I don’t have one, but this seems to be all the relevant info
Signs of an AI bubble abound: Stock valuations have become uncomfortably rich, AI-related debt is ballooning, and a sustainable financial model for the technology has largely yet to emerge. Now Michael Burry, the investor who famously predicted the subprime-mortgage bubble bursting two decades ago, is betting that two stocks at the heart of the artificial-intelligence trade are set for a fall.
Burry, who became widely known after Michael Lewis profiled him in his book “The Big Short: Inside the Doomsday Machine” in 2010, bought options that will pay off if shares of Nvidia and Palantir drop, according to a securities filing on Monday. The bets involve more than $900 million of Palantir shares and more than $200 million of Nvidia shares at current prices.
I’m actually curious about that one as well. I would’ve expected them to just get a bailout since the government is so invested in them. I guess if the dollar itself collapses as a result then the US could be in real trouble.
I don’t understand investing very well, but Planatir’s price to earnings ratio is 587. Generally the P/E ratio of a company that investors think is going to grow a lot is around 30. NVidia is at 55. That probably means that Planatir is extremely overvalued.
The problem I see is that this bubble is insulated from reality because palantir is a monopoly-monopsony situation where palantir does not have a real competition and they mostly have one buyer (US govt) who are happy to funnel money into them.
Yeah that’s my understanding of the situation. For all intents and purposes it’s a government owned shop that does mass surveillance for the three letter agencies.
I don’t have one, but this seems to be all the relevant info
Thank you!
Okay but why palantir? I expect them to make money hand over fist selling genocide software and machines which is not completely tangled with AI.
I’m actually curious about that one as well. I would’ve expected them to just get a bailout since the government is so invested in them. I guess if the dollar itself collapses as a result then the US could be in real trouble.
I don’t understand investing very well, but Planatir’s price to earnings ratio is 587. Generally the P/E ratio of a company that investors think is going to grow a lot is around 30. NVidia is at 55. That probably means that Planatir is extremely overvalued.
Makes sense, so I guess from investor perspective it’s risky cause it’s value could drop even if the company itself is safe.
The problem I see is that this bubble is insulated from reality because palantir is a monopoly-monopsony situation where palantir does not have a real competition and they mostly have one buyer (US govt) who are happy to funnel money into them.
Yeah that’s my understanding of the situation. For all intents and purposes it’s a government owned shop that does mass surveillance for the three letter agencies.