Tech companies in recession
Which tech companies will be ok during recession? Which ones will be hit the most? For example, FB will take hit since it relies on Ads, advertisers and SMB will spend less. Netflix will see more subscribers growth as people cut off expensive cords, but what about ads revenue and investment on original content? Gaming sector will do well. Apple: consumer hold on to their old phones as new iPhones are too expensive. Google? MSFT? AMZN? etc
Google, MSFT and Amzn have survived recession multiple times and right now they are in their peek. So they will be able to survive. FB could have survive if they hadn’t self fucked themselves multiple times.
Microsoft will continue to grow - businesses moving to the cloud as opposed to maintaining their own data centers is actually a cost-savings measure.
We will be. Disclaimer: If we fight and win our current cloud battle.
Spoiler alert: you won’t. :-(
Spoiler alert: we have a chance and we are working hard for a pivot. And looks like we might even make it. Let's talk in an year.
During recessions or periods of economic uncertainty, consumer discretionary spending is curtailed and doesn't bounce back quickly. This will impact AMZN's retail business immediately and will eventually impact their bread and butter, AWS, when consumers begin cutting back on services and products that vendors run on AWS. So we may very well see another "Will the last person in Seattle please turn off the lights" sign again however exaggerated that may be.
Actually during previous recessions Amazon has seen growth in the retail space. Customers look for cheap and convenient alternatives which fuels Amazon's marketplace. 2008 Amazon did well.
@yourdad AMZN was on a different part of the growth curve in 2008. It's possibly more sensitive to a downturn now that it's so dominant.
All of those companies are doing extremely well and would have no issue surviving an 08 magnitude recession. Layoffs might happen, but the companies aren’t going to fold.
Apple held up well in the last recession, and so did most of the companies on your list.
No Eng layoffs here in 2008 I believe
The companies on your list are bellwether cash cows and have weathered downturns before. Apple has > 250 billion in CASH on hand. They can safely survive a depression with that amount of moolah. The companies to watch are the ones without large cash reserves. Uber, Lyft and others in the gig economy will be interesting to watch. Supply could increase as rates drop during a recession. People will sign up to drive to make ends meet while riders could hold off buying vehicles in order to keep as much cash on hand as possible (which is why the big automakers suffered during the last recession and needed a bailout). Time will tell.
hi
Hi
Gig economy! And Airbnb.If recession happens again, people would seek other source of income. Recession attracts tourists in a country to do shopping as they can spend more and get more value than bef recession
Only if there are people spending on vacations.
MSFT will be OK as well, their business line is way too diverse
But why I always hear about Microsoft layoff every year? Never heard of layoff in Facebook or Google.
Because people are idiots on Blind. Layoffs have literally nothing to do with the viability if the company either. The ones that have happened (very rare for engineers) are either due to redundant or obsolete teams or performance. Most people in the first category end up in a different role at ms anyway.