Tech Stocks Crushed in Market Selloff - Six US Top Companies Lost Over $500 Billion

There is a global economic crisis characterized by record-high inflation and political instability. As a result, companies are finding it unusually difficult to stay ahead of the curve. The rising cost of living and concerns about the economy’s direction is recalibrating the business world.

Nations and the private sector are yet to recover fully from the impact of the COVID-19 pandemic. Even some industries that boomed during the pandemic are going through post-pandemic tough times. The tech industry is one of the industries badly hit by the present economic uncertainties.???????????

In addition to the impact of the pandemic, the ongoing Russia - Ukraine war has driven up the cost of energy and affected the economies of many nations, especially in Europe. Any company that wants to outlast these economic challenges needs to be innovative.

?In this article, we will discuss the role of digital innovation in building a crisis-proof, world-class business.

The Six Largest U.S. Tech Companies Lost More than $500 Billion

The top six tech giants in the United States lost more than 500 billion dollars after a high August 2022 inflation report caused a significant fall in tech stocks. According to a report by CNBC, the Nasdaq Composite sank 5.16% to end the day at 11,633.5, lower than any day since June 2020.

?At the time, the consumer price index was up by 0.1% for the month and there was an increase of 8.3% year on year. The Invesco QQQ ETF, an exchange-traded fund, recorded a 5.5% decrease in its very bad trading day since March 2020. Apple, Microsoft, Amazon, Alphabet, Meta, and Nvidia are the fund’s top 10 holdings.

Apple lost $154.11 billion in market cap and went below 5.87%. Microsoft lost 109.33 billion and fell 5.5%? - the lowest since September 2020. Alphabet lost $85.32 billion, Amazon lost $98.11, Meta lost $42.55 billion, and Nvidia lost $34.21 billion.?

In the face of economic problems, how do you keep your company profitable and relevant? The rest of this article will be dedicated to showing you how to build a crisis-proof brand no matter how bad things go on the local or global scene.

The Way Forward for Global Brands

What do these huge numbers (the losses) tell you? They show how unstable the global market is and how unsure investors are about the future. That said, this is also a time when smart companies make the most of their creativity to boost sales and elevate their brands. In other words, when there is a crisis, there is also a huge potential for growth.?

Tough times are the best times to showcase strength. And the strength of every progressive organization lies in innovation. This is the ability to find creative,future-fit solutions to ever-evolving business challenges. Things are fast changing and the only way to avoid phasing out of business is to stay on top and ahead of trends.

The way forward is digital innovation. This is where the Advanced Digital Innovation Lab comes in! What is a digital innovation lab and how can it help you beat the prevailing global market crises? Keep reading!

The Role of Advanced Digital Innovation Lab in Building a Crisis-proof Brand

If you are looking to beat negative market forces to build a super profitable brand, all you need is a Digital Innovation Lab. A digital innovation lab is a space where R&D teams leverage multi-environment development, edge computing, hyperscaling, hyper-secure platforms and frameworks, and next-generation tools to build specialized products and solutions.

In a nutshell, you need a good R&D team (in-house or outsourced) to create the customized solutions your business needs to thrive. Here are the key ways to leverage a digital innovation lab to stay ahead of the curve.

1. Reduce Cost of Operation With Specialized Tools

The first step to take when you want to improve your bottom line is to cut down the cost of operation. And one of the most effective ways to do this is through automation tools. You can significantly increase profitability with solutions designed to improve your day-to-day operations.

2. Business Insights

Successful brands thrive on data-driven decisions. You need high-quality insights to stay ahead of the curve. An R&D team helps you to uncover insights you need to outsmart competitors and beat challenges, especially when you are looking to break into a new market.

3. Transformative Solutions

If you want to shake up your industry with cutting-edge solutions, you must invest in research and development. No company becomes outstanding without a digital innovation lab. To stand out in a time when others are barely surviving, you need to create transformative solutions that are difficult to ignore.?

4. Security

Cleaning up a security breach costs a lot of money. And the reputational damage that comes with it can be very difficult to manage. A digital innovation lab helps you build a secure and immutable digital infrastructure with future-fit tools and robust cybersecurity architecture. Do you want to be a thousand steps ahead of cybercriminals? You need a team of researchers and developers to make that happen!

Why is Advanced Digital Innovation Lab So Important in 2022?

The recent big losses recorded by giant tech companies reinforce the fact that the world economy is yet to recover from the impact of the COVID-19 pandemic. Recent events on the world stage signal that the economic crisis will last longer. Instead of waiting for things to get better, you have to adjust - with innovation -? to thrive.

You need digital innovation to remain competitive in 2022. Innovative decisions and solutions improve your competitive advantage, increase productivity, and enhance customer experience. Those are the key parameters that make a brand crisis-proof.

How do you create a digital innovation lab? The good news is that you must not figure out everything by yourself. Instituting a digital innovation lab and strategy is an absolute breeze with Bredec’s Digital Innovation R&D Lab. Bredec is an all-in-one digital solutions company that leverages collaborative intelligence to provide transformative solutions.

We specialize in emerging technologies. Leverage our team of R&D specialists to build customized products and solutions that suit your business needs. Contact us now!

Let’s get in touch!

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Contributors; Gray Oshin (content creator),?Melanie Matt (concept and strategy)?&?Alessandro Benoni (Advanced Digital Innovation Lab)