The sharp drop is the latest sign of anxiety creeping through Wall Street over how long it will take AI companies to see returns on massive investments.
  • radiofreebc@lemmy.worldEnglish
    3·
    17 hours ago

    Pretty soon the stock market is just going to be GameStop, and the people who believed that stock was showcasing the fundamental cracks in the market. Wall Street has never cared as much about investors, as when it comes to warning people what a risky stock GME is…but that’s just because they’re Marianas Trench level underwater shorting that stock.

    GME will be the last stock standing when it all comes undone.

    Ad hominem attacks and FUD incoming in 3…2…1…

  • nothrone@lemmy.dbzer0.comEnglish
    19·
    1 day ago

    Not enough. I want them burning. I want their CEOs, the Epstein class, strapped to the walls and the people pissing on them.

  • Tattorack@lemmy.worldEnglish
    243·
    2 days ago

    Intel is down, AMD is down, SpaceX is going down slowly. Amazon dropped like a rock at the same time as Intel and AMD, but they seemed to have climbed out of the ditch somewhat, but as of yet still not up to where they were before 4pm CET yesterday.

    Nvidia is also down, but not by much. In fact, a lot of America is down in stocks at the moment, while Europe is going up in stocks.

    • UnderpantsWeevil@lemmy.worldEnglish
      2·
      18 hours ago

      Intel is down, AMD is down, SpaceX is going down slowly.

      Off of stratospheric highs. They’re now merely overvalued, rather than extremely overvalued

    • IndustryStandard@lemmy.worldEnglish
      51·
      1 day ago

      Every big financial crisis has a few pump and dumps along the road before the real sell-off starts, which is all in the hands of the actual elite.

  • plenipotentprotogod@lemmy.worldEnglish
    2261·
    3 days ago

    I know the article is about google, but the bit about caterpillar is insane.

    The bleeding even spread beyond the tech sector, as shares of the construction equipment giant Caterpillar — a key supplier of the machines required to build data centers — plunged 9.2% on Thursday. Caterpillar’s recent earnings report revealed that its revenue beat Wall Street expectations but by less than many traders had hoped.

    So, their earnings beat expectations, but they didn’t beat the expectations for how much they’d beat expectations, so the share price went down.

    What is even going on at this point?

    • Annoyed_🦀 @lemmy.zipEnglish
      951·
      3 days ago

      Welcome to stock market, where the stock price is based on expectation instead of how well the company actually doing. There could be profit but if the profit is slightly less than last quarter, the day traders all gonna throw their baby tantrum.

      • MimicJar@lemmy.worldEnglish
        24·
        2 days ago

        Not to mention as much as this stock fall is “a big deal” it’s just fallen to where it was back in March. And of course that March fall was also a singular moment, because before that were just back to October 2025.

        So sure, they’ve lost a year of stock growth, and in a world of “line must go up” falling back a year of stock growth isn’t nothing… But it’s also far from the end of the world.

        Which is all to say, Google’s fine in the long run. Day traders don’t look at the long run, so for the moment “panic”, but ultimately it’ll pass.

    • Pyr@lemmy.caEnglish
      46·
      2 days ago

      Yet Tesla can do absolutely fucking nothing and then do a Nazi salute and shares go up 50%

    • JohnEdwa@sopuli.xyzEnglish
      17·
      2 days ago

      You own land, and you decide to plant it full of one type of crop because the forecast promises you an excellent harvest. You don’t have money, so you get a deposit from people buying the crop, in return of a certain share of the harvest. But most people that did so actually believe the forecast was very conservative and the crop will end up even bigger, so they’ll expect more than you promised.

      Then the forecast changes, and the harvest might end up smaller, and much smaller than the people expected. Some want their deposit back, but to do so they have to sell that share to someone else, but they buy it with the current forecast and demand, and pay way less for it.

      People buying Caterpillar expected for a massive construction boom. Any kink to that forecast is going to cause some people to reconsider and pull their money to the next potential company able to fly to the moon.

    • AdolfSchmitler@lemmy.worldEnglish
      141·
      2 days ago

      This exact thing has been driving me crazy for like a decade now. Say a company makes $1 billion in profit one year, and the next year isn’t as good but they make $800 million. Still a very profitable company, but because it was less then the year before it’s considered horrible and the company is basically going out of business.

    • merc@sh.itjust.worksEnglish
      5·
      2 days ago

      This also points out how the AI bubble is affecting the economy far beyond the tech sector.

      Construction equipment used to be used for other things, not just building datacenters. But, since the start of the AI bubble, almost everything else has slowed down because they’re dedicating so much construction equipment and workers towards building datacenters.

      https://futurism.com/future-society/data-center-spending-ai-bubble-construction

      In just 1 year, construction work on DCs has gone up by 64.5%. And, that’s from 2025 to 2026. It’s not like it was at a standstill in 2025. Meanwhile, residential construction is down significantly. And, there has been a 25% cut in construction related to manufacturing.

    • banana_pie@piefed.zipEnglish
      17·
      2 days ago

      They are trading at big growth multiples. So if the rate of growth slows then it gets repriced. Their assumption was double digit growth rate, which is one helluva bet.

    • Ms. ArmoredThirteen@lemmy.zipEnglish
      162·
      3 days ago

      Company I worked at a couple years back not only beat their projected earnings, but made record profits highest quarter ever. Stock prices dropped by a third

    • rayyy@piefed.socialEnglish
      71·
      2 days ago

      Buyers are extremely edgy because they know we are teetering on the edge of a potential collapse.

    • TankovayaDiviziya@lemmy.worldEnglish
      71·
      2 days ago

      So, their earnings beat expectations, but they didn’t beat the expectations for how much they’d beat expectations, so the share price went down.

      That’s why I always say that big shot, institutional investors are a bunch of cunts. They always think in short term. That’s why I am in favour of half year earnings report so that there is less pressure for companies to think in three months time.

    • kippininreal@lemmy.zipEnglish
      8·
      3 days ago

      They are making less off of AI overviews than traditional ads, but their AI buildout costs are increasing, which is ass backwards. I don’t know if it was in their report but they also supposedly don’t have a strategy for making their customers pay for AI use.

      • theneverfox@pawb.socialEnglish
        17·
        3 days ago

        They are making less off of AI overviews than traditional ads, but their AI buildout costs are increasing

        Not but, it’s and

        Their ad revenue plummeted, because the AI summary costs money each search and also leads to fewer clicks (because people often take the AI answer), meaning Google ads, the core of their business, are not being seen on web sites

        Also, they continue to invest crazy amounts in AI data centers (despite being significantly behind in LLM quality)

        But that’s really just a piece of the puzzle, the simple answer is they are not only going all in on AI, they’re also destroying the one massive profit center that keeps all their other projects afloat

        You love to see it

        • kippininreal@lemmy.zipEnglish
          1·
          12 hours ago

          Absolutely, thanks! I got this (crucial?) detail missed, that the two aren’t independent but AI overviews cannibalizing traditional ads both losing money.

    • Malica@lemmy.zipEnglish
      31·
      2 days ago

      You should see NVIDIA stock after every earnings. They beat, by a lot. Stock goes down. Every fucking time. Stock market runs on vibes now.

    • KindnessisPunk@piefed.caEnglish
      2·
      2 days ago

      Yep, this is why managing speculative investor expectations is as much a part of managing a modern publicly traded business as actually running the business.

      • notthebees@reddthat.comEnglish
        4·
        2 days ago

        If yoda is in a K-hole, would he speak normally because he is not human or just have normal khole symptoms.

        • vaultdweller013@sh.itjust.worksEnglish
          3·
          2 days ago

          Yodas dialect is just old as dirt and it shifts in and out depending on how much of ass he is being. Presumably much like real accents and dialects it probably gets noticeably thicker the higher he is, for example I have a weird mix of dialects from my region so when tired enough I sound like a Okie with a brogue thrown in.

  • some_guy@lemmy.sdf.orgEnglish
    432·
    2 days ago

    We’re gonna see a bloodbath as the whole thing teeters over the edge and then falls. Trade wars, real war, stupid decisions from an orange asshole. It’ll all add up. We’re about to be cooked.