Big Tech companies saw growth accelerate amid COVID
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Microsoft, Google, Facebook, Apple and Amazon all have earnings calls this week. Like other companies, these huge tech firms have to try and figure out what the world of work looks like in the near future. If people start going back to the office, some of the products we began using during the lockdown could be rendered redundant.
Some of the biggest tech companies represent about a quarter of the S&P 500’s market cap. Scott Kessler at the investment firm Third Bridge said that these rich companies just got richer as a result of the pandemic. “A lot of these companies, from a revenue perspective, have seen accelerated demand and growth given some of the challenges of last year.”
Kessler said quarterly results will likely reflect that, but tech companies understand that subscription-based services might struggle to win new customers if and when people go back to the office.
Although, Daniel Ives at Wedbush Securities said that even on the other side of the pandemic, “we expect you’ll have 30% to 35% of employees that will be working remote or semi-remote. And that just puts more and more pressure on the cloud and from a digital infrastructure perspective.”
Ives said the investments that tech firms made in that digital infrastructure during the pandemic will continue to benefit those companies through at least the next quarter.
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