r/wallstreetbets
It’s Time To Short The Shit Out of AI Stocks
Author argues Fortune 500 AI spending is a zero-ROI FOMO bubble, but plans to buy calls at the peak to ride the momentum.
- Short-term stock prices may rise as companies cut payrolls to fund AI spending.
- Momentum trading strategy: buying calls at peak tops to profit from the irrational bubble.
- Fortune 500 companies are spending enormous amounts on AI with effectively zero ROI.
- AI usage cannot be traced to productive outcomes, making the spending a FOMO-driven bubble.
Every company in the Fortune 500 is spending enormous amounts of money on AI with effectively zero ROI.
Since nobody really understands how to use AI, the usage spend can’t be traced to anything productive.
Before all that shit spend flows through to earnings the only lever to pull is payroll so everybody gets fired and stocks go up.
This strat works short-term since everyone had to spend money on AI and the more the better or you look like a fucking idiot to the board.
It’s the everybody is doing it so we had to do it or we may get left behind kind of bubble.
Unless these models being banned by the government are removing the print money instantly to crush earnings buttons and only giving that option to select companies they can front run, there still may be hope.
So I’ll probably buy a lot of calls instead at peak tops.