This week, Microsoft, Facebook, and Apple smashed analyst expectations to kick off a highly anticipated earnings season.
For Microsoft, its cloud computing service Azure stole the show. The segment reported 50% y/y growth, a sign that the pandemic has accelerated the shift towards cloud computing for companies around the world. The better than expected number helped to keep the strong narrative surrounding Microsoft intact.
At Facebook, the financial numbers were very strong, beating on both the top and bottom line. However, management discussed some of the challenges the company is facing. Most notably, Zuckerberg discussed the threat posed by Apple as it attempts to increase protections for user data.
Apple also reported after the bell on Thursday, posting $111 billion in revenue, the highest quarterly sales number the company has ever seen. Notably, iPhone sales accounted for over $65 billion of that figure, driven largely by the introduction of the first 5g iPhone. Despite the strong numbers, Apple did warn it expects service revenue growth to slow in the next quarter due to pulled forward demand.