Combine the Amazon, Apple, Facebook and Google logos in the photo.
Technology companies’ reports on Thursday night are more than the billions of dollars in profits generated in the previous quarter.
As we enter the winter, Covid-19 cases have surged in the United States and Europe. They also portrayed the terrifying picture of the world and the presidential elections that could spark fierce competition.
Amazon will $4 billion spent on Covid-related expenses This quarter. This is the same investment that was made at the beginning of the pandemic, as the country locked in and switched to online shopping. Amazon will spend money to test employees for viruses, clean facilities, and make other changes to make things work in the Covid field. Amazon is planning to spend $1
The company also said that due to the uncertainty caused by the pandemic, it cannot accurately predict its operating income for the quarter. Amazon has given very broad guidance, estimated to be between US$1 billion and US$4.5 billion. Who knows where it will actually land.
Apple CEO Tim Cook said the surge in Covid-19 cases made it difficult for the company to provide sales guidance for the quarter. Cook told CNBC reporter Josh Lipton on Thursday: “If you look at the number of cases, the number of cases in Western Europe is climbing.” “They are climbing in the United States. So there is still enough uncertainty… …We don’t think this is a bootable environment.”
As countries such as France and Germany start to reactivate the lock feature, people are increasingly skeptical that people will be able to buy the world’s most popular gadget in the coming months.
Facebook CEO Mark Zuckerberg (Mark Zuckerberg) warned of civil unrest after election day next week. Facebook’s core business is not to transport and build things, so Zuckerberg’s fourth-quarter warnings are different from those of their peers, but equally scary.
Zuckerberg said on the Facebook earnings call on Thursday night: “I worry that our country is so divided, and the election results may take days or weeks to be finalized, so there is a risk of civil unrest across the country.” In view of this, companies like ours need to go beyond what we have done before.”
He also warned of “increased risk of violence and unrest.”
These warnings come from some of the most savvy business leaders in the world, and include vast amounts of data about their business conditions and decades of experience in dealing with crises. Their market value amounts to trillions of dollars. They are now issuing an alarm to investors that even if the rest of the world collapses, they are willing to pour the necessary resources to move on.
These companies have the money to weather the storm. They will be fine. They can spend billions of dollars to adjust their transportation network (Amazon), reshape their retail and manufacturing operations (Apple) and adjust their algorithms to suppress calls for violence and commotion (Facebook).
The rest of the country is different. Small businesses, such as restaurants and retail stores, do not see the stimulus bill’s popular restrictions struggle, and these two parties and their most loyal supporters are focusing on winning the election. When large technology companies were in a state of panic, the US government had decided to postpone the decision to provide assistance until after the general election.
If you want to see a clear example of a K-shaped recovery in the economy, then look at Big Tech. They won, and millions of people rely on small businesses to make a living, but they lost.