Great technologies are spinning on Wall Street. It’s a good time for them.

John Chambers, who headed Cisco Systems as its former CEO, said companies’ strong business and deep pockets would enable them to take risks that would be impractical for small competitors. During the 2008 downturn, he said, Cisco was allowing impoverished automakers to pay for technology services on credit at a time when competitors were demanding money. The company risked writing off $ 1 billion in inventory but emerged from the recession as a dominant supplier to the healthy auto industry, he said.

“Companies are collapsing in a downturn,” Mr. Chambers said.

Brilliance requires ignoring the darkness of the wider market, said David Yoff, a professor at Harvard Business School. He said the previous decline showed that even the strongest businesses are sensitive to profit pressures and are prone to retreat. “Firms are as pessimistic as any other,” he said.

The first test for the largest technology companies will be contagious from their peers. Shares of Amazon in electric car maker Rivian Automotive fell more than 65 percent, leaving a loss of $ 7.6 billion. Sales of Apple services are expected to decline as app developers slow down ads that rely on venture capital funding to fund their marketing, analysts say. And start-up companies are monitoring their spending on cloud services, which is likely to slow the growth of Microsoft Azure and Google Cloud, analysts and cloud executives said.

“People are trying to figure out how to spend wisely,” said Sam Ramji, chief data officer at DataStax, a data management company.

Regulatory challenges on the horizon can also obscure the prospects of large tech companies. The European Digital Market Act, which is expected to become law soon, is designed to increase the openness of tech platforms. Among other things, it could cut the estimated $ 19 billion Apple is raising from Alphabet to make Google the default search engine on iPhones, a change that Bernstein estimates will erase 3 percent of the company’s total profits.

But companies are likely to challenge the law in court, potentially tying the law for years. The probability of its sinking leaves analysts with a consensus: “Great technology will be more powerful. And what is being done about it? “Nothing,” said Mr Kramer of Arete Research.

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