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U.S. IT Industry Analysis
UpdatedApr 13, 2025
DataAggregated Company Financials
Companies108
- 7D3.6%
- 3M-10.4%
- 1Y3.7%
- YTD-11.0%
Shopify is up 8.9%, leading the way for the IT industry, which has gained 3.6%. In the same time, CoreWeave was down 8.5%. This means that the industry has gained 3.7% over the past year. As for the next few years, earnings are expected to grow by 13% per annum.
Industry Valuation and Performance
Has the U.S. IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 14 Apr 2025 | US$808.0b | US$242.3b | US$18.5b | 32.5x | 43.8x | 3.3x |
| Wed, 12 Mar 2025 | US$885.2b | US$239.9b | US$18.3b | 41x | 48.3x | 3.7x |
| Fri, 07 Feb 2025 | US$998.5b | US$234.1b | US$16.3b | 45.4x | 61.4x | 4.3x |
| Sun, 05 Jan 2025 | US$871.5b | US$234.0b | US$16.5b | 49.1x | 53x | 3.7x |
| Tue, 03 Dec 2024 | US$894.5b | US$233.1b | US$16.3b | 46.8x | 55x | 3.8x |
| Thu, 31 Oct 2024 | US$794.7b | US$232.9b | US$15.7b | 43.2x | 50.5x | 3.4x |
| Sat, 28 Sep 2024 | US$805.3b | US$233.8b | US$17.8b | 40.3x | 45.2x | 3.4x |
| Mon, 26 Aug 2024 | US$752.0b | US$233.1b | US$17.4b | 34.1x | 43.1x | 3.2x |
| Wed, 24 Jul 2024 | US$743.7b | US$236.9b | US$17.2b | 29.8x | 43.3x | 3.1x |
| Fri, 21 Jun 2024 | US$681.9b | US$237.2b | US$17.3b | 27.4x | 39.5x | 2.9x |
| Sun, 19 May 2024 | US$716.7b | US$236.8b | US$17.3b | 25.3x | 41.5x | 3x |
| Tue, 16 Apr 2024 | US$735.7b | US$227.8b | US$13.7b | 24.4x | 53.5x | 3.2x |
| Thu, 14 Mar 2024 | US$815.3b | US$227.8b | US$14.4b | 23.1x | 56.7x | 3.6x |
| Sat, 10 Feb 2024 | US$856.9b | US$226.8b | US$13.1b | 22.7x | 65.4x | 3.8x |
| Mon, 08 Jan 2024 | US$758.6b | US$229.5b | US$12.8b | 20x | 59.1x | 3.3x |
| Wed, 06 Dec 2023 | US$759.7b | US$228.9b | US$12.7b | 21.3x | 59.6x | 3.3x |
| Fri, 03 Nov 2023 | US$636.8b | US$228.1b | US$12.1b | 20.6x | 52.6x | 2.8x |
| Sun, 01 Oct 2023 | US$662.3b | US$227.2b | US$6.5b | 24.3x | 102.4x | 2.9x |
| Tue, 29 Aug 2023 | US$674.4b | US$226.3b | US$6.6b | 21.2x | 101.9x | 3x |
| Thu, 27 Jul 2023 | US$694.7b | US$228.6b | US$6.2b | 25.5x | 112x | 3x |
| Sat, 24 Jun 2023 | US$661.8b | US$228.6b | US$6.1b | 23.4x | 107.8x | 2.9x |
| Mon, 22 May 2023 | US$639.0b | US$229.1b | US$5.1b | 21.8x | 124.9x | 2.8x |
| Wed, 19 Apr 2023 | US$595.9b | US$225.6b | US$2.5b | 23.8x | 243x | 2.6x |
| Fri, 17 Mar 2023 | US$1.9t | US$463.9b | US$22.5b | 24.5x | 83.9x | 4.1x |
| Sun, 12 Feb 2023 | US$2.0t | US$459.8b | US$40.7b | 26.8x | 50x | 4.4x |
| Tue, 10 Jan 2023 | US$2.0t | US$458.0b | US$39.2b | 28.7x | 50x | 4.3x |
| Thu, 08 Dec 2022 | US$1.9t | US$457.0b | US$39.0b | 28x | 49.1x | 4.2x |
| Sat, 05 Nov 2022 | US$1.8t | US$454.5b | US$37.8b | 25.4x | 46.8x | 3.9x |
| Mon, 03 Oct 2022 | US$1.8t | US$449.4b | US$41.7b | 25.2x | 42.3x | 3.9x |
| Wed, 31 Aug 2022 | US$2.0t | US$446.6b | US$41.6b | 29x | 48x | 4.5x |
| Fri, 29 Jul 2022 | US$2.0t | US$443.4b | US$47.9b | 29.2x | 41.8x | 4.5x |
| Sun, 26 Jun 2022 | US$2.0t | US$442.1b | US$47.1b | 28.2x | 42.5x | 4.5x |
| Tue, 24 May 2022 | US$2.0t | US$438.6b | US$45.9b | 28x | 43.9x | 4.6x |
| Thu, 21 Apr 2022 | US$2.3t | US$373.8b | US$47.4b | 32.1x | 48.1x | 6.1x |
Price to Earnings Ratio
48.1x
Current Industry PE
- Investors are pessimistic on the American IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 43.8x which is lower than its 3-year average PE of 67.2x.
- The industry is trading close to its 3-year average PS ratio of 3.6x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 27% per year over the last three years,
- Revenues have also declined 17% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | 5.42% | |
| Tech | 9.36% | |
| IT | 3.63% | |
| Internet Services and Infrastructure | 6.60% | |
| Data Processing Services | 2.06% | |
| IT Consulting | 1.91% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 32.3x.
- Analysts are expecting annual earnings growth of 10.6%, which is higher than its past year's earnings decline of 2.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 17% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SHOP Shopify | US$83.71 | 8.9% +US$8.8b | 19.6% | PE53.7x | |
| IBM International Business Machines | US$235.48 | 3.5% +US$7.4b | 29.2% | PE36.3x | |
| SNOW Snowflake | US$144.96 | 11.1% +US$4.8b | -8.6% | PS13.3x | |
| NET Cloudflare | US$106.25 | 9.4% +US$3.2b | 13.3% | PS21.9x | |
| OKTA Okta | US$101.82 | 10.8% +US$1.7b | 3.6% | PE631.3x |
