ISTANBUL
The world’s seven largest companies --Microsoft, Apple, Alphabet, Amazon, Meta, Nvidia, and Tesla -- collectively reported a net profit of $143 billion in the second quarter of the year, according to their financial statements.
These firms, often referred to as the "Magnificent 7," saw a 27.6% increase in net profits year-on-year and a 3.5% increase from the previous quarter.
Their combined revenues reached $551.4 billion, marking a 15.4% increase compared to the same quarter last year, and a 6.6% increase from the previous quarter.
The capital expenditures (CapEx) of these companies surged 66.1% annually, rising from $58.3 billion to $96.8 billion, and saw a 24.6% increase on a quarterly basis.
Alphabet, the parent company of Google, posted the highest net profit among the group at $28.2 billion for the second quarter.
Alphabet was followed by Microsoft with $27.2 billion, Nvidia with $26.4 billion, Meta with $18.3 billion, Amazon with $18.2 billion, and Tesla with $1.2 billion.
Tesla posted the largest quarterly net profit increase of 186.6%, rising from $409 million in the previous quarter, the data showed.
Nvidia’s quarterly net profits rose 40.7%, followed by Meta with 10.2%, Amazon with 6.1%, and Microsoft with a 5.5% increase, while Alphabet saw an 18.4% decline and Apple posted a 5.4% decrease.
Nvidia also recorded the highest growth value-wise in net profit, increasing by $7.6 billion.
Alphabet had been consistently increasing its net profits on a quarterly basis since the fourth quarter of 2022 to the first quarter of this year, but in Q2 this figure fell from $34.5 billion to $28.2 billion, halting the momentum.
On an annual basis, Nvidia saw the largest rise in net profit with a 59.2% increase in the second quarter, followed by Meta at 36.2%, Amazon at 34.7%, Microsoft at 23.6%, Alphabet at 19.4%, and Apple at 9.3%. Tesla’s net profit declined 16.3% to $1.2 billion.
Amazon posted the highest quarterly revenue, totaling $167.7 billion, followed by Alphabet at $96.4 billion, Apple at $94 billion, Meta at $47.5 billion, Nvidia at $46.7 billion, and Tesla at $22.5 billion.
In terms of quarterly revenue growth, Tesla led with a 16.3% increase, while Apple was the only company to report a slight decline of 1.4%.
On an annual basis, Nvidia saw the largest quarterly revenue growth with a 55.6% increase, followed by Meta at 21.6%, Microsoft at 18.1%, Alphabet at 13.8%, Amazon at 13.3%, and Apple at 9.6%. Tesla saw a decline of 11.8%, bringing its revenue to $25.5 billion.
In terms of capital expenditures, Amazon had the highest spending at $32.2 billion in Q2, while Alphabet posted $22.5 billion, Meta $17.3 billion, Microsoft $17.1 billion, Apple $3.5 billion, Tesla $2.4 billion, and Nvidia $1.9 billion.
Despite a slight decline in the third quarter of last year, Alphabet has maintained its capital expenditures on a quarterly basis since the first quarter of 2023.
Meta had the highest increase in capital expenditures versus the same period last year with a surge of 111.8% from $8.2 billion to $17.3 billion, followed by Nvidia with 93.9% to $1.9 billion.
Amazon’s capital expenditures increased 82.7%, Alphabet’s 70.2%, Apple’s 60.9%, Microsoft’s 23.1%, and Tesla’s 5.4%.
Analysts say that the rise of the tech giants’ artificial intelligence (AI) and data center investments and the growth rate of long-term investments, has led to increases in capital expenditures.
As for earnings per share, Meta topped in the second quarter with $7.3, followed by Microsoft with $3.7, Alphabet with $2.3, Amazon with $1.7, Apple with $1.6, Nvidia with $1.1, and Tesla with $0.4, the data showed.
Tesla’s earnings per share surged 176.9%, while Nvidia’s increased 40.3%, Meta’s 10.5%, Amazon 5.6%, and Microsoft 5.5%. Alphabet’s earnings per share fell by 18% and Apple’s by 4.8%.
