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| Amazon and Alphabet see sales surge | Amazon and Alphabet see sales surge |
| (35 minutes later) | |
| Tech giants Amazon and Google's parent Alphabet have posted a surge in sales over the last three months. | Tech giants Amazon and Google's parent Alphabet have posted a surge in sales over the last three months. |
| Shares in Alphabet jumped above $1,000 in after-hours trading after the company reported sales up 24% to $27.8bn. | Shares in Alphabet jumped above $1,000 in after-hours trading after the company reported sales up 24% to $27.8bn. |
| Amazon, the world's biggest e-commerce site, saw sales rise 34% to $43.7bn - nearly the size of Slovenia's economy last year. | Amazon, the world's biggest e-commerce site, saw sales rise 34% to $43.7bn - nearly the size of Slovenia's economy last year. |
| Meanwhile, Microsoft's profit beat estimates on gains from cloud services. | Meanwhile, Microsoft's profit beat estimates on gains from cloud services. |
| Alphabet's profits for the three months to 30 September rose to $7.8bn, from $5.6bn for the same quarter last year. | Alphabet's profits for the three months to 30 September rose to $7.8bn, from $5.6bn for the same quarter last year. |
| The company's chief financial officer Ruth Porat said the firm was delighted with the way it was performing. | The company's chief financial officer Ruth Porat said the firm was delighted with the way it was performing. |
| "We had a terrific quarter, with revenues up 24% year on year, reflecting strength across Google and Other Bets," she said. | "We had a terrific quarter, with revenues up 24% year on year, reflecting strength across Google and Other Bets," she said. |
| "Our momentum is a result of investments over many years in fantastic people, products and partnerships." | "Our momentum is a result of investments over many years in fantastic people, products and partnerships." |
| Google continues to make up the vast majority of Alphabet's revenue and income. However the so-called Other Bets unit, which includes the Waymo driverless car business and the Project Loon WiFi-enabled weather balloon venture, saw revenue increase and losses fall. | |
| Total Other Bets revenue was up to $302m, from $197m last year. | Total Other Bets revenue was up to $302m, from $197m last year. |
| Amazon | Amazon |
| Despite Amazon's sales growth, the firm's profits were nearly flat as it ploughed money into tech gadgets, streaming video, data centres and warehouses to support its growing empire. | Despite Amazon's sales growth, the firm's profits were nearly flat as it ploughed money into tech gadgets, streaming video, data centres and warehouses to support its growing empire. |
| The firm said profits in the three months to the end of September were $256m, up from $252m in 2016. | The firm said profits in the three months to the end of September were $256m, up from $252m in 2016. |
| Shares surged in after-hours trade anyway, as investors, who had been expecting a smaller number after being warned to expect the reinvestment, cheered the firm's growth prospects. | Shares surged in after-hours trade anyway, as investors, who had been expecting a smaller number after being warned to expect the reinvestment, cheered the firm's growth prospects. |
| Revenue in its profitable cloud services division exceeded $4.5bn, up 42%. | Revenue in its profitable cloud services division exceeded $4.5bn, up 42%. |
| Upmarket grocer Whole Foods, which Amazon acquired in August, brought in $1.3bn in sales in the quarter. | Upmarket grocer Whole Foods, which Amazon acquired in August, brought in $1.3bn in sales in the quarter. |
| Excluding Whole Foods, sales increased 29%, Amazon said. | Excluding Whole Foods, sales increased 29%, Amazon said. |
| Sales were up 35% overall in North America, which accounts for the bulk of Amazon's business. They increased 29% in its international division thanks in part to a Prime Day surge, but the unit is still running at an operating loss. | |
| The firm also said it now has nearly 542,000 full and part-time staff, including workers from Whole Foods. It continues to look at ways to expand its physical stores as well. | The firm also said it now has nearly 542,000 full and part-time staff, including workers from Whole Foods. It continues to look at ways to expand its physical stores as well. |
| Microsoft | Microsoft |
| Microsoft said it earned revenue of $24.5bn in the three months to end-September, up 12% year-on-year. | Microsoft said it earned revenue of $24.5bn in the three months to end-September, up 12% year-on-year. |
| The firm's profits were $6.6bn, rising 16%. Microsoft shares rose 3.1% after-hours to a record $81.2. | |
| Microsoft said growth was driven in part by its cloud computing products, which it has focused on in a bid to be less reliant on computer sales and older software. | Microsoft said growth was driven in part by its cloud computing products, which it has focused on in a bid to be less reliant on computer sales and older software. |
| Amy Hood, executive vice president and chief financial officer at Microsoft, called it a "strong start" to the year. | Amy Hood, executive vice president and chief financial officer at Microsoft, called it a "strong start" to the year. |
| The firm reported $6.9bn in revenue from its intelligent cloud unit, up 14% year-on-year. | The firm reported $6.9bn in revenue from its intelligent cloud unit, up 14% year-on-year. |
| Its productivity and business processes division, which includes sales from Office 365, reported $8.2bn in revenue, up 28%. | Its productivity and business processes division, which includes sales from Office 365, reported $8.2bn in revenue, up 28%. |
| A fourth tech company, Intel, also posted a jump in revenues and profit. The world's largest computer chip maker said revenue rose 2% during the quarter to $16.1bn, with net income up 34% to $4.52bn. | A fourth tech company, Intel, also posted a jump in revenues and profit. The world's largest computer chip maker said revenue rose 2% during the quarter to $16.1bn, with net income up 34% to $4.52bn. |