...In one sense, the booming spending on big-ticket projects defies economic logic. In principle, once companies achieve gigantic scale, it should become cheaper for them to operate their businesses rather than more expensive. But that’s not necessarily how technology works. The four technology giants want to grab more market share in their existing businesses or expand into new areas. And that means even if they’re getting more efficient at running their internet services or package logistics operations, the tech giants need to keep spending to keep up with their customers' demand and with other rich tech giants.
Alphabet Inc., the parent company of Google, made it clear that it is investing in real estate and a global network of computers to run its web properties and cloud-computing services for other companies, plus huge projects including undersea cables that give Google an edge in internet speed. Amazon.com Inc. and Microsoft Corp. are bulking up their cloud computing and -- in Amazon’s case --its package and shipping operations. Facebook Inc.’s capex is growing at the fastest rate of the four, and it’s not entirely clear what the company is doing with its planned splurge.
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