Did you know that last year 80% of all stock market gains were from just a handful of Al companies?

[goaded]

So, what's happening to all the real companies? The ones that make profits and stuff?

Bubble!

[MrChinaski]

Company valuations are a discounted present value of a stream of expected future profits. Current profits and stuff have only even been a small fraction of valuation. That said, expectations seem too high and discount rates too low. Is it a bubble? I don't know.

[MrChinaski]

In most bubbles... from railroads to ICT, though notably not Dutch tulips... the stuff being invested in is socially valuable. It just doesn't prove to be sufficiently profitable to justify stock prices.

[andreasderjuengere]

The real companies will still be there after that bubble collapses.

[ChiTown33]

I'd say it's less that so many of the other companies are not making money. It's to the EXTENT that the tech market IS. And people are DRUNK on it. Look at Berkshire Hathaway. Did the Oracle of Omaha just lose his touch after 70 years? Hardly. Uncle Buffett usually has the last laugh. The S&P is being pulled hard by the tech market.

What interests me more is that after the last 12 quarters in which Berkshire was a net seller Berkshires new leader Greg Abel has reversed course and bought like 10 billion i think it was in Google with Buffett's blessing.

[Smegskull]

The idea is that AI will replace them as it has all of their knowledge and can fulfill the contract with eventually zero workforce cost.
Why go to a dealer and spend time looking for a car an buy one made by a manufacturer, when you can just ask your AI who knows exactly what you like and knows everything about cars to design and print the perfect car for you.

[goaded]

Tea. Earl Grey. Hot.

[exitseven]

I am nor sure that is true. I have a couple of different funds and they are not all in AI and I have gotten double digit returns over the last two years.

[Still-alive]

This is why AI is everywhere right now. and yeah when that bubble pops watch out!

[RavVid]

Interesting. I guess all the make companies out source to China.

[Shiprex]

Does not surprise me. They like to gamble with our savings