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June 2, 2021, 8:21 a.m. EDT

Big Tech Is More Important Than Ever With Alphabet Even Reaching New Horizons

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Jun 02, 2021 (IAM Newswire via COMTEX) -- With the latest earnings, it became clear that the pandemic push was just the beginning for Big Tech as Apple /zigman2/quotes/202934861/composite AAPL -1.83% , Google owner Alphabet /zigman2/quotes/205453964/composite GOOG -2.02% , Amazon /zigman2/quotes/210331248/composite AMZN -0.74% , Facebook /zigman2/quotes/205064656/composite FB -2.24% and Microsoft /zigman2/quotes/207732364/composite MSFT -1.75% were showered with money during first quarter, so much that even Wall Street that expected strong results was surprised. Although this success wasn't limited to tech titans as smaller companies such as chip designer AMD /zigman2/quotes/208144392/composite AMD -2.20% as well as social networks Snap /zigman2/quotes/205087158/composite SNAP +3.15% and Pinterest /zigman2/quotes/211319641/composite PINS +1.03% also delivered strong results, Big Tech showed it is on the ride of a lifetime as in every minute of the first three months of this year, Apple, Alphabet, Amazon, Facebook and Microsoft combined sold products and services worth about $2.5 million. Profits before tax for the period came in at $88 billion which translates to more than $1 billion of profit for every working day. But with its latest venture into healthcare, Alphabet could possibly reach even new heights.

The success scale of Big Tech means they can rival countries on some metrics

Alphabet, Apple and Microsoft combined spent $50 billion on their R&D efforts in their 2018 financial years. To give you a better idea, that was equivalent to R&D spending by the whole UK economy, according to the most recent data by Office for National Statistics.

Online advertising is booming

Facebook said demand is so high that the average price it charges for ads rose by 30% YoY compared with the start of pandemic. Alphabet's revenues rose by a third year thanks to Google's advertising business. Moreover, Alphabetwas also helped by fast growth in cloud services under which it offers companies access to data centres, as it thrived during the pandemic-induced home office trend.

Directing funds into pushing boundaries

Although Alphabet has scaled back some of its spending on the so-called "moonshot" programmes, it is stillinvesting heavily in an effort to push the boundaries of what computers can do. At the same time, it still judged that it had $50 billion lying around to buy back shares.

Venturing into health-care

If 2020 has taught us anything, it is the importance of good health and Google didn't waste time to tap into this rapidly accelerating field as it entered into a new venture with the Tennessee-based hospital chain HCA Healthcare. Under the partnership, Google Cloud will work to develop algorithms based on the provided patient records with the aim to improve efficiency of the provided services as well as patient outcomes. At the moment, the health-care industry has a ton of electronic medical records that aren't being fully utilized. But harnessing them in any way that generates more empirical data that can be of use to practitioners while diminishing reliance on anecdotal evidence could truly make a difference and help patients. So, if Google can pull this off- it will be a big deal or more precisely, monumental.

Regulatory clouds on the horizon

Tech companies are facing increased regulatory pressures across the globe with Germany, France and the Netherlands complaining that the EU is not tough enough on Big Tech and called on regulators to make it harder for big tech to rule the world. France fined Google 100 million for breaching rules related to online cookies or in simple words, advertising trackers. Amazon was fined 35 million euros in the same incident in December last year. According to the WSJ, Google has offered to remove the offending technical barriers for competitors to settle the antitrust lawsuit but even if it manages to settle, the tech giant is still likely to pay a fine for its practices till now. Google is also facing similar lawsuits in Texas and a class-action lawsuit over gender-based wage disparity in California.

Outlook

Since Covid-19 started its relentless march across the globe, Big Tech quickly went from a defensive mode in times of uncertainty to impressive growth. It is clear that the digital revolution is here to stay, and whether regulators like it or not, these businesses have embedded their products and services deeply in our lives. By the looks of it, Big Tech is working hard on deepening the relationship with the world’s population even further.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact:

The post Big Tech Is More Important Than Ever With Alphabet Even Reaching New Horizons appeared first on IAM Newswire .

COMTEX_387719639/2618/2021-06-02T08:21:06

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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 146.06
-2.73 -1.83%
Volume: 129.87M
Sept. 17, 2021 4:00p
P/E Ratio
28.61
Dividend Yield
0.60%
Market Cap
$2459.52 billion
Rev. per Employee
$1.86M
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/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 2,829.27
-58.20 -2.02%
Volume: 3.00M
Sept. 17, 2021 4:00p
P/E Ratio
30.67
Dividend Yield
N/A
Market Cap
$1919.94 billion
Rev. per Employee
$1.35M
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,462.52
-25.72 -0.74%
Volume: 4.62M
Sept. 17, 2021 4:00p
P/E Ratio
60.35
Dividend Yield
N/A
Market Cap
$1766.59 billion
Rev. per Employee
$297,430
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/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 364.72
-8.34 -2.24%
Volume: 26.30M
Sept. 17, 2021 4:00p
P/E Ratio
27.01
Dividend Yield
N/A
Market Cap
$1051.82 billion
Rev. per Employee
$1.47M
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/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 299.87
-5.35 -1.75%
Volume: 41.37M
Sept. 17, 2021 4:00p
P/E Ratio
37.23
Dividend Yield
0.83%
Market Cap
$2293.70 billion
Rev. per Employee
$928,663
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/zigman2/quotes/208144392/composite
US : U.S.: Nasdaq
$ 103.88
-2.34 -2.20%
Volume: 44.53M
Sept. 17, 2021 4:00p
P/E Ratio
37.09
Dividend Yield
N/A
Market Cap
$128.84 billion
Rev. per Employee
$774,841
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/zigman2/quotes/205087158/composite
US : U.S.: NYSE
$ 74.76
+2.28 +3.15%
Volume: 20.94M
Sept. 17, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$114.60 billion
Rev. per Employee
$648,881
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/zigman2/quotes/211319641/composite
US : U.S.: NYSE
$ 54.77
+0.56 +1.03%
Volume: 8.63M
Sept. 17, 2021 4:00p
P/E Ratio
259.33
Dividend Yield
N/A
Market Cap
$34.95 billion
Rev. per Employee
$665,092
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