Bloomberg Surveillance · Monday, July 27, 2026
Savita Subramani of Bank of America observes that while big tech companies are still generating positive returns on invested capital, these returns are diminishing. She argues that this trend makes it difficult to justify current high multiples for these companies.
“You're still in an environment where the pot where you're getting positive returns on your CAPEX if you're a big tech company, but those returns are thinning, and 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.”