The big 5, Apple, Microsoft, Amazon, Alphabet (Google producer) and Meta (Facebook) owner have been the winners in the last 5 years, especially after the coronavirus crashed into our lives.
Smaller technology stocks like Snap(Snapchat owner), Pinterest, Roku, Etsy have also made large gains. Most technology stocks, outside the big 5, however, have crashed lately along with the Federal Reserve communication that the central bank of United Stated is going to tighten monetary policy, raise the interest rates in the economy that is, which brought USD appreciation relative to the major currencies like EUR, JPY and GBP.
If it is not winner takes all, it looks like top 5 technology winners are taking most, at least. It is natural for businesses that rely on viewer numbers to drive value that oligopolies tend to form, because of economies of scale.
Monopoly or oligopoly for that matter is bad for the economic growth. May be regulators should intervene?
For the time being the largest 5 technology stocks look set to continue growing or at least not loose that much of their market capitalization. That may be partly due to the fact, that most of company stocks of these Big 5 technology giants is held by institutional investors like asset management firms and hedge funds which manage money for pension funds which are slow to react and carry a lot of momentum along.
Smaller technology companies have to be nimble, agile and adapt quickly to make inroads. Good examples seem to be in the new hot area of technology cloud computing - GitLab and HashiCorp, to name a few.
It will be interesting to observe how things will unfold.
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