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Earnings Scoreboard: A Turbulent Week in Tech [Chart]

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Earnings Scoreboard: A Turbulent Week in Tech [Chart]

Earnings Scoreboard: A Turbulent Week in Tech [Chart]

Amazon and Facebook soar, while Apple, Netflix, and Google whiff

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

For many blue chip companies, earnings season can end up being relatively dry.

For example, yesterday MasterCard reported an earnings “beat” of $0.86 earnings per share (EPS) compared to the $0.85 consensus. The stock inched up 0.7% in afternoon trading and now it’s back down today. In other words, it’s business as usual again.

However, for the world’s technology giants, earnings season can make or break a stock. The reason for this is simple: investors buy technology companies such as Amazon or Netflix for their future growth prospects, rather than their current profitability. In theory, these companies should have an incredible ability to scale, and the market prices this in to make these stocks more expensive.

If a company shows signs that it is growing slower than expected, investors punish the stock with the expectation of a ripple effect on future cash flows.

The Tech Scoreboard

The last week has been particularly eventful on the tech earnings front, and Jim Cramer’s “FANG” stocks were the center of the action. After buoying the market for much of 2015, the stocks went their separate directions.

Netflix kicked it off with a huge whiff. While revenues and EPS were on track for the quarter, its guidance on subscriber growth was the ringing of a big alarm bell. Wall Street was looking for the company to add 3.5 million international subscribers in Q2, but Netflix said it would only be adding two million. The stock has tanked spectacularly ever since, losing -18.3% in value.

Alphabet and Apple, the two most valuable public companies in the world by market capitalization, also showed signs of a struggle. Both stocks are now down close to -10% from pre-earnings, shedding a combined $100 billion in value. Apple posted its first year-over-year decline in quarterly revenue since 2003, while Google’s parent company fell short on both top and bottom lines. Co-founders Sergey Brin and Larry Page have lost a combined $3.8 billion in wealth since the report.

While this is all very dire for the tech sector, Jeff Bezos and Mark Zuckerberg came to the rescue.

Yesterday, Amazon killed it for the quarter, bringing in an extra $1.1 billion of revenue above Street estimates. The company reported its largest quarterly profit, and analysts are now ecstatic about the company’s blowout quarter. The stock is up close to 10% today.

Facebook also helped save face for Silicon Valley, and shares have now hit an all-time high as the company beat projected revenues and earnings.

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Ranked: The Top Startup Cities Around the World

Here are the global startup ecosystem rankings, highlighting the scale and maturity of major tech hubs worldwide.

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This bar chart shows the top startup ecosystems in the world in 2024.

The Top Startup Cities Around the World

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

A richly connected network of founders, venture capital firms, and tech talent are some of the key ingredients driving a startup ecosystem.

As engines of growth, these tech clusters are evolving on a global scale. While the world’s leading startup cities are concentrated in America, several ecosystems, such as Beijing and Seoul, are growing in prominence as countries focus on technological advancement to spur innovation.

This graphic shows the best startup cities worldwide, based on data from Pitchbook.

The Global Startup Ecosystem Rankings

To determine the rankings, each city was analyzed based on the scale and maturity of their startup ecosystem over a six-year period ending in the second quarter of 2023.

Among the inputs analyzed and used to calculate the overall development score were fundraising activity, venture capital deals, and exit value:

RankCityDevelopment ScoreCapital RaisedDeal CountExit Value
1🇺🇸 San Francisco90$427.6B19,898$766.3B
2🇺🇸 New York76$179.9B13,594$171.7B
3🇨🇳 Beijing76$161.2B8,835$279.2B
4🇨🇳 Shanghai73$130.3B7,422$186.8B
5🇺🇸 Los Angeles71$144.6B9,781$181.4B
6🇺🇸 Boston70$117.0B6,044$172.8B
7🇬🇧 London64$99.0B11,533$71.9B
8🇨🇳 Shenzhen63$46.4B5,020$66.3B
9🇰🇷 Seoul61$31.1B6,196$71.0B
10🇯🇵 Tokyo60$26.2B5,590$28.0B
11🇨🇳 Hangzhou59$50.7B3,361$88.7B
12🇺🇸 Washington D.C.55$43.7B2,706$28.2B
13🇺🇸 Seattle54$31.7B2,693$35.6B
14🇸🇬 Singapore52$45.7B4,507$38.0B
15🇺🇸 San Diego52$33.5B2,023$44.7B
16🇺🇸 Austin52$26.4B2,636$22.9B
17🇨🇳 Guangzhou52$24.7B1,700$24.0B
18🇮🇱 Tel Aviv51$21.0B1,936$32.2B
19🇺🇸 Denver51$26.8B2,489$29.9B
20🇩🇪 Berlin50$31.2B2,469$15.9B

San Francisco dominates the pack, with $427.6 billion in capital raised over the six-year period.

Despite a challenging funding environment, nearly 20,000 deals closed, highlighting its outsized role in launching tech startups. Both OpenAI and rival Anthropic are headquartered in the city, thanks to its broad pool of tech talent and venture capital firms. Overall, 11,812 startups were based in the San Francisco Bay Area in 2023, equal to about 20% of startups in America.

Falling next in line is New York City, which raised $179.9 billion over the same time period. Crypto firm Gemini and machine learning company, Hugging Face, are two examples of startups based in the city.

As the top-ranking hub outside of America, Beijing is home to TikTok’s parent company, ByteDance, which is one of the most valuable private companies in the world.

In recent years, much of the startup funding in China is being driven by government-backed funds. In particular, these funds are focusing heavily on “hard tech” such as semiconductor-makers and electric vehicle companies that align with the government’s strategic long-term goals.

Another leading tech hub, Singapore, has the highest venture capital funding per capita worldwide. In 2023, this was equal to an impressive $1,060 in venture funding per person. By comparison, venture funding was $345 per person in the U.S., the second-highest globally.

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