August 1, 2021. MPG actively monitors public equity market activity and stays abreast of industry trends, financial performance, and notable investment activity. In our Earnings Roundup, readers will explore a dive into a record-setting quarter of earnings releases across the S&P 500 with a specific focus on the Technology sector. Led by the Big Five Tech firms, revenue growth and EPS performance beat expectations nearly across the board with 96.8% of companies that have reported to-date surpassing analyst’s forecasts.
With the COVID-driven volatility having subsided, the current window of stability has created a boon of pent-up demand for investing and M&A activity within S&P 500-tracked Technology companies. Over $220 billion of R&D and CapEx spending has been deployed by companies within the sector within the last twelve months while cash is being invested in M&A transactions at a significantly higher rate than the previous twelve-month period.