Tech Companies Q1 Earnings Show Increased YoY Figures

Q1 earnings of tech companies show a year-on-year increase as momentum builds with improved macroeconomic factors. A new Zachs’ report points to steady growth in various sectors although companies struggled to meet revenue estimates. 

According to the report, Q1 earnings of 139 S&P 500 members saw a 4.6% increase and a 3.4% rise in revenues. This shows an overall market improvement for the S&P 500 by 6.8% 

Notably, this has sparked positive projections ahead of the second quarter especially around the energy sector since the start of April.

“ A notable favorable development on the earnings front is signs of improvement in the overall revisions trend, with estimates in the aggregate starting to go modestly up. We are seeing this trend for the current period (2024 Q2) as well as for full-year 2024 estimates.”

Tech Companies See Inflow

The first three months of the year saw profits in some technology-based companies. Meta recorded a 27% year-on-year increase in revenue netting $36.46 billion. In addition to this, overall applications notched a 7% increase with a 20% growth in ad impressions. 

Despite an increase in expenses, the outlook was positive with its executives projecting revenues for Q2 2024. 

“We expect second quarter 2024 total revenue to be in the range of $36.5-39 billion. Our guidance assumes foreign currency is a 1% headwind to year-over-year total revenue growth, based on current exchange rates.”

Bitcoin Rise With Tech Stocks

A notable market narrative in Q1 2024 was the inflow recorded by Bitcoin and other cryptocurrencies. The approval of spot Bitcoin ETFs led to massive inflows which pushed the price to a new all-time high above $72,000. 

According to the report, Bitcoin was more profitable to investors than other decentralized forms of money. Aside from the approval of ETFs, investors looked to e Bitcoin halving to boost the asset’s price in the long run.

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