earnings

Tech Company Earnings Up, Even During COVID-19

Spotify

Episode 1691

Quarterly earnings reports reflected a modest growth for tech giants this week in spite of the outbreak. Spotify, for example, stated that every day is a weekend now, as daily listenership was up. Microsoft reported single-digit growth as well. But Leo says that doesn't mean next quarter won't be the same.

Advertising revenues, by contrast, have plummeted online as advertisers pull back.

Tech Companies Announce Quarterly Earnings

yellow bar chart

Episode 1459

Tech companies announced quarterly earnings last week, and everything was up. Alphabet's revenue was up 24%, but because of the new tax law, it actually lost money. Alphabet had an additional tax expense of $9.9 billion, but that money went toward taxes on funds that were kept overseas to avoid that tax. Ebay lost money because it had to pay $3.1 billion, and Lenovo lost money because it had to pay $400 million in taxes.