Information Systems Integration – Tony Messina

Monthly Archives: April 2018

Major Tech Firms in Trouble

In the wakes of the Facebook/Cambridge Analytica user data scandal, Facebook and other large tech firms are now facing additional problems. For Facebook, market capitalization continues to fall rapidly, and Mark Zuckerberg remains aloof. Shares have fallen 17% since the close on Friday, March 16th with no signs of recovering. Next, Amazon is facing heavy scrutiny from President Trump, who has expressed interest in creating an antitrust or competition law. Amazon’s shares in turn have dropped 5%. Finally, Apple is experiencing uncertainty among shareholders following poor sales of the $1,000 iPhone X.

Tech firms have experienced incredible growth this decade, but are now under tremendous pressure following the Facebook scandal. Apple, Alphabet and Amazon account for 10% of the S&P 500; add Microsoft and Facebook into the mix, and that number goes up to 15%. Technology firms overall make up 25% of the S&P 500, and current trends among these firms have resulted in the largest quarterly decline in the stock market since 2015. I for the first time in my life agree with President Trump’s idea of an antitrust law against Amazon, as they may be entering too many markets. What does the future entail for these primarily successful tech firms? Do you expect growth to resume, or are we entering a period of declines and extended uncertainty?

 

Article: https://www.theguardian.com/technology/2018/apr/01/big-tech-touble-amazon-facebook