As the technology progresses, it will prove to be extremely disruptive to a number of industries. The choice could become: adopt or perish.
Why does this matter? Because players like $PLTR and $AI, they stand to massively benefit.
1/X
AI/ML are fundamentally misunderstood and as a result massively underestimated.
By 2027 AI is expected to have a TAM worth at least $733B with a CAGR of approximately 42% from 2021 on.
That's one of the fastest growing parts of tech, or any industry for that matter!
2/X
Why are AI/ML so pivotal to unlocking the value of data for businesses large and small?
Because AI/ML both provide a fundamental competitive advantage by combining streamlining of costs, with automation, and therefore greater efficiency of capital deployed for better RoI.
3/X
As AI/ML is a frontier technology within the fourth industrial revolution, it is exceedingly difficult for many to grasp its full potential if they themselves are not technologists with experience within this field.
That's often true with the latest innovation, though!
4/X
Imagine the analysts that looked at what was the Internet in 1995.
It was a dinosaur compared to what it has become since!
We can say the same of just about every technology that's progressed in that timespan: operating systems, computers, mobile devices, and broadband!
5/X
So let's recap. AI/ML are early stage technology w/enormous potential that is only beginning to be realized. Most don't understand it, and won't begin to care about investing in it until it's already proven itself. That's why it is a fascinating time to assess opportunities.
That $META earnings call was an absolute disaster. Zuck tried to convince his investors that AI is the future, when there's no real clear path to how it makes profit.
Then he tried to tie it into the metaverse.
At that point I bet a lot of people got PTSD, because the selling accelerated further...
The company plans to keep aggressively spending on their AI initiatives. I think Zuck said AI about 100 times without really articulating a vision as to how this converts to higher revenue and earnings.
But he did make it clear that the costs would be much higher than expected..
A lot of people probably remember similar talk regarding the metaverse.
At the time it was the future, it was an area of aggressive spend, but nobody could explain how all this spending would provide a return on the investment.
Oh boy, managed money is REALLY long US equities now. With the highest exposure since July, per NAAIM data.
Extremes in NAAIM positioning have often been decent opportunities to fade over the intermediate term (not the next 5 minutes).
I wonder, will this time be any different?
@TraderadeTweets It looks like a lot of hedges and short positions must have been removed as the bearish responses went from -200 (leveraged short) to 1 (flat-ish exposure).
@TraderadeTweets That jives well with skew data, which shows the put-to-call premium on $SPX fell rather appreciably over the last couple of days.
Which tells us there's, overall, less demand for puts vs calls.
In fact, 3M ATM $SPX puts are about the cheapest they've ever been.
Wow! US ADP employment report came in at 278k vs forecast 170k. The prior reading was 296K. No weakness in the labor market to be seen here. twitter.com/i/web/status/1…
Small and medium-sized businesses were hiring as large businesses were firing
Within goods, natural resources, mining, and construction expanded while we saw contraction in manufacturing jobs