Bloomberg Surveillance · Friday, July 24, 2026
Jim Caron of Morgan Stanley Investment Management suggests that the current slowdown in tech earnings is not necessarily a spending or capex problem, but rather a readjustment in market prices. He notes that while earnings have been strong, they are not exceeding expectations as much as desired, and markets are anticipating slower future earnings growth.
“I think it's a readjustment in prices, honestly. I mean, you know, look, there's been a lot of expectations for many of these companies.”
“It's just that they're not beating expectations in the way that maybe you know, people want.”
“And look, the earnings run so far for the first half of this year have been very strong. Of course, the markets are forward looking. They're looking into the next six months, into the next twelve months, and what they're saying is that the pace of earnings is just not going to be what it was because effectively this run rate of very you know, accelerated earnings is really unsustainable.”