Connect with us

Technology

Google, Apple and Microsoft report record-breaking profits | Google

Voice Of EU

Published

on

Google, Apple and Microsoft reported record-breaking quarterly sales and profits on Tuesday night as the firms continue to benefit from a pandemic that has created a “perfect positive storm” for big tech.

Apple made a $21.7bn (£15.6bn) profit for the three-month period that ended in June, its best fiscal third quarter in its 45-year history, boosted by strong sales of the iPhone 12 and growth in its services business.

Alphabet, Google’s parent company, reported second-quarter revenue of $61.8bn (£44.5bn), a 62% increase on the same period a year earlier, and a profit of over $18.5bn (£13.3bn), more than twice its profits for the same period last year. The company’s advertising revenues rose 69% from last year.

Microsoft, too, beat expectations, reporting revenues of over $46bn (£33bn) for the quarter – a rise of 21% compared to the same quarter last year.

The results come after Tesla reported a record profit on Monday in one of the busiest ever weeks for quarterly US earnings results. The big tech blowout earnings continue with Facebook on Wednesday and Amazon on Thursday.

Collectively, the market value of Google, Amazon, Apple, Microsoft and Facebook is now worth more than a third of the entire S&P 500 index of America’s 500 largest traded companies, as their share prices have soared during the pandemic.

Thomas Philippon, an economist and professor of finance at New York University, said big tech firms have been the biggest economic winners from the pandemic as global lockdowns have pushed more businesses and consumers to use their services.

“They were already on the rise and had been for the best part of a decade, and the pandemic was unique,” Philippon said. “For them it was a perfect positive storm.”

Analysts at Morgan Stanley reckon Alphabet is on course to achieve full-year net income of $65bn, a 59% increase on 2020. Its annual sales are, the bank reckons, on track for $243bn – a $60bn increase on last year.

Alphabet’s shares have risen by 75% in the past year to a record $2,670, but analysts predict they could climb higher still despite regulators around the world threatening to curb its dominance of the internet search market. Morgan Stanley said the stock could reach as high as $3,060, and even under a worse case scenario is unlikely to fall below $1,800.

Morgan Stanley analyst Brian Nowak said pandemic lockdowns had boosted Google as consumers spent more time online researching potential purchases. He said survey data showed that 54% of retailers ranked Google search products, including YouTube, as “their first place to go to research products online, up from 50% in past surveys”.

“Google websites growth is likely to rebound in ’21 as we believe there are several underappreciated products driven by mobile search, strong YouTube contribution, and continued innovation, such as Maps monetisation,” Nowak said in a note to clients.

Apple has been making so much money that over the past eight years it has bought back $421bn worth of shares, but it still has about $80bn of cash sitting on its balance sheet.

When Microsoft reported a 31% rise in profits at its last quarterly results, its chief executive, Satya Nadella, said it was “just the beginning” as the shift to digital technology was “accelerating” fast.

Sign up to the daily Business Today email

The share price rise of the big tech firms has made billions for their super-rich founders and early investors. Forbes magazine calculated recently that there are now 365 billionaires who made their fortunes in technology, compared with 241 before the pandemic.

Collectively, the world’s tech billionaires hold personal fortunes of $2.5tn, up 80% on $1.4tn in March 2020. Amazon’s founder and chief executive, Jeff Bezos, remains the world’s richest person with an estimated $212bn fortune, and is closely followed in the league table of the wealthy by Tesla co-founder Elon Musk with $180bn, Microsoft co-founder Bill Gates with $151bn, and Facebook’s Mark Zuckerberg with about $138bn.

Zuckerberg believes the internet will take on an even bigger role in people’s day-to-day lives in the future, and instead of interacting with it via mobile phones people will be immersed via virtual reality headsets.

He said Facebook would transition from a social media platform to a “metaverse company”, where people can work, play and communicate in a virtual environment. Zuckerberg said it would be “an embodied internet where instead of just viewing content – you are in it”.

Source link

Technology

Facebook oversight board to review system that exempts elite users | Facebook

Voice Of EU

Published

on

Facebook’s semi-independent oversight board says it will review the company’s “XCheck” system, an internal program that has exempted high-profile users from some or all of its rules.

The decision follows an investigation by the Wall Street Journal that revealed that reviews of posts by well-known users such as celebrities, politicians and journalists are steered into the separate system.

Under the program, some users are “whitelisted”, or not subject to enforcement action, while others are allowed to post material that violates Facebook rules pending content reviews that often do not take place. The Xcheck system, for example, allowed Brazilian footballer Neymar to post nude pictures of a woman who had accused him of rape, according to the report.

Users were identified for additional scrutiny based on criteria such as being “newsworthy”, “influential or popular” or “PR risky”, the Wall Street Journal found. By 2020 there were 5.8 million users on the XCheck list, according to the newspaper.

The oversight board said Tuesday that it expects to have a briefing with Facebook on the system and “will be reporting what we hear from this” as part of a report it will publish in October.

The board may also make other recommendations, although Facebook is not bound to follow these.

The Journal’s report, the board said, has drawn “renewed attention to the seemingly inconsistent way that the company makes decisions, and why greater transparency and independent oversight of Facebook matters so much for users”.

Facebook told the Journal in response to its investigation that the system “was designed for an important reason: to create an additional step so we can accurately enforce policies on content that could require more understanding”. The company added that criticism of it was “fair” and that it was working to fix it.

A representative for Facebook declined to comment to the Associated Press on the oversight board’s decision.

Source link

Continue Reading

Technology

Philippines imposes 12 per cent digital services tax • The Register

Voice Of EU

Published

on

The Philippines has become the latest nation to impose a digital services tax.

Such taxes require the likes of Netflix and Spotify to pay local sales taxes even though their services are delivered – legally, notionally, and physically – from beyond local jurisdiction.

The Philippines has chosen a rate of 12 per cent, mirroring local value added taxes.

“We have now clarified that digital services and the goods and services traded through digital service providers should generally be subject to VAT. This is just a matter of common tax sense,” said Joey Salceda, a member of the Philippines’ House of Representatives and a backer of the change to the nation’s tax code.

Salceda tied the change to post-pandemic economic recovery.

“If brick and mortar establishments, which are the hardest-hit by the pandemic, have to pay VAT, the giants of e-commerce shouldn’t be exempt,” he said.

However, local companies that are already exempt from VAT by virtue of low turnover won’t be caught by the extension of the tax into the virtual realm.

Salceda’s amendments are designed to catch content streamers, but also online software sales – including mobile apps – plus SaaS and hosted software. The Philippines’ News Agency’s report on the amendment’s passage into law even mentions firewalls as subject to VAT.

The Philippines is not alone in introducing a digital services tax to raise more revenue after the COVID-19 pandemic hurt government revenue – Indonesia used the same logic in 2020 .

But the taxes are controversial because they are seen as a unilateral response to the wider issue of multinational companies picking the jurisdictions in which they’ll pay tax – a practice that erodes national tax bases. The G7 group of nations, and the OECD, think that collaborations that shift tax liabilities to nations where goods and services are acquired and consumed are the most appropriate response, and that harmonising global tax laws to make big tech pay up wherever they do business is a better plan than digital services taxes.

The USA has backed that view of digital services taxes, by announcing it will impose tariffson nations that introduce them – but is yet to enact that plan.

Meanwhile, the process of creating a global approach to multinational tax shenanigans is taking years to agree and implement.

But The Philippines wants more cash in its coffers – and to demonstrate that local businesses aren’t being disadvantaged – ASAP. ®

Source link

Continue Reading

Technology

How to ask your boss for more flexible working

Voice Of EU

Published

on

While returning to the office is now possible for many, some workers might still want the option of flexible working some of the time. Here’s how to broach the subject.

This week marked the beginning of a phased and staggered return to workplaces for many employees in Ireland.

It essentially marked the first official green light for employers to ready their offices and start putting plans in place for their staff’s return.

Click here to check out the top sci-tech employers hiring right now.

However, HR body CIPD Ireland urged employers to be mindful of anxious workers as they face “another round of upheaval” with the return to offices.

So, while employers are finalising plans about how, where and when their teams will work, some employees may be wondering how to go about expressing their preference, worried that it’s not in line with what the company wants.

While there have been plenty of discussions and remote work advocates calling for leaders to be more flexible and recognise that the future of work will be hybrid, the reality for individual employees can feel very different.

While big-picture debates around the right to request remote work are happening, how do you ask for what you want in the here and now, when your boss is determined to have a full return to the office?

Explain your reasons

If remote or flexible working isn’t something your boss is already willing to give you, then you must treat it like a pay rise request.

Explain clearly and concisely the reasons why you want more flexibility, how it will benefit you and make you a more engaged, happier worker.

While family commitments might be an important factor, so too is work-life balance and getting rid of long commutes. And, while there is light at the end of the pandemic tunnel, Covid-19 is still a very real concern, so don’t be afraid to express your reservations about this too.

Make a business case

When you ask for a pay increase, you provide proof of the value you have added to the company. Take the same approach here and explain to your boss how flexible working will actually be beneficial to them.

Some managers who resist remote working might still have an office-based mentality where presenteeism is key. But there are numerous studies that show that knowledge workers are more productive when working remotely.

And, when done as a purposeful business strategy, remote working can help teams prioritise work more clearly as well as allowing for more downtime and work-life balance.

Be realistic

Depending on your manager, your team and the work you do, it may not be feasible to ask to work from home five days a week.

It’s important that you are realistic about asking for what you want and also realistic about what you can deliver in return. Remote workers can be more productive but they can also be in danger of burning out so be thoughtful about what strategy will work best for both you and your manager.

Listen to their perspective

While conversations around remote working appear to be mostly positive, it can be a different situation behind the office doors.

Many managers and leaders are still hesitant about moving to a fully flexible working strategy and this can lead to workers feeling like they are not being listened to.

However, one of the best ways to combat that hesitancy from managers is to listen to their concerns and address them in a problem-solving manner.

Being able to alleviate some of your manager’s worries might make them more amenable to allowing for more flexibility.

Make expectations clear

If you do convince your boss to allow for a more flexible working plan than what they had originally considered, it’s important that both sides understand what is expected.

Without clearly defining the outcomes of the new set-up, misunderstandings can lead to disappointments and feelings of mistrust in the idea of flexible working.

Source link

Continue Reading

Trending

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates 
directly on your inbox.

You have Successfully Subscribed!