Is the sun setting on giant tech platforms such as Facebook and Amazon? Strategists and experts are warning that the world is set to transition from second-generation technologies to third-generation, and the big question is which companies will manage to survive such a major transition.
Investors deciding between putting money into internet giants in the U.S. or in China should be cautious of all the challenges facing these companies.
Viktor Shvets, head of global and Asian strategy at the investment bank Macquarie, said that large popular consumer technology companies like Amazon and Facebook are in a “sunsetting” phase.
Investors need to be careful when approaching these big tech companies like Facebook’s parent, Meta, and Google’s parent company, Alphabet, Sheets said, because they are suffering from a number of issues. Additional companies that are in the sunsetting phase could include Apple and the Chinese e-commerce platform Alibaba.
Investors should be careful with these large digital platforms, but there exists a lot of opportunities still in other parts of the tech universe.
In recent years, tech giant companies in America and China have come under regulatory scrutiny. In the past year in China, authorities have cracked down on tech companies with the introduction of new legislation that targets concerns ranging from data protection to anti-monopoly.
Meanwhile, in the U.S., President Joe Biden signed a new executive order last year to crack down on anti-competitive practices within Big Tech.
What companies will survive the transition from second-generation to third-generation technologies? In the past, only one or two companies tend to make it through massive transition phases. When major technology companies transitioned from the first generation to the second generation, only Microsoft managed to survive.
It is also why giant tech companies including Meta, Apple, Microsoft, and Google are gearing up to release new products and new software.
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