Big Tech Has Spoken

With its latest reported quarter, Microsoft MSFT delivered record quarterly revenue. Over the last 14 years, Alphabet Inc GOOGGOOGL made the largest percentage jump in quarterly sales. Apple Inc's AAPL had its best fiscal third quarter in its history. Together, they generated nearly $190 billion in revenue and ended up with $57 billion in profits. Big Tech has spoken, with these figures confirming that the digital revolution is here to stay beyond the pandemic.

Apple Blew Past Analyst Estimates

Apple Inc's first iPhone capable of connecting to the 5G wireless networks did continue to power major increases in quarterly revenue and profits, but it came less significant as services revenue is becoming an important part of its business model, growing 33% YoY.

Moreover, every one of Apple's major product lines grew over 12% on an annual basis, with other products revenue growing as much as 40% with iPhone leading the way with 49.78% YoY, posting double-digit growth over the previous year for the third consecutive quarter. All in all, Apple's profit and revenue easily smashed analyst estimates. Tech's most valuable company nearly doubled its profits from the same period last year as revenue surged 36% to $81.4 billion. However, the steadily spreading delta variant of the coronavirus is casting a shadow over its success, raising doubt on how the rest of the year will unfold. Wall Street expects record iPhone revenue of nearly $187 billion to close Apple's fiscal year in September.

Google Rebounded As Vaccines Started Breaking COVID-19 Shackles

Alphabet Inc.'s earnings improved markedly over the year-ago period when the pandemic crushed advertising budgets. Vaccines have enabled people across the globe to shed the COVID-19 shackles and splurge, encouraging advertisers to spend more in an effort to get their products to them, with a lot of these funds going to Google's corporate parent.

Fueled by Google, earnings nearly tripled from last year's $6.96 billion as they reached $18.53 billion. Google's advertising revenue alone soared 69% to $50.44 billion as business activity and life resumed, allowing recovery of retail, travel, and entertainment sectors. Total revenue amounted to $61.88 billion, rising 62% from last year, amounting to $50.95 billion after subtracting traffic acquisition costs.

Microsoft Delivered Record Revenue Due To Home Offices And Remote Classrooms

Last Tuesday, Microsoft reported its fiscal fourth-quarter profit rose 47% from the same period last year to $16.5 billion with net income of $2.17 per share topping Wall Street estimates. Revenue also topped estimates as it increased 21% from last year's quarter by amounting to $46.2 billion in the quarter that ended on June 30^th. The ongoing demand for its software and cloud computing services for remote work and study helped Microsoft's profits blossomed.

There's also videogaming whose revenue rose 11% due to strong hardware sales, growth in Game Pass subscription sales, and consumer spending on its first-party games. Xbox hardware revenue rose 172% in the June quarter from the year-earlier period. Growth in sales of Microsoft's cloud services, which compete with Amazon.com Inc AMZN, and its Office productivity tools for handling work documents and email both outpaced overall revenue growth. However, the company's historical pillar, personal computing that includes Surface and Windows, grew just 9% in the quarter due to supply issues.

Although not even Big Tech is immune to the global shortage, its numbers speak for itself – it is invincible as one can get.

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