Google announced a share buyback worth $ 50 billion.
JUSTIN TALLIS / AFP / Getty Images
The stimulus check that has reached US taxpayers will provide an additional financial boost for tech companies like Facebook, Apple and Google.
The United States Government Has Approved Record Amounts Of Stimulus Spending During The Coronavirus Pandemic deciding to use different federal mechanisms to boost the economy affected by the crisis.
Among them is the stimulus check that millions of people in the country have received has been the key since only in the third round of payments some $ 380,000 million dollars have been allocated.
The Reuters agency reported that tech giants such as Facebook and Instagram benefited from the money injection, as companies seek to improve their visibility in the marketplace as consumer spending increases.
The advertising revenue available to technology companies are an important part of your business models and they have received a new boost thanks to the stimulus check.
Shares of Apple and Facebook soared on Wednesday after the two tech giants posted their earnings and earnings. Apple said sales in China nearly doubled and the result exceeded analysts’ targets in all categories., as iPhone sales exceeded forecasts by $ 6.5 billion and Mac computer sales remained above estimates.
Apple, the king of the pandemic
Apple also announced a $ 90 billion share buyback and its CEO, Tim Cook, said in an interview with Reuters that the company sees a strong economic recovery from the United States.
Apple has improved during the global health crisis as consumers were trapped at home for more than a year and stocked up on new iPhones, subscribed to new apps and music streaming services.
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Facebook, advertising at risk
Facebook also benefited because consumers stayed at home what it has taken to an increase in online traffic resulting in higher spending on advertising by companies.
The world’s largest social media company reported that expects next quarter revenue to remain stable or grow moderately, but cautioned that third and fourth quarter growth rates could decrease significantly due to the new pop-up privacy notice that Apple released this week on its devices that could hurt the company’s advertising.
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Alphabet, Google’s parent company, also announced record earnings for a second consecutive quarter and a share buyback worth $ 50 billion.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.