Reuters reports that AI-related companies lost $190 billion in stock market value on Tuesday following disappointing earnings reports.
All scams come to an end when they run out of marks to steal from.
This is the best summary I could come up with:
Following disappointing quarterly earnings results by Microsoft and Google owner Alphabet, Reuters reports that AI-related companies lost a whopping $190 billion in stock market value.
Microsoft may have eked out a win, with the promise of AI services convincing investors, but even its stock dropped by 0.7 percent in extended trade, per the report.
Google’s parent company fared much worse, dropping 5.6 percent after missing ad revenue expectations.
Microsoft beat Apple by becoming a $3 trillion company earlier this month, a massive vote of confidence for its doubling down on the tech.
According to Deutsche Bank strategist Jim Reid, the downturn may be “signaling some overextension of the recent strong rally,” according to a note seen by Yahoo Finance.
“This knee-jerk reaction [to tech results] is noise, the AI revolution has started,” Wedbush analyst Dan Ives told Yahoo Finance.
The original article contains 331 words, the summary contains 139 words. Saved 58%. I’m a bot and I’m open source!
That’s a weird take given the actual numbers and relative results per company, but ok.
Microsoft’s price didn’t change much at all and is still trading at a 35 P/E ratio (17% higher than Apple’s) despite being neck and neck in the race for the largest company in the market and allegedly not having its AI efforts actually change product usage. Clearly the market is still pricing it as if it’s going to grow more somehow.
AMD is down, but since when is AMD an “AI company”? That’s Nvidia through and through, who is still double digit percentage points up from a month ago, and trading at a 81 P/E ratio. The market losing faith in Nvidia’s competition seems more like the opposite of this headline, given it’s the key area where Nvidia has a market advantage over AMD.
Google, whose revenue is 90% ads, is down in response to falling short on ad sales. Which if anything may be a result of increased chatbot usage reducing search volume and Google’s chat offering being the Bing of AI chatbots.
This is clickbait analysis.
not having its AI efforts actually change product usage
Are you ignoring Github Copilot?
Microsoft’s performance was actually strongest in their Azure services in their earnings report, and I can’t think of any AI products tied directly to that part of their business
Although to be fair, their big push now is baking copilot directly into Windows 12, so it would be fair to think their long term outlook is tied to that service
Didn’t they already bake it into 11? I’m not caught up with 12 having only recently gotten 11 but dang.
If / then / switch / while
All of these are examples of what executives are calling AI there are many scams its hilarious.
Grifters gunna grift they face no clawbacks from lying to investors.
“AI Winter is coming”
-Ned Stark
I’ll never forgive D&D for what they did to that show. It was omnipresent in public consciousness for like a decade, and they fucked the last couple seasons so badly it’s now all but forgotten. It’s almost impressive in a depressing kind of way.
Oh we try to forget…
I was a huge fan. Watched it from season one on. Even had a House Stark banner. Now I don’t even think about it unless I see it mentioned on social media. Married with Children and Aqua Teen Hunger Force spontaneously pop into my mind 10 times more often than Game of Thrones.
That nice lady is in the Beacon 23 show.
Shame.
Tbf, I don’t think we as a society think about Aqua Teen Hunger Force nearly enough.
The companies didn’t lose that money. Their investors didn’t even lose that money. A number went down temporarily, that’s all.
it’s “AI” not AI…
It’s AI not AGI
It’s A “I,” not “AI”
no, it’s quite literally AI. It’s a research field in IT that is quite old.
Or are you ranting for years already that the AI that computer games use is also not really AI? Because they do that for decades as well.
People like you are really starting to be a problem, as they water down the discussion of real problems this topic has by blabbering on about “iTs nOt ReAl Ai”. Stop it. It’s not productive. Concentrate on the real problems instead of doing armchair bullshit like this
I mean I was kinda just riffing on the pattern cause I thought it was funny.
Yeah, AI is pretty generic: simple pathing algorithms in games are called AI.
The “AI” being hyped a lot at the moment falls in the subgroup called Machine Learning (or ML) for short, which excludes algorithms (so something like the A* pathing algorithm is AI but not ML) and isn’t even all that young (I learned Neural Networks back at Uni about 3 decades ago).
It’s just that computing power, the advances over time in the algorithms in Neural Networks and the use of massive datasets (LLM stands for Large Language Model) have brought us over a threshold were ML can produce output in text, imagery and audio good enough to usually deceive the average person, hence all the hype which is being backfitted to hype just about all kinds of AI, even the algorithmic stuff.
The term “artificial intelligence” has been in use in this field for a very long time now, applying to a broad range of techniques. Some of them much, much more primitive than the LLMs and such that are revolutionizing the field currently. There is nothing wrong with using AI to refer to them.
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AI is clickbait, too, so does that mean they cancel each other out or is the clickbait twice as strong?
By the way errors are dealt with in physics, I think the error only adds up. So double the clickbait.
lol rekt
based
23 skidoo
I remember YouTube videos or podcasts where presenters said that we’d have very advanced AI by GPT-5 and singularity is just around the corner. Marketing stuff of these companies pushing language models made us all fools (including me). Now finances are catching up to all this bullshit.
The same thing was said about self-driving. I recall arguing with people on reddit back in like 2018 who called me an idiot because I didn’t believe we’d have full autonomous driving within the next few years. I swear these people jump from one fad to the next and dive into each one head first.
Uh yes, they do. It’s the same group of people falling for this stuff over and over. Crypto, NFTs, Self Driving, AI now. What’s important to them is being able to point at this stuff and make a wojack face
No shit that was a bubble. Fun for all of two seconds but application in its current form is niche/sketchy at best. There is lots of promise for the future of AI but right now it just makes things more complicated and end results are unreliable.
bubbles like this can set back that future by decades though…
I think AI is going to be ok.
lets hope so
What a clickbait “article”. The whole stock market is correcting insane growth of last year and in fact the company with the biggest AI investments (Microsoft) crashed the least!
It’s rewording the real article from Reuters: https://www.reuters.com/technology/ai-companies-lose-190-billion-market-cap-after-alphabet-microsoft-report-2024-01-31/
growth
Swelling, more like
It’s not a toomah!
ChatGPT says:
Investing in AI, like any other sector, carries risks that could potentially lead to financial challenges or even bankruptcy for companies. Some factors include:
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High Initial Costs: Developing AI technologies often requires significant upfront investments in research, development, and infrastructure. If these costs are not managed well or if the technology doesn’t gain traction, it can strain a company’s financial resources.
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Market Uncertainty: The AI market is rapidly evolving, and success depends on staying ahead of technological advancements. If a company fails to adapt or faces competition with superior innovations, it may struggle to maintain market relevance.
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Regulatory Challenges: The AI industry is subject to evolving regulations, and changes in legal frameworks can impact operations. Non-compliance or unexpected regulatory hurdles can lead to financial setbacks.
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Cybersecurity Risks: As AI systems become more integrated into various sectors, the risk of cyber threats increases. A significant cybersecurity breach could result in financial losses, reputational damage, and legal consequences.
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Limited Adoption: If the adoption of AI technologies is slower than anticipated, companies heavily invested in AI may struggle to generate expected returns on their investments, potentially leading to financial distress.
It’s important to note that while AI presents significant opportunities, prudent management, market understanding, and strategic planning are crucial to mitigate risks associated with investing in this dynamic and evolving field.
The irony of using ChatGPT for this of all articles.
Yeah, just goes to show that the AI hype may be peaking, it’s not going away.
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Does that have anything to do with the IP power grab that is apparently under way? I’ve seen the propaganda and the mood seems to be that AI should be monopolized by the few super rich.
I thought the mood was that everything should be monopolized by the super rich.
Look at the reuters article cited: https://www.reuters.com/technology/ai-companies-lose-190-billion-market-cap-after-alphabet-microsoft-report-2024-01-31/
Jan 30 (Reuters) - AI-related companies lost $190 billion in stock market value late on Tuesday after Microsoft (MSFT.O), opens new tab, Alphabet (GOOGL.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab delivered quarterly results that failed to impress investors who had sent their stocks soaring. The selloff following the tech giants’ reports after the bell underscored investors’ elevated expectations following an AI-fueled stock market rally in recent months that propelled their shares to record highs with the promise of incorporating the technology across the corporate landscape.
I don’t know that I would say this has anything inherently to do with AI…
The reuters article for AMD specifically: https://www.reuters.com/technology/high-flying-chipmakers-hit-after-amds-forecast-falls-short-2024-01-31/
Jan 31 (Reuters) - High-flying semiconductor stocks slipped on Wednesday after Advanced Micro Devices’ (AMD.O) disappointing current-quarter revenue forecast added to investor worries over sluggish demand for non-AI chips
…
That overshadowed the company near doubling its AI processor projections to $3.5 billion for 2024.
