Google and Meta are already in a bear market and they are not alone

Google and Meta are in a bear market with declines of more than 20% from their peaks, as Wall Street shifts from AI promises to proven cash flow. Apple surpassed Nvidia as the highest market cap company. Additional stocks like Super Micro, Reddit, and AppLovin have crashed by 65%-71%.

Google (Alphabet) and Meta are in a bear market, with declines of more than 20% from their peaks, as Wall Street shifts from AI promises to proven cash flow. Apple surpassed Nvidia as the highest market cap company and is seen as a safe haven. Additional stocks like Super Micro (-71%), Reddit (-65%), and AppLovin (-68%) have crashed. Intel and Arm have lost about 53% since June. The earnings season reveals erosion in the free cash flow of tech giants due to massive investments in AI infrastructure. Credit default swap (CDS) costs have surged, and S&P cut Meta's rating outlook to negative. In contrast, traditional companies like Santander and Novartis report improved results thanks to AI. The article quotes Modi Shafrir from Bank Hapoalim and Barclays.