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Everyone's Watching Stocks. The Real Bubble Is AI Debt

zerosizedweasle 9mo ago
https://archive.is/mwmia https://archive.is/mwmia
zerosizedweasle 9mo ago
As A.I. Companies Borrow Billions, Debt Investors Grow Wary https://www.nytimes.com/2025/12/26/business/ai-debt-investors.html https://www.nytimes.com/2025/12/26/business/ai-debt-investor...
- zerosizedweasle 9mo ago
  https://archive.is/mbWct https://archive.is/mbWct
dinofp 9mo ago
Can't get past the paywall but who the F already didn't know this for over a year? Go read Ed Zitron, Bloomberg, you're drunk.
- lovich 9mo ago
  I’ve read Mr. Zitrons articles and recently exited a 10 year old position I held with Nvidia due to his analysis, but this part of the article was news to me > The investment requirements are so large that equity financing alone won’t do. The balance sheets of many of the major players have been altered significantly. Looking at Meta’s annual statement before ChatGPT was released to the public in November 2022, it had over three times as much cash as debt on its balance sheet. Last quarter it had 15% more debt. Microsoft had 30% more cash than debt pre-ChatGPT. Now it has almost 20% more debt. Amazon, which has traditionally had a more leveraged balance sheet, now has over 50% more debt than cash I was still under the impression that all the faangs had more cash than liabilities, I wasn’t aware that had flipped
  - VirusNewbie 9mo ago
    Why hold cash when you're a money printing machine about to go into an inflationary period?
    - therobots927 9mo ago
      Even if you’re correct about entering an inflationary period that doesn’t mean money is better in chips than cash. Chips can depreciate faster than cash even in an “inflationary environment”. They’d be better off buying back shares.
- zerosizedweasle 9mo ago
  Paywall removed: https://archive.is/mwmia https://archive.is/mwmia
pjb88 9mo ago
Any ideas of where to invest just now? Seems like there's lots of warnings about equity bubbles, bond/debt problems, economic issues that will affect inflation (UK/EU), and gold is mega high. Seems like everywhere you look it's doom?
- therobots927 9mo ago
  Spain. $EWP. Also pretty much any other developed nation stock index. It’s the new flight to safety after gold.
  - csto12 9mo ago
    Why Spain?
    - therobots927 9mo ago
      Who knows. But thats the country up the most last year.
      - sph 9mo ago
        Ah yes, the good old investment advice: if a stock has been going up, it’s time to buy. Good luck with that strategy.
        therobots927 9mo ago
        Oh and what’s your strategy Mr. Buffet?
        sph 9mo ago
        For one, Mr Buffet coined the aphorism “be fearful when others are greedy, and greedy when others are fearful” and here you are suggesting the literal opposite.
        9mo ago
tabs_or_spaces 9mo ago
interesting that no mention of nvidia in there? also really surprised that tech companies have more debt than cash on hand. would be really interesting to know how apple fares in this comparison too.
- zerosizedweasle 9mo ago
  Not really surprising that the debt is greater than cash on hand. The buildout has gotten really extreme at this point. Basically eating everything in economy from credit to RAM.
deleted 9mo ago
[deleted]

https://archive.is/mwmia https://archive.is/mwmia

As A.I. Companies Borrow Billions, Debt Investors Grow Wary https://www.nytimes.com/2025/12/26/business/ai-debt-investors.html https://www.nytimes.com/2025/12/26/business/ai-debt-investor...

zerosizedweasle 9mo ago
https://archive.is/mbWct https://archive.is/mbWct

dinofp 9mo ago

Can't get past the paywall but who the F already didn't know this for over a year? Go read Ed Zitron, Bloomberg, you're drunk.

lovich 9mo ago
I’ve read Mr. Zitrons articles and recently exited a 10 year old position I held with Nvidia due to his analysis, but this part of the article was news to me > The investment requirements are so large that equity financing alone won’t do. The balance sheets of many of the major players have been altered significantly. Looking at Meta’s annual statement before ChatGPT was released to the public in November 2022, it had over three times as much cash as debt on its balance sheet. Last quarter it had 15% more debt. Microsoft had 30% more cash than debt pre-ChatGPT. Now it has almost 20% more debt. Amazon, which has traditionally had a more leveraged balance sheet, now has over 50% more debt than cash I was still under the impression that all the faangs had more cash than liabilities, I wasn’t aware that had flipped
- VirusNewbie 9mo ago
  Why hold cash when you're a money printing machine about to go into an inflationary period?
  - therobots927 9mo ago
    Even if you’re correct about entering an inflationary period that doesn’t mean money is better in chips than cash. Chips can depreciate faster than cash even in an “inflationary environment”. They’d be better off buying back shares.
zerosizedweasle 9mo ago
Paywall removed: https://archive.is/mwmia https://archive.is/mwmia

pjb88 9mo ago

Any ideas of where to invest just now? Seems like there's lots of warnings about equity bubbles, bond/debt problems, economic issues that will affect inflation (UK/EU), and gold is mega high. Seems like everywhere you look it's doom?

therobots927 9mo ago
Spain. $EWP. Also pretty much any other developed nation stock index. It’s the new flight to safety after gold.
- csto12 9mo ago
  Why Spain?
  - therobots927 9mo ago
    Who knows. But thats the country up the most last year.
    - sph 9mo ago
      Ah yes, the good old investment advice: if a stock has been going up, it’s time to buy. Good luck with that strategy.
      - therobots927 9mo ago
        Oh and what’s your strategy Mr. Buffet?
        sph 9mo ago
        For one, Mr Buffet coined the aphorism “be fearful when others are greedy, and greedy when others are fearful” and here you are suggesting the literal opposite.
        9mo ago

tabs_or_spaces 9mo ago

interesting that no mention of nvidia in there? also really surprised that tech companies have more debt than cash on hand. would be really interesting to know how apple fares in this comparison too.

zerosizedweasle 9mo ago
Not really surprising that the debt is greater than cash on hand. The buildout has gotten really extreme at this point. Basically eating everything in economy from credit to RAM.

deleted 9mo ago

[deleted]