Source: https://www.overlookedalpha.com
I just watched a TikTok about how many millionaires are going to be created from using AI.And if you look at the stock market, many AI companies are on a tear, with some of them up more than 200% this year already.
But, you have to be very careful when investing in AI companies. Because some of these so called AI stocks on the market are not necessarily doing very advanced AI.
C3, for example, has been called a cash-burning consulting company that masquerades as a software business. The company has a market cap of 2.1 billion which is 8 x revenue and a queue of short sellers trying to short the stock.
Meanwhile, Bigbear.ai tripled in value after a supposed contract win with the US air force. However, that contract was completely misinterpreted by the market. And that stock also has a very high short interest.
There are companies like SoundHound and Guardforce AI and many more. They might be doing some type of AI but it’s just not clear how advanced any of these products really are.
For the most part, we agree with this tweet from dali Bali which reads: Any AI company with meaningful revenue today probably isn’t real AI.
After all, the company behind ChatGPT, OpenAI was started as a non-profit and has only just started to monetize. OpenAI are making real advances but they’re not a public company so you can’t invest in them directly.
Of course, some companies will hit it big with AI. The problem is that many of these companies on the public market are just trying to jump on the bandwagon. We’ve clearly entered a hype cycle and these companies are trying to take advantage and many of these AI stocks are going to end up being very poor investments.
#stocks #investing #stockstowatch #aistocks
I just watched a TikTok about how many millionaires are going to be created from using AI.And if you look at the stock market, many AI companies are on a tear, with some of them up more than 200% this year already.
But, you have to be very careful when investing in AI companies. Because some of these so called AI stocks on the market are not necessarily doing very advanced AI.
C3, for example, has been called a cash-burning consulting company that masquerades as a software business. The company has a market cap of 2.1 billion which is 8 x revenue and a queue of short sellers trying to short the stock.
Meanwhile, Bigbear.ai tripled in value after a supposed contract win with the US air force. However, that contract was completely misinterpreted by the market. And that stock also has a very high short interest.
There are companies like SoundHound and Guardforce AI and many more. They might be doing some type of AI but it’s just not clear how advanced any of these products really are.
For the most part, we agree with this tweet from dali Bali which reads: Any AI company with meaningful revenue today probably isn’t real AI.
After all, the company behind ChatGPT, OpenAI was started as a non-profit and has only just started to monetize. OpenAI are making real advances but they’re not a public company so you can’t invest in them directly.
Of course, some companies will hit it big with AI. The problem is that many of these companies on the public market are just trying to jump on the bandwagon. We’ve clearly entered a hype cycle and these companies are trying to take advantage and many of these AI stocks are going to end up being very poor investments.
#stocks #investing #stockstowatch #aistocks
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NewsTranscript
00:00 Be careful investing in AI stocks. I just watched a TikTok about how many millionaires
00:04 are going to be created from using AI and if you look at the stock market many AI companies
00:09 are on a tear with some of them up more than 200% this year already but you have to be
00:14 very careful when investing in AI companies because some of these so called AI stocks
00:19 on the market are not necessarily doing very advanced AI. C3 for example has been called
00:25 a cash burning consulting company that masquerades as a software business. The company has a
00:31 market cap of 2.1 billion which is 8 times revenue and a queue of short sellers trying
00:36 to short the stock. Meanwhile BigBear.ai tripled in value after a supposed contract win with
00:42 the US Air Force. However that contract was completely misinterpreted by the market and
00:47 provides no guarantee of future revenue and the stock also has a very high short interest.
00:53 There are companies like SoundHound and Guardforce AI and many more. They might be doing some
00:58 type of AI but it's just not clear how advanced any of these products really are.
01:03 For the most part we agree with this tweet from Dali Bali which reads "Any AI company
01:08 with meaningful revenue today probably isn't real AI. After all the company behind Chat
01:14 GPT, OpenAI was started as a non-profit and has only just started to monetize. OpenAI
01:21 are making real advances but they're not a public company so you can't invest in
01:25 them directly." Of course some companies will hit it big with AI. The problem is that
01:31 many of these companies on the public market are just trying to jump on the bandwagon.
01:36 We've clearly entered a hype cycle and these companies are trying to take advantage of
01:40 that and many of these AI stocks are going to end up being very poor investments. So
01:45 just be careful when trying to invest in the next big thing because there are some real
01:50 dubious companies out there on the market today.