Their huge and growing earnings, combined with a large number of shares outstanding, mean that the three companies exert a bigger influence on the S & P 500 earnings picture than any other.
Fourth quarter earnings for the entire S & P 500 are expected to rise about 5% over the same period in 2022.
For share-weighted earnings, the earnings (or earnings estimates) for each company are multiplied by the shares outstanding.
What this means is that companies that are experiencing a rapid increase in their earnings can begin to exert an outsized influence on S & P 500 earnings.
In a world where the S & P 500 is expected to see earnings growth of 10% this year, Nvidia's earnings growth is off the charts.
Persons:
Technolgy, Nvidia —, John Butters, Jensen, Howard Silverblatt
Organizations:
Microsoft, Apple, Nvidia, Meta, P Global
Locations:
FactSet