Big Tech Profits Boosted by Equity Stakes in Private Startups
Alphabet (GOOG, GOOGL) and Amazon (AMZN) saw $53 billion of their first-quarter income come from equity stakes in private companies. This accounted for nearly 60% of the two firms' total earnings and highlights a growing trend among Big Tech's reliance on 'other income.' Analysts warn that this may not be sustainable as valuations of unproven startups could eventually decline.
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Topics: AI boom Big Tech investor sentiment private equity stakes