Minutes after the NASDAQ Composite closed at a record high, three of the biggest bellwethers in technology reminded the market precisely why investors are so bullish on companies that do business through the Internet.
Amazon.com Inc for the first time broke out sales from its division that sells computing power and software via the Internet, reporting a 49 percent jump last quarter. Microsoft Corp posted profit that topped analysts’ estimates, also underscoring healthy demand for software delivered through the cloud. Google Inc benefited from rising volume of online ads.
The numbers are a testament not only to the endurance of the Internet as a conduit of commerce and information, but also to the ways it has revolutionized the way the world’s biggest corporations operate. The three companies have been at the heart of these changes since the Internet’s inception as a business tool and are now vying for a bigger slice of the still-fledgling market for cloud computing.
The NASDAQ Composite climbed 0.4 percent on Thursday to its highest level in 15 years, topping its dotcom era high.
Amazon shares jumped as much as 8 percent in extended trading after the company reported first-quarter sales that beat analysts’ estimates. Sales jumped 15 percent to US$22.7 billion, the company said in a statement. Analysts on average projected $22.4 billion, according to data compiled by Bloomberg.
Revenue from Amazon Web Services Inc, which provides data storage and computing power to other businesses, surged to US$1.57 billion. Amazon Web Services helps Amazon benefit from growth in traffic to the Web sites of other companies, including Pinterest Inc and Netflix Inc. The unit generated first-quarter profit of US$265 million, helping to make up for losses in other parts of the company’s business.
Amazon said it intends to keep investing in new businesses that would expand its reach with customers, including data centers, one-hour delivery in certain cities and streaming video content.
Microsoft reported profit that exceeded analysts’ estimates as growth in cloud software sales and more expensive versions of server programs made up for slowing demand for PC products. The stock gained 3.4 percent in late trading.
Profit, excluding costs related to restructuring and integration, was US$0.62 per share on sales of US$21.7 billion in the third quarter ending March 31, Microsoft said on Thursday. Analysts had estimated US$0.53 on sales of US$21.1 billion, according to data compiled by Bloomberg.
Google’s results showed that its strategy of stepping up investments to lure more users and advertisers is paying off, fueling gains in the number of ads it sold in the first quarter.
While profit and sales came in just short of estimates, costs were kept well under control, boosting investor confidence and sending Google’s shares up 3.5 percent in extended trading.
The company’s sales, minus revenue passed to partners, rose 14 percent to US$13.9 billion in the first quarter, the company said in a statement on Thursday. That compared with analysts’ average projection of US$14 billion.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
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Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI
Qualcomm Inc, the world’s biggest seller of smartphone processors, gave an upbeat forecast for sales and profit in the current period, suggesting demand for handsets is increasing after a two-year slump. Revenue in the three months ended in June will be US$8.8 billion to US$9.6 billion, the company said in a statement Wednesday. Excluding certain items, earnings will be US$2.15 to US$2.35 a share. Analysts had projected sales of US$9.08 billion and earnings of US$2.16 a share. The outlook signals that the smartphone market has begun to bounce back, tracking with Qualcomm’s forecast that demand would gradually recover this year. The San