Increasingly, technology companies are increasing the concern of investors.
How big is the company like Google, Facebook and Amazon? In 2010, there were 73 thousand 992 employees in Google and 25 thousand 105 people on Facebook. It is assumed by the fact that the fact is that the institutions are big. Technologies are growing but more in the calves They are becoming overwhelming in this way of growing. The question of their control is rising, which raises concerns about the investors. So technology companies are compared to sledge dogs.
Imagine talking about a doggy sledge car! Slim cars are one of Eskimo's buses in the country of ice. The passenger, who controls the dog with a rope, has trained it. The car that runs in ice like horse car According to a report by the Economist, there have been slogans of dogs, Facebook, Amazon, Netflix and Google's sledgee for several years. The way the dogs lead the vehicle in the power of the vast force, now the big technology companies are also dragging the share market like that.
Google-Facebook does not have much restrictions on this route. They are now being monsters to be gradually grown up. Google has grown bigger than Amazon and Netflix. Four of the biggest Silicon Valley firms have now become known as 'FANG' or 'Fang'. What is this fantasy? It is basically a short version of four organizations. They are now a huge wealthy company in a different way. Known around the world. Analysts say that this segment has increased the share of US shares 'S & P 500' by 20 percent shares since 2016. That is, the fate of fangs is dependent on the share price rise and exit. But now there is a new problem being faced by the fact. The Economist said in their report 'Defending' that the fate of fiance is now being shared.
Let's talk about April 23 this year. Google's parent organization, Alfabet, announced their earnings that day. Alfabet said, during the last four years this year their income was huge growth. In the announcement of the positive, instead of increasing the price of shares, their share price fell by 4 percent to 4 percent on the following day. Because? Google says, even if the income increases, they have increased their investment in new areas. They are investing in new businesses like cloud computing and hardware businesses.
The incident took place on 25 April. Facebook announces massive increase in advertising revenue At the same time, 39 percent of the expenditure increased annually compared to last year. Apart from this, the impact of Facebook and Cambridge Analytics data scandal was also involved. There was fear that the Facebook scandal would have an impact. Investors were anxiously anxious. But Zuckerberg said the impact of the data scam was little. As a result, the share price increased by 7 percent in a few hours.
There are no Amazon and Netflix statuses like Google Facebook. Netflix has shown the best results this year. Investors are confident.
Economists say that investors have not so much thought about this change before technology changes. They ignored the changes in the institutions. But now? They have to pay attention to the little differences in this fang. Their headaches are becoming the reason.
Technology can be found in many of the four major organizations in the world, as well as the vast difference between them. This difference is particularly visible in the proportion, extent and extent of the institutions. They are, in fact, pulling the will-unwillingness of investors like the sledgee head. Social networking in Facebook, Amazon in e-commerce, Netflix on video streaming and Google search is increasing. Organizations are using new algorithms and network effects to further dominate their respective fields. It is increasingly increasing their user experience and improving the quality of service by using the experience. As a result, more customers are attracted. The four organizations are skeptical about going forward and showing their old finger.
What is the secret of growing up, thinking? The answer is simple. Wide market potential Facebook and Google have already become monsters. Take into account the online advertising market in particular. They are making huge revenue from online advertising. Online advertising will increase further in the future. What will stop their growth? On the other hand, if the consumer product market is observed, the wealth of Amazon stands at 4.8 trillion now. Amazon Consumer Market has doubled more than 2015. Morgan Stanley's market analyst Brian Nouak said this information. He said, "US consumers are increasingly buying products online. Amazon will benefit from it. Again, if Netflix can be talked about, the company's vast possibilities come in front. By 2022, 12 million users will be nearly double the Netflix. From now on, it will not reduce their subscriber in future if the service price increases.
Although there is a similarity to the probability of income, there is a difference in their income patterns. Netflix and Amazon announced a 10 million 'Prime Member' Prime Service customers pay an annual fee for online videos and free home-made products. Apart from this, Amazon sells the customers' favorite products. Their cloud computing system also comes with fixed income. Google and Facebook make money from digital advertisers Attract advertisers by highlighting the user's attention.
However, after the Facebook data scandal in March, the companies fell under political pressure. Those institutions which are not dependent, try to present themselves as separate castes. Especially Google, they say they are different from Facebook. Netflix's head Reid Hasting told analysts that NetFlix is not a technology firm, but it can be called a media organization. Netflix has given importance to privacy. They do not have ad sales models.
Fifth is believed to be the fifth member of the American technology company Apple They also claim to be different from this opportunity. Apple chief executive Tim Cook directly questioned Facebook's information management and criticized the advertising business model.
There are a few matches in the competition with many matches in Fang. However, for different organizations, its level may vary. The first challenge is the pressure of control. The challenges are most common in Google and Facebook. Especially in Europe, how much pressure the politicians will be able to see soon. Investors in Europe are worried about control of Google-Facebook. Analysts say that regulators will impose strict controls on the new scandal of privacy, which will not be good for the digital sector organizations. Amazon and Netflix could also be seen in front of Antitrust in exclusive business. Politicians have the influence of outside. Their talk influences the share prices of the institutions. Recently, after the US President Trump tweeted about Amazon, the shares fell due to the company's shares.
According to analysts, the challenge for the companies is the challenge of the profit margins. The third challenge is the competition. It is possible that in the field of technology, it will compete with each other. Because, there is an incident happening to the competing company to raise its own market. The institutions are attacking each other. Netflix at the most risk of this. Due to the fact that Disney has moved away from NetFlix to bring services based on subscription. Amazon offers its own video streaming services and increasing the investment. Netflix stock price may fall in this, says RBS Capital analyst Mark Mahane. Competition in digital advertising will increase. Amazon is starting digital advertising business, which could touch $ 2 billion in the next five years.
Analysts say Facebook in Google Fang is less in danger. The offline media can be in danger. But the competition between them will reduce their profits. The mountains of the allegations against them will be created. The controllers' hands will come.