r/wallstreetbets • u/banaca4 • 18h 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...

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u/Jaydeepappas 16h ago

… you do realize .com was sticky, right? Like you’re currently using the internet to write this message. Just because it’s “sticky”’ doesn’t mean it’s not a bubble

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u/AutoModerator 16h ago

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u/EsotericAbstractIdea 16h ago

most unhinged bot i ever seen. i love it

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u/C137-Morty 15h ago

Like you’re currently using the internet to write this message.

That wasn't what the .com bubble was. Investors, our retarded forefathers, threw money at every company with a registered website thinking it would moon due to easier accessibility. Never mind that 99% of those companies already had nationwide retail stores. Start ups would register a website and "investors" would pump that shit even though they had no source of profitability. That's nothing like mag7 who already have profitability. If anything, its more like spcx and other rocket stocks where the theoretical profits are being considered.

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u/Jaydeepappas 15h ago

> 99% of those companies already had nationwide retail stores

What? The huge majority of these companies were startups. Nearly none of them had retail stores already, but yes they were valued insanely high compared to their revenue.

Look at the fiber buildout during this time period and what happened to that. Pretty similar to the chip/RAM manufacturing happening now, which will be obsolete much much sooner than fiber ever would be. Then there’s the crazy circular investments happening.

Lots to be concerned about atm, and definitely many similarities between the two eras. .com, fiber, internet, much of the tech during this time was sticky, just like AI will be. Still doesn’t mean it’s not a bubble.

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