1Q26_ Quarterly Outlook Report_Final_EN - Flipbook - Page 20
T H E P LUMB LI N E | A RETU RN TO F I RS T PRI N CI PL ES
Today’s technology companies have far more cash on hand than those in the dotcom era
160
120
80
40
0
1997
2000
2003
2006
2009
2012
2015
2018
2021
2024
2021
2024
S&P 500 infotech sector - cash & short-term investments per share
Source: Bloomberg Finance LP, Scotia Wealth Management | Shaded areas are recessions
Today’s technology companies boast far better profitability metrics
30%
23%
15%
8%
S&P 500 infotech sector
0%
-8%
-15%
1997
2000
2003
2006
2009
2012
Net profit margin
2015
2018
Operating margin
Source: Bloomberg Finance LP, Scotia Wealth Management | Shaded areas are recessions
Mag 7 (current) versus top 7 technology companies in the dotcom era
Dotcom era (2000-12-31)
Current
% of S&P 500 market cap
11%
35%
Net profit margin
16.7%
28.9%
Cash & ST investments per share
2.1
11.1
Source: Bloomberg Finance LP, Scotia Wealth Management
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