Prof G Markets How Big Tech’s Debt Machine Is Powering the AI Boom
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Nov 19, 2025 
In this engaging discussion, Joe Feldman, a retail analyst at the Telsey Group, shares insights on Home Depot's surprising earnings, linking weather patterns to consumer behavior. He highlights resilient spending on big-ticket home items. Robert Schiffman, a credit analyst at Bloomberg Intelligence, explains why tech giants like Amazon are accumulating massive debt to fuel their AI ambitions, arguing that this demand is genuinely driven by enterprise needs. He also discusses the balance between leveraging debt and maintaining market flexibility.
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Home Depot Shows Resilient But Cautious Consumer
- Home Depot's results show a resilient homeowner consumer but weak discretionary project spending.
- Lack of storm activity and low housing turnover are key near-term headwinds, per Joe Feldman.
Storms Drive Home Improvement Demand
- Weather events like hurricanes materially boost Home Depot sales through repair demand.
- The absence of major storms in the quarter reduced expected incremental revenue and margins.
Tariffs Are Pressuring Consumer Discretionary Spend
- Tariffs are raising prices and weighing on consumers' discretionary dollars.
- Retailers are starting to pass through tariff-driven costs and consumers are seeking more value.