Big Tech Still Rules Profit Growth Even as S&P Leadership Widens
- Megacaps earnings approach with 46% 4Q profit growth seen
- Tech’s income expansion dwarfs almost all S&P 500 sectors
Laptop computers using Intel chips at the Consumer Electronics Show in Las Vegas.
Photographer: Brendan Smialowski/AFP/Getty Images
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Bets on the US stock market rally broadening out beyond a handful of tech behemoths this year are bumping into a familiar reality: Those same megacaps remain Corporate America’s most likely source of profit growth.
Tech’s fourth quarter earnings season kicks off this week with results from Netflix Inc., Tesla Inc. and Intel Corp. The so-called Magnificent Seven are expected to deliver combined profit growth of about 46%, according to data compiled by Bloomberg Intelligence. That’s down slightly from the third quarter’s 53% expansion, but it still dwarfs almost all of the main sectors in the S&P 500 Index.