Sevens Report: AI Optimism Is Giving Way to Existential Fears
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.
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