Last October, we wrote about 25 US small businesses thriving in a pandemic. Today we will devote time and attention to Apple, Microsoft, Amazon, Alphabet, Facebook and talk about how they survived the covid 2020.
On February 6, the Wall Street Journal reported that the past year has been very successful for such American companies as Apple, Microsoft, Amazon, Alphabet and Facebook. Their total annual income increased 24% to $ 1.1 trillion, and their market capitalization increased 50% to $ 8 trillion.
And this was greatly helped by the COVID-19 pandemic, as well as global quarantine restrictions. How exactly? Yes, you know everything: the transition to distance learning and work, the frantic desire of people to pass the time on social networks and other Internet resources, as well as the endless desire to drown stress in the ocean of online shopping.
The need to study and work from home has driven an increase in demand for iPads, MacBooks, and Macs. And then there’s the new iPhone model. Well, how not to buy it?
The WSJ notes that smartphone sales are a significant part of the Cupertino-based company’s annual profits. From October to December alone, Apple sold $ 65.6 billion worth of iPhones, which is 58.9% of total quarterly revenue. As for the year-over-year changes, Apple (NASDAQ: AAPL) shares rose 80.75%, from $ 73.41 to $ 132.69.
The same remoteness helped Microsoft sell more collaboration tools and Surface laptops. In addition, the company’s services for the provision of cloud data storage have become more in demand. If we touch upon the sphere of home entertainment, then it would be fair to note the jump in the sales rate of Xbox game consoles.
In 2020, Microsoft (NASDAQ: MSFT) securities rose in value by 41.04%, from $ 157.7 to $ 222.42.
Amid the pandemic, the annual revenue of the online trading platform reached $ 386 billion, an increase of 38%. The company had to create 500,000 new jobs in order to be able to cope with the incredible growth in orders. Thus, the staff of “Amazon” grew to 1.3 million employees.
Over the past year, the value of Amazon (NASDAQ: AMZN) shares gained 76.26%, showing an increase from $ 1847.84 to $ 3256.93.
The corporation that owns Google, like all the eminent players in the tech sector listed above, has caught the quarantine wave of digitalization, increased demand for Internet services, and especially online advertising, well.
However, it cannot boast of such a significant rise in the price of securities. During the year, Alphabet Class A (NASDAQ: GOOGL) shares gained only 30.85%, from $ 1,339.39 to $ 1,752.64.
The social network not only allowed people who were forced to quarantine to calm their nerves and distract themselves by scrolling the news feed, but also financially succeeded. Of course, it is more about online advertising revenue, but not only.
Mark Zuckerberg’s company has made significant headway in e-commerce with massive new online shopping features, including Instagram. In addition to the obvious monetary component, this also influenced user engagement.
For 2020, Facebook (NASDAQ: FB) rose in price by 33.09%, from $ 205.25 to $ 273.16. As you can see, the growth rate hasn’t outpaced Alphabet that much. Last year, these companies generally had a lot in common. For example, in mid-December, Google and Facebook were accused of conspiring to monopolize the online advertising market.
Summing up the results
Over the past year, the consequences of the spread of coronavirus infection have seriously damaged the global economy. But some segments managed not only to stay afloat, but also to significantly improve their position. The IT sector is a prime example.
Over the course of twelve months, according to the Wall Street Journal, the biggest names in the industry — Apple, Microsoft, Amazon, Alphabet, and Facebook — have done well. Their total annual income increased 24% to $ 1.1 trillion, and their market capitalization increased 50% to $ 8 trillion. So much for a pandemic, so to speak.