SG&A Spending Patterns: A Tale of Two Companies

In the ever-evolving landscape of corporate finance, understanding the spending patterns of industry giants can offer valuable insights. Fiserv, Inc. and NetEase, Inc., two prominent players in their respective fields, have shown distinct trends in their Selling, General, and Administrative (SG&A) expenses over the past decade.

A Decade of Growth

From 2014 to 2023, NetEase, Inc. has consistently outpaced Fiserv, Inc. in SG&A spending, with a staggering 700% increase, reaching nearly $19 billion by 2023. In contrast, Fiserv, Inc. saw a more modest growth of approximately 575%, culminating in $6.6 billion in the same year.

Strategic Investments

This divergence highlights differing strategic priorities. NetEase's aggressive expansion in digital entertainment and e-commerce is reflected in its higher SG&A expenses, while Fiserv's focus on financial technology solutions has led to a more measured increase.

Understanding these patterns provides a window into the strategic decisions shaping the future of these industry leaders.