Squawk on the Street AI Valuation Jitters, Shutdown Hits Air Travel, Musk's $1T Pay Victory, Affirm CEO "First on CNBC" 11/7/25
12 snips
Nov 7, 2025 
Phil LeBeau, CNBC's automotive and airline expert, dives into the chaos in airline operations caused by the FAA's flight reductions amid a government shutdown. He discusses the rising flight cancellations and what it means for travelers. The conversation also touches on Tesla's recent $1 trillion pay package for Elon Musk, the implications for the EV market, and insights from Max Levchin, CEO of Affirm, on the buy now, pay later fintech model and its resilience during economic fluctuations.
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AI Valuation Scrutiny Intensifies
- Investor scrutiny on AI hyperscalers is rising as valuation concerns mount after recent sell-offs.
- Market participants are starting to separate winners from losers based on spend and execution.
Debt Raises Nudge Credit Spreads Wider
- Hyperscalers are raising large amounts of debt to fund AI infrastructure, nudging credit spreads wider.
- That increased leverage elevates the watchlist risk for investors despite strong long-term positioning.
Shutdown Strains Air Travel System
- FAA flight reductions during the government shutdown have already caused hundreds of cancellations and strain on airline operations.
- Airlines warn the system has no slack and disruptions will worsen if the shutdown continues into peak travel season.