I don't think companies like Meta, Alphabet or even Amazon are extremely overvalued. Their growth in revenues and earnings is still very solid, so even if A.I is a no show their earnings should continue to do fine (I'd even add Microsoft to the list).
Sure stock price might slow down significanty but it can easily add 10% yearly for the forseeable future. Its much less than what we're used to, but its solid growth that has not much to do with A.I.
And I totally agree people should forget about the s&p 500 returns we've seen in the last 15 years going forward, it would probably be less (though I have no crystal ball, but regression to the mean seems likely).
Actually, all stocks are dead and tech heavy Nasdaq has entered the correction zone this year. It will be a real while before the stocks return to their pre-correction value. The AI hype drivers have lost massive value, hence the desperation will get immense, expect the “AI ready to replace expensive SWE/Lawyer/Entertainers/Creatives” narrative to start any moment now! Of course everything is smoke&mirrors so those will be charged at such premium that the naysayers will not be able to afford it and irrational leaders will buy it and cite immense success to maximise their C level bonuses and will early retire before the tower comes falling down.
Correction is one thing but saying "stocks are dead" is hyperbole.
Just my poor ass startup is paying Google Cloud around 1 million USD a year to have our operations going. We're quite a cheap company but we're totally dependent on them.
And Cloud is a minor part of Google's earnings they have Youtube, Search, Android etc etc. This isn't a bubble, these are real earnings that are probably not going away any time soon. Does it mean Google is bullet proof? No. They may experience a big correction at some point but that has always been the case for all companies.
I can make the same case for Meta, Microsoft, to lesser extent Amazon. I'll leave Tesla aside it's indeed too richly valued.
And I totally agree people should forget about the s&p 500 returns we've seen in the last 15 years going forward, it would probably be less (though I have no crystal ball, but regression to the mean seems likely).