Even with the reopening of economies which many believe would lead to a tech pullback, big tech has made huge profits in quarterly reports this week, proving they still have a place at the table and room for growth. .
Microsoft, Apple and Alphabet all posted monstrous profits on Tuesday, generating a combined after-tax profit of $ 56.8 billion, almost doubling from the same period last year. According to the Financial Times, collectively it was 30% higher than what Wall Street analysts had predicted, averaging around $ 5 billion per week in after-tax profits.
“Five percent of global GDP is technology spending, it is expected to double – the doubling is going to happen at an accelerated rate,” said Satya Nadella, CEO of Microsoft.
While there had been initial concerns that big tech, which had pivoted successfully during the pandemic, could have problems navigating reopening economies, the numbers prove otherwise.
“I think the bottom line is that all of the digital habits we’ve taken over the past 12 months, they’re going to stay with us when we get out of them,” said Jim Tierney, portfolio manager at AllianceBernstein. He added: “Digital advertising is on fire.”
Google’s ad sales increased 69% from the previous year, while growth in Microsoft’s newest business, the Azure cloud platform, exceeded 50%.
Shortages of basic necessities such as semiconductors haven’t slowed tech giant Apple; iPhone sales increased more than 50% in the last quarter. IPhone sales jeopardize half of Apple’s revenue.
Total revenue for the last quarter for the three tech giants was $ 189.4 billion, $ 15 billion more than Wall Street expected and 39% higher than the same. period last year.
Invest in growth with ‘PGRO’
the Putnam Focused Large Cap Growth ETF (PGRO) is an actively managed, undiversified fund that focuses on large growth-oriented US companies.
The fund selects companies similar in size to the Russell 1000 Growth Index, with market capitalizations between $ 2 billion and $ 2.1 trillion. Putnam Investment takes into account a company’s valuation, financial strength, growth potential, competitive position in its industry, expected future earnings, cash flow and dividends when buying and selling. investments.
As a semi-transparent fund using the Fidelity model, PGRO does not disclose its current holdings on a daily basis. Instead, it publishes a tracking basket of previously disclosed holdings, liquid ETFs that reflect the portfolio’s investment strategy, and cash and cash equivalents. The monitoring portfolio is designed to closely monitor the overall performance of the actual fund portfolio, and reports on the actual portfolio are published monthly.
At the end of June, PGRO held stakes in Microsoft (MSFT) at 9.49%, Apple (AAPL) at 8.19%, and Alphabet (GOOGL) at 6.45%.
PGRO has an expense ratio of 0.55% and held 37 stakes at the end of June.
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