All things STOCKS

[DinkinFlicka]

Sell off on power hour into the long weekend.

Anyone notice that high volume, premium names had some 0dte options this week?

 

[05_never_again]

The story that the market has been telling about AI in general over the last several weeks is strange and contradictory to me. Seems like it will be made consistent one way or the other at some point.

For the last several weeks, the names supposed to benefit from AI have been flat to down. The names supposed to be disrupted from AI have been getting annihilated (software, etc.). You have people on X and other places talking about how it is going to completely disrupt every industry, make millions of jobs unnecessary, etc., while simultaneously saying that the capex spend is a big waste of money. How can it be both of those things?

 

[Thunder Good-Oil]

The story that the market has been telling about AI in general over the last several weeks is strange and contradictory to me. Seems like it will be made consistent one way or the other at some point.

For the last several weeks, the names supposed to benefit from AI have been flat to down. The names supposed to be disrupted from AI have been getting annihilated (software, etc.). You have people on X and other places talking about how it is going to completely disrupt every industry, make millions of jobs unnecessary, etc., while simultaneously saying that the capex spend is a big waste of money. How can it be both of those things?

AI is an interesting dynamic. And it will affect different industries profusely. The spending is real - I’d say the chip makers are already fairly valued BUT they still have enormous backlogs of revenue. It’s kind of at an inflection point. Primed to be very profitable with a robust economy but with a drag on the economy those companies will get hit harder than the slow and steady old school industries as CapEx spending would suffer.

I’m worried about a software recovery not coming through, but maybe they can manage to partner up with or integrate with the AI companies. The part of AI that is simply high end search is too dependent on regurgitating Reddit and Wikipedia types of sources for information. Google and Facebook are the companies to watch to see how that area developes. Will AI ruin the targeted advertising business? How disruptive will AI be for those 2 with their large collection of date on users?

It seems to me like healthcare, defense, autonomous vehicles, and possibly finance will benefit from being cutting edge users of AI. The code writers might want to learn how to mine again.