Sevens Report: AI Optimism Is Giving Way to Existential Fears

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Tom Essaye says investors now worry AI could undermine entire business models.

Big Moves Have Rocked Stocks. There Might Be More to Come.

Yet “now investors fear it’ll go too far,” as Sevens Report President Tom Essaye writes. “Put simply, the concern now is that AI will boost productivity so much that it won’t just lead to reduced head count, it will lead to the elimination of the entire company and business!”

“AI spending is damaging the financial footing of the biggest tech companies in the markets and with no end to the spending in sight, this is making investors nervous that free cash flow from these companies will be depressed for years, all on the massive bet that AI is widely and aggressively adopted by the population,” writes Essaye. And don’t forget the rapidly growing Chinese competition.

Also, click here to view the full article published in Barron’s on February 25th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

What is the “Smart Market” Telling Investors Right Now?

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What’s in Today’s Report:

  • What is the “Smart Market” Telling Investors Right Now?

Futures are modestly weaker on mixed tech earnings.

There were beats (DELL, ADSK) but also plenty of misses (CRWV, INTU) and the net result of the earnings is that they did not reduce AI disruption fears.

Economic data was mixed as Japanese Retail Sales beat estimates while Industrial Production missed.  In Germany, both the Unemployment Rate and CPI met expectations.

Today focus will be on inflation via the delayed January PPI report and expectations are as follows: 0.3% m/m, 2.8% y/y.  A better than expected number will help push back against sticky inflation fears and help support markets.

Other events today include two more economic reports, Chicago PMI (E: 52.5) and Construction Spending (E: 0.3%) and some earnings, UUUU ($-0.07), GSAT ($0.01), SQM ($0.75), but they shouldn’t move markets.

 

Tom Essaye Talks About The Legitimacy of These AI Fears with Yahoo Finance

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Tom Essaye Talks About The Legitimacy of These AI Fears with Yahoo Finance

AI scare: Citrini’s report is just a ‘thought experiment’ for now

Sevens Report Research founder Tom Essaye, Yahoo Finance Markets and Data Editor Jared Blikre, and Yahoo Finance Senior Reporter Ines Ferré assess the legitimacy of these AI fears as disruptions ripple across the software landscape. IBM (IBM) shares dropped yesterday while Wall Street investors adjust their price targets on Workday (WDAY).

So the whole AI enthusiasm, AI bull market has been driven on the idea that AI is going to make companies much more productive, right? Which means better margins and more earnings. But now, the thought is going beyond that. It’s saying, wait, it’s going to become so productive that we’re actually not even going to need all of these industries. And there won’t be jobs for people.

Also, click here to view the full video published on Yahoo Finance on February 24th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye Explains Tariff Uncertainty Live With Yahoo Finance

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Tom Essaye explains what the tariff uncertainty means for companies, consumers, and markets with Yahoo Finance

FedEx is latest company to sue Trump admin. for tariff refunds

Sevens Report Research founder Tom Essaye joins the live show with Yahoo Finance Markets and Data Editor Jared Blikre and Yahoo Finance Senior Markets Reporter Ines Ferré to break down what the tariff uncertainty means for companies, consumers, and markets.

I don’t think it’s going to impact markets. Look, in the short term, the tariff chaos is just adding to the general uncertainty that AI anxiety has brought on the markets.

Here’s the key about tariffs. The markets are not worried that the Trump administration is going to do something so, for lack of a better word, dumb that it’s going to hurt the economy on trade. Trump and the administration have backed off numerous times. The market continues to think they will. The refund thing is going to be a mess for years. The lawyers are going to be the biggest winners from that, not the consumers. I don’t think tariffs are a major issue for this market.

Also, click here to view the full video published on Yahoo Finance on February 24th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye Talks About Gold vs. Bitcoin With Yahoo Finance

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Tom Essaye Talks About Gold vs. Bitcoin With Yahoo Finance

Gold vs. bitcoin: Which asset should investors be buying?

Sevens Report Research founder Tom Essaye, Yahoo Finance Senior Reporter Ines Ferré, and Yahoo Finance Markets and Data Editor Jared Blikre examine gold and bitcoin’s past performances amid volatile periods.

So, if I had to buy something today, I would be buying Bitcoin, although I would be doing it knowing that I’m probably not buying the bottom. I think Jared’s right. I mean that there is no fundamental bottom for Bitcoin, right? I mean, there’s no earnings or discounted cash flow we can look at. So it’s just at what point does sentiment become washed out and people think there’s enough value to step in.

However, the reason I prefer Bitcoin today over gold is because every month in the Seven’s report, we do a Bitcoin and cryptocurrency industry update. And the amount of fundamental use of of large players that are that are integrating into cryptocurrencies that are buying Bitcoin to hold on their treasury stock. It’s it’s becoming more and more mainstream and it’s not an exciting event. It’s not going to create headlines. Even you guys announcing this morning, your partnership with Coinbase. This is in the the the sort of financial mainstream now. And so I think that that creates fundamental demand that over time will create a bullish thesis. Now, it doesn’t mean it can’t go down to 40,000 in the short term. We all know how Bitcoin trades, but I think as I look out, I’d rather be buying buying Bitcoin down at these levels than necessarily chasing gold above 5,000.

Also, click here to view the full video published on Yahoo Finance on February 24th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye Quoted in Barron’s discussing AI Anxiety

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 The report is nothing new for a market that has been gripped with AI anxiety

The Dow Falls 800 Points. Wall Street Is Worried AI Could Be Bad for Financial and Discretionary Stocks, Too.

Sevens Report Research’s Tom Essaye told Barron’s that the report is nothing new for a market that has been gripped with AI anxiety in recent weeks.

“Importantly, I don’t think anything new has occurred that is negative,” Essaye says. “It just seems to be the market focusing on the same narrative from two weeks ago. So while that’s not gonna make a difference today – nothing new and bad has occurred.”

Also, click here to view the full article published in Barron’s on February 24th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Monitoring Private Credit Risk Through Credit Spreads

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What’s in Today’s Report:

  • Monitoring Private Credit Risk Through Credit Spreads

Futures are little changed following mixed tech earnings overnight.

Nvidia (NVDA up 0.9% pre-open) posted strong earnings but only met market expectations while Salesforce (CRM down 3% pre-open) beat earnings but guidance was light.

Economically, Euro Zone Economic Sentiment slightly missed estimates (99.6 vs. (E) 98.3).

Today there is one economic report, Jobless Claims (E: 215K) and one Fed speaker, Bowman (10:00 a.m. ET) but market focus will be on software stocks and the U.S./Iran talks.

Investors will want to see software (so IGV) “hold up” despite soft CRM guidance and if it can, that could spur another rally.  If it can’t, and IGV rolls over it could be another ugly day.  Geo-politically, the U.S. and Iran host another round of talks today and any hints of de-escalation will be a positive for markets.

Finally, important tech earnings continue today with CRWV ($-0.61), DELL ($3.32) and INTU ($2.23).

 

Tom Essaye Discusses the Warner Brothers and Netflix bid With Yahoo Finance

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Tom Essaye Discusses Warner Brothers and Netflix With Yahoo Finance

Paramount, Netflix’s bidding war ‘underscores’ Warner Bros. value

Sevens Report Research founder Tom Essaye, Yahoo Finance Senior Reporter Ines Ferré, and Yahoo Finance Markets and Data Editor Jared Blikre all weigh in on whether Paramount’s new deal is sweet enough for WBD to reconsider a sale to streamer Netflix.

I think Netflix still wins. I mean that Warner Brothers has still accepted the bid from Netflix and now they’re going to consider this elevated bid from Paramount, which we can assume is above $30 because I believe that was the last uh bid that they made. We don’t know where Netflix is in the process, but we do know that Netflix has a lot of money and are likely well able to increase its bid if necessary to secure the rights. You know, this is sort of a refreshing little like, you know, break from all this concern that AI is going to ruin society. 

Also, click here to view the full video published on Yahoo Finance on February 24th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Understanding AI Anxiety: Two Key Sources

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What’s in Today’s Report:

  • Understanding the Two Sources of AI Anxiety – And How to Protect Against It
  • Chart: HALO Sectors (Heavy Asset, Low Obsolescence) Are Handily Outperforming YTD

Futures are tracking global stocks higher after Trump’s SOTU address did not present markets with any material surprises while trader focus shifts ahead to the critical Q4’25 earnings release from NVDA after the close today.

Economically, Eurozone Narrow Core HICP (Core CPI equivalent) cooled to 2.2% from 2.3% in January, meeting expectations and offering fresh evidence that global disinflation trends remain intact in 2026.

Looking ahead to today’s session, there is one government-shutdown-delayed economic report due to be released: New Home Sales (E: 680K), and a handful of Fed officials scheduled to speak: Barkin (9:35 a.m. ET), Schmid (11:00 a.m. ET), and Musalem (1:20 p.m. ET).

Additionally, the Treasury will hold 4-Month Bill auction at 11:30 a.m. ET and a 5-Yr Note auction at 1:00 p.m. ET. If demand is overly strong, or weak, for either, we could see a reaction in bonds that reverberates into equity markets (the stronger/more-dovish, the better).

Finally, there are a slew of important earnings reports today including multiple AI-sensitive/semiconductor names: TJX ($1.38), LOW ($1.95), NVDA ($1.45), CRM ($2.14), SNOW ($-0.65), and IONQ ($-0.48).

 

Re-Examining the Four Pillars of the Rally

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What’s in Today’s Report:

  • A Bad Sign from the Most Important ETF in the Market
  • Re-Examining the Current Market Setup – 4 Pillars of the Rally

Futures are mildly higher as traders digest yesterday’s “AI-disruption” selloff ahead of Trump’s State of the Union address this evening.

There were no noteworthy economic reports overnight.

Today, trader focus will be on economic data early with the Case-Shiller Home Price Index (E: 1.3%), the FHFA House Price Index (E: 0.3%), and Consumer Confidence (E: 88.0) reports all due to be released. As has been the case lately, the market will want to see “Goldilocks” data signaling resilient growth trends and cooling inflation pressures in order to mount a meaningful relief rally.

Additionally, there is a slew of Fed speak today as Goolsbee (8:00 a.m. ET), Bostic (9:00 a.m. ET), Collins (9:00 a.m. ET), Waller (9:15 a.m. ET), Cook (9:30 a.m. ET), and Barkin (3:00 p.m. ET) are all on the calendar scheduled to deliver comments.

Finally, there are a handful of noteworthy Q4 earnings due out today, including HD ($2.52), NRG ($1.17), MELI ($11.77), AXON ($-0.18), HPQ ($0.77), and GDDY ($1.58). In addition to solid economic data and less-hawkish Fed speak, strong earnings would offer another tailwind for markets in the wake of yesterday’s latest wave of selling pressure.