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Big Tech, Profits, Sell-Offs: What is Next? & Lifestyle Hotel Demand Soars
Many big tech companies reported record earnings in Q3. While this has been a massive year for AI-related companies, many investors are concerned about whether this meteoric rise is sustainable. Big tech values seem overinflated. A correction is expected soon, and a selloff has begun. What does this mean?
Despite record profits for big tech companies, investors are impatient. The market is no longer cheering companies that spend endlessly on AI in search of future gains; it’s favouring those proving they can harness AI profitably and efficiently right now. While building infrastructure is essential for the future of tech, investors are growing weary and want to see profits over spending.
In addition, when companies make big profits, it is normal for shareholders to sell off some shares to take profits.
Nigel Green, CEO, deVere, mentions that “the innovation is genuine, but the profitability still has to prove itself. Markets are now asking for evidence rather than expectation. This latest sell-off reflects a growing recognition that the powerful rally led by a handful of mega-cap names had become increasingly fragile. When such a small group of companies carries so much market weight, any loss of confidence in them can trigger outsized reactions. What we’re witnessing is not panic, but price discovery after months of excessive momentum.”
“Markets are rebalancing after a period of euphoria,” he says. “Those who remain invested intelligently will find that this is when real value starts to emerge. The key is not to retreat from innovation but to focus on companies demonstrating tangible productivity gains.”
There are sectors where AI and tech are likely to deliver measurable results, like energy efficiency, logistics, and healthcare.
Are we looking at a new tech bubble?
Historically, every major technological era — the internet, mobile computing, renewable energy — has experienced corrections that reset expectations, and each time, the strongest players emerge more profitable and more credible.
No doubt, AI and tech remain the defining forces of this decade, but valuations must align with profits. This correction is the start of that alignment.
This is a lesson for investors to remain diversified and avoid top-heavy portfolios in specific sectors, despite massive profits. Accelerated growth also brings major selloffs and dips in the market.
It is easy for investors to climb on the major players’ bandwagon, but it does have the potential to inflate share prices. It is essential to keep a portfolio diversified across multiple asset classes, sectors and regions to protect against overvaluation and corrections that could cause market volatility. Investors should stay engaged, stay selective, and focus on where the promise of technology meets proof of performance.
Travellers are becoming more discerning about where they stay while on vacation. The demand for lifestyle hotels is on the rise. In 2025 alone, 25% of new hotel rooms in Europe were in lifestyle hotels and 16% in the US and Asia.
Travellers want hotels that reflect their interests, whether it be arts, music, fashion or work, and they prefer to mingle with other like-minded guests. They want a unique, exclusive environment as opposed to the standard, generic hotel experience of traditional hotels. Lifestyle rooms in new hotels have almost doubled since 2000.
Asia-Pacific has seen the biggest expansion into lifestyle hotels, where lifestyle room supply has almost quadrupled over the last 10 years, and is set to grow by another 34% by 2027.
China tops the region’s lifestyle hotel supply.
This lifestyle experience is popular amongst younger tourists more than their older counterparts. This niche market caters to affluent, culturally proud travellers. These smaller boutique-style hotels are cheaper and easier to build, but can charge around 10-11% more per room and draw a whopping 30% higher revenue on food and beverage.
While catering mostly to affluent travellers in the past, there has been a greater demand from mid-income travellers for 3 and 4-star lifestyle hotels.
This lifestyle trend is predicted to soar over the next few years and could be a new emerging sector for investors.
Please note, the above is for educational purposes only and does not constitute advice. You should always contact your adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.