Big Tech Has Increased In Value And Size
These large tech firms include Amazon, Apple, Microsoft and Google’s parent company, Alphabet. Each of those four companies are worth over $1 trillion. Some worry that this is an expanding bubble that is destined to pop leading to an economic crash. However, others believe that these large valuations are actually accurate and are taking into account dominance into other industries.
The five largest tech firms are worth $5.6 trillion aggregately which makes up one fifth of S&P 500 index’s value. The intense growth of big tech saw its start with the growing popularity of the iPhone. However, despite its ubiquity across American consumers, sales have declined which have justified worries of a bubble popping.
There has also been an increase in regulation against the expansion of big tech. However, regulators have imposed fines that only add up to about 1% of these firms’ total earnings. As a result, regulation does not have consequences large enough to warrant changes in business practices. Additionally, large tech firms employ 1.2 million people, further adding to their economic power.