Evercore ISI identifies an "attractive entry point" in internet equities, which have fallen 18% YTD, significantly underperforming the Nasdaq's 19% gain .
- Bearish Drivers: AI disruption risks, intense AI capex, geopolitical energy shocks, and emerging 'Muse Risk' (AI agents as interfaces) have weighed on the sector .
- Bullish Outlook: Despite market skepticism over AI capital expenditures, Evercore anticipates major hyperscalers like Amazon, Alphabet, and Meta to reach free cash flow inflection points within 3-12 months, suggesting current consensus is overly pessimistic .
Why ’Net Stocks’ are down sharply this year despite Nasdaq’s gains
INVESTING.COMOct 11, 12:33 PM UTC
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