C: AI profitability. The marke

C: AI profitability. The market doesn't need more AI promises; it needs proof that massive investments can generate sustainable returns.

U.S. equity funds attracted $13.01 billion in the week ended October 14, while technology funds lost $5.21 billion. This divergence suggests investors aren't abandoning equities, but becoming more selective about where they take risks.

FactSet projects 29% S&P 500 earnings growth for Q3, yet early earnings surprises are smaller than historical averages. Strong headline growth alone may not be enough to justify premium valuations.

The real test is whether AI revenue can outpace rising capital expenditure, depreciation and financing costs. Companies that convert AI spending into stronger margins and free cash flow deserve a premium; those relying on future promises face greater downside.

My view: The next rally will reward AI monetization, not AI excitement. Follow the cash flow, not just the hype.

@Capital_Insights [贱笑]

💰Stocks to watch today?(20 October）

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Comments

bingoo
10-19 23:22
bingoo
Capex gets all the attention, but faster depreciation can delay the free cash flow inflection more than people expect. Margin proof matters way more than AI buzz now

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What news/movements are worth noting in the market today? Any stocks to watch? \n2. What trading opportunities are there? Do you have any plans?\n🎁 Make a post here, everyone stands a chance to win Tiger coins!","image":"https://static.tigerbbs.com/cd8eaff2e99964ab7a80d92cc196fcd3"}],"images":[],"coverImages":[],"title":"","html":"<html><head></head><body>C: AI profitability. The market doesn't need more AI promises; it needs proof that massive investments can generate sustainable returns.\n\nU.S. equity funds attracted $13.01 billion in the week ended October 14, while technology funds lost $5.21 billion. This divergence suggests investors aren't abandoning equities, but becoming more selective about where they take risks.\nFactSet projects 29% S&amp;P 500 earnings growth for Q3, yet early earnings surprises are smaller than historical averages. 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This divergence suggests investors aren't abandoning equities, but becoming more selective about where they take risks.\nFactSet projects 29% S&amp;P 500 earnings growth for Q3, yet early earnings surprises are smaller than historical averages. Strong headline growth alone may not be enough to justify premium valuations.\nThe real test is whether AI revenue can outpace rising capital expenditure, depreciation and financing costs. Companies that convert AI spending into stronger margins and free cash flow deserve a premium; those relying on future promises face greater downside.\nMy view: The next rally will reward AI monetization, not AI excitement. Follow the cash flow, not just the hype.\n<a href=\"https://ttm.financial/U/3527667668165440\"> @Capital_Insights </a> [贱笑]</body></html>","text":"C: AI profitability. The market doesn't need more AI promises; it needs proof that massive investments can generate sustainable returns. 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