r/stocks
How to hedge against the AI IPO's ?
Author views AI hype as a bubble and IPOs as exit liquidity, seeking hedging strategies against an impending market correction.
- AI startups are unprofitable black holes absorbing massive capital and resources.
- Upcoming AI IPOs are designed merely as exit liquidity for insiders.
- Current AI valuations are unjustifiable, pointing to a potential market correction.
It's clear that the AI hype is a bubble.
SpaceX, Anthropic, OpenAI are blackholes, absorving credit, money, energy, water, jobs, peoples patience and etc. They aren't by any means profitable.
Everyone knows these new IPO's are exit liquidity, the leaders of these ventures know it and they know we know, even the biggest enthusiast knows something is off.
There is literally no way on Earth (pun intended) SpaceX can justify is gargantuan evaluation,
especially when consolidated businesses like Wall-Mart have the same evaluation, but real results (compare the 18 billion revenue of SpaceX with Walmart >700 billion).
Therefore a big correction maybe coming soon, we don't know, perhaps tommorow we get an answer. Is it possible to hedge against such a scenario, to prevent a corrosion of wealth ?
An average joe like OP who is arrogant enough to think they have figured the market out is in for a rude awakening
Concerning for a space company. Their moat is data centers in space for their cooling when cooling requires an active transfer matter - which is lacking in space. Love to see them transmit data via starlink in 5-10 years but for now it’s a no go for me.
Yeah I am not nearly smart enough to know how someone would efficiently get rid of a data center's amount of heat by radiating it into space as visible light. I imagine those radiators would have to be MASSIVE
I have seen a company doing retractable/fold out windsails for space. Supposedly solar power, but I presume you could reverse engineer them to produce light to dissipate heat? These structures where built by robots on a tube system which looks like a cranes triangle body. And basically can be something like 2km long? As obviously no weight restrictions in space for the load of the sails lol.
Holy. Moly.
Obviously short Ai stocks. They won’t do anything for the next 5 years. I literally. Couldn’t roll my eyes deep enough into the back of my head.
Easier to rant online than to gamble ain’t something that’s obviously “so clear”
You can’t be this stupid…
“It’s clear” no. No it’s not. Ai will be here for indefinite and it really is the strongest possible product out there. The retail ability and company performance improvements are unprecedented and worth its valuation.
Nebius will support the data centres
Nvida will supply the newest chips Rubin and Vera
Anthropic will IPO
Anthropic will announce a deal with Nebius
Nebius will announce a deal with nuclear energy such as Rolls Royce.
“Not profitable” please go check the retail basis around Claude usage and their Q1 earnings vs Q4 and tell me they have a profitability problem.
SpaceX and Ai comparability shouldn’t be in the same conversation. One is a company the other is a sector.
They also don't fucking work. I fed gemini multiple reports and it hallucinated events in the summary.
Just might
Anthropic is 100% profitable. The user base and subscription model is solid and they are making a shit load of cash. I paid my invoice earlier for my subscription and was happy about it? That’s how powerful it is.
Tbf. An app that writes the names of companies that comes out of trumps mouth is solid. He mentioned Dell a few weeks ago and I told my wife, hmm that’s funny, not going to invest in dell though. A month later? US Military deal with Dell. Smashing. Up like. 60% on the one month and 182% in the 6month chart with majority of gains in mid may after the announcement.
Not true, 25% of capex went to Starlink, and another 14% to launch services. a large part of AI capex also went to standing up compute that they then immediately rented out to competitors. The amount of capex going to their own model development is definitely way less than “whole capex”. Not saying the company is a good or bad investment, it just seems interesting you developed such a high conviction view based off so little actual information
Can’t wait for Tesla to get absolutely bent over by xiaomi and byd and zeeker and Jaecoo, all of these cars have a cheaper and better build than American expect they are being purposely denied sale in America for this exact reason.