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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks G / Alphabet (GOOG)
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Author: BreckHutHigh   😊 😞
Number: of 442 
Subject: Cautionary Note on Growing CAPEX
Date: 10/23/25 10:20 AM
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No. of Recommendations: 2
Surviving the AI Capex Boom

Executive Summary

"The AI revolution has reached a key inflection point, with the largest U.S. tech firms embarking on a massive AI infrastructure buildout. While the market has rewarded this spending so far, we find that historical capital expenditure booms have typically resulted in overinvestment, excess competition, and poor stock returns both at the macro and individual firm level. With the AI arms race transforming Big Tech from asset-light to asset-heavy, a model we find associated with inferior returns, our value-based playbook suggests rotating toward a broader set of AI beneficiaries with lower capital requirements and valuations."

blog.sparklinecapital.com - Sparkline AI capex
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This community has written 442 posts about Alphabet. The article-length ones it recommended most:
Judge's Ruling · 24 recs · 2025
Alphabet's Century Long Bet · 23 recs · 2026
Will the Sexy Six Strut or Stumble? · 19 recs · 2025
2Q Summary 2026 · 18 recs · 2026
Up about 50% this year · 17 recs · 2023
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