The biggest tech stocks of 2018
Tech stocks were among the biggest winners in 2018, but the biggest losers were the same tech companies that have been the subject of the most scrutiny this year. Read more This is because many of the biggest tech companies have seen their stock prices fall in recent years as a result of the fallout from their business practices.
“The big tech companies are still relatively small and are still struggling,” explained Dr Andrew Krivos, a senior research fellow at the McKinsey Global Institute.
“It is important to keep in mind that the biggest ones are still growing, even if it is less than you would have thought.”‘
The big boys are still in the pocket’The most dramatic decline in the fortunes of these tech companies can be attributed to their failure to respond to public outrage.
In January, the US Federal Reserve said it was “confident” the tech sector would have an “enormous” effect on the economy in the next five years, but it also warned that the US economy was “at risk of a severe recession”.
“I don’t know if that was a wise decision, but there was some degree of fear that maybe it might be wrong,” Krivs told Business Insider.
“So, the big boys in the tech space have taken a very, very large, very risky bet on their future, and have gone into a position where they are taking on a lot of risk, and the risk is now in the hands of the public.”
“I think that the public have been quite cynical of tech companies and that has really, really undermined their ability to act as an investor,” he added.
Investors are now looking at the companies more closely, and they’re becoming more concerned about how these companies are being run, Kriv said.
Companies like Uber, Airbnb, and Apple are making headlines in 2018 for the way they have responded to the political environment that has been created by President Donald Trump and his supporters.
The Trump administration has been criticized for banning all foreign travel to the US by some of its most popular companies, and has imposed a travel ban on most refugees.
“In the past five years these big tech giants have made huge bets on their futures, and in the process have suffered huge losses,” Kivos said.
“These companies are all now in danger of going into an even bigger meltdown, and investors will be looking to those companies more carefully as they decide which to buy.”‘
We’re still in a recession’Tech stocks were one of the best performers in 2018 but, according to Kriv, they still have plenty of room to improve.
“The companies that are doing the best have still got a lot to do, and we are still very, little more than a recession away from a recession,” he said.
“In some sense, we still have more time to do the things that will really help the economy, but right now we are nowhere near the stage where we can really be at the level of recovery that we need to be to sustain growth.”‘
Investors should have more confidence’Krivs said that investors should now be more concerned with how companies are managing their own finances, rather than what other investors are thinking.
“I would argue that investors are still having a lot more confidence in the ability of these companies to do good things,” he explained.
“If they can do that, I think investors will see the value in those companies and be much more inclined to buy those companies.”
‘It’s hard to see how the big tech players can recover’There’s also an issue with how the tech companies’ business models are being used, and how the public sees them.
When people think of the tech industry, many think of their companies operating as companies that deliver products and services to consumers.
“We’re not really looking at those companies as a consumer-facing company,” Kravos said, explaining that it’s more about “the tech companies as providers of services and platforms to consumers”.
“It’s a different business model that you’re seeing on the horizon, where these companies aren’t actually delivering services to people,” he continued.
The tech industry has also been criticized by many investors for being overly optimistic about the future.
“A lot of the big players are just in a very bad state right now, and there’s a lot going on in the marketplace,” Kovos said in a previous interview with Business Insider about the impact of the US election on tech stocks.
“There are a lot companies that aren’t really doing anything, but are doing a lot in the market.
There are a few that are actually making money, but they’re not making money like we’re used to.
And that’s a huge risk.”‘
A big problem with these tech stocks’Kivos has a different view of how the US stock market is currently structured.
“When you look at tech companies, the stock price is always going to be influenced by a number of factors,” he told Business In
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