The Economy Is in Record Decline, but Not for the Tech Giants
Updated: Aug 10, 2020
Even though the tech industry’s four biggest companies were stung by a slowdown in spending, they reported a combined $28 billion in profits on Thursday.
A day after lawmakers grilled the chief executives of the biggest tech companies about their size and power, Amazon, Apple, Alphabet and Facebook reported surprisingly healthy quarterly financial results, defying one of the worst economic downturns on record.
Even though the companies felt some sting from the spending slowdown, they demonstrated, as critics have argued, that they are operating on a different playing field from the rest of the economy.
Amazon’s sales were up 40 percent from a year ago and its profit doubled. Facebook’s profit jumped 98 percent. Even though the pandemic shuttered many of its stores, Apple increased sales of all its products in every part of the world and posted $11.25 billion in profit. Advertising revenue dropped for Alphabet, the laggard of the bunch, but it still did better than Wall Street had expected.
“The strong continue to get stronger,” said Dan Ives, managing director of equity research at Wedbush Securities. “As many companies are falling by the wayside, the tech stalwarts continue to gain muscle and power in this environment.”
While Main Street Struggles the new concern for Future Generations should not be Wall Street but the Battle against the Juggernaut that is Tech. This is a critical time in our Country's Economy and we need to stand up before these few elite Companies control every aspect of our industries. It's only a matter of time before we exchange convenience for personal freedoms. It may already be too late.
Hosts Zack Hayes and Phil Hayes break it all down in this week's episode of Pure Speculation. Follow us on Twitter @strugglestate
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