Bloomberg Surveillance · Wednesday, August 5, 2026
Alicia Levine states that the current market rally is driven by AI investment and strong earnings from hyper-scalers, not by recession fears. She explains that the market has answered questions about revenue growth in cloud businesses and the return on AI capital expenditures, allowing the broader market to rally.
“So I think that's the most important theme in the market. And that, of course was the clearing was the earnings that we had from some of the hyper scalers, you know, even where the market was disappointed in some of the others, the revenue was going much higher on the cloud business.”
“And the answer is, actually, the business model is working, even if free cash flow is going negative in the short term, even if they have to sell debt to fund it, they're reaccelerating the core business, which is cloud and so it's working.”
“And once you answer that question, you're off to the race. It's the whole complex can rally.”