Monday, August 4, 2025

Big 6 Tech Net Income Heading to Over $1 Trillion Combined (2029 est.)

Have I mentioned the hyper-Pareto distribution of profits?* 

For comparison, the total profits of the S&P 500 via the Federal Reserve Bank of St. Louis' FRED database (Billions of Dollars, Seasonally Adjusted Annual Rate):


 

As of Q1 2025 the total earnings of the 500 was annualizing to $1.626 trillion.

From Next Big Future, August 3:

Google and Microsoft have both gone over $100 billion in annual net income. The big technology companies are growing by as much as 20-25% each year. Their combined annual net income is already over $500 billion. By 2027, they will have combined net income over $700 billion and should reach over $1 trillion combined net income by 2029. 

This insane net income money printing is despite huge capex and research spending on AI and other investments....

....MUCH MORE (some very nice data tables) 
*
If interested see July 9's "The 'new normal' of growth stock dominance
What our five years of blather regarding advantage flywheels is all about....