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Tech Thread

BG said:
It's a cult, period. The Tesla bros have thrown more money at Elon than they can even count, and just keep stepping back up to the plate because they are convinced that Elon will pay them out somehow for being loyal to the brand.
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Tesla still with a P/E ratio close to 300 is mind boggling
 
CH1 said:
The market has done an amazing job staying near ATHs. A month ago I predicted a rough summer because the market was being propped up by a very narrow band of AI related stocks and the thinking was eventually these stocks would correct and the market would take a dump.

Well, these AI related stocks have been trashed but investors are now buying all the other sectors like biotech, consumer discretionary, energy, etc. etc.

So just relentless buying by all the institutional funds that need to put money to work.
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Yup what got lost in the AI craze is that there were plenty of stocks out there in other sectors that became quite cheap and extremely attractive.

The bull case was always that an AI correction would be a rotation event and result in buying some other sectors that have been suppressed for some time (many that were in long, drawn out bear markets). And tbh, that always made sense to me. Not that I trade stocks or anything. Only thing I've bought in the last year was the Tylenol rfk dump cuz maga dumps have never been sustained ever. But that was just a bet against maga successfully canceling a consumer staple brand more than trading skillz.
 
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Preston said:
Yup what got lost in the AI craze is that there were plenty of stocks out there in other sectors that became quite cheap and extremely attractive.

The bull case was always that an AI correction would be a rotation event and result in buying some other sectors that have been suppressed for some time (many that were in long, drawn out bear markets). And tbh, that always made sense to me. Not that I trade stocks or anything. Only thing I've bought in the last year was the Tylenol rfk dump cuz maga dumps have never been sustained ever. But that was just a bet against maga successfully canceling a consumer staple brand more than trading skillz.
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I mean, if this is the bull case....cool, but the bear case of the AI bubble is massive value destruction on a historic scale. A relatively small rotation out of the big tech stocks to the stuff that had been flat while the tech stocks sucked up all of the new money is nice, but there's 1-2 trillion of excess value in the tech stocks still.
 
MindzEye said:
I mean, if this is the bull case....cool, but the bear case of the AI bubble is massive value destruction on a historic scale. A relatively small rotation out of the big tech stocks to the stuff that had been flat while the tech stocks sucked up all of the new money is nice, but there's 1-2 trillion of excess value in the tech stocks still.
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Hell some sectors didn't even hit 2021 levels till recently. The market has been absolute dog shit for several years for like 95% of stocks (until recently). It's the other 5% that's been carrying shit.

But ya I meant the bull case for the summer or for whenever the AI stuff cools off. If AI doesn't actually progress in the next few years, then yeah of course plenty more pain to come for a lot of AI-centric stocks. That's a different topic tho and probably more of a longer term outcome.
 
With that said, while I'm not exactly eager to go heavy tech or USA or even heavy spy (which is now an AI etf basically), I'm not gonna bet against these corporations ability to maintain power and make $$ longer term. That would be silly imo. They have many levers that they will continue to pull and find new revenue streams.

Just don't buy one of those companies with crazy net losses every quarter with a bloated market cap cuz AI and shit. When the dotcom bubble happened, those were the companies that were carrying the NASDAQ. Now it's corporations who are swimming in cash and profitability with or without AI. Definitely could be a significant pullback on them tho.
 
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