{"id":903367,"date":"2026-11-02T15:56:20","date_gmt":"2026-11-02T15:56:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/903367\/"},"modified":"2026-11-02T15:56:20","modified_gmt":"2026-11-02T15:56:20","slug":"why-investors-are-dumping-tech-stocks-in-one-image","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/903367\/","title":{"rendered":"Why investors are dumping tech stocks, in one image"},"content":{"rendered":"\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Tech stocks aren&#8217;t getting shredded for any old reason. It&#8217;s actually very fundamental: Free cash flow is drying up for Big Tech leaders, and capex is rising dramatically.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Investors are questioning whether this ratio is totally out of whack, given more realistic growth projections for AI.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The combined capex of Amazon, Alphabet, Meta and Microsoft rose by $36.9 billion in the third quarter to $201.9 billion, the team at The Kobeissi Letter calculated (chart below). This figure has more than doubled over the past 12 months, and is up a staggering 356% since the first quarter of 2024.  <\/p>\n<p>    <a href=\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/925361719f44c172e74129f340d313e1218c7085af494289de1fbed8fe77042f\/lightyear_networkapi\/resizefit_w960%3Bquality_80%3Bformat_webp\/https%3A%2F%2Fd29szjachogqwa.cloudfront.net%2Fimages%2Fuser-uploaded%2Fkb_1462.jpeg\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"Why tech stocks are getting drilled.\" height=\"641\" width=\"960\" class=\"yf-1f8hkhu loader\"\/><\/a> Why tech stocks are getting drilled.  \u00b7 The Kobeissi Letter         <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Big Tech has now spent $1.6 trillion on capex over the last three years, the strategists say.<\/p>\n<p>At the same time, the combined free cash flow of these companies fell $33.1 billion last quarter to a negative $26.4 billion, its lowest on record.<\/p>\n<p>Free cash flow among these tech beasts has fallen by $88.2 billion over the last year.<br \/>Only Microsoft reported positive free cash flow in the third quarter.<\/p>\n<p>Looking ahead, the strategists estimate these four companies plan to spend another $232 billion on capex in the fourth quarter.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The AI trade saw a serious slamming on Friday, with more than $1 trillion in market value wiped away as investors fretted about the weakening cash flow profiles of Big Tech.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">&#8220;The AI narrative is cracking as profitability concerns intensify,&#8221; warned Miller Tabak chief markets strategist Matt Maley.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Follow Brian Sozzi on X <a href=\"https:\/\/twitter.com\/BrianSozzi\" data-ylk=\"slk:%40BrianSozzi;elm:context_link;itc:0;sec:content-canvas;cpos:1;pos:1;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;@BrianSozzi&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkPosition&quot;:&quot;1&quot;,&quot;yPosition&quot;:&quot;1&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"link\">@BrianSozzi<\/a>, <a href=\"https:\/\/www.instagram.com\/briansozzi\/\" data-ylk=\"slk:Instagram;elm:context_link;itc:0;sec:content-canvas;cpos:2;pos:1;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Instagram&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkPosition&quot;:&quot;2&quot;,&quot;yPosition&quot;:&quot;1&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"link\">Instagram<\/a>, and <a href=\"https:\/\/www.linkedin.com\/in\/briansozzi\/\" data-ylk=\"slk:LinkedIn;elm:context_link;itc:0;sec:content-canvas;cpos:3;pos:1;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;LinkedIn&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkPosition&quot;:&quot;3&quot;,&quot;yPosition&quot;:&quot;1&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\" class=\"link\">LinkedIn<\/a>. Tips on stories? Email him at brian.sozzi@yahoofinance.com.  <\/p>\n<p>       <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><script async src=\"\/\/www.instagram.com\/embed.js\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"Tech stocks aren&#8217;t getting shredded for any old reason. It&#8217;s actually very fundamental: Free cash flow is drying&hellip;\n","protected":false},"author":2,"featured_media":903368,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[5097,28,122,101,939,2993,2994,32455,2995,932,32456,20112,147,9323,1170,1666,6480,2996,2997,923,19533,3733,32457],"class_list":["post-903367","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-401k","tag-business","tag-business-news","tag-economy","tag-finance","tag-financial-information","tag-investing","tag-investment-tools","tag-investor","tag-market-news","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/903367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=903367"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/903367\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/903368"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=903367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=903367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=903367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}