Nasdaq 100’s Big Surge Belies a Darker Outlook for Tech Profits

Technology stocks have been on a tear over the past month, but behind the scenes the big picture for the sector’s profits has only gotten darker.

Analyst estimates for 2022 profit growth at S&P 500 tech companies have fallen about two percentage points since second-quarter earnings reports kicked off in July, according to data compiled by Bloomberg Intelligence. The decline has been even greater for 2023 projections, as Wall Street braces for a potential recession and slower revenue growth.