Profits for investors in large tech companies are falling due to rising US and European inflation and energy prices.
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Big tech companies make fewer profits
She said The Wall Street newspaper Profits from big technologies are limited as recession and dollar concerns hit companies “deemed to be more resilient”.
“It’s hard to see good news on the horizon,” said Pat Gelsinger, Intel CEO.
“Inflation in the US, a European economy that has been rocked by rising energy costs, the war in Ukraine and turmoil in Asia mean we are still trying to tackle economic headwinds as we head into the next year.” Gelsinger noted.
Tech companies that enjoyed strong growth in the early days of the pandemic are feeling the effects of a new reality of high inflation, rising interest rates, headwinds to currencies, and other income data issues.
“It appears that the slowdown in PC sales and digital advertising seen earlier this year is also occurring in areas like cloud computing which were thought to be countering economic weakness.”
As a result, major companies such as Apple, Microsoft, Amazon, Alphabet and Meta are tightening control over costs and employee headcount, the Wall Street Journal explained.
And he pointed out that “investors in these five companies have lost more than $ 218 billion together until the close of the market on Friday,” commenting that “they have lost a total of over $ 3 trillion this year”.
