Big Tech Has Til Year-End…or Else.

The Compound and Friends

Josh Brown

Business News, Business, Investing, News

4.7 • 2.2K Ratings

🗓️ 23 February 2026

⏱️ 27 minutes

🔗️ Recording | iTunes | RSS

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Summary

On this episode of What Did We Learn, Josh Brown sits down with Nick Colas and Jessica Rabe of DataTrek Research to discuss why Big Tech has just 12 months to prove AI is worth the cost. Nick breaks down how Amazon, Alphabet, and Meta Platforms have dramatically shifted their business models pouring 100% (or more) of cash flow into AI capex as margins are set to decline in 2026. These three companies make up 11% of the S&P 500, and they are not the same high-margin machines they were just a few years ago. Jessica then shows where investors are reallocating capital, comparing the S&P to the MSCI ACWI ex USA Index. With non-U.S. stocks gaining traction, investors have a clear choice: stick with Big Tech’s AI bet or look elsewhere. This episode is sponsored by Teucrium. Find out more at https://teucrium.com/agricultural-commodity-etfs Sign up for ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠The Compound Newsletter⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and never miss out! Instagram: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://instagram.com/thecompoundnews⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Twitter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://twitter.com/thecompoundnews⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ LinkedIn: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.linkedin.com/company/the-compound-media/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ TikTok: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.tiktok.com/@thecompoundnews⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Josh Brown are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management. The Compound Media, Incorporated, an affiliate of ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Ritholtz Wealth Management⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. For additional advertisement disclaimers see here ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://ritholtzwealth.com/advertising-disclaimers⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Investments in securities involve the risk of loss. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information. Obviously nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://ritholtzwealth.com/podcast-youtube-disclosures/⁠⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Today's show is sponsored by Tukriam.
0:15.6	Looking to diversify your portfolio beyond stocks and bonds?
0:19.3	Commodities are getting more and more attention as we enter 2026.
0:23.3	Tukrium's agricultural ETFs offer a way to access the future's prices of essential crops.
0:30.1	These funds may help manage inflation risk and add diversification to your portfolio.
0:34.6	Ask your financial advisor or explore Tukrium ETFs on your own. Visit
0:40.7	Tuquium.com. That's T-E-U-C-R-I-U-M.com. Click the link and the show notes for more.
0:51.1	All right. Guys, welcome to an all-new edition of what did we learn.
0:56.7	On today's show, we are going to attempt to answer one of the biggest questions facing the stock market today.
1:04.3	How much more time will investors give the hyperscalers before they turn negative on all of this KAPX spending.
1:12.8	I'm here with my friends Nick Colis and Jessica Raib, co-founders of Datatrek research
1:17.7	and the authors of Datatrek's morning briefing newsletter, which goes out daily to over
1:24.0	1,500 institutional and retail clients.
1:28.1	Nick and Jessica also have their own YouTube channel,
1:30.8	which you can find a link to in the description below.
1:34.0	Welcome back, guys. Good to see you.
1:35.9	Thank you. Thank you for having us back.
1:38.4	Oh, it's my pleasure. And I miss you guys.
1:41.1	I know it's been a whirlwind start to the year,
1:46.8	but we're back into our thing.
1:53.1	And what a great topic, because, Nick, you're making a pretty big pronouncement here.
1:59.3	Big Tech has 12 months to show that AI is worth it. Do you really think that that's it? The clock is ticking. They have to prove it by the
	...

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