[Tencent technology editor press] US financial media CNBC commented that the two recently listed technology companies have released earnings, but the results appalling. Their experience shows that the five science and technology giants are faced with the difficult situation after facing. Technology companies to start a successful business, had to have not dominated from the five giants to find opportunities in the field. The following is an overview of the article:
Two recently listed technology companies have released earnings on Thursday, investors looked after the mood immediately became bad.
The end of June listed the first distribution of material distribution company Blue Apron reported that its losses further increased. The company's loss of $ 0.47 per share, higher than previously expected loss of $ 0.30 per share. Blue Apron said its loss was due to the high cost of attracting customers and the addition of manpower for its new distribution facility in New Jersey.
Subsequently, Blue Apron shares fell 17%, the current share price is only the initial public offering (IPO) issue price of half the level.
Snpachat parent company Snap is released as its second listed company earnings, its user growth again disappointed Wall Street, and the loss of more than expected.
After a few hours, Snap's share price fell 17%, and now the stock is about 33% of the IPO price.
Blue Apron and Snap have many similarities, they are focused on consumers, have a loyal fan, and burn the speed is also very fast. In addition, the two companies have been eyeing science and technology giants, and face fierce competition.
Blue Apron filed an IPO document on June 1 and was listed on June 28th. During this time, the electronics giant Amazon announced the acquisition of the US health organic food chain Whole Foods. Analysts said that Amazon will use the deal to enhance its home delivery service, which undoubtedly suppress the market demand for Blue Apron IPO, the company had to issue price from $ 15 to $ 17 down to $ 10 to $ 11.
Since then, it has been reported that Amazon has launched a similar Blue Apron services, and sold in Seattle.
And hit against the Snap is the social network Facebook. Facebook has been pressing on Snap since Evan Spiegel, the founder of Snap's co-founder, refused to mark Mark Zuckerberg's purchase in 2013.
Facebook in 2016 launched Instagram Stories function, its similar Snapchat Stories function, this copy of the way began to show results. Subsequently, Facebook in its products almost copied all important features of Snapchat.
Instagram Stories launched less than a year, with 250 million subscribers per day, growing at about 50 million per quarter. Snap has 173 million subscribers, growing only 7 million in the previous quarter.
The experience of these companies makes hope that one day to create Amazon or Facebook entrepreneurs and investors are disappointed.
The five giants of the US technology industry, Alphabet (Google), Apple, Amazon, Facebook and Microsoft, have unprecedented wealth and strength, their market value to reach trillions of dollars, and free cash flow has reached tens of billions of dollars.
They need to meet Wall Street growth appetite. This means that they need to find new users or earn money from existing users, but also a quarter followed by a quarter, year after year to maintain. The only way to achieve this goal is to develop into new markets.
For smaller competitors, they are willing to invest in product research and recruitment on more investment, and the price war.
This does not mean that Blue Apron or Snap is coming to an end. The two companies need to come up with leapfrog innovation to achieve their transcendence. All along, are young and flexible companies to replace the old slow business, which is the rise of the five giants way. Microsoft overturned IBM, Google and Apple to subvert Microsoft, and so on.
However, companies and investors who support start-ups to challenge the giants need to be aware of the risks.
If you want to make money through online advertising, the challenge is targeted at Google and Facebook. If you are involved in electricity, logistics or distribution business, you will encounter Amazon. If you want to enter the cloud computing industry, competitors are Amazon, Microsoft and Google. If you want to develop hardware products, Apple may be a stumbling block.
It is best to focus on the five giants did not achieve the dominant position of the niche market. Health care, financial technology, unmanned aerial vehicles and robots, are they are relatively shallow industry. Due to IBM, Oracle and SAP and other veteran giants, and the emergence of Salesforce upstart, Microsoft's strength in the enterprise software has been frustrated.
It has been a difficult thing for start-ups to succeed. With the leading position of the five giants increasingly stable, the success of science and technology start-up business in the future I am afraid it is difficult to increase.