Today, only the lazy did not talk about a cloudless future for IT companies, which for many years have shown stable good growth, but is everything really so optimistic in reality and what will happen next? You can get answers to all these questions by reading this material.
The market is cyclical: after take-off, a fall will inevitably follow!
This is the phrase most skeptics say about the further growth of such large IT companies as Alphabet (owner of Google and Youtube), Amazon, Facebook, Apple, Microsoft and others. True, these people gave the same forecast five years ago, but the growth dynamics of these companies showed the opposite. What is the reason? Are these newly minted financial giants not subject to the ubiquitous laws of the market?
We answer - no, and the growth of giants can hardly be called a phenomenon or an anomaly, because it looks quite natural, given the extremely competent refinancing policy of companies, the rapidly developing sector of the economy to which they belong and, most importantly, the monopoly status which they have despite numerous denials.
Yes, and relying on laws alone without taking into account other factors is such a strategy. Imagine if you said that a ball that is thrown up must definitely fall to the ground, because there are laws of physics and gravity, but every time you turned a blind eye to the fact that someone catches it and throws it back, and the ball to the ground like this until now and did not fall. It is on such speculation with information that such statements are held, but they are clearly not worth believing.
How strong is the company's growth in the recent period?
A very good question, from the essence of which it is clear that companies are certainly growing, but I wonder how much. Over the past five years, the average annual growth of companies has ranged from 20% for Apple to 45% for Facebook, which is a huge figure, especially considering that this is not just some kind of leap, but already verified constant dynamics.
In addition, all companies, except Amazon, showed in the first half of 2021, ahead of all analysts' forecasts, growth, and the mentioned company “lagged behind” the forecast by less than two percent. Such dynamics testifies not only to the continuing strengthening of the positions of the giants, which skeptics said, but, on the contrary, to exceeding the expectations of even the most daring and optimistic forecasts.
What to expect next?
Of course, companies will continue to grow, because, as in the analogy with the ball, someone is constantly throwing them up, unless of course some major economic cataclysm occurs that will have a direct impact on the IT sector.
How much they will grow, it is already quite difficult to indicate here, because the monopoly of these companies cannot last forever, given that new serious players from China, Russia and Europe are gradually appearing on this market, but have at least a couple of shares under the mattress Apple and Alphabet are clearly worth it.