Information Systems Integration – Tony Messina

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

One Response to Major Tech Firms in Trouble

  • Within tech companies as the industry is growing the future is bright but not without bumps. For a lot of these tech companies, they have come so far and became so huge that it’s hard to change or solve problems fast. I just listened to a podcast which talked about Mark Zuckerberg, and his interview about the data breach scandal. He was asked about Facebook and its role/power to have such global effects on people, politics, and issues and if that was a positive or negative. He had paused for few minutes and then answer with “when I was creating Facebook in my dorm at Harvard, I never thought I would one day be tackling problems of Facebook and its uses” for political influence and issues. I think for a lot of these CEO/Inventors as their company grows its purpose and use changes also indirectly outside of their control.

    What would they change if they knew what their invention would be like 5 years, 10 years, or even 20 years from the start?

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