What are major US tech companies investing in?
The Economist analyzed a number of data on the activities of the Big Five: the technology focus of their recently acquired companies, companies in which they received minority stakes, employee profiles on LinkedIn, publications and patents. The article gives an idea of the direction of the phenomenal surge in investment. The five largest US companies - Alphabet, Amazon, Apple, Meta and Microsoft (MAAMA) have invested $280 billion in 2021. This is 9% of the investments of all American companies. Five years ago it was 4%. Research and development The Big Five spent $149 billion on research and development (R&D) in 2021, up 34% since 2019. Product development accounts for a significant portion of this spending. Over the past 12 months, the share of cash flows of MAAMA companies for R&D and capital expenditures amounted to 53% . For comparison: on average, all companies included in the S&P500 index spend 32% on research. One reason for the huge R&D spending is the really