indigo: Hyperscaler capex mismatch may hide opportunities
AI summary
indigo points out that the market gives companies with 5% growth a 29.6x valuation, yet gives companies with 21% growth only 20.7x. The difference stems from Hyperscalers investing 49.8% of revenue into Capex, while retailers such as Costco and Walmart invest only 4.6%. He believes that, looking back at history, this kind of mismatch has often been an opportunity.
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Body · AI translation
The market's pricing logic today: 29.6x for 5% growth, only 20.7x for 21% growth! 👀 Because Hyperscalers are plowing 49.8% of revenue into Capex, while Costco, Walmart and the like spend only 4.6%! But historically, this kind of mismatch has often been an opportunity https://t.co/h1Yj9M6yRT