indigo: Hyperscaler capex mismatch may hide opportunities

indigo points out that the market gives companies with 5% growth a 29.6x valuation, yet gives companies with 21% growth only 20.7x. The difference stems from Hyperscalers investing 49.8% of revenue into Capex, while retailers such as Costco and Walmart invest only 4.6%. He believes that, looking back at history, this kind of mismatch has often been an opportunity.