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The corporate earnings cycle is sending a signal that deserves a closer read.
Investment gains tied to private artificial intelligence companies, specifically Anthropic and OpenAI, are inflating the headline numbers for Big Tech, and removing those gains reveals an earnings picture that is considerably less bullish than the aggregate data suggests.
The composition problem inside headline earnings When a publicly listed technology company holds equity in a private AI developer, gains on that position can flow through to reported earnings.
That is the dynamic at work across Big Tech right now. Strip out the contributions from Anthropic and OpenAI stakes, and the underlying operational performance tells a quieter story.
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