Big Tech spending on equipment and AI appears to be close to $400 billion over the four quarters alone. Are there losers outside the free-spending tech titans? Jason Hall and Travis Hoium join Tim Beyers to talk through the numbers and name two that may be at risk. Jason Hall, Travis Hoium, and Tim Beyers discuss: - Fallout from quarterly reports from Kyndryl (KD) and monday..com (MNDY) and what may be next for both. - Why the capex spending won&#x27;t slow anytime soon. - Whether the debt-fueled growth at CoreWeave (CRWV) and Oracle (ORCL) is sustainable over the long term. Don’t wait! Be sure to get to your local bookstore and pick up a copy of David’s Gardner’s new book — Rule Breaker Investing: How to Pick the Best Stocks of the Future and Build Lasting Wealth. It’s on shelves now; get it before it’s gone! Companies discussed: KD, MNDY, GOOG, AMZN, CRWV, ORCL Host: Tim Beyers Guests: Jason Hall, Travis Hoium Producer: Anand Chokkavelu Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

AI Capex Is Off the Charts: Who Stands to Lose?

Motley Fool Hidden Gems Investing

# Full Transcript

**Podcast:** Motley Fool Money

## Participants

- **Tim Byers** (The Motley Fool)
- **Jason Hall** (The Motley Fool)
- **Travis Hoium** (Asymmetric Investing)

## Transcript

[SPEAKER_01] Big tech is spending big. Who could lose amid all the winning? You're listening to Motley Fool Money. Welcome, Fools. I'm your host, Tim Byers. With me are two top Fool contributors and recurring guests. It's Travis Hoium and Jon Quast. Thanks for being here, Fools. How are you feeling?

[SPEAKER_04] Good. This is a wild market. This is one of the crazier markets that I've seen. We're near all-time highs, and yet we've got some stocks that are just getting absolutely crushed. Kind of crazy.

[SPEAKER_03] Yeah, and there's a lot of investors trying to figure out which part of the market is right.

[SPEAKER_01] To that point, Jon, let's talk about two that are on the radar this morning. As we are taping, this is on Monday late morning, Mountain Time. Both Monday.com, ticker MNDY, and Kindrel, ticker KD, are getting absolutely slaughtered. Monday has been down more than 20% through various parts of the day. Kindrel down more than 50%. These two are a little different, though. We'll talk about Monday in a

[SPEAKER_01] second, but just the story on Kindrel as the CFO and the general counsel. Both appear to have been dismissed. Kindrel is going to delay its quarterly filings because it cannot verify that its internal controls over financial reporting are sound. They need to report on this, for lack of a better term,

[SPEAKER_01] and explain what the heck is going on here. I'm sure, vast swaths of the market, that sounds like fraud or chicanery or just incompetence. But either way, it's terrible. This is not one of those deep value plays that I think you spend a lot of time putting money behind. Monday might be different. I know you

[SPEAKER_01] had a question about this one, Jason, because it did report, you know, beat estimates in its most recent report. The outlook, though, came in a little short on the revenue side and on the margin side. And so, that sounds, I'm guessing that that codes to the market as, uh-oh, this company is getting disrupted. And I'm not sure that's true. Yeah, Tim, your company comes in, reports,

[SPEAKER_03] you know, mid-20s revenue growth. And you see a 20% haircut. You're like, okay, what's going on here? You look at the existing results and we saw operating income and margins fell. And then the guidance, it really looks like in the second half of the year, they're guiding for substantially slowing growth and continued deterioration of the margins. To me, I think that's really the story. Sure, the revenue decline, slowing growth is that, but revenue growth is slowing and

[SPEAKER_03] you're losing, because revenue growth, you're supposed to be getting more operating leverage for a business like monday.com. That's not happening, right?

[SPEAKER_01] Well, it's not, but there's a couple of mitigating factors here. An...

AI Capex Is Off the Charts: Who Stands to Lose?

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

AI Capex Is Off the Charts: Who Stands to Lose?

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.