The Tech Industry Has Really Impacted the Stock Market

The revolution of using computers in businesses and homes has created niches that were not there in the past. With the rise of the internet came social media platforms, as well as superior tools for companies to analyze their data for improvements on their businesses. Additionally, business data could be processed by investors as well, leading to better-informed investment decisions. It is quite clear that the use of technology in today’s businesses is fundamental, but just how significant are its impacts. We discuss some companies and their contributions to the economy below.

  1. Google Inc.

google-building-44

Google’s search engine combined with its advertisements and affiliate products and companies such as recently-acquired YouTube, the Google Nexus phone as well as Google glass have earned the country significant revenue in taxes. Additionally, the company provides services for cloud computing, data processing, social media, video chat and text messaging as well as internet connectivity through Google Fiber. Alexa cited the company’s google.com search engine as the most visited website in the world. Despite the company having a relatively early background – it started in 1998 and went public in 2004; the company has gone on to impact the economy significantly.

Google has been declared the world’s most valuable brand for four years straight and in 2016 was valued at $133 billion. According to a report the company released, it was responsible for a further $165 billion in economic activity through 1.5 million businesses and non-profits throughout the United States. The report cites that the company gains each company at least $8 in profit for each $1 spent on Google’s AdWord services. As such, the company fosters the growth of various businesses all over America. Since the stock market is a collective view of how investors believe companies will perform, a better economy will lead to a better stock market. Google, therefore, has a significant role in how the markets turn out.

  1. Apple Inc.

apple1

Apple has been a leader in the tech revolution since the 1980’s. Despite encountering various problems in the company’s establishment, it has become a force to reckon with today. The company directly employs 65,000 people across the United States and also creates another 627,000 jobs to support the continuity of its iOS operating system. The company’s stock is currently amongst the most highly priced in the NYSE. As such, the growth of this company improves the livelihoods of hundreds of thousands across the United States, thereby improving the economy. More directly, the sale of Apple’s iPhone 6 and its affiliate products was reported to contribute up to 10 percent in the country’s GDP growth, which is a good sign for the stock market.

  1. Microsoft Corporation

Microsoft-3

Bill Gates’ Microsoft has for a long time been in the top tier of players in the technology industry. Over the span of time that this company has been in existence, it has directly created 3 billionaires and up to 12,000 millionaires. All these people are Microsoft’s employees. Creation of this kind of wealth affects the stock market since money necessitates investments, which go into other companies. Microsoft investments such as in the takeovers of Skype and LinkedIn as well as the personal investments of these wealthy individuals has led to significant economic growth. As a result, stock markets are viewed to be positively improving which causes growth within the markets.

Additionally, the general notion of success for tech companies has led to increased demand for their shares in the markets. As such, investors are willing to pay higher prices for these shares. The additional revenue obtained by these companies is used for expansion which creates employment and consequently improves the economy and the outlooks of the market as well.

This website uses cookies to ensure you get the best experience on our website