Three of the world's largest and most influential technology companies — Apple, Facebook and Google — this week reported their latest earnings results for the quarter ending in June 2016. Facebook closed the week with its stock at an all-time high. Following impressive growth during the previous quarter, it is now among the five most valuable companies in the world. Apple sits atop that list with a market cap of $567.8 billion, and Google is next, with a cap of $546.7 billion. Facebook is valued at $362.9 billion, placing it fifth on the list behind Microsoft ($444.4 billion) and Amazon ($368.5 billion).
Here's a quick summary of the highs (and lows) of the financials from the three companies:
Apple continues to decline
Apple's 13-year revenue growth streak came to an end earlier this year, and the trend continued in the company's fiscal third quarter of 2016. Many of Apple's key business metrics are in decline, including revenue, which dipped almost 15 percent year over year to $42.4 billion. Sales of Apple's flagship products and geographic growth also shrunk, according to the company's financial results.
Sales of iPads and services (mostly iTunes and App Store) were the only growth areas for Apple. Its services business grew by 19 percent year over year to $5.9 billion, and though iPad shipments were down by 9 percent, related tablets revenue jumped 7 percent to almost $4.9 billion. iPhone sales declined by 15 percent year over year to 40.4 million, and revenue from Apple's smartphone business dropped 23 percent year over year to $24 billion. Apple banked $7.8 billion in net income on $42.4 billion in revenue during the quarter. The company also said it sold its billionth iPhone in July.
Facebook audience growth soars
Facebook saw growth in every important metric during the second quarter of 2016. Its ad revenue jumped 63 percent year over year to $6.24 billion, and the company said 1.71 billion people now use the service at least once a month, a use number that's up 15 percent year over year. Facebook's daily active users rose 17 percent year over year to 1.13 billion, and 1.03 billion of those people use mobile devices to access Facebook every day, according to the company.
During the earnings call, Facebook CEO Mark Zuckerberg reiterated the company's long-term vision for "a world that is video first, with video at the heart of all our apps and services." Zuckerberg said the company doesn't plan to run pre-roll ads before videos and will instead opt to run interstitial ads between video segments. Facebook provided no details or timeline for when ads might make their way to live video. The company banked $2.05 billion in net income on $6.44 billion in revenue during the second quarter of 2016.
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