Barron's Live What's Next for Tech Stocks?
Aug 11, 2025
Andrew Freedman, a communications and software analyst at Hedgeye, joins Tae Kim, a senior tech reporter at Barron's. They discuss how Big Tech is capitalizing on AI, analyzing the implications for giants like Alphabet and Nvidia. The guests explore the contrasting fortunes in the tech landscape, highlighting challenges for smaller companies like C3AI. They also dive into the IPO surge among AI startups and the strategic pivots of major firms towards AI to sustain growth. Insightful trends and investment opportunities are unveiled throughout the conversation.
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Episode notes
Stock-Specific Triggers Drive Sharp Sell-Offs
- C3AI and Monday.com sell-offs were driven by company-specific problems rather than a broad AI collapse.
- C3AI missed heavily and Monday.com's SEO and marketing pressures spooked investors.
Search Changes Squeeze SaaS Customer Acquisition
- AI changes to search are reducing organic site traffic and raising performance-marketing costs for SaaS vendors.
- Heavy reliance on Google search makes companies like Monday.com vulnerable to higher acquisition prices.
AI Spending Concentrates Market Gains
- Q2 showed investor capital concentrating in a few mega-cap AI leaders while many others lag.
- Scale dynamics mean the largest firms capture most AI infrastructure and model spending.