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Strategies & Market Trends : Value Investing

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To: Sean Collett who wrote (78569)	11/21/2025 9:07:24 AM
From: Madharry	Read Replies (1) of 78748

I appreciate your comments and mr market agrees with you about the bubble issue. My understanding of the pypl kkr deal is that there will be $6 billion outstanding at any given time but over the course of a year they could sell multiples of that amount to kkr, As far as AI and valuation , you can argue that depreciation is being stretched but that doesn't alter the fact that this a global arms race that will persist and runs the gamut from cloud providers to business to individuals. if you fall behind it as a cloud provider , you lose any competitive advantage you might have had and the same is true in business. if I have to make 3 phone calls to get an appointment to see some specialist i've never seen before and i can get through right away and get my appointment through ai with some other specialist where am i gonna go? Despite the inroads that China may make and I own BABA and BIDU in the space, for security reasons its doubtful that the usa and europe will ever permit US companies to put data on cloud servers controlled by Chinese companies. Going back to the depreciation that 5-6 year move in depreciation doesn't alter the extent of capital expenditure and most likely increases the true pe ratios of the cloud providers by a couple of points at most. that doesn't make it a bubble. Unlike the dot.com bubble where dozens of entities were going public and being bid up on the come with no revenues sources. The cloud providers have lots of revenue and income and are funding this mostly out of cash flow. The data centers are being financed for the most part, based upon the end users which are again the cloud providers. Is it possible that we will overbuild data centers? I don't know, I also don't know to what extent data from a foreign data center that is in say Canada or Paraguay can be hacked into .

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