Big tech stands to benefit the most from a mild recession

With so much cash on hand, companies like Apple, Microsoft, Google, Amazon, and Nvidia have a lot of advantages that's not available to smaller companies.

For example:

• They can more easily acquire and consolidate upstart challengers for cheap because those companies will be struggling for cash flow during a recession. In the long term this allows big tech to protect and grow their market share. I can totally see Google, Microsoft, and Amazon making more cybersecurity acquisitions in the near future.

• They have enough money to continue investing in R&D while smaller companies might not. Small startups got plenty of operating capital during the last two years as they easily got money by SPACs or issuing more shares. That's not happening now.

• Large companies look like better, and more stable employment opportunities. It's easier for big tech to acquire good talent during a recession versus the smaller companies.

• When economy is bad, it may be harder for government to push for anti-trust reform of big tech companies. (This point is a bit speculative, so take it as just one man's opinion).

So in the long term, these slow growth periods allows big tech to take advantage of innovation developed by smaller tech companies and better protect their existing market shares (while also expanding into new ones).