The AI CapEx Bubble visualized

DavidMarlin
11-04

The AI CapEx Bubble visualized 👇

CapEx to Sales ratios have risen to their highest levels since the Dot Com Bubble.

On the other hand, CapEx to Free Cash Flow levels are nowhere near Dot Com Bubble levels.

$Meta Platforms, Inc.(META)$ $Microsoft(MSFT)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Amazon.com(AMZN)$

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Q3 Earnings have been very strong so far.

The frequency of beats this quarter is the 2nd highest on record (surpassed only by the Covid reopening period).

$S&P 500(.SPX)$ $Invesco QQQ(QQQ)$ $Amazon.com(AMZN)$ $Apple(AAPL)$ $Tesla Motors(TSLA)$

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META Cuts Metaverse Budget: Can it Close Its Earnings Gap?
Meta CEO Mark Zuckerberg is reportedly considering cutting the metaverse division’s 2026 budget by up to 30%. According to Mizuho analysts, if the rumored scale of the “budget cut” is accurate, it could boost Meta’s 2026 EPS by around $2, potentially driving a significant rally in the stock. After Meta’s recent earnings report, the stock plunged sharply, leaving behind a large earnings gap. If the stock manages to fill that gap, Meta could return to $750. Would you continue to hold it? Is it still a good idea to add to the position now?
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