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Market outlooks · Opinion

The law of increasing excess returns

The landscape of the technology industry has been dramatically reshaped since the onset of the coronavirus crisis, with big tech companies witnessing their operating profit margins leap from 24 to 29 percent. In stark contrast, other companies have seen a decline of two percentage points in the same period. This trend, far from fostering competition, is solidifying a ‘winner-takes-all’ economy.

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