Big Tech’s Missing Growth Story
Earlier this month, we talked about DeepSeek breaking AI mania fever on Wall Street. In thinking through that essay further, it’s possible that we underestimated one key question found with AI mania fever breaking: What comes next? Wall Street loves a good story, and there appears to be an absence of catalysts capable of supplementing AI mania as Big Tech’s growth story. This may already be impacting Big Tech stock price valuations, which tariff news would be masking. Management teams and boards will likely have no choice but to respond.
Heading into this week, we witnessed one of the most sudden and severe contractions in Big Tech valuations in years. While the drawdowns may not pack the same kind of punch given the volatile news cycle found with tariffs, other sectors saw more in the way of valuation floors being established. For U.S. homebuilders and energy companies to outperform Big Tech companies that have finite exposure to tariffs raises an eyebrow.
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