For the past decade, big tech yielded disproportionate returns from innovation.1 The big tech companies, defined here as Meta Platforms, Microsoft, Amazon, Apple, Netflix, and Google (MMAANG), were toll takers for the internet, and they reinvested their windfall cash flow to sustain technological leadership. Beyond the Decade of Big Tech DominationBig tech may well be the most remarkable profit-producing machines in the history of capitalism. How dominant was big tech? ROIC for the six big tech firms has been in decline since 2020, while that of the S&P 494’s increased. These themes can allow investors to reduce big tech exposure while also providing access to hotbeds of future economic innovation.

Source: Forbes March 06, 2023 19:31 UTC