I agree that those companies are in “a healthy position”, but there are massive risks to their operations: AMZN: IIRC, AWS is the majority of their profit. Thi

I agree that those companies are in “a healthy position”, but there are massive risks to their operations: AMZN: IIRC, AWS is the majority of their profit. This is web infrastructure; all the negative PE ratio startups and gig economy companies going under will hurt AWS. They have similar risks to GOOG (see below). MSFT: Does anyone have a clue how MSFT is making money? The last few Windows updates have been free, and I would guess they are buttressed by Office 365. How they convince IT departments to adopt this buggy, slow, expensive software, is beyond my comprehension. What’s the sales pitch? “Hey, have you ever wished you could pay every month for Office? It will have similar functionality to Office from 20 years ago, and you can pay us every single month!” On second thought, their Azure services probably have similar profitability and risks to AWS; maybe that’s what is keeping them afloat. AAPL: At least Apple produced physical products, but we have seen their products, e.g the iPhone 14, hurt by supply chain issues and lower demand in the face of a recision and high inflation. They’re not innovating; the iPhone 14 was mocked for being the same as the previous model. If frugal consumers go by the wayside, who is driving profits? The (now-laid-off) tech employees who make enough to afford their luxury products? Maybe some, but less than at present. Apple has made efforts to grow their SaaS revenue the last few years and that is prone to risks from lower consumer demand. A budget-minded consumer will not be paying for all the Apple services when they are hurt by layoffs. GOOG: Ah, my favorite. Let’s set aside the legion of small companies they bought to fuel growth and decrease competition, e.g. Nest, Fitbit, Waze, YouTube, etc. Corporate Alphabet is producing the majority of profit by ad revenue. What happens when demand for advertising decreases due to lower consumer demand? They’re also trying to enter the cloud space, but are far behind AWS and Azure. There are also broad risks facing tech company. The main ones which come to mind are data privacy and other regulations, anti-trust actions. If future events do not favor big tech, those companies could have a long way to fall.