longer.blue

My oh my.. “ Tech stocks are set to lose more than $1 trillion in value Friday as investors grow more worried about the massive spending on AI. Amazon fell 7% in early trading after reporting that its AI spending was growing faster than expected while its core shopping business slowed, and CEO Andy Jassy said the company will spend about $220 billion this year and “meaningfully more” in 2027. Intel plunged 26% after warning that profits and sales would come in lower than expected because of supply shortages and a memory chip crunch. The selloff follows Alphabet’s worst day ever on Thursday, when it lost about $500 billion in market value, the second-largest one-day loss in market history. Investors are increasingly questioning whether hundreds of billions of dollars in AI spending will actually pay off. The U.S. government, which took a stake in Intel during its turnaround, is now the company’s largest shareholder.” from Aaron Parnas newsletter.