WS #16591
A broad selloff in technology is underway, driven by a shift in investor sentiment against high capital expenditure. Amazon is down 6.7% premarket on concerns over $42 billion in free cash flow, while Alphabet is down 10% on debt-funded capex worries. This sentiment is spreading to semiconductors, with AMD down 8.3% and Micron down 5.5% as Intel's weak PC market forecast drags the entire sector lower. The market is explicitly punishing growth at the expense of cash flow.
Tech Selloff and Capex Punishment
A broad selloff in technology is underway, driven by a shift in investor sentiment against high capital expenditure. Amazon is down 6.7% premarket on concerns over $42 billion in free cash flow, while Alphabet is down 10% on debt-funded capex worries. This sentiment is spreading to semiconductors, with AMD down 8.3% and Micron down 5.5% as Intel's weak PC market forecast drags the entire sector lower. The market is explicitly punishing growth at the expense of cash flow.