The concerns associated with Big Tech’s growth don’t apply to George Soros.
Many analysts say the Federal Reserve’s decision to aggressively raise interest rates to combat inflation, which is at a 40-year high, threatens to push the economy into recession.
This inflation, which is particularly affecting consumers, is a major concern for the technology sector as spending on technology products and services is the first to be cut. Consumers limit their discretionary purchases, while companies delay investments in new hardware, for example.
Jeff Bezos, Founder of Amazon (Amazon) – Get the free report that summarizes the dire situation on November 16th with these tips for small businesses and consumers.
“My advice to small business owners is to take some risk off the table. If you’re going to buy, slow down,” the billionaire said. “If you’re an individual thinking about buying a new big screen TV, you might want to slow down, put the money down and see what happens. The same applies to a refrigerator. Whatever a new car, let’s take some risk off the table.”
“If you’re a small business, some capital purchases can be delayed: do you need that new device? Maybe it can wait a bit, have some cash on hand; just risk a little less.” That small difference can make a difference in business.”
Soros acquired a huge block of Alphabet stock
Similar concerns were raised by the tech giants themselves when they released their third-quarter results last month.
“In the third quarter, we saw a decrease in some advertisers’ spending in certain territories and search ads,” Philip Schindler, Alphabet’s senior vice president and chief business officer, told analysts. “For example, in financial services, we saw pullbacks in the insurance, credit, mortgage and crypto subcategories.”
“There is no doubt that we operate in an uncertain environment and that companies, large and small, continue to test in new and different ways depending on where in the world they are located.”
To get through these trying times, the tech sector has relied on drastic cost cutting, the most visible of which has been a wave of job cuts. In mid-November, Amazon began shedding 10,000 jobs, or about 3% of its corporate workforce, an unprecedented move in its history.
meta platformMeta) – Get the Free Report also announced the elimination of 11,000 jobs, or 13% of the group’s 87,000 employees. It was the first job cut in Facebook’s history since its inception in 2004.
Downsizing has spread to the tech and crypto sectors: TwitterTWTR) – Get the free report, Microsoft (msft) – Get a free report, Lyft (the lift) – Get a FREE report, Coinbase (coin) – Get the free report from Stripe, which recently cut jobs.
Letters (Google) – Get the free report, Apple (AAPL) – Get Free Reports and others have either closed or are slowing down their hiring pace.
As of July 31, Soros held 53,175 shares of Alphabet through his firm Soros Fund Management (SFM). Three months later, its stake in Alphabet had risen to 1.01 million shares, up 1,806%, according to a listing filing.
The billionaire bought shares in the quarter when Alphabet’s stock prices lost 12.2% of their value.
Soros sells some Amazon shares
If he sold Amazon stock, it was a small number, suggesting Soros still believes in the e-commerce giant, which left the $1 trillion club in October. Amazon’s market cap is currently $960 billion.
SFM held 1,981,161 Amazon shares, compared to 2,004,500 in the second quarter. This is a small drop from 1.16%.
Stock exchange regulations require money managers of more than $100 million in US stocks to file a document known as a 13F within 45 days of the end of the quarter in order to be listed in stocks traded on US stock exchanges. Get their holdings listed.
The value of Soros’ U.S. stock portfolio rose 4.3% quarter-on-quarter to nearly $5.9 billion. Soros Fund Management is a family office that manages public and private stocks.
The company says on its website: “SFM invests globally in a wide range of strategies and asset classes, including public equity, fixed income, commodities, foreign exchange, alternative investments and private equity.”
Soros, whose net worth is reported to have risen by $1 billion to $8.5 billion as of Nov. 22, according to the Bloomberg Billionaires Index, is known for pouring money into philanthropic endeavors. Most of his firm’s fortune goes to the Open Society Foundations, which “supports people around the world who work for justice, justice and freedom of expression.”