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Thursday 26 February 2026 23:22:02 GMT
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$META beat earnings and crashed 8%. $LRCX beat and crashed 16%. In AI stocks right now, good news is getting sold. AI chip stocks just had their worst week in 18 months. Then Meta reported record sales, better than Wall Street expected, and the stock fell anyway. A lot of AI stocks fell with it. The old rule for trading earnings was simple: beat expectations and the stock goes up. AI stocks just broke that rule, and two problems explain why. Problem one is debt. Meta is spending so much on AI data centers that for the first time since 2012, it spent more cash than it made. Even the richest companies are borrowing to keep building. Smaller players have it worse. $CRWV, which rents out AI computers, borrowed so much that interest eats all its profit. The stock is down almost 40% this month. Problem two is payback. Right now, Big Tech spends far more on AI than AI brings in. Every investor is asking whether it will ever pay off. The risk is that these two problems feed each other. If AI doesn't pay off, Big Tech spends less. And Big Tech's spending is the revenue of the whole AI industry. Companies already deep in debt would lose their biggest customers. On October 28 and 29, $GOOGL, $MSFT and $AMZN report earnings. They are the biggest buyers in AI. Their spending flows into $NVDA, into CoreWeave, and into the AI stocks in your portfolio. Beating estimates may not be enough this week. Three specific things decide where AI stocks go next. If you want investing insights you can act on before these reports hit, not after, this is the week to pay attention. Comment EARNINGS and I'll send you Barebone's analysis: the three things that decide where AI stocks go next, and exactly what each of the Google, Microsoft and Amazon reports needs to show. This content is for educational and informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.
$META beat earnings and crashed 8%. $LRCX beat and crashed 16%. In AI stocks right now, good news is getting sold. AI chip stocks just had their worst week in 18 months. Then Meta reported record sales, better than Wall Street expected, and the stock fell anyway. A lot of AI stocks fell with it. The old rule for trading earnings was simple: beat expectations and the stock goes up. AI stocks just broke that rule, and two problems explain why. Problem one is debt. Meta is spending so much on AI data centers that for the first time since 2012, it spent more cash than it made. Even the richest companies are borrowing to keep building. Smaller players have it worse. $CRWV, which rents out AI computers, borrowed so much that interest eats all its profit. The stock is down almost 40% this month. Problem two is payback. Right now, Big Tech spends far more on AI than AI brings in. Every investor is asking whether it will ever pay off. The risk is that these two problems feed each other. If AI doesn't pay off, Big Tech spends less. And Big Tech's spending is the revenue of the whole AI industry. Companies already deep in debt would lose their biggest customers. On October 28 and 29, $GOOGL, $MSFT and $AMZN report earnings. They are the biggest buyers in AI. Their spending flows into $NVDA, into CoreWeave, and into the AI stocks in your portfolio. Beating estimates may not be enough this week. Three specific things decide where AI stocks go next. If you want investing insights you can act on before these reports hit, not after, this is the week to pay attention. Comment EARNINGS and I'll send you Barebone's analysis: the three things that decide where AI stocks go next, and exactly what each of the Google, Microsoft and Amazon reports needs to show. This content is for educational and informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.

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