Meta Faces $1 Billion Bet Complements Cisco's $61 Billion Forecast

The artificial intelligence sector is experiencing a significant surge, driving substantial growth and investment across various technology companies, though not without warnings of a potential market bubble. Cisco Systems, for instance, reports robust demand for its AI infrastructure, leading the company to raise its sales forecast for the fiscal year ending in July to an impressive $61 billion, an increase of about $1 billion over previous estimates. Orders for AI infrastructure from large cloud providers alone reached $1.3 billion in fiscal Q1 2026, highlighting the rapid adoption of AI technologies. Meanwhile, AppLovin, an adtech firm, recently joined the S&P 500 index, largely propelled by the success of its AI-powered Axon 2.0 software, which boasts higher profit margins and is expanding the company's reach beyond gaming. Italian tech company Bending Spoons, valued at $11 billion in October, is preparing for a potential public listing, possibly in the United States, as early as next year. Its CEO, Luca Ferrari, anticipates adjusted earnings to double to $1.4 billion in 2026, partly due to strategic acquisitions like Vimeo and AOL. Vimeo itself has seen its share price nearly double, reaching $7.85, thanks to its new AI video tools, including an "ask the library" feature that integrates with popular AI assistants like ChatGPT, before Bending Spoons moved to acquire it for $1.38 billion. Further demonstrating AI's broad impact, Milan-based CommerceClarity secured 2.7 million in funding to expand its AI-driven e-commerce platform globally. This platform automates product data management, helping clients like Nestlé Purina cut operational costs by up to 90 percent and boost sales by up to 30 percent. Additionally, CuriosityStream is capitalizing on the growing demand for AI training data by licensing its extensive, copyright-cleared video library, creating new high-profit revenue streams. However, the rapid expansion of AI also prompts caution. Bending Spoons CEO Luca Ferrari has warned of a possible "AI bubble," drawing parallels to the dot-com crash. This sentiment is echoed by "Big Short" investor Michael Burry, who is betting $1 billion against the AI boom. Burry suggests that major tech companies, including Meta and Oracle, could understate depreciation by an estimated $176 billion between 2026 and 2028, potentially inflating their reported profits by nearly 27 percent through accounting changes.

Key Takeaways

• Cisco Systems raised its fiscal year sales forecast to $61 billion, driven by strong demand for AI infrastructure, with hyperscaler orders reaching $1.3 billion in Q1 2026.
• AppLovin joined the S&P 500 index in September 2025, largely due to the success and higher profit margins of its AI-powered Axon 2.0 software.
• Italian tech firm Bending Spoons, valued at $11 billion, is preparing for a potential IPO and expects adjusted earnings to reach $1.4 billion in 2026.
• Bending Spoons acquired Vimeo for $1.38 billion, following Vimeo's stock surge driven by new AI video tools, including integration with ChatGPT.
• Bending Spoons CEO Luca Ferrari warned of a potential "AI bubble," comparing current market conditions to the dot-com crash.
• "Big Short" investor Michael Burry is betting $1 billion against the AI boom, alleging that companies like Meta and Oracle may understate depreciation by $176 billion from 2026-2028.
• CommerceClarity secured 2.7 million in funding to expand its AI-driven e-commerce platform, which helps clients cut operational costs by up to 90% and boost sales by up to 30%.
• CuriosityStream is generating high-profit revenue by licensing its extensive video library for training artificial intelligence models.

Cisco Stock Jumps on Strong AI Demand and Positive Forecast

Cisco's stock rose sharply in premarket trading on Tuesday. The company shared a positive financial outlook that was better than what Wall Street expected. This growth comes from strong demand for its products, especially as companies invest heavily in artificial intelligence. Cisco also raised its earnings and revenue growth predictions for the full fiscal year. CEO Chuck Robbins noted the need for secure networking as customers quickly use AI.

Cisco CEO Links Strong Sales Forecast to AI Demand

Cisco Systems CEO Chuck Robbins stated on November 13, 2025, that strong demand for artificial intelligence is driving the company's positive financial forecast. Cisco now expects sales to reach up to $61 billion for the fiscal year ending in July. This new sales prediction is about $1 billion higher than previous estimates and also above what Wall Street analysts predicted. Robbins discussed this outlook on Bloomberg Tech.

AppLovin Joins S&P 500 Driven by AI Software Growth

AppLovin, an adtech company, joined the S&P 500 index in September 2025, thanks to its successful Axon 2.0 software. This AI-powered software has higher profit margins and helped the company's market value grow significantly. AppLovin is expanding beyond its gaming roots into new areas like e-commerce and connected TV. While joining the S&P 500 often gives a short-term stock boost, long-term performance depends more on continued revenue and profit growth. Co-founder and CEO Adam Foroughi noted that self-serve customers are rapidly increasing their spending.

Bending Spoons Prepares for IPO and Cautions on AI Bubble

Italian tech company Bending Spoons is preparing for a potential public listing as early as next year, likely in the United States. CEO Luca Ferrari expects the company's adjusted earnings to double to $1.4 billion in 2026, partly due to recent acquisitions of Vimeo and AOL. Ferrari also warned about a possible "AI bubble," comparing it to the dot-com crash of the early 2000s, and urged the EU to reduce regulations for startups. Bending Spoons, valued at $11 billion in October, grows by acquiring and improving digital firms with AI technology.

CommerceClarity Raises 2.7M for AI E-commerce Growth

Milan-based CommerceClarity secured 2.7 million in funding on November 13, 2025, to expand its AI-driven e-commerce platform globally. The investment round was led by IFF and Entourage, with other firms also participating. Founded in 2024, CommerceClarity offers an AI operating system that automates product data management for online stores. This technology helps clients like Nestlé Purina and Arcaplanet cut operational costs by up to 90 percent and boost sales by up to 30 percent. The company currently has offices in Milan, Rome, and London and plans further market expansion.

Vimeo Stock Soars with New AI Video Tools

Vimeo's share price has nearly doubled, reaching $7.85, thanks to its new AI-powered video infrastructure. CEO Philip Moyer, who joined in April 2024 when the stock was under $4, has led this transformation. The company is now set to be acquired by Italian tech firm Bending Spoons for $1.38 billion. Vimeo's new "ask the library" feature uses AI to let creators search and understand their video content using simple language, making it easier to find specific moments or details. This technology also works with popular AI assistants like ChatGPT, giving creators more control over their content.

Cisco Sees Big Jump in AI Orders from Cloud Giants

Cisco's orders for AI infrastructure from large cloud providers, known as hyperscalers, have significantly increased. In fiscal Q1 2026, these orders reached $1.3 billion, up from $800 million in the previous quarter. The company also reported strong financial results, with earnings per share of $1.00 and sales of $14.9 billion, both exceeding analyst expectations. Cisco raised its sales forecast for fiscal year 2026 to between $60.2 billion and $61.0 billion. Despite this growth, Cisco's stock performance has lagged some rivals since the rise of AI.

Big Short Investor Warns of Hidden AI Bubble Accounting

Michael Burry, the famous "Big Short" investor, is betting $1 billion against the artificial intelligence boom and has warned of an AI-tech bubble. He recently closed his hedge fund, Scion Asset Management, and shared his concerns on X. Burry estimates that major tech companies like Meta and Oracle will understate depreciation by $176 billion from 2026 to 2028. This accounting change could inflate their reported profits by nearly 27 percent. Jim Morrow, an investment expert, supports Burry's view, noting that companies have changed how they account for equipment wearing out to make their earnings look better.

CuriosityStream Set to Lead AI Video Training Market

CuriosityStream is increasingly licensing its extensive video library for training artificial intelligence models, creating new high-profit revenue streams. The company's large collection of high-quality, copyright-cleared videos positions it as a leader in the growing AI training data market. CuriosityStream expects to break even in 2025, but investing in its shares still carries high risks due to potential market ups and downs and competition. Analysts believe the stock could double as AI-driven licensing revenue continues to grow.

Sources

• Cisco Shares Surge After AI-Fueled Outlook Exceeds Estimates
• Cisco CEO Robbins Says AI Demand Behind Strong Forecast
• AppLovin Just Joined the S&P 500. Here's What History Suggests the Artificial Intelligence (AI) Stock Will Do Next.
• Italy’s Bending Spoons ready for IPO, warns of AI bubble
• Italy’s CommerceClarity raises €2.7M
• Vimeo has nearly doubled its share price — thanks to AI that...
• Cisco’s AI orders from hyperscalers accelerate
• The 'Big Short' investor betting $1 billion against the AI bubble says Meta and Oracle's accounting is hiding the brutal truth
• CuriosityStream Poised To Capture AI Video Training Data Licensing Market (NASDAQ:CURI)