Month: May 2023

Public Company CEOs Should Not Feed the AI Hype

Public Company CEOs Should Not Feed the AI Hype

One lesson I've learned over the past 28 years in the Capital Markets is that companies should not feed into hype in order to bolster their Enterprise Value. Rather than feed into hype, CEOs and management teams ought to focus on driving the business and educating investors. The average institutional investor does not understand the … Continue reading Public Company CEOs Should Not Feed the AI Hype

We Expect Less M&A Deal Activity in 2H 2023

We Expect Less M&A Deal Activity in 2H 2023

Our view is that M&A activity will further slow from here (especially within Tech), given that valuations have rebounded to a large degree year-to-date (Tech in particular), but sales pipelines are not any more robust than they were in Q4'22 nor Q1'23. Further, the macro economic environment is not any stronger today than it has … Continue reading We Expect Less M&A Deal Activity in 2H 2023

AI Failure: Many Companies Will Fail To Scale Their AI Projects

AI Failure: Many Companies Will Fail To Scale Their AI Projects

Many companies will fail in their implementation of various AI projects. Many companies underestimate the cost and effort associated with advanced automation / "AI" projects. In addition, companies often fail to clearly define the business problem they wish AI to solve upfront in their AI project process. 1.) Define the Business Problem: This is not … Continue reading AI Failure: Many Companies Will Fail To Scale Their AI Projects

Generative AI’s Secret Sauce: Data

Generative AI’s Secret Sauce: Data

Think of Generative AI as an Advanced Automation tool that may be deployed widely across the Enterprise. The only limitations are the underlying data sets used to train the AI models and human imagination. If used optimally, Generative AI could help companies gain insights that could strengthen existing competitive advantages and identify new ones. Where … Continue reading Generative AI’s Secret Sauce: Data

Alteryx (AYX): Lots of Operating Leverage Should the Company Choose To Unlock It

Alteryx (AYX): Lots of Operating Leverage Should the Company Choose To Unlock It

Alteryx would do well for itself to significantly reduce OpEx as a percentage of revenue. Sales & Marketing was 64% of March Q revenue, which is far too high. Given March Q revenue of $199 million, there is no reason why Sales & Marketing could not be in the 25-30% of revenue range. If Sales … Continue reading Alteryx (AYX): Lots of Operating Leverage Should the Company Choose To Unlock It

META’s Ad Problem

META’s Ad Problem

META's value proposition to Ad Buyers was permanently impaired by Apple’s implementation of permission-based Ad tracking which has negatively impacted META's price per ad metric for almost two years (see chart and table below). Further adding to META's Ad woes, Google will phase out third-party cookies next year and replace them with its Privacy Sandbox. … Continue reading META’s Ad Problem

All Things AI

All Things AI

We have over 100 AI-related articles. Here are our top AI-focused articles. They cover all elements of AI including many companies that play in different corners of AI. Reach out to us with any questions at jmaietta@tek2day.com AI Is Nothing New, Yet We Are Only Scratching The Surface Build Your Own NLP Front-End AI-Powered Convenience … Continue reading All Things AI

The Fed’s Balance Sheet Reduction (QT) Update <span class="badge-status" style="background:red">Premium</span> 

The Fed’s Balance Sheet Reduction (QT) Update Premium 

The Fed's Treasury holdings were unchanged the week-ended May 24th 2023. Minimum QT activity combined with a substantial back door QE program via the BTFP equals QE on a net basis. Treasuries: The Fed’s Treasury security holdings were unchanged for the week-ended May 24th and decreased by $72.3 billion on a rolling 4-week basis. Agencies: The Fed’s … Continue reading The Fed’s Balance Sheet Reduction (QT) Update Premium