Don’t expect tech sector success to wane this year

What kind of companies are going to have good years in 2014? According to a recent story by USA Today, technology companies are ready to celebrate a big and successful 2014. The story also claims that the tech sector will continue to be one of the most profitable ones.

A strong performance

According to the USA Today story, in 2014 technology companies in the S&P 500 index are predicted to earn net income that is 9.3 percent more than in 2013. USA Today quotes FactSet, a company that computes Wall Street earnings estimates, in making this prediction. This past year, the tech industry only saw its net income grow by 1.9 percent.

Big profits

Profit margins will continue to rise in this sector, too, in 2014, according to USA Today. The newspaper reported that tech firms expect to see an average profit margin of 15 percent to 16 percent in 2014. That, of course, is an exceptionally strong profit margin. To put it simply, tech firms in the United States should be quite profitable in the coming year.

Not shocking

This success shouldn’t be surprising. Today’s consumers are infatuated with their tech gadgets. And this is a long-time trend. Just take a look at how popular tablets and smartphones are becoming. Video-game systems remain hot sellers. And tech companies are evolving and updating their offerings on a near constant basis. Tech is certainly king today.


Posted on: 03.05.14