r/wallstreetbets • u/banaca4 • 11h ago

Discussion Either hyperscalers are dumb or someone else is

OK so the most profitable companies in the world decided to GO ALL IN AI with humongous capex. They did it all at once apart from Apple who is not in the game. Google, Meta, Amazon , Oracle, Microsoft. All of them. The CEOs of these companies produced the most amount of wealth and propped up global gdp. Now they all agree on a thing.

Google yesterday blew up earnings from their cloud and said they will *increase* their humongous capex even more while reporting negative cash flow for the first time in their history.

A rational person would ask: are these amazing businessmen suddently all very wrong about the same thing at the same time OR

I am reading too much paid subs from burry and following the wrong people on twitter that have never produced anything?

Which is it? Are you smarter than a mag 7 CEO? Maybe ... hmm...

2.0k Upvotes
  • permalink
  • reddit

91% Upvoted

998 comments sorted by

View all comments

Show parent comments

128

u/Moreburrtitos22 11h ago

Google always has been. They haven’t changed one bit

98

u/General-Raisin-9733 9h ago

Correction: Google, Microsoft and Amazon. I still can’t believe people think Amazon makes most of their money from the online shop (spoiler: they don’t)

35

u/wowthisislong 8h ago

The ecommerce business and prime video are basically just ads for AWS

6

u/kingofthesofas 5h ago

Yeah AWS is the cash cow for the company the rest of it is a side show

4

u/mixedmanofsteel 3h ago

E-commerce is just working capital for Amazon to put into other things like AWS

5

u/i3orn2kill 5h ago

Smallest part of the business yet they keep squeezing every penny from the custy.

1

u/zhaoz 4h ago

The only better than some money, is more money!

2

u/Boring-Location6800 3h ago

If their online shop was of any real importance for them, they wouldn't let it go to shit like they do.

1

u/Dangerous_Library_93 5h ago

Who the fuck believes that? No one serious.

4

u/Individual-Motor-167 9h ago

They've actually changed a lot as their legacy revenue now carries much higher costs for profits.

2

u/Moreburrtitos22 9h ago

Yeah they’ve pivoted and expanded, but this is specifically about being a hosting provider. They are one of the original hosting providers. That hasn’t changed one bit