Haymaker Daily

From Cap Ex Boom To Stock Performance Bust?

Hello, Subscribers:

Coincidentally, yesterday’s Wall Street Journal ran an article on the Magnificent Seven and their forced abandonment of the capital-light model that has served them so well for at least the last 20 years. This was the key point we were making in yesterday’s Daily and we doubt most investors are appreciating the enormous implications for overall S&P 500 earnings. As we noted yesterday, this is due to the heavy depreciation which will soon be hitting the P&L of these entities. Collectively, the Mag Seven accounted for roughly a quarter of overall S&P profits in 2025.