When will investors tire of AI? When will they stop buying into the AI hype? Do they have an expectation as to when AI is supposed to accelerate Revenue and EPS growth? (Note: this is a premium article for $99.99 and includes 6 short ideas and 1 long idea related to the AI theme). As … Continue reading When Will Investors Tire of AI? 6 Short Ideas. 1 Long.Premium
We have written about the Cybersecurity space off and on since 2017 and the one constant over that period is that corporations (and many individuals), do not give cybersecurity enough thought. For example, I do like the fact that many companies have adopted Apple Pay, G-Pay, Samsung Pay and the like as paying with these … Continue reading Cybersecurity: AI Is A Leverage Point, However..
The hype around all things "AI-related" is starting to feel like the 1999 Internet Bubble. The chatter that AI is going to save the U.S. from falling into recession (I believe we are already there), is delusional. I would short that thesis all day. There simply is not enough Enterprise Customer demand for AI / … Continue reading More AI Hype – The Latest Clickbait Phenomenon
GOOGL shares have come a long way since we wrote that they looked attractive on Feb 27th 2023 (HERE). Do MSFT shares deserve the premium they have versus GOOGL shares? (Table below). Not in my view. I appreciate that MSFT does not have the Advertising exposure that GOOGL has, but the valuation premium seems too … Continue reading Google, Microsoft, Amazon and AI
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
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
We played with Google's conversational AI platform - Bard. Generally speaking, Bard's responses were fast and accurate, albeit high-level. Bard exceeded my expectations on the accuracy front. Speed was never an issue from my perspective. We posed a question to Google's Bard. The AI's response (below), did a fine job of covering the high level … Continue reading We Used Google’s Conversational AI Platform – Bard
Run for Alphabet's exit door! Beta Bard flubbed a query! Today's emotional reaction to the Beta version of Google's natural language AI platform - Bard - says more about the reactionary nature of today's unsophisticated, mile wide, inch-deep institutional investor class. My guess is that fewer than 5% have more than a surface-level understanding of … Continue reading Run For The Exit!
In short, greater revenue potential, greater accountability and greater risk of expense overruns: Greater revenue potential: These AI investments will likely focus on driving product usage as well as tracking and predicting user behavior for both new and existing products. Better products mean more usage, more usage typically means more Ad revenue for advertising revenue-driven … Continue reading What Does It Mean For Meta To Decentralize AI?
AWS, Azure and Google Cloud are poised to drive vertical M&A for years to come. By vertical M&A we refer to M&A transactions that would enable to AWS, Azure and Google Cloud to build a footprint at the application layer across various industry verticals. The obvious acquisition targets would be customers and partners of AWS, … Continue reading The Big 3 Cloud Giants Are Poised To Drive M&A