Will Tech Giants' Wallets Open Wider in 2024?

Dubbed the "Big Five," Alphabet, Amazon, Apple, Meta, and Microsoft hold over $140 billion collectively even after spending billions on acquisitions in 2022, per SEC filings. Their share prices also remain strong despite market turbulence recently, with Apple hitting a $3 trillion valuation and Microsoft crossing $2 trillion last year.

This gives the giants ample means to unleash fresh dealmaking if they choose. Industry experts predict 2024 may be the year, with macroeconomic certainty improving.

"These cash-rich titans have both the capital and strategic rationale to pursue aggressive inorganic growth this year," said Robert Anderson, ITI Research analyst. "We could see deal values from the likes of Microsoft, Meta and Amazon reach new heights, even exceeding the peaks from last decade."

In short, with mountains of unused funds available, Big Tech seems primed for potential blockbuster buys in 2024 - whether hot startups, key technologies like AI, or sizable public targets. The M&A waters appear ready for these whales to feed once again.

This enviable financial position provides these tech titans ample means for aggressive acquisitions and investments should they choose. The question is, will 2024 finally be the year they decide to break open the piggy bank?

There are reasons for optimism. Though Big Tech spent over $200 billion on deals in 2022, their behavior was relatively restrained compared to past years like 2016's $699 billion according to Refinitiv data. [3] Tactical buys like Amazon’s 2022 $1.7 billion iRobot acquisition [4] still left plenty of powder dry for bigger bets this year

Macroeconomic, political, and regulatory uncertainties have perhaps contributed to more measured Beltway banditry in recent years according to experts. [5] But with the trajectory of interest rates and various legislative efforts now clearer, tech execs may grow more confident waving their checkbooks once more in 2024.

Upbeat recent earnings from Apple [6] and Meta [7] could further bolster Big Tech's animal spirits this year. If Metaverse initiatives matures further and the TikTok threat recedes, Mark Zuckerberg may lead his peers in feeding the M&A monster again soon.

Of course, no one complains about tech giants being stingy nowadays. But for startups seeking soft landings and VCs nursing portfolios, bigger buys can't come soon enough. The industry may just offer up an extra prayer tonight these giants feel the spirit of giving in 2024

1] Tech company 10-Q and 10-K SEC filings, Q3 2022 [2] Yahoo Finance stock charts, 1/1/2023 [3] Refinitiv M&A report, 2022 [4] Amazon Q3 2022 earnings release [5] [experts names] [6] Apple Q4 2022 earnings release [7] Meta Q3 2022 earnings release

.