RIP Traditional Tech: The Bubble Has Burst
The Three Horsemen of tech’s valuation Apocalypse
The traditional legacy tech valuation bubble has burst. AI disruption and the looming mega-IPOs of the "Terrible Threes", OpenAI, SpaceX and Anthropic, are forcing a reset. Even as earnings remain strong, investors are questioning what deserves a premium in a new technological regime. AI is repricing moats, margins and multiples. The fact that the sector now looks cheap is compelling but for sure not a catalyst to buy them right here right now. Here are a number of charts on how much the valuation bubble has deflated.