended gains Friday, powered by gains for the biggest USA tech stocks after blockbuster earnings after the close of trading yesterday, but lingering concerns for the fate of the global economic recovery, and rising coronavirus infection rates, continue to cloud investor sentiment.

The cloud computing arm Amazon Web Services (AWS) reported revenues of USD10.81 billion for the quarter, up 29 per cent year over year.

Visit Business Insider's homepage for more stories. Amazon stock was up by as much as 6% in after-hours trading.

Apple exceeded Wall Street estimates for its fiscal third quarter.

Combined, Apple, Amazon, Google and Facebook boast a market-cap above US$5 trillion, about a fifth of the entire S&P 500. In the same quarter one year ago, Apple posted revenue of $US53.8 billion.

Tech giants Amazon, Alphabet, Apple and Facebook all reported better-than-expected results after the market closed yesterday, validating surging valuations built on expectations the sector would be a big victor amid the pandemic upheaval. Analysts were looking for $US2.07. The smartphone giant landed $59.7 billion in revenue, up 11% and higher-than-expected, with iPhone sales at $26.42 billion.

Revenues dipped two percent to 38 billion USA dollars, as chief financial officer Ruth Porat said: "We continue to navigate through a hard global economic environment".

Wearables revenue: $US6.4 billion. Despite a boycott of some major brand names due to the company's handling of hate messages, advertising revenue jumped ten percent to 18.4 billion in the quarter.

The companies also delivered mostly strong top line growth in a challenging economic environment.

USA equity futures suggest a firmer open on Wall Street ahead of earnings from Merck, ExxonMobil, Chevron and Colgate before the start of trading and inflation and personal consumption data at 8:30 am Eastern time.

The euro, however, is on pace for its best month against the dollar in a decade, having touched the 1.19 level in overnight trading for the first time since May 2018, with the pound rising to a four-and-a-half month high of 1.3138 against the slumping greenback.

EPS (GAAP): $US10.13, vs expectation of $US8.27.

Google's cloud business, which includes both its infrastructure and productivity tools, saw a boost of 43.19pc year-on-year. YouTube ad revenue growth slowed down too, though it surpassed expectations with $3.81bn in revenue in Q2.

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