RT Charlie Bilello
Every equity bubble inevitably becomes a credit bubble before it bursts...
Charlie Bilello: AI hyperscalers (Google, Amazon, Meta, Microsoft, and Oracle) have issued 47% more debt in the first 5 months of this year ($159 billion) than all of last year ($108 billion). Their YTD debt issuance exceeds the combined issuance from 2020-2024.
$GOOGL$AMZN$META$MSFT$ORCL
The author warns that the current equity bubble in AI hyperscalers is transforming into a credit bubble, pointing to a massive and unprecedented surge in debt issuance by major tech companies as a precursor to a potential burst.
Mentioned as part of the tech group driving a credit bubble through excessive debt issuance. The bearish sentiment diverges from its recent price gain (+3.13%), but aligns with external news of Amazon securing a $17.5B loan facility for AI-driven capex.
Included in the list of AI hyperscalers whose massive debt issuance is viewed as a sign of an impending credit bubble burst. This bearish perspective contrasts with the current stock price increase (+2.69%), though recent news confirms Alphabet is raising significant capital ($84.75B) for the AI war, corroborating the author's data.
Highlighted as one of the hyperscalers contributing to a credit bubble via record debt issuance. The author's bearish warning contrasts with the stock's current upward momentum (+4.67%).
Cited for its unprecedented debt issuance, signaling a credit bubble. This bearish stance is contrary to the stock's recent rise (+2.31%), but resonates with recent news of shareholder lawsuits over Microsoft's expenses and AI investments.
Grouped with other tech giants whose surging debt issuance is viewed as a precursor to a bubble burst. While the stock is up (+4.62%), the author's bearish concern aligns perfectly with recent news that Oracle's soaring AI spending is rattling investors.
关键要点
Every equity bubble inevitably becomes a credit bubble before it bursts.
AI hyperscalers (Google, Amazon, Meta, Microsoft, and Oracle) issued $159 billion in debt in the first 5 months of this year, which is 47% more than the entirety of last year.
The year-to-date debt issuance of these companies exceeds their combined issuance from 2020 to 2024.
