AI Investment Gains Inflate Amazon, Google Earnings, Distorting Valuations
SumitGup · x · 2026-08-01
An analysis reveals that 87% of Amazon and Google's net income is actually derived from paper gains on their investments in companies like OpenAI, Anthropic, and SpaceX.
These AI-driven investment gains have pushed their P/E ratios down to 19x and 17x respectively, falsely implying they are historically cheap. Traditional valuation metrics are thus compromised, failing to reflect the true profitability of their core operations.
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