- Big tech Q2 earnings show wild stock swings, typical of a bubble phase, with investors reacting unpredictably to capex and cash flow reports.
- Massive AI data center spending is squeezing free cash flow, especially at Meta, where capex caused a dramatic sell-off.
- Amazon's earnings rose due to AWS growth and one-time energy hedging, not core business strength, raising skepticism about AI investment returns.
- Chip stocks and hedge funds have seen major crashes, signaling potential bubble deflation.