Google got punished for spending like a drunken sailor on AI
American Airlines is a slow bleed with better marketing.
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Google got punished for spending like a drunken sailor on AI
Tesla got blasted for missing profits AND spending like a drunken sailor on AI
Wall Street is still stuffing AI ETFs while the stocks get their faces ripped off
Google just got punished for spending like a drunken sailor on AI
Alphabet crushed the quarter, revenue $119.8 billion, cloud screaming +82% to $24.77 billion, backlog at $514 billion, then told the Street it’s jacking 2026 capex to $195–205 billion and going even harder in 2027. Stock got hammered more than 6%. Demand is real. The bill is realer. This is exactly the AI spend reckoning we flagged when the $2 trillion chip carnage slammed into support.
Winners? Nvidia, TSMC, power and cooling plays, and any contractor already locked into Google’s data-center pipeline. They get paid whether the ROI shows up tomorrow or 2029.
Losers? Alphabet shareholders who thought growth was free, and every late AI tourist still long the pure multiple expansion story. Negative free cash flow just walked in the door. Goggle had almost unlimited money and some how they spent it all. This graph would scare you, This graph would scare anyone.
Next? More of this. Hyperscalers keep raising guidance, stocks keep selling the spend, then the survivors with real utilization re-rate higher once the weak hands are flushed.
Look, beating numbers while torching cash on AI is the new normal. Google is capacity-constrained and customers are still throwing money at them. The market is simply refusing to hand them a free pass on the tab. Same story we called when the chip complex bled out, the easy money phase is over. Now it’s about who actually turns the spend into durable returns. Google has the demand. The question is whether the Street has the stomach.
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Tesla got destroyed for missing profits AND spending like a drunken sailor on AI
Revenue hit $28.24 billion and beat, but adjusted EPS came in at 33 cents against 50-55 cents expected. Free cash flow stayed negative. Stock got crushed 14%, worst day in a year, and Elon Musk’s net worth took an $18.6 billion haircut to $731.7 billion. They’re confirming more than $25 billion in 2026 capex while robotaxi and Optimus robots remain early-stage promises. Market’s done buying the story without the numbers.
Winners? Shorts who timed the miss and the chip, power, and battery suppliers already collecting on the spend. Waymo gets to keep looking like the grown-up in the room with actual fleet scale.
Losers? Tesla longs still pricing in a trillion-dollar robotaxi empire on a few dozen unsupervised vehicles and training robots. Musk’s paper fortune and anyone who thought margins didn’t matter anymore.
Next? More pressure for hard milestones. Analysts already cutting targets and demanding tangible robotaxi deployments. If Cybercab and Optimus stay small while cash keeps burning, the multiple gets taken to the woodshed again.
This is the same movie we just watched with Google earlier. Beat the top line, torch cash on AI hardware, watch the stock get punished. Tesla is further out on the risk curve, the cars still fund the dream, but the dream is still mostly PowerPoint and a couple dozen robotaxis. The Street is no longer handing out free money for promises. Show real volume or keep watching the valuation get compressed. Simple as that.
However:
Musk owns SpaceX and Musk owns Tesla. Those rumors about a tie up could be about to start floating again. If thats the endgame, buyers of both right now could look like geniuses in years to come.
Wall Street is still stuffing AI ETFs while the stocks get their faces ripped off
JPMorgan’s latest Guide to ETFs says AI-themed funds are now a top-five theme by assets even after a rough second quarter. Themes are morphing into the full ecosystem. Models, applications, energy, infrastructure. Mutual funds keep bleeding. ETFs keep vacuuming the cash. The smart money isn’t exiting the trade. It’s just getting more surgical about how it owns it.
Winners? The ETF complex itself and any manager running pure-play AI or AI-infrastructure products. Flows follow the narrative even when the underlying names are getting smoked.
Losers? Mutual-fund dinosaurs still stuck with tax-inefficient wrappers and investors who only discovered AI last November. They’re the exit liquidity.
Next? More product launches, more specialization into energy and power, and continued rotation from broad AI baskets into the actual picks-and-shovels that print cash.
This is classic late-cycle behavior. The underlying names can get cut in half and the ETF complex still grows because the story is bigger than any single quarterly bloodbath. JPMorgan is just confirming what the tape already showed, capital is still flowing toward AI exposure, just through cleaner vehicles. Don’t fight the structure. Fight for the best structure.
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American Airlines is a slow bleed with better marketing
American beat on the quarter, adjusted 15 cents versus 3 cents expected, revenue $16.74 billion, then cut full-year guidance to a range of a 65-cent loss to 65-cent profit. Stock dropped roughly 8%. Higher fares and solid demand couldn’t outrun the fuel bill. They’re still adding capacity. The gap with Delta and United is not closing.
Winners? Delta and United, who already run tighter ships, and any airline with better fuel hedges or stronger premium mix. They get to watch American keep digging.
Losers? AAL shareholders and management still promising a turnaround that keeps getting postponed by the same input cost. Labor is already expensive. Jet fuel just punched them again.
Next? More guidance cuts across the industry if crude stays elevated, capacity discipline finally forced on the weaker carriers, and continued valuation gap between the winners and the also-rans.
Fuel is still the boss. American can talk about long-range plans and premium seats all day, but every time the oil price spikes the margin story collapses. They’re expanding while the profit gap with the leaders widens. That’s not a turnaround. That’s a slow bleed with better marketing.
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I don't trust goole either. I've heard they spy on you. They are in a lot of other things that you
have to sign up for and they always say I have the wrong password when I don't. I have a password book and write them down, so I know they are right.
Couldn’t happen to a bigger crook