The profits of tech giants showed their absolute dominance

The tech giants' profits showed their absolute dominance

The Tech-Trading actually consists of two branches. There are the 5 giants that function on a practically unimaginable scale, after that there are all the others. Alphabet, Amazon, Apple, Facebook and Microsoft reported all of its earnings for the March quarter this week, and the numbers released here showed just how dominant they are. In many cases, comparatively small corporate objects buried in the giants generate additional income than the well-known technology companies.

Typically in business, companies encounter the “law of large numbers” and growth rates slow down. Conventional wisdom has it that it is much harder to generate $ 500 million in new revenue than it is to generate $ 50 million. Therefore, under mathematical law, it is more difficult to grow 50% from $ 1 billion than from $ 100 million.

But the nature of expertise platforms turns this legislation on its head. When a tech company grows really big – and all of those companies have a number of companies reaching more than 1 billion potential customers – it’s easier to grow by building additional revenue streams from a large base than starting a new business reinvent areas from scratch or steal perspectives from larger opponents.

These giants can use the information from their already massive activities to learn about their prospects and successfully advertise new goods to them. You can use current buyer relationships to promote additional goods. They can use their money move or inventory to buy promising new Upstarts and clone them if they refuse.

Nothing makes a bump. They wipe out Congressional hearings, regulatory fines, antitrust investigations, complaints from disgruntled employees, union actions and destructive press like so many mosquitos. When the Covid pandemic entered the economic system and closed many people in the world, they flourished. Now that Covid is waning in the US, they continue to thrive.

Smaller tech companies offer bigger ones alternatives for development and return in the long run. But when buyers are looking for investments that provide protection for US government bonds and the prospect of at least future development, there is no funding class like the tech giants.

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