Second, today’s tech giants may simply have exhausted their capacity for innovation . “They are competing in existing industries versus creating new industries,” says Mr Deluard. “When the iPhone came out it was something that created the market from scratch, and it took the industry several years to catch up.” Now, their sheer scale gives them less room to grow, and the new industries they are trying to move into – such as medicine, grocery shopping and banking – will struggle to give them such rapid, explosive progress. Hence, share premiums “reflect an era of growth that is unlikely to reoccur”.
After a bruising stock market beating, will next week’s results deal another blow to Big Tech?
Jan 24, 2019 | Client Thought Leadership