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BUSINESS Saturday 28 april 2018
A25

7 striking facts about the money

tech companies are making

By The Associated Press
Everyone knows the tech
industry is rich, but it can
be challenging to get your
head around just how
much money it's minting.
Four of the industry's giants
— Facebook, Microsoft,
Amazon and Google par-
ent Alphabet — reported
In this Feb. 17, 2017, file photo an American flag hangs on the unexpectedly large profits
front of the New York Stock Exchange in New York. this week. (Amazon's profit
Associated Press
more than doubled Thurs-
Stocks finish mixed day.) A fifth, Apple, releas-
es earnings on Tuesday.
These companies are the
as Amazon leads largest on Earth, at least in
terms of their market value.
retail rally; Exxon dips The large profits come
even as the tech industry,
notably Facebook, faces
questions about the extent
By MARLEY JAY market strategist for Voya to which companies de- In this Sept. 24, 2013, file photo, just cut stacks of $100 bills make
NEW YORK (AP) — U.S. Investment Strategies, said pend on collecting person- their way down the line at the Bureau of Engraving and Printing
stocks finished with a split investors haven't regained al data on users to fuel their Western Currency Facility in Fort Worth, Texas.
decision Friday after a wob- their confidence since Feb- advertising revenue. Associated Press
bly day of trading. Amazon ruary's market plunge. But Raw financial figures only parison, Apple makes al- ads this year, according to
led a rally among retailers, in her view, the economy tell you so much, though. most three times what Exx- eMarketer.
but Exxon Mobil dragged continues to do well and Here are seven facts you onMobil does; the oil giant That's more than a quarter
energy companies lower there are few signs that in- might not know about the had an average daily profit of expected U.S. spending
to end an uneven week on flation or wages are about lucre the technology indus- of $54 million last year. on all forms of advertising
Wall Street. to rocket higher, an out- try is rolling in. ___ ($221 billion). All of it is in
So far the first-quarter earn- come that could dent cor- ___ While you were looking at the hands of just two com-
ings season has been a porate profits. The S&P 500 The five largest tech com- baby pictures or stalking panies.
strong one for U.S. com- index gained 2.97 points, panies are collectively your ex today, Facebook Mark Zuckerberg made
panies, but it hasn't thrilled or 0.1 percent, to 2,669.91. worth more than the en- made $1.6 million. That's $6.6 billion on Thursday,
investors. On Friday Ama- The Dow Jones industrial tire economy of the United based on the 42 minutes the day after Facebook
zon, Microsoft and Expedia average lost 11.15 points, Kingdom. Investors value a day the average user reported earnings. The
all climbed after reporting or less than 0.1 percent, these companies at $3.5 spends on Facebook, ac- company’s stock jumped
earnings, but Exxon, Char- to 24,311.19. The Nasdaq trillion; the gross domestic cording to the research 9 percent on the news;
ter Communications and composite rose 1.12 points product of the U.K. was $2.6 firm eMarketer. Facebook's the Facebook co-founder
Starbucks all slumped. Ac- to 7,119.80. The Russell 2000 trillion in 2017, according to profits were almost $5 bil- owned 457.1 million shares
cording to FactSet, about index of smaller-company the International Monetary lion in the first quarter — $56 as of Dec. 31.
80 percent of the S&P stocks lost 1.66 points, or Fund . Only four national million a day, $2.3 million Of course, that cuts both
companies that have re- 0.1 percent, to 1,556.24. economies are larger than an hour, $39,000 a minute. ways. When Facebook’s
ported their results have Most of the stocks on the the combined tech giants: ___ stock slid 8 percent in a
announced a larger per- New York Stock Exchange those of the U.S., China, Ja- The two big tech compa- day after the Cambridge
share profit than analysts finished higher. The U.S. pan and Germany. nies you almost never pay Analytica privacy scan-
expected. High-dividend economy grew 2.3 percent The same five tech compa- directly — Google and dal broke, Zuckerberg lost
companies like utilities rose in the first quarter, better nies are worth more than Facebook — can afford more than $6 billion.
as bond yields slipped, but than experts had forecast. the next 11 most valuable to offer you free services ___
defense contractors fell. While consumer spend- U.S. corporations, a list that thanks to their hammerlock With a single move, Ama-
Asian stocks rose following ing turned in the weakest includes JPMorgan Chase, on digital advertising. The zon could create $2 billion
the landmark summit of performance in nearly five Johnson & Johnson and two will sell an estimated out of thin air.
the leaders from North and years, experts think it will Walmart.
South Korea. pick up later in the year ___ $61 billion in U.S. online q
This week investors wor- thanks to continued low Apple makes roughly as
ried that rising raw materi- unemployment and Re- much money every day as
als costs, as well as higher publican-backed tax cuts. 2,500 average U.S. house-
interest rates and wages, Bond prices rose again. holds can expect to see in
could eat into corporate The yield on the 10-year a year. That's $151 million, a
profits. Meanwhile they Treasury note fell to 2.96 figure calculated from the
were pleased with strong percent from 2.98 percent company's expected profit
results from Facebook, Am- Thursday. It hit four-year in the January-March quar-
azon, Microsoft and others. highs recently and peaked ter and the median house-
The S&P 500 index finished at 3.03 percent earlier this hold income of $57,230, as
the week almost exactly week. High-yield stocks like reported by the Census Bu-
where it started. household goods makers reau .
Karyn Cavanaugh, senior and utilities moved up.q For a more prosaic com-