The Importance of the US Tech Sector

The Importance of the US Tech Sector
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The US tech sector is now worth a whole of money, and that's putting it lightly. Reports with regards to the value vary with some analysts claiming that by the end of 2021 the US tech sector will reach the $5 trillion mark. However, according to Bank of America, the US tech sector is worth a staggering $9.1 trillion - that's bigger than the entire European stock market.  While this news is shocking, it shouldn't really be too surprising. All the major tech giants reside in the good old US of A - Apple, Amazon, Facebook, Google, IBM, Microsoft and Netflix to name but a few.   The five largest tech stocks are worth a collective value of $7.5 trillion. 

The largest American tech companies drive growth and innovation by means of transforming traditional methods of businesses and communication or by creating something entirely new which in turn revolutionises an entire sector.  These companies have got their fingers in a variety of pies ranging from e-commerce to search engines to software, social media and more.  The influence of US tech is such that its adoption is almost ubiquitous. A prime example would be fast-food giant McDonald's whose acquisition of Dynamic Yield has allowed it to digitise its menu structure and thus the way that customers interact with it and get their food; all while increasing profits.  Stiff competition drives all the members of the tech industry to maintain their tops spots while looking for new opportunities. With all this in mind let us now look at the biggest contributors to the US tech sector.

Apple

Company founder Steve Jobs might have had a tumultuous relationship with Apple, but he ultimately saved it, and put it on the profitable path it is on today.  Specialising in consumer electronics, Apple Inc. conceptualises, produces and markets an array of products including computers, software, mobile phones and media devices and services.  Notable mentions would be the iPhone, iPod, iPad, Mac, Apple TV and the Apple Watch. Apple's market capitalisation sits at $2,287.8 Billion. 

Microsoft

We can't talk about Apple without talking about Microsoft. Like Jobs, Microsoft co-founder Bill Gates was also known to be difficult, although that image mellowed quite a bit when Gates went into philanthropy. In the wake of his divorce from his wife of 27 years and some allegations, it will be interesting to see how the stock of the software infrastructure giant will perform. Now might be the time to realise the importance of trading couple Euros and Dollars as opposed to buying Microsoft stock. Known primarily for its Windows operating system, Office suite and Internet Explorer,  this tech leader has also thrown its hat into the console ring with the Xbox. Microsoft's market capitalisation sits at $1,749.5 Billion

Alphabet

If ever there was a massive corporate conglomerate, Alphabet would be it. And if you've ever wondered who owns Google, now you know; although Alphabet came about through the corporate restructuring of Google. Under Alphabet's umbrella you'll find a slew of diverse tech-powered companies specialising in wind turbines, biotechnology, urban innovation, self-driving technology, drone technology, cybersecurity and a host of other endeavours.  Alphabet's market capitalisation sits at $1,241.7 Billion.

Amazon

What started off in 1994 as an online bookstore is now part of the big five of US tech companies.  Amazon.com Inc.  specialises in internet retail and this itself is comprised of an array of sub-sectors including cloud computing, e-commerce, artificial intelligence and digital streaming.  Amazon has established itself as the undisputed champion of e-commerce in the US and has become a global leader with hubs situated all around the world. The company's market capitalisation sits at $1,608.7 Billion.

Facebook

Some view the social media giant Facebook with disdain and for valid reasons. Only time will tell what Facebook's eventual impact will be on society as a whole, but said impact cannot be denied.  Originally made for students, Facebook now allows anyone over the age of 13 to open an account and make use of its social networking services. With over 2 billion subscribers, users can customise their profiles, upload pictures, send messages and share multimedia content.  Facebook has also acquired WhatsApp, Instagram and Oculus, that are involved in AI research. The company's market capitalisation sits at $735.8 Billion.

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