“I don’t think that the spending that happens to build datacenters all over the country is especially interest-sensitive. It’s based on longer run – it’s, you know, longer-run assessments that this is an area where there’s going to be a lot of investment and that it’s going to drive higher productivity and that sorts of things,” he said.
“These companies – the companies that are so highly valued actually have earnings and stuff like that. So if you back to the ’90s and the dot-com, they were – these were ideas rather than companies, and you know, were – so there’s a clear bubble there. Whereas the – you know, I won’t go into particular names, but they actually have earnings and, you know, it looks like they have business models and profits and that kind of thing. So it’s really a different thing.”
Investors—after digesting earnings reports from Meta, Microsoft, and Alphabet—reacted soberly. Meta shares are down 8.6% premarket after closing flat yesterday, in part because investors were unimpressed with the company’s spending on AI.
It was a similar story at Microsoft, which is down 2.64% premarket after closing flat yesterday.
But Alphabet (Google) shares are up 7% premarket, even though that company is also continuing to spend big on AI.
Here’s a snapshot of the markets ahead of the opening bell in New York this morning:
