Thursday, February 9, 2023

2022 slows down big tech growth

  • After years of Big Tech growth, 2022 was the year the industry adjusted.
  • In 2022, trillion dollar companies faced their worst ever performance and their share prices were seen to fall.
  • Meta saw its valuation drop by about two-thirds, and Amazon did so by half.
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After years of growth that turned Big Tech into trillion-dollar companies, 2022 was the year the industry saw its turn and decline.

Technical members of the group called GAMAM, referring to trillion dollar companies, faced their worst ever performance and saw a fall in the value of their shares.

Apple, Microsoft, and Alphabet (Google) fell 27%, 29%, and 39%, respectively, compared to 19% in the S&P 500 index. However, Meta saw its valuation decrease by about two-thirds and Amazon by half.

Amazon and Meta’s declines forced them out of the trillion-dollar club, leaving Apple, Microsoft and Alphabet, the energy giant, along with Saudi Aramco.

Why this decline in Big Tech?

Current economic situation. The uncertainty of high interest rates, inflation and recession weighed on the growth results of these big technology companies.

The problem, according to Statista, is that their valuation is based on future earnings, not current performance. Apple and Microsoft were the least affected, but investors aren’t sure how much growth they can expect to see in the coming months.

Statista also says that Alphabet and Meta are in big trouble as advertising has slowed, making it more difficult for them to grow faster.

You’ll find more infographics on Statista

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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