"Sending markets lower, Alphabet ( NASDAQ: GOOG) projected a significant increase in AI spending, calling for capex of $185 billion. That was enough to spook investors because it raises free cash flow concerns. Also, according to Deutsche Bank, Alphabet "stunned the world" with its capex spending plan. "With tech in a current state of flux, it's not clear whether that's a good thing or a bad thing," added the firm, as quoted by CNBC."
"Not helping, Bitcoin now trades at less than $70,000 and could test $60,000 at this pace. In fact, it last traded at $69,261.42 - which is great news for traders that are short related stocks, such as Robinhood ( NASDAQ: HOOD) and Strategy ( NASDAQ: MSTR), which just saw its price target by analysts at Canaccord. More bearish forecasts see Bitcoin falling below $60,000, with extreme downside scenarios pointing to levels near $30,000."
Major US indices declined, with the S&P 500 down 0.52%, the SPDR S&P 500 ETF down 0.52%, the Dow down 0.3%, and the Nasdaq down 0.83%. Alphabet forecast $185 billion in AI-related capex, prompting free cash flow concerns and a Deutsche Bank comment that the company "stunned the world" with the plan. Bitcoin slipped below $70,000 to about $69,261, with forecasts ranging toward $60,000 and down to $30,000 amid weakening technicals and thin liquidity. Profit-taking and fading demand increased vulnerability to forced selling and derivatives-driven liquidations. Oversold gambling stocks warrant attention ahead of heavy Super Bowl wagering.
Read at 24/7 Wall St.
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