Currently earnings estimates are not baking any gains for non-tech names. If AI adoption gains steam and if earnings estimates are revised, they could be a tailwind for SPY earnings…
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Is it a case of:
“When everyone is super, no one will be” - Syndrome
I assume you are talking about, excess margin will be competed away. No. For now, analysts are not seeing the AI implementation leading to margin improvements. First AI implementation to drive margins, profits up, and then companies using that excess profits to take market share, and eventually that efficiency passed on to the customer… but that is not going to happen overnight, rather over multiple years.
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A large proportion of the sales and profits are driven by the Mag 7 selling to each other for the AI build-out.
I would rather see an analysis of the sales and earnings of these companies to outside customers using AI.
Wendy
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$Googl - $403
MSFT - $282
AMZN - 717
META - 201
Do you honestly believe these revenue numbers are achieved by selling to each other???
It is available in their earnings and 10-Q. The question is are you open to see them. If someone thinks AWS, AZURE and GCP and META are selling to each other then there is nothing to discuss.
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