Bloomberg Surveillance · Monday, July 27, 2026
Savita Subramani of Bank of America believes that while underlying earnings growth in tech remains strong, good results are no longer enough to significantly impact stock prices. She notes that companies are now being penalized for earnings and revenue misses, a shift from previous trends.
“The good news for tech seems to be priced in. The companies are no longer rallying and outperforming on beats on earnings and revenues. In fact, they've sold off on earnings and revenues.”
“I think right now we're in an air pocket. And we've been talking about this all year.”
“the idea that we're going to pay such a high multiple for mega cap tech today is hard to sell if your returns on invested capital are actually starting to get depressed.”