Institute of Marketing Communications India®

Profits of Google and Microsoft skyrocket with the onset of the pandemic

America’s biggest tech giants Google and Microsoft have reported massive profits from their operations as most people around the world have increased their internet usage during the pandemic.

At Microsoft, profits have increased by 44 percent to $US15.5 billion ($20 billion). For Google’s parent company Alphabet, it has grown by more than double, increasing by 162 percent to $US17.9 billion. This has been recorded as the highest ever growth in their sales since the past eight years.

Further, as Google’s advertising business has grown stronger over the past year, Alphabet has also been largely benefiting from this. Its revenue in the last quarter has increased sharply from the same period last year.

Like most of the biggest tech companies, Microsoft and Alphabet have thrived during the crisis year. The online activity of people globally has spiked up and this was one of the major reasons behind the increased revenues.

Alphabet had reduced its general expenses last year but its sales and marketing costs remained flat. This also led to the hiring of new employees over the year. They increased their strength by adding 17,000 new employees to the company and now globally they have around 140,000 staff members.

Microsoft’s gaming division also launched a newer line of XBox consoles and this also added up to the increase in its revenue by around 40 percent. Recently, Satya Nadella, CEO of Microsoft has also been after more acquisitions. Some of the major additions to the umbrella of Microsoft have been Nuance Communications, an artificial intelligence company for $US16 billion and ZeniMax, a video game company for $US7.5 billion.


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