> And the data center trade has been unwound in just 2 days is a pretty violent shock.
It's very very far from being unwound. If (or when) it does, many companies in the space will be down 90-100%. Definitely not today.
It's very very far from being unwound. If (or when) it does, many companies in the space will be down 90-100%. Definitely not today.
The grind-down has barely started. We were waiting for a catalyst and it was unexpected. The narrative has shifted to a widespread negative ai-vibe and is hard to counter with any amount of propaganda by the pro ai-crowd. Datacenter debt will be repriced and along with that capex-cuts. These take time and have barely started. The markets have smelt that these are around the corner.
Investors are not rationalists or effective altruists. They chase the money. If the fundamentals and DD does not math to allow data centers to be profitable, and governments honor the people's will, they will jump ship and quicker than you think. And if governments do not honor the people's will (which is firmly in opposition to the odious people behind this push) then we have far bigger problems to worry about.
Oh, yeah, sure. They'll get right on that. Patriot act is going away any day now. Climate change and healthcare and judicial / law enforcement reform going to be addressed any second.