r/valueinvesting
Pls can we talk about expected market reaction on US Fable 5 ban?
Author warns a US AI supply chain ban could trap bullish sentiment, forcing analysts to lower revenue growth projections for tech giants.
- Policy actions and bans introduce new costs that analysts must factor into future projections.
- These costs could force a slowdown in optimistic revenue growth projections, trapping the market's complete bullishness.
- Supply chain disruptions from the ban pose a higher risk of slowdown for players in the ecosystem.
From the whole supply chain ecosystem, what players are at higher likely risk of slowdown?
The circular loop above suggests that Anthropic has got direct skin in the game with Amazon, Alphabet, and Microsoft.
Despite DJT acts quickly before market open to restore the global access since he wouldn't want market to panic, what incentive is driving him to do this?
But then if this signal has already caught up with the market, then analysts need to factor-in cost of such actions in future and slow-down optimistic revenue growth projections? It can trap complete bullishness from the market.
What do you read and prepare?