Facebook and the conglomerate curse

In 1997, in his first letter to shareholders, Jeff Bezos, Amazon’s founder, wrote that it was still “Day 1” for his firm. Day 2, he later explained, would mean stasis, followed by irrelevance. His rousing call to avoid complacency seems apt today. Silicon Valley’s five big tech giants, Alphabet, Amazon, Apple, Meta and Microsoft, have long been the bedrock of America’s stockmarket and economy, miraculously combining reliable growth and profitability. But after a torrid third quarter their market capitalisations have now collectively dropped by 37% so far this year. About $3.7trn of value has evaporated.