Economist Podcasts FAANGer danger: big tech takes a beating
Feb 8, 2022
Jan Petrovsky, The Economist's business editor, dives into the tumultuous world of big tech as stocks face steep declines. He discusses how investors are reevaluating tech giants like Netflix and Meta, forcing them to adapt quickly to a changing market. The conversation touches on competition intensifying as companies shift their strategies to please consumers. Petrovsky also draws parallels between current market volatility and the lead-up to the 2008 financial crisis, emphasizing the need for resilience in the tech sector.
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Tech Stock Turmoil
- Tech stocks, once considered a sure bet, are now facing a downturn.
- Factors like tightening monetary policy and rich valuations contribute to the decline.
Shifting Tech Landscape
- The tech industry is shifting, with increased competition in areas like streaming and cloud computing.
- Investors are becoming more discerning, focusing on individual companies rather than the sector as a whole.
Evaluating Tech Companies
- To evaluate tech companies, consider pricing power and alternative plans if core products decline.
- Apple demonstrates pricing power while Netflix faces challenges.