AI Trade "Run Its Course?" David Trainer's Tech Concerns & SPCX Post-IPO Outlook

The article is a market commentary focused on whether the AI-led tech rally has run its course. David Trainer argues the recent selloff is a healthy reset after valuations became stretched and bad news was repeatedly ignored. He highlights rising off-balance-sheet debt, heavy AI-related spending, and concerns that companies like Meta and SpaceX are using creative financing to sustain aggressive capex. Trainer says the market is now revealing cracks beneath the surface and that the biggest risk is investors underestimating those hidden liabilities. He is bearish on expensive AI/mega-cap names and says their implied future profits are unrealistic. In contrast, he points to lower-profile opportunities such as Crocs, which he says looks cheap relative to its actual profit growth, and generally advocates shifting away from crowded AI winners into overlooked, profitable stocks.