The New Value Stocks

Jack Bowman9.22K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryBig Tech hyperscalers like MSFT, GOOGL, and AMZN are transitioning from asset-light to asset-heavy, driving a structural market shift favoring capital intensity.Recent massive bond issuances by hyperscalers signal a real commitment to CapEx, positioning these firms for future appraisal as value over growth.Traditional value stocks are outperforming, but the definition of 'value' is broadening to include capital-intensive Big Tech firms as they finance and build global infrastructure at an unprecedented rate.I remain bullish on select hyperscalers during this transition, adding to positions in MSFT, GOOGL, and AMZN, while expressing caution on META due to concerns over AI competitiveness and creative financing.Not all hyperscalers are made equal, and not all will be able to successfully transition to capital intensity. Sviatlana Barchan/iStock via Getty Images This is not the first time I've discussed shifts in market dynamics from favoring asset-light to asset-heavy businesses. Consider the discussion in this article to be a continuation of the ideas presented in this one, “This article was written byJack Bowman9.22K FollowersFollowWriter | Investment Advisor | Economics Wonk | Top 5% on TipRanks | Long Signal, Short Noise | Author of The Macro Obsession, a weekly newsletter on current events and trends in finance, tech, and the real economy. My work focuses on my quest to uncover narrative trends before mainstream financial media, a process I've been describing as the hunt for information alpha. It is chart-heavy, macro-oriented, and data-driven.I invest across securities and asset classes. My focus has largely been on ETF investing, and I am known as a macro analyst, though I do cover stocks that I am personally trading or considering for my portfolio. These are typically technology and next-gen energy stocks or large caps with a juicy story.“Successful investing requires holding uncomfortably idiosyncratic positions.” — Howard Marks, paraphrasing David Swensen “History does not repeat, it instructs.” — Timothy Snyder, On TyrannyAnalyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT, GOOGL, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.