I think that the recent pullback in the stock is a hedge against AI not having a financial impact yet as neither Tesla nor Alphabet has increased their business using AI yet (each for its reason: Tesla is a fraud, and Alphabet just has not harvested the fruits yet). But IBM was able to satisfy investors AND, more importantly, is said part of its success was AI. Given the short memory I attribute to investors, I think that they will be happy to revert their hedges today, or at least pause it until Microsoft's report next week. Unlike Alphabet, Code Pilot is a very popular tool, so I expect Microsoft to please investors and give them lollipops and confidence in AI as a money printer.
This assumes that the latest so-called correction is indeed a hedge and not a rotation and that Microsoft is going to deliver. And, of course, I hope that no weird political events will bless us in the following week.
Leave a Reply