The moniker “Big Tech” refers to Amazon, Apple, Google, Microsoft, and the artist formerly known as Facebook, Meta.
Collectively, these companies are facing anti-monopoly cases brought on by regulators around the world (i.e., Australia, EU, India, UK, US).
… Big Tech is having a massive year, with the Fab 5 on pace for $1.4T (yes, trillion) in 2021 revenue, per MarketWatch.
More astonishingly, their cumulative profit since the start of the pandemic may reach $500B by year-end.
And Big Tech provided crucial services through cloud infrastructure, communication, ecommerce, and remote work tools. The 5 companies now make up 7 of the world’s most valuable firms:
Add it all up and the Big Tech firms make up 20%+ of the entire S&P 500.
From an investment perspective, it was Alphabet (GOOGL), which has returned ~70% this year. Here’s what drove the performance, per CNBC:
Looking forward, we have only one certain Big Tech prediction for 2022: Meta won’t change its name.