Expectations for strong profit growth from the Magnificent Seven tech stocks are part of the reason the S&P 500 is trading near record levels, but a few factors could cause their earnings to increase slower than investors have penciled in.
The push from AI, plus those companies’ commanding positions in their other businesses, is why analysts currently expect the group to achieve aggregate annualized net income growth of just over 15% over the next three years, according to Barron’s calculations based on FactSet consensus forecasts. The comparable figure for the S&P 500 is in the low double digits.
in 2020, 12-month earnings growth rose to nearly 45% as the pandemic forced people to work from home, bringing a boom in online shopping via Amazon, plus a surge in social media use, streaming, and cloud computing.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: CNBC - 🏆 12. / 72 Read more »