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FinanceAI-driven capex forces Mag7 to spend more than they earn for first time, triggering worst single-day selloff since April 2025
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The article reports that the Magnificent Seven (Mag7) tech stocks experienced their worst single-day decline since the tariff-driven selloff in April 2025. The primary cause is the massive capital expenditure required for artificial intelligence (AI) development, which is forcing Big Tech companies to spend more than they earn for the first time. This unprecedented spending spree has alarmed Wall Street investors, who are concerned about the lack of immediate returns and the sustainability of such high investment levels. The article highlights that this shift marks a significant departure from the traditional profitability model of major tech firms, leading to market volatility and investor skepticism.
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Fortune News Digest: July 23, 2026
AI Is Forcing Big Tech to Do Something It's Never Done: Spend More Than It Earns, and Wall Street Hates It
Publication Date: July 23, 2026 | 12 minutes ago By: Eva Roytburg
Big Tech is facing unprecedented financial pressure as artificial intelligence investments force companies to spend more than they earn—a trend that Wall Street is reacting to with significant disapproval.
Read the full story
In Other News: July 23, 2026
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Alphabet’s investment in SpaceX contributed to a $98 billion gain, helping the company beat earnings estimates.
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For more news, visit Fortune.
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Fortune | FORTUNEWestern
Part of this Story
AI is forcing Big Tech to do something it’s never done: Spend more than it earns, and Wall Street hates it