The Information
The first quarter is over, and tech earnings season is only a couple of weeks away. Here’s something worth thinking about: Big tech stocks out of favor with investors—particularly Microsoft, Amazon and Meta Platforms—need to show something striking when they report for the quarter if they want to get out of the doghouse they’re in. If they don’t, sentiment is likely to become even more negative. In the next few months, tech investors are going to have the opportunity to put money into SpaceX and later OpenAI and Anthropic. But as we’ve pointed out, the amount of money those three companies are looking to raise in their public debuts this year is far higher than what the IPO market can typically support. That suggests investors will have to sell existing holdings to participate. (OpenAI’s Chief Financial Officer Sarah Friar doesn’t think the company will be ready to go public this year, as we reported today ).
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