Google and Microsoft benefit from the online boom and the cloud

The world’s largest online advertising company and number one in software surprised again with good numbers.

The online boom accelerated by the Corona crisis is bringing both Google and Microsoft excellent business. While Google owner Alphabet secured its position as an online advertising prime with a record profit in the third quarter, the world’s largest software company Microsoft benefited from the high demand for storage space and applications in the cloud due to the trend towards hybrid working with switching between home and office.

In contrast to Facebook and the Snapchat operator Snap, Google hardly felt the effects of Apple’s new data protection rules. In the third quarter, sales climbed 39 percent after adjusting for currency effects to $ 65.1 billion (EUR 56.11 billion).

Four fifths of the income came from the advertising business. The world’s largest search engine provider benefited from the fact that people are spending more and more time online. Google sells the most ads online of any company in the world. While Facebook recently struggled with the fact that the new iPhone operating system made it more difficult to track user behavior on the Internet, Google’s advertising business was hardly affected. Experts justified this with the fact that the search engine collects data on user interests that are relevant and unrivaled for advertisers.

The video portal YouTube has blossomed into a guarantee of sales, with sales increasing by 44 percent to 7.2 billion dollars. Alphabet profits increased 69 percent to $ 18.9 billion. It was the third record win in a row. Nevertheless, the share slipped slightly into the red.

Competitors in the cloud

The cloud business Google Cloud remained slightly below expectations, with sales climbing 45 percent to five billion dollars. Here Microsoft – with Azure the number two ahead of Google and behind Amazon’s AWS – achieved an increase of 48 percent. Microsoft CFO Amy Hood spoke of a “strong start” in the cloud business for the Microsoft fiscal year that began in July.

Microsoft’s sales climbed from July to September – also thanks to strong income from the Xbox game console – by 22 percent to 45.3 billion dollars. That was above expectations – just like sales from Windows and Teams software applications and from the LinkedIn career network. Total earnings rose 22 percent on a currency-neutral basis to $ 17.2 billion in the first fiscal quarter.


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