Logo of Amazon, Apple, Facebook and Google in a combined photo.
Tech companies reported billions more Thursday night than they generated in the last quarter.
They also paint a catastrophic picture of the world as we enter the winter months with instances of Covid-19 spike across the US and Europe, and the possibility of a full presidential election. argumentative.
Amazon will spent $ 4 billion on Covid related expenses this square. That was the same investment they made at the start of the pandemic when the country closed down and moved to online shopping. Amazon will spend money on employees checking for viruses, cleaning facilities and making other changes they need to keep things running in Covid̵7;s world. Amazon is on track to spend $ 11 billion over the year just against Covid-19.
The company also said it was unable to accurately predict its operating income for the quarter due to the uncertainty caused by the pandemic. Amazon offers extremely extensive guidance, predicting between $ 1 billion and $ 4.5 billion. Who knows where it will actually land.
Apple CEO Tim Cook said that the spike in Covid-19 cases made it difficult for the company to provide sales instructions for this quarter. “If you look at the number of cases, the number of cases is increasing in Western Europe,” Cook told CNBC’s Josh Lipton on Thursday. “They’re escalating in the US. And so there is still enough uncertainty out there … we don’t believe that’s the environment to be in.”
With lockout re-starting in countries like France and Germany, there is growing suspicion that people will even be able to buy the hottest device in the world in the coming months.
Facebook CEO Mark Zuckerberg has warned of civil unrest following Election Day next week. Facebook’s core business isn’t about shipping and building things, so Zuckerberg’s Q4 warning differs from his peers, but it’s equally catastrophic.
“I worry that with our country too divided and the election results likely to take days or weeks to complete, there is a risk of national civil unrest,” Zuckerberg said. call Facebook earnings on Thursday night. “With this, companies like ours need to go beyond what we’ve done before.”
He also warned of “the increased risk of violence and instability.”
These alerts come from some of the smartest business leaders in the world, with tons of data on the state of their businesses and decades of crisis management experience. They have trillions of dollars in market value on the line. Now, they are ringing alarm bells for their investors, proving that they are willing to shed the resources needed to stay afloat even when the rest of the world collapses.
These companies have the money to weather the storm. They will be fine. They could spend billions of dollars tweaking their shipping network (Amazon), reshaping their retail and manufacturing operations (Apple), and tweaking their algorithm to prevent violent calls. and instability (Facebook).
It’s not like the rest of the country. Small businesses like restaurants and retail stores are grappling with the limits of the pandemic with no stimulus bills in place, while both political parties and its most ardent supporters Theirs are focused on winning the election. While Big Tech companies were in a state of panic, the US government decided to suspend until after the election to decide whether to provide aid or not.
If you want to see a clear example of K-shaped recovery in the economy, look no further than Big Tech companies. They win, while millions depend on small businesses for a living.