š» Is the āAI bubbleā starting to deflate? Investors are massively dumping tech giantsā stocks
After the latest earnings reports, the market is increasingly unwilling to turn a blind eye to huge AI spending if it doesnāt translate into comparable profits.
š Google: shares are down 13% today, wiping out more than $500 billion in market value. The company is spending more and more on AI, while its search business brought in less revenue than investors expected.
š Reddit: down 25% today. Googleās AI-powered search results are more often keeping users within Google Search, leaving less traffic for Reddit and other sites.
šø Amazon: down 7%. Over the past 12 months, free cash flow has fallen by $42.4 billion, largely due to massive investments in data centers and AI infrastructure.
The market is no longer willing to pay just for the words āweāre investing in AI.ā Now thereās only one question: whereās the money? If costs rise but revenue doesnāt, stocks get hammered.
For crypto, this is a double signal. On the one hand, risk-off sentiment in the tech sector usually weighs on BTC too. On the other, with Fed rates and yields at 5.28%, money is already expensive, and declines like these only reinforce caution.
After the latest earnings reports, the market is increasingly unwilling to turn a blind eye to huge AI spending if it doesnāt translate into comparable profits.
š Google: shares are down 13% today, wiping out more than $500 billion in market value. The company is spending more and more on AI, while its search business brought in less revenue than investors expected.
š Reddit: down 25% today. Googleās AI-powered search results are more often keeping users within Google Search, leaving less traffic for Reddit and other sites.
šø Amazon: down 7%. Over the past 12 months, free cash flow has fallen by $42.4 billion, largely due to massive investments in data centers and AI infrastructure.
The market is no longer willing to pay just for the words āweāre investing in AI.ā Now thereās only one question: whereās the money? If costs rise but revenue doesnāt, stocks get hammered.
For crypto, this is a double signal. On the one hand, risk-off sentiment in the tech sector usually weighs on BTC too. On the other, with Fed rates and yields at 5.28%, money is already expensive, and declines like these only reinforce caution.
