The modern world is ruled by technology. It is a no-brainer fact that even school kids understand very well. It’s such a lucrative market with billions of people owning tech gadgets like smartphones, laptops, computers, and other household and communication appliances that come at a hefty price, so you can always be sure there is a demand for it. Most big businesses nowadays are related to technology like Google, Facebook, Microsoft, Apple, Samsung, etc. They have been shaping society over the past few decades and they sure have made lots of money all this time despite being involved in a handful of controversies over time.
But despite the big profits these companies are making, there are undeniable losses too. Not all their gimmicks click to people and they often have to incur millions of losses on a few business risks they have taken. The drop in tech shares in the market as of late is a testament to how unstable the technology industry is and any small changes can have big implications on these businesses and millions more who rely on their products and services in their daily lives.
U.S. stocks are mixed Monday as Facebook and other technology companies open the week with losses. Media companies are rising following a report that Charter Communications might be bought by a Japanese technology company, and cable network companies Scripps Networks and Discovery Communications agreed to combine. Banks are also trading higher.
KEEPING SCORE: The Standard & Poor’s 500 index added 2 points, or 0.1 percent, to 2,474 as of 3:30 p.m. Eastern time. The Dow Jones industrial average continued to build on its record highs. It gained 89 points, or 0.4 percent, to 21,917. The Nasdaq composite lost 19 points, or 0.3 percent, to 6,355. The Russell 2000 index of smaller-company stocks dipped 2 points, or 0.1 percent, to 1,427. A majority of the stocks on the New York Stock Exchange rose.
WHAT’S ON? TV: Charter Communications climbed after Bloomberg reported that Japanese conglomerate SoftBank is considering buying the cable TV provider. The report Sunday said that SoftBank initially wanted to combine Charter with Sprint, but after Charter rejected that idea, the technology company may buy Charter outright.
The struggle is real even among big tech brands that have dominated the world for decades now. Google, Facebook, and Amazon all incurred losses and nobody can tell yet whether how things will fare over the next few days, weeks, or months. The thing is that almost all businesses also rely on most of these tech companies in running their own businesses. Hence, everyone is affected because the delivery of these goods and services are interrelated and can have an impact to how we a certain business or brands all fare in the real world.
Technology companies missed out. Facebook returned some of its gains from last week, when it posted strong second-quarter results, and reports of higher expenses continued to affect Amazon’s shares. Banks rose, with HSBC climbing after it disclosed its own earnings.
About half of the companies in the Standard & Poor’s 500 have reported their second-quarter results, and this week, Apple and other companies will join the fray. Steve Wood, chief market strategist for Russell Investments, said he expects strong earnings for U.S. companies, but he thinks stock markets in other regions will do better.
“The earnings cycle and the economic cycle are earlier stage and the central bank of Europe is going to be providing liquidity over the next year,” he said. “It’s been an eight-and-a-half-year bull market in the U.S. and eight-plus-year economic expansion.”
Running a business is a risk an entrepreneur wholeheartedly takes because you won’t have a shot at success if you don’t make an effort to try despite the risks involved. While it is non-negotiable to use technology in running a business, it does not always have to be the best or the latest in the market, what’s important is that you are using the right tech tools that can elevate your business to the next level. You can actually save more money in automating certain business process rather than having it done manually, which is why any rise or fall in the tech industry is the business of everybody.