Mike Milligan breaks down the $767 billion loss in the Magnificent 7 tech stocks. Alphabet raised its CapEx target to $195-$205 billion and Tesla is spending over $25 billion this year, triple last year's amount. Investors are asking when these massive AI bets will actually pay off.
The Magnificent 7, the biggest tech names in the world, lost about $767 billion in market value in a single session. Ladies and gentlemen, that is with a B, not an M. Billion. 3 stories converge. Let me talk, let me, let me walk you through them. Story 1, AI CapEx. Remember, CapEx stands for capital expenditures. That's spending. What are companies spending on AI? Wednesday night, Alphabet and Tesla reported. I covered this yesterday. Alphabet raised full-year capital spending to $195 to $205 billion. Tesla is on pace for more than $25 billion in CapEx this year, roughly triple what they spent all of last year. Both companies said the spending goes up from here. Investors woke up Thursday and asked the question, when do we see the return?
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
