The sharp drop is the latest sign of anxiety creeping through Wall Street over how long it will take AI companies to see returns on massive investments.
I know the article is about google, but the bit about caterpillar is insane.
The bleeding even spread beyond the tech sector, as shares of the construction equipment giant Caterpillar — a key supplier of the machines required to build data centers — plunged 9.2% on Thursday.
Caterpillar’s recent earnings report revealed that its revenue beat Wall Street expectations but by less than many traders had hoped.
So, their earnings beat expectations, but they didn’t beat the expectations for how much they’d beat expectations, so the share price went down.
This exact thing has been driving me crazy for like a decade now. Say a company makes $1 billion in profit one year, and the next year isn’t as good but they make $800 million. Still a very profitable company, but because it was less then the year before it’s considered horrible and the company is basically going out of business.
This also points out how the AI bubble is affecting the economy far beyond the tech sector.
Construction equipment used to be used for other things, not just building datacenters. But, since the start of the AI bubble, almost everything else has slowed down because they’re dedicating so much construction equipment and workers towards building datacenters.
In just 1 year, construction work on DCs has gone up by 64.5%. And, that’s from 2025 to 2026. It’s not like it was at a standstill in 2025. Meanwhile, residential construction is down significantly. And, there has been a 25% cut in construction related to manufacturing.
So, their earnings beat expectations, but they didn’t beat the expectations for how much they’d beat expectations, so the share price went down.
That’s why I always say that big shot, institutional investors are a bunch of cunts. They always think in short term. That’s why I am in favour of half year earnings report so that there is less pressure for companies to think in three months time.
I know the article is about google, but the bit about caterpillar is insane.
So, their earnings beat expectations, but they didn’t beat the expectations for how much they’d beat expectations, so the share price went down.
What is even going on at this point?
Yet Tesla can do absolutely fucking nothing and then do a Nazi salute and shares go up 50%
When you say it like that, in this context… it seems, weird, right? Like something is off…
Almost like there are fish out there so much bigger than the world’s richest man in the headlines…
The stock market is just rich people’s feelings
This exact thing has been driving me crazy for like a decade now. Say a company makes $1 billion in profit one year, and the next year isn’t as good but they make $800 million. Still a very profitable company, but because it was less then the year before it’s considered horrible and the company is basically going out of business.
This also points out how the AI bubble is affecting the economy far beyond the tech sector.
Construction equipment used to be used for other things, not just building datacenters. But, since the start of the AI bubble, almost everything else has slowed down because they’re dedicating so much construction equipment and workers towards building datacenters.
https://futurism.com/future-society/data-center-spending-ai-bubble-construction
In just 1 year, construction work on DCs has gone up by 64.5%. And, that’s from 2025 to 2026. It’s not like it was at a standstill in 2025. Meanwhile, residential construction is down significantly. And, there has been a 25% cut in construction related to manufacturing.
That’s why I always say that big shot, institutional investors are a bunch of cunts. They always think in short term. That’s why I am in favour of half year earnings report so that there is less pressure for companies to think in three months time.
Mass manipulation. I wish I were smart enough and had enough to bribe the right people to be in on the looting.