The Tech Giants Are No Longer Asset-Light Businesses

Since the start of tech supremacy, the most attractive feature was their high-growth, asset-light business models. With trillions projected to be spent on infrastructure, that is no longer the case.

The key to a company’s valuation is the price multiple assigned to some form of economic value. The most common measures are earnings, cash flows, revenue/sales, or tangible book value. In short, a company is valued based on the price someone is willing to pay for the economic output it generates.

Technology companies typically do not have or require ma…