Narrative Update • Jun 11
Have your own idea? Try our Stock Screener
- 7D-8.0%
- 3M7.2%
- 1Y-7.2%
- YTD-9.5%
Over the last 7 days, the IT industry has dropped 8.0%, driven by a pullback from International Business Machines of 8.9%. In contrast, AIAI Holdings has gained 20%. However, the industry is down 7.2% over the past year. Earnings are forecast to grow by 22% annually.
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 |
|---|---|---|---|---|---|---|
| Sat, 13 Jun 2026 | US$914.6b | US$259.6b | US$20.1b | 19.3x | 45.6x | 3.5x |
| Mon, 11 May 2026 | US$847.3b | US$258.3b | US$20.6b | 24.1x | 41.1x | 3.3x |
| Wed, 08 Apr 2026 | US$848.4b | US$259.7b | US$21.6b | 19.7x | 39.3x | 3.3x |
| Fri, 06 Mar 2026 | US$868.4b | US$258.0b | US$21.5b | 21.5x | 40.4x | 3.4x |
| Sun, 01 Feb 2026 | US$998.8b | US$254.8b | US$22.5b | 27.6x | 44.3x | 3.9x |
| Tue, 30 Dec 2025 | US$1.1t | US$283.1b | US$20.9b | 30.3x | 52.3x | 3.9x |
| Thu, 27 Nov 2025 | US$1.1t | US$281.4b | US$20.9b | 27.8x | 50.6x | 3.8x |
| Sat, 25 Oct 2025 | US$1.1t | US$283.6b | US$22.0b | 30.7x | 49.9x | 3.9x |
| Mon, 22 Sep 2025 | US$1.0t | US$251.0b | US$19.3b | 32.2x | 53.2x | 4.1x |
| Wed, 20 Aug 2025 | US$945.5b | US$250.3b | US$19.3b | 29.7x | 49.1x | 3.8x |
| Fri, 18 Jul 2025 | US$990.3b | US$241.7b | US$17.4b | 31.1x | 57.1x | 4.1x |
| Sun, 15 Jun 2025 | US$977.0b | US$240.5b | US$17.1b | 28.6x | 57.2x | 4.1x |
| Tue, 13 May 2025 | US$862.7b | US$239.1b | US$16.7b | 34.4x | 51.7x | 3.6x |
| Thu, 10 Apr 2025 | US$764.8b | US$242.3b | US$18.5b | 33.5x | 41.4x | 3.2x |
| Sat, 08 Mar 2025 | US$909.4b | US$240.1b | US$18.2b | 43.7x | 50.1x | 3.8x |
| Mon, 03 Feb 2025 | US$966.3b | US$234.3b | US$16.0b | 44.1x | 60.6x | 4.1x |
| Wed, 01 Jan 2025 | US$858.7b | US$234.1b | US$16.5b | 46.7x | 52.2x | 3.7x |
| Fri, 29 Nov 2024 | US$889.5b | US$233.1b | US$16.3b | 49x | 54.7x | 3.8x |
| Sun, 27 Oct 2024 | US$792.0b | US$232.9b | US$15.7b | 43.6x | 50.3x | 3.4x |
| Tue, 24 Sep 2024 | US$775.4b | US$233.3b | US$17.5b | 40.3x | 44.3x | 3.3x |
| Thu, 22 Aug 2024 | US$752.1b | US$232.8b | US$17.5b | 33.9x | 42.9x | 3.2x |
| Sat, 20 Jul 2024 | US$741.3b | US$236.9b | US$17.2b | 28.9x | 43.2x | 3.1x |
| Mon, 17 Jun 2024 | US$684.8b | US$237.2b | US$17.3b | 27.4x | 39.7x | 2.9x |
| Wed, 15 May 2024 | US$713.8b | US$236.9b | US$16.7b | 23.9x | 42.7x | 3x |
| Fri, 12 Apr 2024 | US$748.4b | US$227.7b | US$13.8b | 24.8x | 54.1x | 3.3x |
| Sun, 10 Mar 2024 | US$812.2b | US$227.8b | US$14.3b | 23.9x | 56.6x | 3.6x |
| Tue, 06 Feb 2024 | US$822.7b | US$227.1b | US$12.9b | 20x | 63.6x | 3.6x |
| Thu, 04 Jan 2024 | US$756.6b | US$229.5b | US$12.8b | 20.2x | 59.1x | 3.3x |
| Sat, 02 Dec 2023 | US$750.1b | US$228.8b | US$12.8b | 21.2x | 58.6x | 3.3x |
| Mon, 30 Oct 2023 | US$620.2b | US$227.8b | US$11.4b | 17.6x | 54.4x | 2.7x |
| Wed, 27 Sep 2023 | US$657.9b | US$226.6b | US$6.8b | 24.6x | 97x | 2.9x |
| Fri, 25 Aug 2023 | US$665.8b | US$226.3b | US$6.6b | 20.8x | 100.6x | 2.9x |
| Sun, 23 Jul 2023 | US$693.0b | US$228.6b | US$6.2b | 25.5x | 111.7x | 3x |
| Tue, 20 Jun 2023 | US$694.9b | US$228.3b | US$5.9b | 24.4x | 117.5x | 3x |
Price to Earnings Ratio
117.5x
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 45.6x which is lower than its 3-year average PE of 57.2x.
- The industry is trading close to its 3-year average PS ratio of 3.5x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 50% per year over the last three years.
- Revenues for these companies have grown 4.4% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | -2.36% | |
| Tech | -5.59% | |
| IT | -7.99% | |
| Data Processing Services | -3.62% | |
| IT Consulting | -7.82% | |
| Internet Services and Infrastructure | -8.13% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry, which is trading close to its 3-year average PE ratio of 27.7x.
- Analysts are expecting annual earnings growth of 13.2%, which is lower than the prior year's growth of 25.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 34% over the next 5 years.
- However this is lower than its past earnings growth rate of 88% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 7.8% 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 | |
|---|---|---|---|---|---|
| APLD Applied Digital | US$42.70 | 7.8% +US$880.2m | 281.9% | PS38.2x | |
| AIAI AIAI Holdings | US$14.79 | 26.2% +US$215.9m | n/a | PE-266.7x | |
| RXT Rackspace Technology | US$5.44 | 15.6% +US$183.2m | 328.3% | PS0.5x | |
| BRUN Boost Run | US$30.92 | 6.1% +US$109.3m | 203.7% | PS70.6x | |
| CRWV CoreWeave | US$100.55 | 0.2% +US$87.3m | -31.7% | PS8.8x |