Global AI stocks fall as industry chiefs call for slowing development(www.reuters.com)

6 pointsby 1vuio0pswjnm7an hour ago5 comments

JumpCrisscross18 minutes ago
For what it's worth, I'm not convinced the cause explains the effect. European markets are also down [1].
In the last few days we got information relevant to medium-term energy prices, likely-voter polls into the midterms, the Fed's likelihood of a rate rise and producer and consumer price levels. Those seem more germane than pre-IPO messaging from AI CEOs.
[1] https://www.cnbc.com/markets/europe-markets/
rfgplkan hour ago
Still continues to be the greatest bubble, of all assets, in all sectors in world history. Under the current velocity of money nearly every company is overvalued at least 10x. What's even funnier the effective cost of replacement of most companies (ie money needed to reconstruct these companies from scratch) is hilariously low. A low hundred billion for Apple, for instance.
- 20 minutes ago
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moralestapia14 minutes ago
Oh no, a 5% fall after an 800% rise!
It's so over!
giuliomagnificoan hour ago
And they’ll recover like every 3–4 months… does anyone remember the report from Citrix (or a similar name) back in winter? Same FUD.
Does anyone remember the FUD of capex?
The SaaSpocalypse?
And so on…
Those calls are only ways for the shareholders to buy at lower prices
1vuio0pswjnm7an hour ago
"... the starkest threat yet to the billions of dollars being poured into the industry that have pushed world markets to record highs."
- rfgplk44 minutes ago
  The market is broken because investing in stocks gives the best risk adjusted returns, meaning investors refuse to invest in businesses and would much rather just dump money in equities. Large companies also refuse to devalue their stock (issuing new shares/raising debt backed by equity) since that would piss investors off, so stocks remain high. Look at the cash returned to shareholders of most large tech conglomerates. It's effectively zero (with the exception of Oracle which is running the largest ponzi scheme in world history, ie their debt is literally rising exponentially: https://companiesmarketcap.com/oracle/total-debt/ -- looks like a chart of hyperinflation, and all they're doing with this debt is paying out dividends).
  Once the bubble pops you'll see either hyperinflation and renormalization of currency, or severe deflation. Nothing in between.
  - JumpCrisscross21 minutes ago
    > you'll see either hyperinflation and renormalization of currency, or severe deflation. Nothing in between
    Ignoring the existence of central banks, sure.