Big Tech had fantastic pandemics; here are 6 reasons why they’ll thrive even after

Big Tech – Apple, Alphabet, Amazon, Facebook, and Microsoft – all performed better over the past pandemic year than anyone dreamed. Last week, the five reported March-quarter earnings — the fourth full quarter since the COVID-19 lockdowns began early last year. All five beat Street expectations handily on both the top and bottom lines. As a group, these five companies grew March-quarter revenue by a combined 41%. Over the past four quarters, they expanded revenue by a combined 27%, growing their businesses by an aggregate $250 billion.

Customers began ordering the all-new M1 iMac(left), M1 iPad Pro (center), and Apple TV 4K (right) on April 30th
Customers began ordering the all-new M1 iMac (left), M1 iPad Pro (center), and Apple TV 4K (right) on April 30th

Eric J. Savitz for Barron’s:

Facebook, with sales up 48%, and Microsoft, up 19%, had their fastest growth in any quarter since 2018. Apple, up 54%, and Alphabet, up 34%, had their best growth since 2012. And Amazon, up 44%, had its best quarter since 2011.

Now to be clear, these remarkable performances haven’t gone unrecognized. Since I wrote that piece, the five stocks have gains that vary from 85% for Microsoft to 135% for Apple. And while they aren’t the raging bargains of a year ago, there’s a case to be made that there are no better stocks to play the most important shifts in tech. Keep focused on these six trends:

• There’s no stopping the cloud
• Personal computers are back
• E-commerce won’t slow
• Advertising is back
• Chips and dips [semiconductor supply constraints]
• What could go wrong: Well, lots. Earnings comparisons will become hellacious. Some analysts think Apple’s fiscal 2022 sales growth could go negative… But I’m not backing off my original bullish call on the tech giants, just tweaking it: There are no better plays for the postpandemic world.

MacDailyNews Take: ‘Tis the fiscal Q2 tough compares to come and how the market digests / uses / abuses them, rationally or irrationally, that will be the most interesting for Apple.

After years of pent-up demand for iPhones with larger displays, when the company finally made them with the iPhone 6 and iPhone 6 Plus, Apple faced years of tough compares vs. fiscal Q215 until they finally just stopped reporting unit sales altogether.

Apple’s crazy Q221 revenue figure could stick out as a sore thumb for years and be used by naysayers, shorts, fomenters, etc. to talk down the stock every spring.

15 Comments

          1. If DC was hit by a sizeable asteroid, the entire east coast could be devastated, and tens of millions dead. This would make you happy???? Are you human?

            Assuming you used this “joke” to whine about the govt proves what a sick unpatriotic troll you are.

            Rather than support the Constitution and its institutions, you would rather see the entire republic fall if your MINORITY faction doesn’t get it’s way. Coincidentally this division is exactly what cyberterrorists sponsored by China and Russia have been working hard to sell to you. Divisionism.

            Divided we fall. Think twice about what you’re doing with your incessant posting here, my friend.

    1. The Anti-American is back, but hypocritically cheering for Apple the largest American company and the largest corporation in the world in the China with the worst human rights in the world. In the good ole USA, we call that HYPOCRISY and in your Leftist world that’s just peachy keen. You can’t claim I’m wrong, you outed yourself. BTW, the hell does the Spanish Flu 100 years ago have to do with Apple? Get a grip…

  1. Phenomenal “growth” (in terms of %) of these tech giants outperformed Apple in spite of great fanfare (by Apple) of so many billions of dollars in terms of sales amount (on somebody’s spreadsheet, I mind you). But adding to the fact that most of the sales came from tiny phone (iPhone 12 series) did not quite warm up Wall Street and that’s why the stock value did not at all reflect this great fanfare. And whatever it was and by whoever it was, it was only a quarter term when most everybody (anyone producing anything related to online work in their own nests) did quite well (somewhat expected but I was really surprised at their phenomenal growth even if it’s a short term gain at this time due to pandemic). Apple, keep the phone business but please put more emphasis on Mac line of products. You are doing OK for now but I want more excitements of yesteryears!

  2. Is Twitter no longer a tech giant after their numbers declined precipitously since banning former President Trump? Yet, the HATE from LEFTISTS on Twitter rages on…

    1. The day Twitter banned Trump (Jan. 8), it was trading for 51.48. By Feb.26, it was selling for 77.08. It fell off after that due to the general tech stock decline and quarterly results showing that its subscriber numbers gained by only 7 million, rather than the projected 8. As of a few minutes ago, the stock was selling for 54.60, which is still about 6% higher than before the Trump ban.

      Yet another example of a Trump supporter making stuff up and confidently assuming that nobody will bother to check.

      1. Not talking stock price TxDeflector. Users and followers, got it Trump HATER? While you are at defense of Letists, tell us the number of CNN viewers that are lost without Trump, MSNDC, etc. You continue to LIE about what’s really going on because you are LEFTIST DEFENSIVE SCUMBAG…🖕🏻

        1. As I said, if you’d read, users went UP by 7 million to 199, which was less than the projected 200 million. You still can’t tell the truth when it is handed to you.

        2. What, still no snappy comeback for getting caught twice with “alternative facts?” I was expecting to hear the Great Leader’s quotation, “What you are seeing and what you are reading is not what is happening.” Or, as the husband asked his wife when she caught him in bed with another woman, “What are you going to believe, me or your lying eyes?”

  3. Isn’t the fact that Big Tech Companies gaining in such a dramatic manner… suspicious in and of itself?
    Are we that unaware of what is really going on around us?

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