Why The AI Stock Boom Doesn't Make Sense...Yet

Apple's valuation offends me

Cory, then one issue I have with your perspective is I didn’t hear much mention of how AI could generate new revenue stream for these companies. Jospeh Carlson put out a video on Amazon’s AI initiatives which changed my perspective on AI somewhat. An example is that Amazon has essentially advanced their customer service chat bot using AI to the point where it’s now a competitive product they can sell to help lower other companies companies costs associated with customer service. Because these companies are so large, and they have the means to develop the technology, they essentially have their own moats as AI product producers. So as opposed to competing for market share, they are also expanding by their revenue centers. Regardless, SPY and the general market scare the crap out of me with these vacations, but I do now see the potential of the tech to serve as profit sources and revenue streams for the MAG 7

Cory, right on queue, David Rosenberg wrote up his bear capitulation on linkedin. Worth a read. The guy has been bear'ish all year and now admitting he underestimated the effects of AI on the fundamentals of the economy :))

My retirement accounts are 70-80% SPY equivalents while my non-taxable are CIC picks. I can sleep well at night knowing that I'll be positioned well if there's a real AI revolution. I truly fear what it will look like if drivers and truckers aren't needed, large populations of customer service positions are no longer needed, etc. I don't think AI will result in sufficient derivative careers to curb the civil unrest that will follow the disappearance of tens of millions of jobs.

You got Netflix :O It's stock price is like double of its value.

It's mathematically impossible for the equal weighted index to rise as much as the market cap weighted index (except for short periods). The market cap weighted index gives more weight to the most successful stocks, therefore that index has to rise more than the equal weight index, which is less affected by the most successful stocks.

Market may crash before going even higher. But hypescalars are chasing AGI. Advertising and searching is nothing compared to what AGI going to bring. Think about a future which Microsoft agentic AIs replace say, 10% of global white color jobs and charge 25k per agent. And think about all the other companies building AI agents doing the same and grabbing pieces of the pie. And then, think about who's hosting foundational models in data centers for all those AI work loads for entire world.

On the left panel on Finviz, you can dropdown select year-to-date performance, that looks better for relatively longer term analysis.

1 minute in and you call it chatgtp

PE 30.59 $SPY

Are you going to the Big 12 championship football game on Saturday?