Wednesday, August 01, 2018

Stumbles? What Stumbles? Big Tech Is as Strong as Ever -- NYT

From a "frightful five" reality check
"Wait, but what about Facebook, which told investors to expect lower growth rates and higher expenses, causing its stock to lose $120 billion in market value in a single day?

In a strange way, the social network’s troubles only underscored its dominance. Even after its stock crash, Facebook remains the fifth most valuable corporation in the American markets, ahead of Berkshire Hathaway, and there are almost no serious calls for its chief executive to resign, as you might expect for any other company experiencing such a loss. That’s because the company reported little to cause experts to alter their long-term outlook. Pretty much everyone who studies Facebook believes that it will hold its grip on the culture and the advertising industry for the foreseeable future.

“This is one of the most profitable business models I’ve ever seen, and that really hasn’t changed,” said Mark Mahaney, an analyst at the firm RBC Capital. He added that Facebook’s stock now “may be the single most attractively priced asset across technology.”"
Stumbles? What Stumbles? Big Tech Is as Strong as Ever -- NYT
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