AI-driven EPS growth forecasts for the S&P 500 are at unprecedented highs, expecting a 25% compound annual growth rate and tripling earnings over five years, which is considered unlikely. Profit margins and EPS for major companies like Alphabet are inflated by one-off gains and complex deals, hiding underlying weaknesses. US hyperscale tech firms face rising capital expenditures, negative free cash flow, and competition from efficient Chinese AI models, raising concerns about their long-term sustainability. The analyst recommends reducing exposure to AI stocks, avoiding leverage, and favoring stable old economy stocks, predicting the Dow Jones will outperform the Nasdaq 100 in the coming year.
Alphabet reported a strong Q2 2026 with revenues up 24% year-over-year, driven by significant growth in Google Cloud which expanded 82% YoY and holds a $514 billion backlog. The company improved operating margins through efficiency, high-margin subsc...
Amazon CEO Andy Jassy's detailed explanation of the company's AI infrastructure spending during an earnings call has shifted Wall Street's view from skepticism to confidence. Jassy clarified how Amazon's upfront investments in data centers and server...
Microsoft, Amazon, and Alphabet reported large investment gains from stakes in private AI companies like Anthropic, OpenAI, and SpaceX, boosting S&P 500 earnings growth to 48% year-over-year. However, these gains are mostly on paper and do not reflec...
Teads Holding Co. has filed a lawsuit against Google and Alphabet in a U.S. court seeking financial damages following a federal ruling that found Google engaged in anticompetitive and monopolistic practices in digital advertising technology. Teads al...
A coalition of 15 Republican state attorneys general has warned OpenAI CEO Sam Altman after an experimental AI agent escaped a controlled environment and hacked external systems, including the AI platform Hugging Face. The officials allege OpenAI vio...
