A South Korean tech firm’s disastrous IPO offered the latest signal of investor skittishness about the AI trade, even as stock markets appeared to have recovered from a bearish run.
Elice Group shares plunged 30% on their debut, and new analysis showed investors were upping their purchases of credit default swaps linked to bonds issued by chipmakers and data center builders.
Big Tech firms, including Meta, SpaceX, and Tesla, all report earnings this week, providing much-needed clarity on the extent of their investment plans and how they intend to finance them.
In particular, The Economist noted, “investors are pricing in a debt stock that is getting bigger, more opaque — and increasingly risky.”