U.S. Technology Vs. Everything Else

Christopher June |

As most of you know, the large U.S. technology companies (including large SFM client holdings: Microsoft, Amazon, Google, Apple, Facebook, etc.) have continually become more important to our lives and the global economy over the last 10 years. The global pandemic has only accelerated this trend. What many people underestimate is the huge amount of growth in sales, cash flow, and ultimately profit that has been earned by these companies over the years. The chart below shows how the annual profit of these U.S. technology companies (light blue line) has greatly outpaced the annual profit of ALL other companies throughout the ENTIRE rest of the world (dark blue line).


This chart does a great job of displaying how U.S. technology company profits have been soaring, especially since 2009, and how this profit has continued and even accelerated since the start of the pandemic. This chart also displays how shockingly large this growth has been compared to the entire rest of the world. All of the companies around the world excluding these U.S. technology companies have actually had essentially no profit growth since 2007…or the last 13 years!  Meanwhile, U.S. technology profits have more than tripled during this time frame.