Taking Stock - After The Bell Bubble Watch
Oct 17, 2025
The hosts delve into the question of whether the market is in a bubble, particularly focusing on the tech sector's performance since 2020. They discuss concerns about earnings sustainability for large tech firms and the rapidly changing AI landscape. The conversation shifts to economic factors, like Germany's fiscal stimulus and the UK's struggling market, presenting a mixed outlook on equities. With a playful banter, they conclude that while markets aren't broadly bubbly, caution and selectivity are wise in current conditions.
AI Snips
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Episode notes
AI Hyperscalers Are Skewing Market Growth
- Tech outperformance is large but concentrated in AI hyperscalers driving much of forward earnings growth.
- If you exclude hyperscalers, broader market earnings grow far slower, questioning sustainability of current multiples.
Monetization Lags Behind AI Spending
- AI models haven't been widely monetized yet, leaving uncertain revenue paths despite massive infrastructure spending.
- That disconnect raises questions about how companies will recoup huge chip and data‑center investments.
LLMs Disrupt Web Traffic And Ad Revenue
- Large language models change web traffic and advertising economics by providing direct answers instead of sending clicks to sites.
- This shift threatens publishers and raises questions about compensating content creators and hosts.