In late 2018, shares of Silicon Valley’s finest tanked some 16% in three months. Since then, Big Tech has been busy climbing back near record highs. And, as The Economist points out, listed tech firms now make up more than 25% of the value of U.S. stock markets.
The last time tech was this important was 2000, when the sector briefly made up one-third of the value of all U.S.-listed equities. Back then, the concern was that tech firms were “too flimsy” for their valuations. We all know how the dotcom bubble ended, but…
Today’s a different story—tech’s big five (Microsoft, Apple, Amazon, Alphabet, and Facebook) account for 12% of pre-tax profits among the U.S.’ non-finance firms, up from 4% in 2010.
Zoom out: Those big five make up half the tech industry’s market value, meaning new worries for the new millennium. Today, the concern is less about financials and more about the idea that Big Tech has accumulated too much power.