ING Group: Tech investors reassess AI investments

robot
Abstract generation in progress
Golden Finance reported that on July 7, Jan Frederik Slijkerman of ING Group wrote in a report that tech investors are reassessing their investments in artificial intelligence, even though the technology is a positive long-term driver. He said that tech companies' revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to rise, but investors remain nervous. As infrastructure spending leads to higher depreciation costs and reduced stock buybacks, investors may experience slower earnings per share growth and lower valuation multiples. Since the positive impact on revenue growth may take time to materialize, free cash flow is expected to be lower than in previous years. This narrows the room for large-scale shareholder returns in the form of stock buybacks.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned