Tech Giants' Third-Quarter Profits Result Boost US Shares
Four of the largest tech companies in the world posted better-than-expected earnings result for the third quarter and has supported gains in the US stock markets on Friday.
Tech giants Amazon.com Inc., Google parent Alphabet Inc., Microsoft Corp., and Intel Corp., all presented third-quarter profits and revenue that were higher than what analysts estimated as a result of strong demand for their cloud computing businesses.
Their shares climbed sharply during pre-market trade after the release of reports, with 8.4 percent to $1,055, 4.4 percent to $1,016.01, 7.1 to $84.33, and 4.7 percent to $43.31 respectively.
These tech groups altogether were able to generate more profit of about $2.2 billion and $100 billion more revenue than the same quarter in the previous year.
Their stock gains during the after-hours trade would also value them above the combined market cap of almost $2 trillion and are likely to add another $75 billion to their shared market price.
In addition, their corporate earnings helped NASDAQ 100 futures to edge higher by 0.7 percent to $6,131.38 on Friday.
It was also the same for S&P 500 futures as it gained 0.2 percent to $2,567, while Microsoft and Intel have set Dow Jones Industrial Average on a positive territory with 0.3 percent to $23,400.86.
US Tech Giants Third-Quarter Highlights
Online retail giant Amazon reported a net income of $256 million or $0.52 per share for the three months ending September 30, beating analysts’ expectation of $0.02 a share. Its revenue rose 34 percent to $43.47 billion, surpassing forecast of $41.58 billion.
Search engine Google parent Alphabet brought about $6.7 billion or $9.57 a share in third-quarter profit, while its net sales climbed 24 percent to $27.8 billion, topping estimates of $27.2 billion.
Computer software manufacturer Microsoft saw its net income grew by 16 percent, with earnings per share (EPS) at $0.84, largely exceeding expectations of $0.12 per share. Its revenue came in at $24.54 billion, higher than the $23.56 billion forecast.
Chipmaker Intel generated profit of $4.52 billion, adding 34 percent from last year, while it achieved $16.15 billion more revenue than analysts’ $15.73 billion. Adjusted EPS was at $1.01 against expectations of $0.80.
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