Hyperscalers Burn $31 Billion In Q3 As Goldman Warns The AI Earnings Boom Has Stopped Accelerating

On paper, this was a spectacular earnings season.

S&P 500 profits are growing at 33% year-over-year, margins for the median stock just hit a record, and cloud revenue at Amazon, Alphabet and Microsoft is growing at 54%. And yet the market just closed the busiest week of earnings season with Intel suffering its worst day in at least four decades, the Nasdaq 100 briefly in correction territory and finishing Friday down 3.5% at 28,385, and the S&P sliding 1.8% to 7,579... which leaves the Nasdaq down roughly 6.6% for October and the S&P about 1% lower (as we detailed in our October rundown).

33%... And That's The Problem