Thoughtful Money with Adam Taggart · Thursday, July 16, 2026
Fred Heckey, a tech strategist, expressed concerns about the current valuations of AI companies, suggesting that market expectations may have outpaced the true value. He argues that when accounting for future depreciation costs on data center investments, the adjusted price-to-earnings ratios for hyperscalers are significantly higher than commonly perceived.
“But Fred is saying, no, no, no. If you really do the math, the multiple of earnings that are, you know, dramatically overvalued here.”
“But Fred is saying, no, no, no. If you really do the math, the multiple of earnings is just as crazy as the multiple of sales.”
“And, you know, what I mean by that is, you know, back in the internet build out, right? Where we built all this fiber that eventually became dark fiber because it wasn't getting used.”