Hi everyone. Last week was a tough one. We finished down as the broader tech sell-off hit the portfolio, and a few companies in our portfolio also pulled back after earnings. A big driver of the negative sentiment was the level of capex companies are investing in AI.
Personally, I'm not worried, especially because revenues keep increasing healthily. Companies are investing this aggressively because they see AI as the opportunity of the decade. The technology keeps improving, and we're reaching the point where real disruption is starting to happen.
This is a transformative era for most businesses. It's logical that expenses will run higher as companies adapt and chase new opportunities. Over time, I expect capex growth to stabilize as the build-out matures. At the same time, I expect revenue acceleration as monetization improves and AI-enabled products scale.
Traditionally, large companies grew vertically until markets started saturating, and only then moved horizontally. AI-driven efficiency changes that. It lowers the cost of entering adjacent markets and shipping new products, so companies can expand vertically and horizontally at speeds that weren't possible before. The cost of expansion is getting smaller, and that increases the odds that the strongest platforms keep winning.
So while the market is reacting to the cost of building, I'm focused on what's being built. AI is lowering the cost of expansion, speeding up iteration, and increasing the set of markets big companies can realistically enter. If revenues keep climbing, today's capex is the bridge to tomorrow's cash flows. I'm confidently patient and letting the compounding do the work.
๐๐ฏ๐ผ๐๐ ๐ ๐ฒ
I've been a Popular Investor on eToro for 10 years. I'm a long-term investor. I research every business I own by studying their products and services, reading research papers, reviewing patents, tracking hiring trends, examining competitors, and following market trends. I combine this with fundamentals and quantitative analysis to invest in companies I trust for the future. If you'd like to know more about my investing strategy, please check out my profile.
I hope this was useful, and wish you a good week.
Mariano.
๐๐ช๐ด๐ค๐ญ๐ข๐ช๐ฎ๐ฆ๐ณ: ๐๐ฉ๐ช๐ด ๐ข๐ณ๐ต๐ช๐ค๐ญ๐ฆ ๐ช๐ด ๐ฑ๐ณ๐ฐ๐ท๐ช๐ฅ๐ฆ๐ฅ ๐ง๐ฐ๐ณ ๐ช๐ฏ๐ง๐ฐ๐ณ๐ฎ๐ข๐ต๐ช๐ฐ๐ฏ๐ข๐ญ ๐ข๐ฏ๐ฅ ๐ฆ๐ฅ๐ถ๐ค๐ข๐ต๐ช๐ฐ๐ฏ๐ข๐ญ ๐ฑ๐ถ๐ณ๐ฑ๐ฐ๐ด๐ฆ๐ด ๐ฐ๐ฏ๐ญ๐บ ๐ข๐ฏ๐ฅ ๐ฅ๐ฐ๐ฆ๐ด ๐ฏ๐ฐ๐ต ๐ค๐ฐ๐ฏ๐ด๐ต๐ช๐ต๐ถ๐ต๐ฆ ๐ง๐ช๐ฏ๐ข๐ฏ๐ค๐ช๐ข๐ญ, ๐ช๐ฏ๐ท๐ฆ๐ด๐ต๐ฎ๐ฆ๐ฏ๐ต, ๐ฐ๐ณ ๐ฑ๐ณ๐ฐ๐ง๐ฆ๐ด๐ด๐ช๐ฐ๐ฏ๐ข๐ญ ๐ข๐ฅ๐ท๐ช๐ค๐ฆ. ๐ ๐ฐ๐ถ๐ณ ๐ค๐ข๐ฑ๐ช๐ต๐ข๐ญ ๐ช๐ด ๐ข๐ต ๐ณ๐ช๐ด๐ฌ.... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
Couldn't agree more. The market is punishing the builders, but this is exactly where the opportunity lies. I see this Capex as the entry ticket to the next decade of dominance. Thatโs why I ignored the noise and rotated capital into the top tech leaders this week. If revenue growth remains healthy,... Show More
Good analysis Mariano. This is just a market wobble, not a cliff. AI is, no doubt, going to continue to be a bumpy road. But it is the road we are on - the last turn off was some way back. Some will adapt, others not, and it is going to be a while before we see who are the winners and losers. ... Show More
.
We use our own and third-party cookies on our websites to enhance your experience, analyze traffic, and for security and marketing. For more info, see our Cookie Policy or go to Manage Settings.
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
More information
Manage Consent Preferences
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Cookie List
label
ConsentLeg.Interest
label
label
label
Mon May 18 2026 22:26:59 GMT+0000 (Coordinated Universal Time)
