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Cloud and COVID boost Amazon but ad swoon hits Alphabet and Facebook – SiliconANGLE

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Hot off Wednesdays congressional grilling of their chief executives on whether theyre too big, three internet giants today reported a total of almost $146 billion in second-quarter revenue even after the impacts of the coronavirus pandemic and with Apple Inc. thrown in, the haul topped $205 billion.

Amazon.com Inc. appeared to see a big benefit as the go-to shopping site during the ongoing pandemic. The e-commerce and cloud computing giant reported a profit of $5.2 billion, or $10.30 a share, double a year ago. Revenue jumped 40%, to $88.9 billion, a huge acceleration from its 20% increase a year ago.

Google LLC owner Alphabet Inc. and Facebook Inc., however, saw a big hit from the advertising slowdown during the pandemic, since they both make the vast majority of revenue from selling ads. Alphabets revenue actually fell slightly from a year ago, to $38.3 billion, while Facebooks revenue grew only 10%, to $18.7 billion.

The varying results reflected the shifting impacts of COVID-19, though the bottom line was that the impact wasnt nearly as bad as some might have expected. That showed both the resilience of their business models but also their dominance, which helped prompt the congressional antitrust probe that thrust all three of the firms CEOs before withering congressional criticism from both sides of the aisle.

Investors seemed at least sanguine about the results of each company, with after-hours trading all positive: Facebook up almost 7%, Amazon up about 5% and Alphabet up as much as 1%. The stock of yet another tech giant, Apple, also rose on better-than-expected results. Update: On Friday, investors turned sour on Alphabet, whose shares were falling more than 4% in early trading, while Facebooks stock was rising more than 7% and Amazon was up 4%. Apple shares were up nearly 6%.

Still, the overall outlook remains uncertain. As Alphabet Chief Financial Officer Ruth Porat summed it up in a conference call, despite improvements in the past month or so, it is premature to gauge the sustainability of recent trends.

Here are the details on each of the three internet giants:

Googles parent company reported its worst quarter since it went public 15 years ago. Its profit fell from $9.9 billion a year ago to $6.96 billion, or $10.13 a share, in this years second quarter, on a 2% revenue decline, to $38.3 billion. Thats a stark reversal of last years second-quarter revenue increase of 19%. But it still beat analysts forecasts of an $8.27-a-share profit on revenue of $37.3 billion.

The revenue decline was a reflection of a broad-based decline in advertising, with companies pausing marketing in key areas such as travel. Still, it could have been worse. Google ad revenues were down for the quarter, but all three parts of Googles ad business outperformed our expectations for Q2, including a substantial beat for search revenues (down 10%) compared to our expectations of a 17% decline, saideMarketer principal analyst Nicole Perrin. We expected April to be the bottom of the digital ad market, with a return to growth in May and June, and these results suggest that acceleration was stronger than expected.

Still, Google may need to make changes on the ad front going forward, said Nucleus Research analyst Daniel Elman. As companies look to adapt and recoup missed revenues from earlier in the year, its not likely that companies will return to their digital ad spends in the near term, instead theyll look to strategically deploy marketing dollars on more targeted campaigns that reach fewer, but better qualified leads, he said. Google will need to find a new model or ad channel to leverage in order to make up for this changing customer behavior, or it will suffer continued revenue misses.

There were some bright spots, such as Google Play apps and media, and in particular Google Cloud, where revenue jumped 43%, to $3.01 billion. As people increasingly turn to online services, our platforms from Cloud to Google Play to YouTube are helping our partners provide important services and support their businesses, CEO Sundar Pichai said in prepared remarks.

Were pleased with the traction of wins from large customers in Google Cloud, Porat said. Cloud has maintained its strength consistently. She added that Google Cloud Platform is growing significantly faster than G Suite.

Google Cloudhas announced a number of new products and partnerships that show its roadmap is on track, said Elman. As another long-term play, Alphabet would like to see this area grow into a significant revenue channel similar to how AWS is to Amazon.

The e-commerce and cloud computing giant reported a profit of $5.2 billion, or $10.30 a share, double a year ago. Revenue jumped 40%, to $88.9 billion, a huge acceleration from its 20% increase a year ago as Amazon became a go-to shopping source during the pandemic. Analysts had forecast a $1.72-a-share profit on a 28% jump in revenue.

As an online retailer, it was the primary shopping choice for millions of people when physical locations were closed, said Nucleus Elman. Its been able to tighten up the slow shipping hiccups that occurred earlier in the shutdown and seems to have the distribution channels accommodated to the increased volume.

The profit was so high that on Amazons conference call, RBC Capital analyst Mark Mahaney joked, Does Jeff know about that? Amazon CEO Jeff Bezos is well-known for spending much of Amazons profits on expansion.

Last quarter, Bezos said the company would likely spend all the $4 billion in operating profit it expected to make in the second quarter on COVID-19-related expenses to protect employees and provide higher pay, and he confirmed in prepared remarks that Amazon did spend that much. That may provide a soft benefit, coming a day after Bezos and his CEO counterparts at Alphabet, Facebook and Apple endured hours of congressional questioning on whether theyre monopolies.

Amazon is the main beneficiary of ecommerces massive pandemic-driven tailwind, but sales gains come with higher costs for labor and logistics and a shift towards a less profitable category mix of lower-margin grocery and household essentials, said eMarketer principal analyst Andrew Lipsman. Despite the near-term profit hit, Amazon has strengthened its future position in key growth areas like grocery, health and advertising.

As usual, though, Amazon Web Services provided the lions share of profit, though its revenue growth slowed. AWS reported operating income of $3.36 billion, up from $2.12 billion a year ago, on a 30% rise in revenue, to $10.8 billion. That rate was a bit less than the 33% growth clip in the first quarter. Analysts on average were expecting AWS revenue of $11.02 billion.

Customer usage remains strong, Amazon CFO Brian Olsavsky said on a conference call, though he added that growth varies across industries depending on the impact of COVID-19.

For AWS, as businesses were forced to accelerate their digital initiatives, particularly cloud migrations and application modernizations, it was perfectly positioned to onboard and serve these customers, said Elman. Expect the growth in the AWS area to be impressive and continue for the foreseeable future.

Martin Garner, a research director at CCS Insight, said that a lot of AWS customers are looking to save money, including spending less with AWS, and AWS says it is helping them do that. That is offset by new customers shifting their work more quickly to the cloud as a way of reducing costs.

And the decline in AWS growth rate may not be that meaningful. Its important to note that it grew more in one quarter, $2.4 billion, larger than the entire annual revenue of many cloud plays, said Patrick Moorhead, president and principal analyst at Moor Insights & Strategy. AWS is well on its way to creating an annualized $40 billion revenue company. This makes AWS larger than Salesforce.com and SAP.

Still, AWS advantages in the cloud overall dont extend to the productivity applications that are driving Microsoft Corp.s and Googles clouds as more people work from home during the pandemic. AWS revenue growth is less predictable in the pandemic, noted Martin Garner, chief operating officer at CCS Insight. Instead, AWS supports the operations of large numbers of companies, which themselves have been hit by the pandemic. Some of these will see increased cloud usage, such as other retailers accelerating their ecommerce strategy, but others will see reductions.

Overall, Amazon forecast a wide revenue range of $87 billion to $93 billion in the third quarter, or up 24% to 33%. Operating income is forecast at an even wider range of $2 billion to $5 billion, from $3.2 billion in last years third quarter. It assume $2 billion in costs related to COVID-19.

The social networking conglomerate reported a profit of $5.18 billion, or $1.80 a share, almost double a year ago. Revenue rose just 10%, to $18.7 billion, a huge slowdown from its 28% jump in the year-ago quarter. Still, both were better than forecasts. Analysts had expected a $1.37-a-share profit on revenue of $17.4 billion.

Our business has been impacted by the COVID-19 pandemic and, like all companies, we are facing a period of unprecedented uncertainty in our business outlook, the company said in prepared remarks. We expect our business performance will be impacted by issues beyond our control, including the duration and efficacy of shelter-in-place orders, the effectiveness of economic stimuli around the world, and the fluctuations of currencies relative to the U.S. dollar.

Although there was a drumbeat of marketers pausing or boycotting Facebook over its various misinformation issues, that didnt really start until after the quarter closed. The effects of that will not be felt until Q3 earnings come out, said eMarketer principal analyst Debra Aho Williamson.

Indeed, Facebook acknowledged the impact of the boycott, adding in its guidance that the impacts of that and other factors were likely to continue: In the first three weeks of July, our year-over-year ad revenue growth rate was approximately in-line with our second quarter 2020 year-over-year ad revenue growth rate of 10%. We expect our full quarter year-over-year ad revenue growth rate for the third quarter of 2020 will be roughly similar to this July performance.

Still, the strength of Facebook advertising from small and medium-sized businesses, a source of stability until recently, could be having an outsized impact as those companies suffer the most from pandemic shutdowns.

Not surprisingly, Facebooks ad business was negatively affected by the global pandemic, but the impact was much less than many had expected, said Williamson. Facebook has successfully attracted digital-native businesses to its platform, especially those market products or services that can be used or consumed by people staying at home.

That had a lot to do with Instagram, she added. Although Facebook doesnt release details about Instagrams revenue, we believe that Instagram has been a rapidly growing contributor to the companys total revenue, and that its success is helping to buoy Facebook as a whole, she said.Looking ahead to Q3 2020, the revenue growth rate guidance Facebook has provided is sobering, but again, reflective of the uncertain state of the worlds economy.

Others were a bit more positive. No other platform can offer brands and advertisers the reach and scale that Facebook can offer, said Yuval Ben-Itzhak, CEO of the social marketing firm Socialbakers. As long as Facebook and its family of applications continues to attract users, their advertising business is likely to remain strong. With both daily active user and monthly active users up, Facebook is still attractive to new audiences and advertisers need to be where the users are.

Facebook didnt provide profit guidance for the third quarter and full year, but said revenue is likely to be roughly similar for both periods to the 10% uptick it saw in the first few weeks of July. It did provide a somewhat narrower range of total expenses for the full year, $52 billion to $55 billion, and capital spending of $16 billion, at the high end of its previous range of $14 billion to $16 billion. But it said a great deal of uncertainty remains in our outlook.

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Cloud and COVID boost Amazon but ad swoon hits Alphabet and Facebook - SiliconANGLE

Future of jobs: Have you heard of redistributed retirement? | – Citizen Matters

Learning does not stop after you complete your higher education. It, in fact, starts then. Representational image by Jan Kosmowski from Pixabay

M K Rao hails from a lower middle-class Mumbai-based family and needed a job. As luck would have it, soon after he completed his 10th exam in 1970, a friend referred him to a multinational company that was looking for office attendants. Raos smattering of English was enough for him to land the job.

Given that the staff in that company was unionised and job guarantee was a done deal, he could have continued as an office attendant and retired at the age of 58 after serving the company for 40 years. Most of his fellow office attendants had been with the company for 20+ years.

Rao, however, was made from a different material. He decided to attend evening classes for doing a BA degree. Fortunately, he found a suitable evening college near his office and graduated with flying colours. A request to the management got him a move from the Peons Corner to the position of a clerk in the marketing department.

Rao was inspired by what he saw the marketing team was doing. He did not want to retire as a marketing clerk. His search revealed that a leading business school offered a part-time, evening-class based certificate in marketing management. It was gruelling work for three years but Rao managed to complete the course.

The path from being a marketing clerk to becoming a brand manager is indeed steep. But Raos commitment and dedication got him a junior executive position in the marketing team. He was told that he was moving out of the Chathra Chaya [umbrella] of the union and would now have to fend for himself.

Rao moved from being a data analysis clerk to the position of Assistant Product Manager. He continued to work hard, learn new skills, got promoted as regional sales manager and later returned to the Head Office as a Marketing Services Manager. In this position, he played a key role in streamlining the sales representatives incentive system.

Rao managed to transition from the role of an office assistant to a clerical assistant to an executive, in the span of a decade and more. This was the age of physical classes and notes. He did not have internet to help him in his learning journey. But he managed a miracle in career transformation.

Finally, when he retired a few years ago as General Manager Sales Operations, no one would have guessed that Rao had started his career as an office assistant 45 years ago. Interestingly, Rao is now settled in Mumbai helping his son-in-law streamline his film post-production business.

Why is his story so relevant to all young job seekers today? As we enter the post-COVID world of work, we are going to see several disruptions in the way we work and the way we learn.

Manish Kumar, MD & CEO of the National Skills Development Corporation, says it well: Some jobs are at risk, but many new ones are going to get created post-COVID.

Going forward, the key is constant reskilling and upskilling.In addition to domain skills, complex problem solving, communication and team work will become very important

Adam Grant, a Professor at the Wharton Business School, has a fascinating podcast on the future of work and life [WorkLife with Adam Grant a TED Podcast]. In a World Economic Forum discussion, he points to two big trends:

What does all this mean to todays employee, that too a millennial employee?

Let me start by quoting Piyush Sharma, an Executive in Residence at ISB [from his Fortune opinion piece]:

Life will change from the chunky three-stage model education, work and retirement- to a fluid almost ongoing multistage model where education, exploration, employment, self-employment, retirements and a portfolio of paid and nonpaid work will all be in a continuum. Education will be all through, work will be much longer, and retirement will be perhaps redistributed.

If you have a B Tech in Computer Science or a B Com degree, or a professional degree like CA or an MBA, chances are that a lot of that knowledge will be completely outdated 10 years hence. A scary thought indeed.

But look at it another way. When I was in business school in the late 1970s, we did not have a computer in our campus. We did not know about word processing, spread sheets or power point presentations. The 60+ generation too have had to learn a lot after they left their schools. But that was at 30 kmph (kilometres per hour).

Today, that speed just changed to 300 kmph!

Nandita Gurjar, former Chief Human Resources Officer of Infosys, feels that many Millennials are already embracing a dual career life, one that is pure work and one that is pure passion. This has been aided by the double career liquidity, says Nandita. Having two highly paid members in a family opens up many possibilities of flexible career moves and breaks when needed.

She is quick to point out that both the executive and the system around him/her needs to embrace a great level of flexibility since the Gig Economy is here for good. Gig Economy for the uninitiated is where all jobs are parcelled out to freelancers; more and more jobs will get absorbed by the Gig Economy.

The idea of people switching jobs several times during their life is not a new concept. It was proposed by Alvin Toffler in his hugely popular, epochal book Future Shock. Toffler, while writing his book in 1970, was comparing the jobs of the 1970s and 1980s to the jobs of the early industrial era.

The knowledge revolution was then just entering the work scene. Computers were being used in large corporations. The IBM PC made its entry in 1981 and that was a major transformation of sorts. To be followed by the internet revolution. Toffler was probably foreseeing all this when he wrote his book.

The illiterates of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn.

So if you have to be prepared for an N-Career Life what should you be doing?

Deepali Nair, CMO-IBM India and South Asia has coined a nice term to describe something that all of us should start developing. She calls it Learnability Quotient.

In other words, your learning does not stop after you complete your higher education. It, in fact, starts then.

But you may wonder how you would know if you are losing touch. How would you know that you have hit a glass ceiling? Are there any signals?

In the new economy, the signals will be all around you. You may not get the big project you were hoping to land. You may not get the promotion you wanted.

So what do you do? Fret and fume, or realise that you need to reboot, the way champions do. Go back to the drawing board.

And do what, you ask?

There are two approaches here. One is to dig deeper and become an expert in a narrow domain so that your expertise is in greater and greater demand. If, for example, you take digital marketing, you may want to become better at data analytics and focus on learning AI systems and better analytics methods.

The opposite to this approach is to go broad, from digital marketing go to the broader areas of marketing. Maybe find out how to use Design Thinking methods to do a better marketing job.

Depending on your current job you can try and visualize three or four future paths your career can take. What you need do is see how you can prepare for it by doing the courses that will help you.

What is so wonderful today is that so much is possible just by sitting in front of your computer. You do not have to go to a night college like our friend Rao. You can enroll for a multitude of courses and then pick the one or two you want to complete.

For example, last year I did a course on Digital Marketing with Udemy. Found it of great value. Will I use all that I learnt? No. But will it be useful for me to understand what a 23-year-old social marketing expert is talking about? You bet!

There is one big challenge with taking online courses. The loneliness. It will be ideal if you can find a friend or two who can join you on your learning journey. That way you can motivate each other and learn from each other. Believe you me, the day you can combine peer-based learning with digital learning, you would have opened the magic box of learning.

Should you be worried? Yes. But should you also be energized? Definitely. With the growth of technology, you are going to see a number of new job options opening up. The question is whether you will be ready to grab those opportunities. To do that you need to do to refresh and relearn.

Constantly. At every stage of your life and career. And be prepared for the sharp career turns that are bound to become necessary in the coming years.

This applies to all those who are starting their career or those who are in the early stages of their career.

Ask yourself:

And then, repeat these questions to yourself every two years to build a robust N-Career Life. As Abraham Maslow has said, In any given moment, we have two options: To step forward into growth or to step back into safety.

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Future of jobs: Have you heard of redistributed retirement? | - Citizen Matters

Digital Marketing for Business 2020: Exceed 2019 with the Essentials Step-by-Step Guide for Beginners, Make Money Online from Home Using the New…

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Digital Marketing for Business 2020: Exceed 2019 with the Essentials Step-by-Step Guide for Beginners, Make Money Online from Home Using the New...

2025 Projections: Inbound Market Report by Type, Application and Regional Outlook – 3rd Watch News

The Inbound market report added recently by Market Study Report, LLC, evaluates the industry in terms of market size, market share, revenue estimation, and geographical outlook. The study also delivers a precise summary that illustrates the competitive milieu, growth opportunities and application landscape of the Inbound market depending on the industrys financial and non-financial impact.

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2025 Projections: Inbound Market Report by Type, Application and Regional Outlook - 3rd Watch News

How can social media marketing help the hospitality and travel industry during this pandemic? – YourStory

The time has come, albeit due to an unforeseen circumstance, for hotels to use social media marketing strategies now more than ever. With conversation now moving online, businesses operating in the hotel and travel industry need to provide essential information regarding the availability of hotel rooms, travel restrictions, necessary precautions being taken, among other things which should be communicated explicitly on the website and other booking channels.

Hence, making social media a pivotal channel to spread brand awareness; where you can market your business without losing the flow of communication is the need of the hour.

In case you are wondering how to leverage your social media in order to market your business, we have a few recommendations that might help you.

Nowadays, posting on a regular schedule is crucial; letting your social media go quiet in a time like such is not recommended. If you are running out of ideas, it would be beneficial for you to partner with a travel technology solutions provider. One such platform you can trust is BCV, by RateGain. It not only helps you come with content ideas but generate revenue with it by monitoring the social space 24*7 to help assess channel growth and engagement.

BCVs guest experience cloudplatform is a one stop solution that provides social media analytics for the hospitality and travel industry and connects other aspects like revenue management, sales and marketing to break the individual silos that they are currently operating in. This includes social monitoring, reputation management, tracking visibility in the industry by analysing real - time interactions across 395,000 hotels and properties.

By using an elaborate tool like the above,next step is to apply that information and formulate an innovative strategy to be employed on social media to build trust among customers, this can be approached by working on communication around:

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It is now more important than ever to use social media platforms to generate awareness amongst the customers and provide reassurance that you are doing everything possible for their safety. If you are interested in knowing more about how to tackle this pandemic, you can visit RateGains portal aimed at shaping a better tomorrow for the hospitality industry where industry veterans exchange information through insightful webinars and reports that highlight the current trends.

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How can social media marketing help the hospitality and travel industry during this pandemic? - YourStory