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This article, In the technology bulletin. You can do register here to pick up on weekdays.
Big Tech’s already crazy dollars just got crazier.
my colleagues and me wrote lots About the unrealistic sales, profits and power of America’s five tech giants Apple, Microsoft, Google, Amazon and Facebook. This may sound like old news. Tech’s Titanic 5 has long been big and rich, and they’ve become even more so as people and organizations need their products during the coronavirus pandemic. Yadda, yadda, yadda. We got it.
But no, we really don’t understand. America’s tech superstars have entered a completely different stratosphere, even from other wildly successful companies in tech and beyond.
Let me give you a flavor of bonker-ness:
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The current stock market value of the Big Five ($9.3 trillion) is greater than the value of the United States. next 27 According to data from S&P Global Market Intelligence, the most valuable US companies came together, including corporate giants such as Tesla, Walmart and JPMorgan Chase.
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Apple’s profit In the last three months alone ($21.7 billion), it was nearly double the combined annual profits of the top five US airlines in 2019 before the pandemic.
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Amazon’s stock price hikes surprise Jeff Bezos very rich He told 200 million people that he could buy a new iPhone model and still be a billionaire.
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Google’s $50 billion revenue It was about what Americans were from selling ads from April to June – all americans – spent on gasoline and gas station purchases last month.
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The annual revenue of LinkedIn, one of Microsoft’s side businesses, is almost four times the revenue of Zoom Video Communications, the star of the pandemic, last year.
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Facebook expects to pay more cash to equip its computer centers and offices in 2021 than Exxon spent to extract oil and gas worldwide in a year.
I know a lot of strange things are going on in the US economy right now. But I can’t adequately explain how unconventional these numbers are from tech superpowers. Maybe that’s why Bezos asked touching space; Big 5 tech giants have surpassed the Earth.
What is clearer than ever is that America’s tech giants are creating a separate universe where they are the sun and everyone else – billions of people, other companies, entire countries and governments – are planets orbiting them.
Perhaps more surprising than the size and scale of these companies is how they have often grown more profitable in whatever economic conditions might or should have hurt their profits.
I’m surprised that Amazon and Apple have shown higher profit margins for these companies over the years, possibly than ever before. This has happened even as the pandemic has forced these companies to reorganize factories or warehouses, deal with disrupted global shipping, fight for undersupplied parts, and spend a fortune keeping their workers safe.
This chaos and unplanned spending should have made companies less profitable, not more. (Apple spooked investors a little this week by saying it’s having trouble getting all the parts it needs over the next few months. Amazon will release its financial results on Thursday.)
What does all this mean? For one thing, members of Congress or state attorneys might look at the numbers and ask: How can profit margins continue to rise like this if, as Big Tech companies say, they face stiff competition and can die at any moment? ?
Logic suggested that if companies were fighting too many competitors, they might have to lower prices and their profit margins would shrink. Like this how is facebook Will it turn into 43 cents in profit for every dollar of advertising that it sells, almost all of which?
In this newsletter, I have repeatedly asked whether America’s 5 big tech giants are invincible. As the gap between super-rich tech superstars and just superstars widens, I’m beginning to believe the answer is yes.
Before you go …
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A red monster mascot appeared on the field at a baseball game in Japan, “swallowed a security guard and spat him back without a uniform. Much less menacing than it looks.
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