Big tech companies shine despite record GDP contraction – Saudi Gazette

Big tech companies shine despite record GDP contraction – Saudi Gazette

By Ipek Ozkardeskaya

GENEVA “”

The US GDP fell 32.5% in the second quarter, the highest on record but slightly less than analyst estimates. The US dollar index slid below the 93 mark as the 10-year yield dipped to 52.5%.

The US equities were mostly down, as energy stocks led losses. But tech stocks gained as Amazon, Apple and Facebook beat the strong market expectations. Nasdaq futures (+0.77%) advanced in Asia, as Amazon, Apple and Facebook shares soared 6 to 7% in the after-hours trading.

Amazon's profit doubled amid online sales hit the roof during the pandemic lockdown, despite hiring 175000 new employees to keep the business running and spending over $4 billion in coronavirus related costs. The company's outstanding performance hence justified its record pricing and pointed at a further growth potential. The Amazon shares jumped as much as 6.50% in after-hours trading.

Apple sold more iPhones, iPads and computers and AppStore services saw a record demand during the pandemic. The company's revenue grew 11% compared to a year earlier. Apple posted a record revenue of $59.7 billion for this period of the year, versus $52.3 billion penciled in. The share price rose 6% in after-hours trading.

Facebook's revenue increased 11% on improved user