Irrational Exuberance On Overdrive

The market is exhibiting extreme 'irrational exuberance,' with record margin debt, bullish sentiment, and minimal insider buying. Tech giants like Alphabet have shifted from asset-light, high free cash flow models to heavy CapEx, negative free cash flow, and large debt issuance. AI-driven capex has led to $489 billion in related debt issuance YTD, surpassing all of 2025, with GOOG raising $110 billion in recent months. Profit growth at hyperscalers is largely non-GAAP, reliant on aggressive depreciation and investment gains from unprofitable AI startups. Back in late 1996, Fed Chairman Alan Greenspan infamously quipped that the markets were experiencing ‘ Irrational Exuberance.’ In hindsight, Mr. Greenspan was proven correct by the roughly 80% drawdown in the NASDAQ during the Internet Bust. That said, he was way early in calling This article was written by Bret Jensen 58.54K Followers Follow Bret Jensen has been investing since the 1980s. He has been writing for Real Money Pro and Seeking Alpha since 2010. Bret specializes in high beta sectors with potentially large investor returns.Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary, and a portfolio update every weekend. Learn More. Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that do include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.