Whole of the world at large is under a lockdown situation due to the widespread and deadly pandemic of coronavirus. Consumers are not spending and the purchasing capacity is also depleting and hence, many industries are on the verge of bankruptcy. However, it is felt that there are certain companies in the technology sector have been impacted to the slightest even in this deadly spreading coronavirus situation. It is being believed that these tech firms are going to get back stronger and emerge even better after the pandemic situation gets over and the business processes take their routine momentum.
Experts say that GAFA (Google, Apple, Facebook and Amazon) the super-tech powers. These companies are expected to work even better very soon. The major revenue generation of Google and Facebook is dependent on advertisements. On one hand, when advertising companies are cutting down their marketing budget in these difficult times for companies, it is a matter of concern so as to how these two big giants namely, Google and Facebook are managing their businesses.
In March, CEO of “Alphabet” (Chief Executive Officer), Sundar Pichai mentions that there is a sudden large drop in earnings from the advertising. But the company’s share price have been bullish in nature, hence, it is being predicted that the balance sheet of the companies is going to be better with time. Facebook has said the same thing that the business is affected by coronavirus. But this trend was seen throughout even before this came and hence, the earnings were affected. On the other hand even the business of newspapers and television channels has also reached on the bottom rock.
The hardware business of Apple has also been affected starkly, because of the sales of Apple Products not taking place these days. Though the servicing and repairing of Apple products has seen an increase. The business of the giant Amazon is on the pace, and the Cloud Computing segment of the company is doing fairly well.
However, the company’s expenses in handling the coronavirus has definitely increased. Because of this, Jeff Bezos had to tell the investors had given a warning to remain silent. It was indicative of the fact that profit is not everything for them during these days. Even in such a situation the company is yet very powerful. Another big- tech company, Satya Nadella’s Microsoft said this week that his company has showed an incredulous increasing rate in the proceeds. Jason Furman the economic adviser to Ex- President Obama are among those who strongly support the demand to implement strict rules and regulations on these companies. He says that the coronavirus will reduce the pressure on these companies.
If Jason Furman comments that if the circumstances stay prevalent then these companies will grow from strong to stronger emerging powers look towards building its strong position and strong. If there is a relaxation given to them during these times they shall outpower and dominate the economies.
This week the United States and Europe have issued some scary economic data. US stocks have shown an increase in their markets. Past month has been the best in the last thirty years. Amazon and Netflix have got a 40 % rise in their shares since 15 March 2020. The President has given a lot of attention on the Dow Jones index in Trump’s agenda, but it would mean growth of these tech firms would make the administration of Trump lose a say in these companies.