Big Tech’s Earnings Triumph Belies the Economic Pain Ahead
- Apple, Amazon, Google mix rosy results with murky forecasts
- Big five tech companies have mountain of cash, surging traffic
An Amazon delivery lorry is parked outside the Amazon logistics centre in Lauwin-Planque, France, on April 16.
Photographer: Denis Charlet/AFP/Getty ImagesAmazon.com Inc. sold more groceries than ever before, but warned of steep losses ahead. Traffic surged on Facebook Inc. and Google sites, though advertising dried up. Apple Inc. made $11 billion in three months, yet, for the first time in over a decade, didn’t give a forecast.
First-quarter results this week for America’s major technology firms came in better than feared. With the global economy in free-fall, the tech giants proved they remain essential services for millions of people and they have strong enough financial footing to weather the initial wave of the pandemic. But anyone looking to these companies for signs of immediate relief did not find it. Beyond the results was a clear indication that the second quarter will be bruising.