Big Tech valuations are re-entering the real world

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Big Tech valuations are re-entering the real world
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Amazon and Apple’s price-to-earnings ratios are converging with industrials like Caterpillar. That makes sense: Minus recent euphoria, they're tools for everyone else's business, writes TheRealLSL:

U.S. stock markets sold off on May 5, with the S&P 500 Index falling 3.6% and the Nasdaq Composite Index down 5%.

As of May 5, 413 of the 500 companies in the S&P 500 had reported first-quarter earnings, according to data from Refinitiv. Of those, technology companies have posted year-on-year earnings growth of 13% while industrial companies have raised earnings by 40% from the same period in 2021. Revenue for technology companies has grown 12% year-on-year, below the S&P 500 average.A specialist trader works inside his post on the floor of the New York Stock Exchange in New York City, U.S.

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