Alex Smith
- 58%
- Accuracy
- 5 of 8
- Analyst ranking
- 6
- Predictions scored
- 2
- Still to fall due
Mostly wrong · 25%The flood of M&A activity will continue over the next 18 months.
What happened. Tech M&A fell sharply instead. Refinitiv data put 2022 technology deal value at $720bn, down 36% on 2021, and GlobalData put TMT deal value down 31%. Large deals still happened (Broadcom agreed to buy VMware for about $61bn in May 2022), but volumes were well below the 2021 flood. First-half 2023 figures were not checked. He expected the record pace to carry on; tech deal value instead dropped by about a third in 2022, though some very large deals still happened. Sources: lexgo.be, globaldata.com.
Source: Tech enters an era of inflation (Canalys insight blog by Alex Smith) · 18 months from publication
Right · 100%Tech profits will come under pressure in 2022
What happened. Big tech profits fell through 2022. In Q3 2022 the five largest US tech companies earned about $59.5bn combined, roughly 18% below a year earlier; Microsoft's net income fell 14% and Meta's more than halved, and Reuters reported Big Tech braced for dismal Q4 profits and more job cuts. Made in March 2022, after a record 2021 for tech earnings; profits at the largest tech firms fell sharply during 2022, as he said. A trend call with no number, so it scores as directional. Sources: business-standard.com, streetinsider.com, bscapitalmarkets.com.
Source: Tech enters an era of inflation (Canalys insight blog by Alex Smith)