11Mes·

Research and development expenditure Big Tech

$MSFT (-0,43%) , $META (+0,28%) , $GOOGL (+1,6%) , $AAPL (-0,98%) , $AMZN (+1,13%)

The major technology companies spend 235 billion dollars a year on research and development.

That is a 6-fold increase compared to 10 years ago.

2 Commenti

Mister_ultra@Mister_ultra

11Mes

These sums are simply insane and for me the big tech moat par excellence. Which company, let alone start-up, can raise such sums?

In my opinion, the only risk apart from regulation / break-up are the companies themselves. In the case of Meta $META, you could easily feel this 2-3 years ago with the Metaverse, when the market had the feeling that the company was backing the wrong horse. But even then, the normal advertising business was able to make up for the billions.

With Google's 47 billion, you could simply buy the entire Volkswagen Group instead...

I also wrote an article about this a few minutes ago. There was even talk of 500 billion for the Magnificent 7. Tesla and NVIDIA certainly have another large investment budget.

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BamBamInvest@BamBamInvest

11Mes

@Mister_ultra Yes, I agree with you and if not, you simply buy the respective start-up to expand your business field or to gain an advantage. These companies can do whatever they want and win every case in court.
If a European company shows any technological progress, it is immediately bought in the early stages of its development. I believe that, as you rightly say, it will be difficult for Europe and other countries to keep up.

Apart from that, we are regulating ourselves to death in Europe, data protection and regulation are partly preventing growth and progress and people are only looking at how to cope with this administrative burden of bureaucracy. It's really terrible for entrepreneurs.

As you rightly say, this is the reason why the USA and its big tech companies continue to be the driving force and you can't go far wrong when investing in these companies. ✌️

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