Some people argue that large tech
companies are too big. They are indeed large: Facebook has more active users
than there are people in China; Google handles at least two trillion searches a year.
Why are these companies so big? Because you and I use them. We do that because we
get lots of value. So saying they’re too big is to say they provide too much
value, which doesn’t make sense. Other people argue the big tech makes too much money: Facebook’s 2017 profit was 16 billion
dollars, about 40 percent of its revenue. Does Facebook really need that much
money? That’s the wrong question. Only about 10 to 20 percent of tech firms
ever make a profit, so 80 to 90 percent either break even or lose substantial
amounts of money. The profits of the few drive investors to endure the losses of
the many. On average, the tech sector’s returns are comparable to those of the
S&P 500. So when someone says that tech companies are too big, say you’re
grateful: You’re getting great value and competition for the future! What do you
think? Should big tech be broken up? Let us know your comments. Also, let us know
what other topics you’d like our scholars to cover in 60 seconds, and be
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