Why Big Tech stocks should be priced more like utility companies
Published . Updated .
Barron's associate editor, Al Root, sits down with The 8:30 Hosts Julie Hyman and Jake Conley to discuss the argument that AI has caused Big Tech to morph into a business model more closely resembling utility companies, and that perhaps investors should price the sector
Directly affected
- No company is named in this report.
Indirectly affected
- QQQ Invesco QQQ-2.6% 30d
Invesco QQQ: it holds the big tech and AI names. Linked by “big tech” (AI and big tech) in this story.
- AIQ Global X Artificial Intelligence & Technology ETF-0.9% 19d
Global X Artificial Intelligence & Technology ETF: it holds the big tech and AI names. Linked by “big tech” (AI and big tech) in this story.
- XLU Utilities Select Sector SPDR+1.8% 30d
Utilities Select Sector SPDR: it holds power utilities. Linked by “utility” (power and utilities) in this story.
- MSFT Microsoft+4.0% 30d
Microsoft (prepackaged software): big tech's AI spending and demand drive its shares. Linked by “big tech” (AI and big tech) in this story.
- GOOGL Alphabet-21.2% 30d
Alphabet (computer programming, data processing, etc.): big tech's AI spending and demand drive its shares. Linked by “big tech” (AI and big tech) in this story.
- AMZN Amazon.com-7.0% 30d
Amazon.com (catalog and mail-order houses): big tech's AI spending and demand drive its shares. Linked by “big tech” (AI and big tech) in this story.
- META Meta Platforms-17.0% 30d
Meta Platforms (computer programming, data processing, etc.): big tech's AI spending and demand drive its shares. Linked by “big tech” (AI and big tech) in this story.
- NEE NextEra Energy+2.6% 30d
NextEra Energy (electric services): power demand and prices drive utility earnings. Linked by “utility” (power and utilities) in this story.
Price reaction, T-5 to T+3
| Ticker | T-5 | T-3 | T-1 | T0 | T+1 | T+2 | T+3 |
|---|---|---|---|---|---|---|---|
| QQQ | +3.12% | +5.08% | base | +1.18% | after close | after close | after close |
| AIQNo price data for this ticker | — | — | — | — | — | — | — |
| XLU | -2.04% | -2.19% | base | -0.05% | after close | after close | after close |
| MSFT | +2.03% | +1.97% | base | +1.21% | after close | after close | after close |
| GOOGL | +13.19% | +16.25% | base | +2.08% | after close | after close | after close |
| AMZN | +3.66% | +5.97% | base | +4.88% | after close | after close | after close |
| META | +2.53% | -0.36% | base | +0.66% | after close | after close | after close |
| NEE | -2.07% | -3.22% | base | +0.11% | after close | after close | after close |
Closing-price change versus T-1, the last close before the story. T0 to T+3 fill in after each market close. Prices: Alpaca IEX.
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Why Big Tech stocks should be priced more like utility companies Yahoo Finance
Source: Yahoo Finance
Price since this story was published: Select Sector Spdr Tr (XLU)
| Company | When | Move | Status |
|---|---|---|---|
| Amazon Com (AMZN) | that day | +4.88% | still updating |
| Amazon Com (AMZN) | three days earlier | +5.97% | final price |
| Amazon Com (AMZN) | five days earlier | +3.66% | final price |
| Alphabet (GOOGL) | that day | +2.08% | still updating |
| Alphabet (GOOGL) | three days earlier | +16.25% | final price |
| Alphabet (GOOGL) | five days earlier | +13.19% | final price |
| Meta Platforms (META) | that day | +0.66% | still updating |
| Meta Platforms (META) | three days earlier | -0.36% | final price |
| Meta Platforms (META) | five days earlier | +2.53% | final price |
| Microsoft (MSFT) | that day | +1.21% | still updating |
| Microsoft (MSFT) | three days earlier | +1.97% | final price |
| Microsoft (MSFT) | five days earlier | +2.03% | final price |
| Nextera Energy (NEE) | that day | +0.11% | still updating |
| Nextera Energy (NEE) | three days earlier | -3.22% | final price |
| Nextera Energy (NEE) | five days earlier | -2.07% | final price |
| Invesco Qqq Trust, Series 1 (QQQ) | that day | +1.18% | still updating |
| Invesco Qqq Trust, Series 1 (QQQ) | three days earlier | +5.08% | final price |
| Invesco Qqq Trust, Series 1 (QQQ) | five days earlier | +3.12% | final price |
| Select Sector Spdr Tr (XLU) | that day | -0.05% | still updating |
| Select Sector Spdr Tr (XLU) | three days earlier | -2.19% | final price |
| Select Sector Spdr Tr (XLU) | five days earlier | -2.04% | final price |
Congressional trades in the stocks in this story
- Rep. Pete Sessions sold Microsoft (MSFT) (held by a spouse), worth $250,001 - $500,000 on 2 Oct 2026. That is 31 days before publication. Filed 27 Oct 2026. View the filing.
- Rep. Lisa McClain bought Microsoft (MSFT) (held by a spouse), worth $1,001 - $15,000 on 30 Sep 2026. That is 33 days before publication. Filed 12 Oct 2026. View the filing.
- Rep. Michael Rulli sold Microsoft (MSFT), worth $1,001 - $15,000 on 28 Sep 2026. That is 35 days before publication. Filed 2 Oct 2026. View the filing.
- Rep. Pete Sessions sold Alphabet (GOOGL), worth $15,001 - $50,000 on 14 Sep 2026. That is 49 days before publication. Filed 18 Sep 2026. View the filing.
- Rep. Rohit Khanna sold Alphabet (GOOGL) (held by a spouse), worth $1,001 - $15,000 on 4 Sep 2026. That is 59 days before publication. Filed 7 Oct 2026. View the filing.
- Rep. Thomas H. Kean Jr sold Alphabet (GOOGL), worth $1,001 - $15,000 on 27 Aug 2026. That is 67 days before publication. Filed 12 Sep 2026. View the filing.
- Rep. Pete Sessions sold Amazon Com (AMZN), worth $15,001 - $50,000 on 27 Oct 2026. That is 6 days before publication. Filed 27 Oct 2026. View the filing.
- Rep. Pete Sessions sold Amazon Com (AMZN) (held by a spouse), worth $100,001 - $250,000 on 2 Oct 2026. That is 31 days before publication. Filed 27 Oct 2026. View the filing.
- Rep. Michael T. McCaul sold Amazon Com (AMZN) (held by a spouse), worth $1,001 - $15,000 on 28 Aug 2026. That is 66 days before publication. Filed 14 Oct 2026. View the filing.
- Rep. Maria Elvira Salazar sold Meta Platforms (META), worth $1,001 - $15,000 on 24 Sep 2026. That is 39 days before publication. Filed 7 Oct 2026. View the filing.
- Rep. Rohit Khanna bought Meta Platforms (META) (held by a dependent child), worth $1,001 - $15,000 on 23 Sep 2026. That is 40 days before publication. Filed 7 Oct 2026. View the filing.
- Rep. Maria Elvira Salazar bought Meta Platforms (META), worth $1,001 - $15,000 on 22 Sep 2026. That is 41 days before publication. Filed 7 Oct 2026. View the filing.
Public disclosure filings, not a recommendation. The filing link is the source document. News use of these reports still sits under 5 U.S.C. § 13107(c).
Who gains and who loses around Select Sector Spdr Tr (XLU)
Companies mentioned with this story
- XLU Select Sector Spdr Tr
In “Why Big Tech stocks should be priced more like utility companies,” Select Sector Spdr Tr (XLU) is linked, with no stored direction, medium confidence. Reason on file: Utilities Select Sector SPDR: it holds power utilities. Linked by “utility” (power and utilities) in this story
- QQQ Invesco Qqq Trust, Series 1
For “Why Big Tech stocks should be priced more like utility companies,” Invesco Qqq Trust, Series 1 (QQQ) is linked, with no stored direction, medium confidence. Reason on file: Invesco QQQ: it holds the big tech and AI names. Linked by “big tech” (AI and big tech) in this story
- MSFT Microsoft
In “Why Big Tech stocks should be priced more like utility companies,” Microsoft (MSFT) is linked, with no stored direction, medium confidence. Reason on file: Microsoft (prepackaged software): big tech's AI spending and demand drive its shares. Linked by “big tech” (AI and big tech) in this story
- NEE Nextera Energy
Nextera Energy (NEE) is linked, with no stored direction, medium confidence in the 2 Nov 2026 story “Why Big Tech stocks should be priced more like utility companies.” Reason on file: NextEra Energy (electric services): power demand and prices drive utility earnings. Linked by “utility” (power and utilities) in this story
- GOOGL Alphabet
Alphabet (GOOGL) is linked, with no stored direction, medium confidence in the 2 Nov 2026 story “Why Big Tech stocks should be priced more like utility companies.” Reason on file: Alphabet (computer programming, data processing, etc.): big tech's AI spending and demand drive its shares. Linked by “big tech” (AI and big tech) in this story
- AMZN Amazon Com
For “Why Big Tech stocks should be priced more like utility companies,” Amazon Com (AMZN) is linked, with no stored direction, medium confidence. Reason on file: Amazon.com (catalog and mail-order houses): big tech's AI spending and demand drive its shares. Linked by “big tech” (AI and big tech) in this story
- DUK Duke Energy
Duke Energy (DUK) is linked, with no stored direction, medium confidence in the 2 Nov 2026 story “Why Big Tech stocks should be priced more like utility companies.” Reason on file: Duke Energy (electric and other services combined): power demand and prices drive utility earnings. Linked by “utility” (power and utilities) in this story
- META Meta Platforms
For “Why Big Tech stocks should be priced more like utility companies,” Meta Platforms (META) is linked, with no stored direction, medium confidence. Reason on file: Meta Platforms (computer programming, data processing, etc.): big tech's AI spending and demand drive its shares. Linked by “big tech” (AI and big tech) in this story
Select Sector Spdr Tr (XLU)
On 2 Nov 2026, “Why Big Tech stocks should be priced more like utility companies” is the story that connects Select Sector Spdr Tr (XLU) to this story.
Select Sector Spdr Tr (XLU) is on the page because Utilities Select Sector SPDR: it holds power utilities. Linked by “utility” (power and utilities) in this story
Invesco Qqq Trust, Series 1 (QQQ) is here too. Its reason reads: Invesco QQQ: it holds the big tech and AI names. Linked by “big tech” (AI and big tech) in this story
Dates in the story, and the Select Sector Spdr Tr (XLU) price range
MSFT traded between 514.54 and 551.08 across 20 sessions. The latest close on file is 521.97. QQQ traded between 683.47 and 762.84 across 20 sessions. The latest close on file is 690.51. XLU traded between 39.05 and 42.88 across 20 sessions. The latest close on file is 42.56.
A simple score for Select Sector Spdr Tr (XLU)
46 out of 100Price not final
“Why Big Tech stocks should be priced more like utility companies” scores 46 out of 100. The score uses 1 sources, and 8 linked companies. The price is not final yet.