Stocks in Free Fall After "Big Tech Rout"

You can recognize a pathological gambler when he keeps doubling down on lost bets. At the end there is no recovery but bankruptcy. That is what Big Tech firms have done, announcing a plan to invest a “breathtaking” USD 660 billions in AI this year, which investors have judged as outpacing the real earning potential of AI. So far, in an imitation of the 1720 John Law Bubble, liquidity had flown into AI-involved firms following the motto: “It is not earning yet, but it will.” As it becomes clear that earnings will never be so big as expected, the bubble bursts. “Amazon, Google and Microsoft are set to lose a combined $900bn in market value since filing their quarterly earnings over the past week,” the FT reports.