Apple and Google Are Winning Big, But One Is About to Pull Ahead
While the two tech giants are each generating billions in quarterly earnings, Google parent Alphabet’s profit stream may be more durable in a rebounding economy.
No two tech giants are the same, and while Google and Apple have both had good fortune, their paths are about to diverge.
Photographer: Chesnot/Getty Images EuropeApple Inc. and Google-parent Alphabet Inc. have each managed to make copious sets of obscene amounts of money in any environment — pandemic or not. But the paths for the two technology behemoths may start to diverge later this year.
Both companies reported blowout numbers late Tuesday that far exceeded Wall Street expectations. Apple posted adjusted earnings per share of $1.30, compared with an average analyst estimate of $1.01, resulting in a quarterly profit of $21.7 billion for the three months ended in June. Likewise, Alphabet generated earnings per share of $27.26, ahead of the $19.35 consensus, while generating net income of $18.5 billion for its second quarter. Shares of Apple fell in after-hours trading, while Alphabet’s stock climbed.