Big techs are among the most influential corporations in the world. After all, in addition to leading technological advances, these multinationals influence various aspects of society, from economic issues to cultural and political aspects.
However, even though they are present in the daily lives of practically every person and company in the world, not everyone knows what big tech is. Furthermore, many may not recognize the importance of these companies and how they can represent interesting investment opportunities.
Want to better understand how big tech can impact your life and finances ? Then continue reading this content!
What are big techs and how do they work?
To begin, it is necessary to understand what the concept of big tech means and how the companies that make up this category work. The term refers to companies focused on technology and that often develop some of the main solutions on the market.
Big tech companies generally invest in the development of disruptive technology, dictating the direction of the technology market with the new developments they present. At the same time, they operate with the aim of remaining relevant, constantly developing new solutions and devices.
What are the main big techs in the world?
When we talk about the biggest players in the technology market, it is interesting to mention some of the main companies that stand out. In this manner, the effects they have on the market and society can be better understood.
In practice, there are big tech companies in many different parts of the world, since each local technology market has its highlights. Despite this, companies headquartered in the United States are particularly important.
This is because the country is the epicenter of influential technology multinationals. Many of them are located in the so-called Silicon Valley — the nickname for the San Francisco Bay Area, which refers to one of the main components of electronic circuit production.
Alphabet Inc. (Google)
Alphabet Inc. is the holding company that manages all services related to Google. Founded in 1998 by computer scientists Larry Page and Sergey Brin, this company is responsible for the largest search engine in the world, as well as owning brands such as:
- YouTube;
- Android;
- Google Chrome;
Amazon
Another technology giant that is increasingly influential around the world is Amazon. Founded by Jeff Bezos in 1994, it operates in different sectors of technology, such as e-commerce, streaming, development of e-book readers, etc.
Some of the company’s best-known products are:
- Twitch;
- Amazon Prime Video;
- Amazon Music;
Apple Inc.
Apple is also one of the world’s leading technology companies, and is one of the leaders when it comes to innovation. Founded in 1976 by Steve Jobs and Steve Wozniak, the business has been responsible for some of the most significant developments in cellphones and computers in recent years.
Its main products are:
- iPhone;
- Apple Music;
- Apple Play;
- iCloud;
- MacBook;
- iPad;
- Apple Watch.
Microsoft
Responsible for developing the world’s most popular operating system, Microsoft is recognized as the largest software producer on the planet. Founded in 1975 by Bill Gates and Paul Allen, this big tech company has gained worldwide recognition for its products, such as:
- Microsoft Windows;
- Office Line;
- OneDrive;
- Bing;
Meta Platforms Inc.
The social media market leader is Meta Platforms, a technology company formerly known as Facebook. Founded by Mark Zuckerberg in 2004, it is one of the world’s most valuable companies, which owns platforms like:
- Facebook;
- Instagram;
What are the impacts of big tech on society?
Now that you understand what big tech is, how it works and which are the biggest technology companies in the world, it is important to analyze how these companies impact society.
In this sense, it is easy to identify how the services and products of the Big Five mentioned above are making our daily lives easier. It is very likely that you use them to search for information and have fun, and you are even reading this article based on one of the products of these companies.
However, more than providing information and entertainment, one of the main impacts that big techs have on society is linked to the countless data they generate about their users.
As they control several niches of the digital market, big techs have access to more and more information about users. They can use this information to consolidate their dominance over the market — which can create an anti-competitive cycle and generate a monopoly.
Furthermore, this data is also used to impact geopolitics. In recent years, for example, some big tech companies have received criticism, especially for their data policies. Furthermore, they are often at the epicenter of controversies and discussions, such as the spread of fake news and the possibility of internet censorship.
How important are big techs in the market?
Despite their criticism, big techs continue to be fundamental to the global market, making their presence felt as revolutionaries in the technology sector.
Due to their large size and relevance, these corporations are often part of the main stock indexes. Therefore, those who choose to invest in index funds (ETFs) , for example, can expose their capital to the results of these companies.
Furthermore, it is worth considering the volume of capital they move, even individually. Big techs tend to impact stock market movements, for example, precisely because they are among the most valuable companies in the world.
It is also important to consider that technology can grow even in the face of crises. As a result, many investors believe in the potential of big tech to help contain or lessen the impact of stock market declines.
How to invest in big tech?
If you are interested in the different opportunities that big techs bring to the financial market, it is important to identify how to explore them in practice. Even though many of them are in the international market.
One opportunity, as you have seen, is index funds (ETFs) linked to an international indicator of which big techs are a part. In addition, finding BDRs (international investment certificates) of technology companies is also valid.
However, remember that these are variable income investments. Therefore, it is necessary to study the market, develop strategies and identify your investment profile before investing. It is also essential to have a good investment bank to carry out your operations.
Now you know what big techs are and their importance to the market. As we have seen, in addition to being central to social dynamics and innovations, these large corporations can represent investment opportunities for those interested in the sector.