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This week, Google announced a sharp drop in profits. Companies in the social media space, like Meta, said that their core industry, advertising sales, has abruptly decreased. Microsoft, arguably the most dependable company in the computer sector, forecast a slowdown through at least the end of the year.
Over the past ten years, the U.S. economy has been driven by technology businesses, which also helped to support the stock market during the worst of the coronavirus outbreak. Even the greatest Silicon Valley companies are hinting that hard times may be ahead in the current environment of persistent inflation and rising interest rates.
The businesses are dealing with the same issues as the economy as a whole. They invested to meet demand because of the pandemic’s strong consumer spending boom. They are now attempting to adjust as the spending slows. It was not simple.