Even in the face of antitrust scrutiny, Big Tech is on pace for sales of $1.4T in 2021 - The Hustle
The Hustle

Even in the face of antitrust scrutiny, Big Tech is on pace for sales of $1.4T in 2021

Amazon, Apple, Google, Microsoft, and Meta now make up 5 of the world’s 7 most valuable firms.

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).

Despite the antitrust pressure…

… 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.

The pandemic forced the world to go digital

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:

  1. Apple $2.94T market cap
  2. Microsoft $2.56T
  3. Alphabet (Google) $1.94T
  4. Saudi Aramco — $1.89T
  5. Amazon $1.73T
  6. Tesla — $1.09T
  7. Meta $963B

Add it all up and the Big Tech firms make up 20%+ of the entire S&P 500.

Who was the biggest Big Tech winner?

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.

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