Squawk on the Street SOTS 2nd Hour: State of the Union Takeaways, Countering AI Disruption Fears, and LIVE: Lucid CEO 2/25/26
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Feb 25, 2026 Conversation covers alternative data pushing back on rapid AI job panic. Debate on AI's economic timeline and likely gradual adoption. Investment ideas favor cyclicals, value, housing and transportation. Market reaction to the State of the Union and possible tariff effects. Big moves in media M&A and NFL rights. Update on EV demand and Lucid’s near-term plans after quarterly results.
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Enterprise AI Adoption Is Slower Than The Tsunami Narrative
- AI adoption by enterprises is rising slowly and follows an S-curve rather than an immediate tsunami.
- Citadel and St. Louis Fed data show software-engineer job postings are up and business AI use shares are climbing gradually, not exploding.
AI Could Lower Software Multiples Even Without Immediate Revenue Hits
- Investors are questioning whether AI will change terminal multiples for software companies even if short-term business holds up.
- Carl and panel note recurring-revenue models may deserve lower multiples if AI reduces pricing power over time.
Rotate Into Cyclicals And Rate Sensitive Sectors
- Favor cyclical and rate-sensitive sectors as fundamental breadth supports market broadening.
- Michael Kantrowitz recommends value, industrials, smaller regional banks, transportation, and housing as plays on improving data.