I repeat, the bubble is in the 'e' not the 'p' in today's PE ratios. The hucksters and talking heads will, as always, fail to realize until …

I repeat, the bubble is in the "e" not the "p" in today's PE ratios. The hucksters and talking heads will, as always, fail to realize until it's too late. But it's a very simple set up. Hyperscalers give OpenAI/Anthropic cash to pay for hyperscaler computing capacity. That cash then circles right back around into the "earnings" of the hyperscalers. Meanwhile, free cash flow for the group has officially gone negative and they're raising record amounts of debt (on and off balance sheet) to plug the gaping holes in their financial statements. So yes, please keep telling me about how META AMZN GOOG and MSFT are "cheap" on PE ratios where the E is a total mirage. Let us know how it ends (hint: not well, bob!) Good lord. Half-ish of the cloud backlog at Microsoft, Oracle, Google and Amazon is OpenAI and Anthropic????

Source: Gary Marcus (X) | 2026-05-06