In: Economics
Article:
Tech Giants Rethink the Businesses That Made Them
Big
Facebook, Apple, Amazon and Google are seeking out new
places to disrupt, but analysts say future ventures will likely be
costly
Where does Microsoft figure into this?
Many investors, for now, are focused more on the opportunities than the risks. Apple is on course to regain the $1 trillion market capitalization that it hit last August, when it became the first U.S. company to cross that threshold. Microsoft Corp., which itself has thrived in recent years by upending its former business model, closed above $1 trillion for the first time on Tuesday. Facebook’s stock has gained almost 50% this year, and Alphabet’s was at a record high just before last week’s lurch down.
There is a theme emerging here: There is reasonable doubt about just how much low-hanging fruit is left for the largest tech companies,” Ben Thompson, a former tech executive who now runs research firm Stratechery, wrote to clients on Thursday.
Microsoft has purchased three cloud computing businesses. Microsoft has made it's spot in the technology industry and what comes next is much more difficult and expensive.
Even with the global economy reeling from a pandemic-induced recession and dozens of businesses filing for bankruptcy, tech’s largest companies — still wildly profitable and flush with billions of dollars from years of corporate dominance — are deliberately laying the groundwork for a future where they will be bigger and more powerful than ever.
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