JP Morgan Strategist on AI Jitters, Investing Outlook
TL;DR
Jordan Jackson, JPMorgan Asset Management Global Market Strategist, discusses whether earnings growth may be nearing a peak even if results are not worsening. Jackson agrees that third-quarter results are expected to be strong, with forecasts calling for about 27% to 28% year-over-year earnings growth. He speaks with Romaine Bostick & Kristine Aquino on "The Close. " (Source: Bloomberg).
Nauti's Take
Anyone justifying AI spending or investment through strong earnings growth should first test the operating demand: How many customers are actually paying, how quickly is revenue growing, and what margins remain after infrastructure costs? One quarter of strong headlines is insufficient evidence.
The key question is whether AI usage is turning into recurring cash flow.
Summary
Jordan Jackson, JPMorgan Asset Management Global Market Strategist, discusses whether earnings growth may be nearing a peak even if results are not worsening. Jackson agrees that third-quarter results are expected to be strong, with forecasts calling for about 27% to 28% year-over-year earnings growth.
He speaks with Romaine Bostick & Kristine Aquino on "The Close. " (Source: Bloomberg)
Sources