Appearing on Bloomberg television, the Seaport Global Holdings analyst assured investors that the technology sector is thriving, citing a widespread corporate initiative to stop paying human beings and hand the cash directly to Nvidia.
Appearing on "Bloomberg The Close," Seaport Global Holdings strategist Jonathan Golub assured investors that the technology sector is experiencing unprecedented financial health. Golub noted that earnings are "absolutely on fire" across the industry, a phenomenon largely driven by the corporate discovery that a balance sheet looks fantastic the morning after a company terminates 10,000 employees.
"When you look at the major players—Alphabet, Microsoft, Amazon—they have successfully transitioned from a model of building consumer products to a highly lucrative model of eliminating entire divisions to buy graphics cards," Golub told Bloomberg anchors. He noted that valuations are lower almost everywhere, a metric achieved by dividing the companies' massive stock prices by the billions they recently saved in payroll, severance, and office snacks.
We are seeing an incredibly healthy market environment right now, primarily because these firms realized they do not actually need to invent anything new if they just fire the people who were supposed to invent it.
Golub emphasized that the ongoing strategy of trading human capital for raw computing power has made the sector a screaming buy. He pointed out that while these companies may no longer have the staff required to maintain their core software infrastructure, they now possess enough data center capacity to lay off their own HR departments using automated emails generated by artificial intelligence.
Investors responded positively to Golub's analysis, pushing the Nasdaq up another 1.5% in late afternoon trading following unconfirmed reports that Meta was preparing to lay off its remaining cafeteria staff to fund a liquid cooling system.