Microsoft And Amazon Aren't Cheap: Analyst Says Earnings 'Mirage' Driven By OpenAI, Anthropic Dominating 50% Of Cloud Backlog

Big Tech valuations are coming under scrutiny as a commentator argues hyperscalers' earnings may be artificially boosted by circular cloud contracts tied to OpenAI and Anthropic. The piece raises concerns about earnings quality and valuation support rather than reporting a new financial result. Market impact is likely limited in the near term, but the commentary may weigh on sentiment toward AI-linked cloud names.

Analysis

Big Tech valuations are coming under scrutiny as a commentator argues hyperscalers' earnings may be artificially boosted by circular cloud contracts tied to OpenAI and Anthropic. The piece raises concerns about earnings quality and valuation support rather than reporting a new financial result. Market impact is likely limited in the near term, but the commentary may weigh on sentiment toward AI-linked cloud names.