Google parent Alphabet, Apple, Facebook outstrip rest of economy

Silicon Valley’s three dominant technology firms, plus two other U.S. tech giants, are responsible for more than a third of the gains this year in the S&P 500 stock market index, which just hit a record high, according to a new report.

Google’s parent Alphabet, Apple and Facebook, along with Amazon and Microsoft, took 37 percent of the stock-value increases, according to the report.

The S&P closed at a record high May 15, after adding $1.5 trillion in value since the start of the year, tech website The Verge reported. The Nasdaq index also hit a record high that day.

The five tech firms’ stock values have in recent months reached levels never seen before, according to the report in The Verge.

“This is in stark contrast to the rest of the US economy, which grew at a rate of less than 1 percent during the first three months of this year,” The Verge reported.

“There is no industry where these players aren’t competing. Music, movies, shipping, delivery, transportation, energy — the list goes on and on.”

While companies in technology, communications, media, software, finance and professional services have seen productivity grow 2.7 percent annually over the past 15 years, productivity growth in health care, transportation, education, manufacturing and retail has risen only 0.7 percent per year, the Wall Street Journal has reported.

 

Photo: Phil Schiller, Apple’s senior vice president of worldwide marketing, talks about Apple’s iPhone lineup during an event to announce new products in 2016 in San Francisco. (Marcio Jose Sanchez/AP)

 

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