The lead
Alphabet and Tesla sell off as AI spending overshadows earnings, JPMorgan flags a dot-com echo
Both firms beat on revenue, but investors are now pricing the return on AI capex, not the growth story. The selloff landed alongside oil above 100 dollars and rising bond yields, a rare double squeeze on equities.
Alphabet raised its 2026 capex guidance to 195 to 205 billion dollars and warned of more in 2027, sending shares down over 3 percent; Tesla fell about 4 percent as free cash flow turned negative on a 142 percent jump in capex. JPMorgan says hardware stocks are diverging from the big AI spenders, the same split that preceded the dot-com crash.
CONVOThe senior-conversation frame this week: the question has flipped from who has the best model to when the capex pays back. Use it to reposition any AI pitch at Kralys around concrete ROI, not capability.