Monday, July 03, 2017

Social media and tech giants, can they connect with the little people!

The debate roles on:

Big Tech is cut off from the real world
The public worries about the economic and social effects of technology

 All this is true when it comes to Big Tech today. “Silicon Valley talks mainly to itself,” says Vivek Wadhwa, a software entrepreneur and fellow at Carnegie Mellon University. “It’s all about connections here, and nobody wants to take on the big issues for fear of offending someone important.” Indeed, too many attempts at public “engagement” just end up making Silicon Valley executives seem more, rather than less, out of touch (think not only of Uber’s epic mistakes, but also of more subtle examples such as Mark Zuckerberg’s rambling, 6,000 word letter addressing the topic of fake news).

The public worries about the economic and social effects of technology, and those worries are not going away. Some investors are even baking them into the valuations. “Big Tech and Silicon Valley have been among the most politically insulated sectors in the S&P 500, while financials and energy have been among the most closely scrutinised.

Investors would be well-advised to think about how these roles may reverse in the current administration,” read a note from Strategas Research put out last week. Fang executives should take heed.



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