AkhenOsiris
The biggest "tail risk" for markets is that artificial-intelligence stocks are in a bubble, according to global fund managers polled by Bank of America.
An AI bubble was seen as the top tail risk by 45% of institutional investors in BofA's latest monthly survey. The finding showed that these fears have grown since October.
By comparison, 17% cited a disorderly rise in bond yields, which had been the top concern two months ago.
Another 16% cited inflation.
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The biggest "tail risk" for markets is that artificial-intelligence stocks are in a bubble, according to global fund managers polled by Bank of America.
An AI bubble was seen as the top tail risk by 45% of institutional investors in BofA's latest monthly survey. The finding showed that these fears have grown since October.
By comparison, 17% cited a disorderly rise in bond yields, which had been the top concern two months ago.
Another 16% cited inflation.
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AkhenOsiris
$META $AMZN $GOOGL $MSFT
MoffetNathanson on Meta:
“To be crystal clear, we feel that this time is different and that defending the stock—even at this level—is harder because of the ramping of the massive incremental bet that Meta, without a cloud business or preexisting enterprise assets, has been making in building out a Meta Superintelligence business,” the note says. “Given the outlook, the issue from here is that even with strong top-line expectations, Q4 and 2026 margins will likely compress.”
Meta is “trying to punch above its weight” when compared to its peers. Although the company is spending a similar amount on AI infrastructure, it does not have a cloud platform like Microsoft, Alphabet, and Amazon, the analysts point out.
MoffettNathanson projects that Meta’s capex-to-revenue ratio will hit 47% next year. By comparison, Microsoft’s is 29%, Alphabet’s is 26%, and Amazon’s is 16%, MoffettNathanson estimates.
“Meta lacks a comparable coherent pathway for monetizing GenAI directly,” the firm says.
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$META $AMZN $GOOGL $MSFT
MoffetNathanson on Meta:
“To be crystal clear, we feel that this time is different and that defending the stock—even at this level—is harder because of the ramping of the massive incremental bet that Meta, without a cloud business or preexisting enterprise assets, has been making in building out a Meta Superintelligence business,” the note says. “Given the outlook, the issue from here is that even with strong top-line expectations, Q4 and 2026 margins will likely compress.”
Meta is “trying to punch above its weight” when compared to its peers. Although the company is spending a similar amount on AI infrastructure, it does not have a cloud platform like Microsoft, Alphabet, and Amazon, the analysts point out.
MoffettNathanson projects that Meta’s capex-to-revenue ratio will hit 47% next year. By comparison, Microsoft’s is 29%, Alphabet’s is 26%, and Amazon’s is 16%, MoffettNathanson estimates.
“Meta lacks a comparable coherent pathway for monetizing GenAI directly,” the firm says.
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Offshore
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WealthyReadings
🚨Just dropped my favorite buys in today's market.
We’re talking $TMDX $PYPL $NBIS $SE & more.
Detailed breakdowns. No fluff. No hype. No ridiclous price targets or delusional takes.
Serious work for serious investors👇
https://t.co/NoJDQmxG2x
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🚨Just dropped my favorite buys in today's market.
We’re talking $TMDX $PYPL $NBIS $SE & more.
Detailed breakdowns. No fluff. No hype. No ridiclous price targets or delusional takes.
Serious work for serious investors👇
https://t.co/NoJDQmxG2x
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Offshore
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Fiscal.ai
Adobe is trading at its lowest forward valuation in more than a decade.
Forward EV/EBIT: 11.7x
Is this too cheap?
$ADBE https://t.co/BH8tecYDRD
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Adobe is trading at its lowest forward valuation in more than a decade.
Forward EV/EBIT: 11.7x
Is this too cheap?
$ADBE https://t.co/BH8tecYDRD
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Offshore
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Quiver Quantitative
BREAKING: The House has passed the Epstein Files Transparency Act.
The bill was proposed by Representatives Thomas Massie and Ro Khanna to force the release of Epstein files. https://t.co/KiK76M0I0O
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BREAKING: The House has passed the Epstein Files Transparency Act.
The bill was proposed by Representatives Thomas Massie and Ro Khanna to force the release of Epstein files. https://t.co/KiK76M0I0O
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Offshore
Video
WealthyReadings
What's the name of a bubble with revenue growth margin expansion and continuous demand?
Asking for a friend.
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What's the name of a bubble with revenue growth margin expansion and continuous demand?
Asking for a friend.
$GOOG casually dropping a benchmark-breaking model built in-house, trained on their own TPUs & infra.
Meanwhile $MSFT $NVDA Anthropic OpenAI & the rest of the world busy signing partnerships… and still getting outperformed.
Google is such an AI loser.
https://t.co/P6KD461mml tweet