AI Bubble: Apollo Economist Warns of Worsening Market Damage

Apollo Global Management's chief economist warns that AI stocks are overvalued and risk causing a market crash worse than the 1999 dot-com bubble. He compares the 12-month forward P/E ratios of the S&P's top 10 companies to the rest of the index and the S&P 500 as a whole, finding that today's bubble is even bigger than the one that ended the dot-com era. Despite some of these companies being profitable, Sløk argues that the fundamentals don't justify the multiples.