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- Race to the bottom, profit on top đđ¸
Race to the bottom, profit on top đđ¸
The AI âarms raceâ will hurt these companies the most...
*together with Mode Mobile
Hey Folks,
It was another (slightly) green day in the markets today as investors looked past trade-war anxiety and focused on⌠AI.
On the bullish side, Palantir posted incredible earnings and rocketed 27% yesterday, making it a $200 billion companyâŚ
But the bears pounced on Googleâs disappointing revenue growth to send it tanking 8% today.
Google now says itâs going to increase capital expenditure to exceed a whopping $75 billion this year, while investors were expecting them to lower it (and hopefully spend it on stock buybacks â something really useful!)
My theory is that this is a ârace to the bottomâ when it comes to AI.
The biggest companies will need to spend vast sums of money to compete, but it will become a commodity product and drive the profit margins to near zero (hey, my Economics degree is finally paying off!)
The good news is that Joe Consumer (you and me) will get great AI tech at the lowest price possible.
The bad news is that shareholders of Google, Microsoft, Meta, etc, are going to foot the bill for it.
Thatâs a trade-off I can live with. Especially since AI is likely to put a lot of us out of work in the next few years! đ
Yep, companies like Google, OpenAI, and Anthropic are all in direct competition for the same users, and the reports of DeepSeek pulling even â or ahead â for a fraction of the cost have them scrambling.
Speaking of DeepSeek, did you see this little headline from last Friday?
So much for that much-ballyhooed $6 million figure that was enough to (very temporarily) wipe $800 billion from NVDAâs market cap.
NVDA, by the way, was up 5% today.
In the AI space, my personal favorites are companies that sell AI tech, like NVDA, AVGO, GEV, SNOW, and MRVL (btw, I personally own GEV and SNOW in my personal trading account as of this writing)
No matter who pulls ahead next in the AI race, we know for sure that theyâll need hardware to get the job done.
But even though most of those tickers did very well today, none entered double-digit territory, whereas five of my âtactical tradeâ ideas this week have done so.
Iâll be taking another shot on goal tomorrow morning at 9 am EST right here on this page.
âď¸ BOOKMARK THIS PAGE âď¸
This is a stock that I last alerted on Christmas Eve.
It went on to jump 16% in the two trading days after I alerted it.
Right now, it has some real momentum behind it and is up 9% from yesterdayâs open.
Iâll explain in the morning why I think it has a great chance of extending the rally, so be sure to tune in bright and early! đ
I think we could be in for a very big day. I donât want you to miss it.
To Your Success,
Jeff Bishop
*together with Mode Mobile
The smartphone story isnât over yetâŚ
Uber did it to taxis, Airbnb to hotels, & now Mode is doing it to the $500B smartphone industry.
Theyâve turned smartphones from an expense into an income stream - donât miss your chance to invest.
*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.
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