WS #15824
Market analysts are raising alarms about the credit risk embedded in Big Tech's balance sheets, citing over $1 trillion in off-balance-sheet leases signed by Microsoft, Oracle, Meta, Amazon, and Alphabet. Drawing parallels to the 2000 fiber-optic boom, experts warn that depreciation and amortization (D&A) costs could surge to 14.4% of revenue by 2028, potentially triggering an 'Act 4' earnings contraction phase. This narrative is contributing to renewed selling pressure in tech stocks, despite strong underlying AI demand.
Big Tech Credit & Leverage Risks
Market analysts are raising alarms about the credit risk embedded in Big Tech's balance sheets, citing over $1 trillion in off-balance-sheet leases signed by Microsoft, Oracle, Meta, Amazon, and Alphabet. Drawing parallels to the 2000 fiber-optic boom, experts warn that depreciation and amortization (D&A) costs could surge to 14.4% of revenue by 2028, potentially triggering an 'Act 4' earnings contraction phase. This narrative is contributing to renewed selling pressure in tech stocks, despite strong underlying AI demand.