Whatever the economic weather, the sun always seemed to shine on Silicon Valley. America’s five largest technology companies—Apple, Microsoft, Alphabet, Amazon and Meta—saw their revenues and profits grow at five times the rate of American GDP in the decade to 2021. Tech’s ability to thrive as others struggled seemed to be confirmed during covid-19 lockdowns, when firms in the Valley posted record earnings even as much of the economy crumpled.
In 2022 tech’s luck ran out. It has been a difficult year for everyone: the S&P 500, an index of America’s largest firms, has fallen by a fifth since January. But digital firms have been hit harder,
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