Big Tech – Volatile, flippant or lax – or all of it?

Everyone,
 
We all know that things are changing very rapidly in the AI industry right now.
Many of you also know that BigTech company valuations are weird and that their financing is even more so.
Let’s remember that some of these companies have recently shown an alarming lack of basic control, security and customer respect. (”Let’s push it and see if the customer’s complain.”)
 
The numbers are getting ridiculous.
 
(Disclaimer: All numbers have been checked and checked again with Gemini and Claude and some actual reading of articles. I may still be wrong because I am human.)
 
Here we go: 
 
SpaceX lost $1.2 trillion in market cap by late July — roughly equal to losing all of Tesla’s value. The stock has since partly recovered.
 
Nvidia lost ~$1 trillion (18%) in market value since its May 14 peak. It has since gone up approx 13% again.
 
Meta’s Q2 free cash flow dropped 91% year-on-year to $784 million.
Their Q2 profits fell 14% year-on-year to $15.8 billion.
Their Q2 total expenses rose 55% year-on-year to $42 billion, driven by legal charges, severance, and AI spend.
 
Reddit’s Q2 revenue rose 61% year-on-year to $804.9 million, beating estimates — yet the stock still fell approx 21% that quarter, its worst day since its 2024 IPO.
Their CEO said Google’s ”AI Overviews” feature is cutting into Reddit’s search traffic. This is because in Feb 2024, Reddit signed a content deal with Google (reported around $60 million/year) for Gemini training access — an ongoing license, not a one-time data sale.
…so Google paid peanuts for their data and now they have issues.
 
Amazon’s Q2 total sales rose 20% year-on-year to $200 billion, and they raised their 2026 AI capex guidance to $220 billion. 
 
The ’Magnificent Seven’ lost approx. $2.3 trillion in June.
 
Tesla’s Q2 net income leaned heavily on a non-cash SpaceX stake re-valuation.
A $763 million after-tax gain made up 68% of its Q2 net income of $1.1 billion.
…so the ’value’ is based on putting new value tags on SpaceX stock…but remember, SpaceX recently lost $1.2 trillion.
 
 
I am not going to claim that I know what will happen. I don’t.
I am also not going to tell you what to do – except ’Hold on to your hats!’
 
 
Take care everyone!
 
Björn
 
 
(Sources:
CNBC, TIKR, Meta press releases, CBS News, 24/7 Wall St., Benzinga)
 
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