Trending Content - Off Topic Forum
Career Resources
WSO Free Modeling Series - Now Open Through
June 30, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
Y
If you think it is a bubble are you shorting anything?? Any Michael Burrys in the chat?
No, but I'm trying to limit my exposure to AI-adjacent stocks. Tough to do when you're not a sophisticated investor and you're PA is mostly indices, since those are like what? 35-40% AI bubble stocks?
It's tough to invest in or short. So many of the companies are completely non-public, and most of the rest are wrapped up in big firms that have something else as 90% of their revenue. What are you going to do? Short Nvidia? good luck, and I hope that you're praying for a slump in crypto and video gaming too.
beyond that you have to deal with the cost. I used to joke that our ETF with the highest dividend yield invested in non-dividend paying stocks. We could only lend out 30% per law but we were making about 5% of AUM annually from the absolute crap we had sitting on the balance sheet.
Yes - at this point, though, I'm just calling all of these bull markets until they aren't. Same with metals - which I know quite well, as it's bleeding red today - silly me.
Shorting it? That's a fools errand IMO, there's not much pure play and while it sounds great to short all the large tech giants who are spending like drunken sailors... they all have real businesses, massive institutional ownership, and an administration that's in their pocket. You REALLY think that a 20% downdraft in the QQQ's won't be met with some type of relief? Maybe 25+ year depreciation schedules and at cost buybacks of aged out hardware at original cost? Joking - clearly.
Y - The idea of AI writing code on a large scale and replacing workers...a myth. Technology is simply a tool, that's how I think of it as.
Can AI write good code? Usually, no. Can it code, yeah - to most people that’s what matters, if you’re looking for some assistance to tweak a VBA script ChatGPT will do a pretty good job. At FAANG level it might replace some very entry level positions but who knows, maybe it’ll get better. Code is actually one of the only things it can do pretty well by data scraping your GitHub, stack overflow, etc - way harder in financial services as data isn’t public.
Pretty sure stocks only go up
Just got stuck behind a Waymo in an Uber and the thing nearly backed up into my Uber. It was bugging out with no one in front of it.
So, yes.
Y but that’s the wrong question to ask. Bubbles are a feature of the speculation (confidence) - contraction (correction) cycle and it’s futile to simply identify them. The game is in trying to call the top and make money when the tides turn.
So is AI a bubble? Duh, when you look at the cash requirements needed to return all the capital that has been invested across the entire ecosystem, there’s no way in hell AI companies get there *in time*. Maybe in 50 years? Sure. But as father time knows, the market is not that patient, in fact in most major cycles you have maybe a good 8-9 years to figure it out before investors start asking for their money back — or when rates go up high enough, whichever comes first.
My uneducated old head hunch is guest is that if Dems take the White House in ‘28, there will be much less “friendly” investment environment, and lord knows what the state of the economy will be by then. Do I think the AGI fairy god mother will rain down trillions of cash in return by then to make good on all the cash going down the AI drain today? No, absolutely not. You can either wait out the mania, or try to find a way to make some money between now and then, and I’m in the second boat personally l
It isn’t a bubble. It is just a lot of companies with no path to profits valued as if they already have AWS margins on unlimited demand with a technology base that can’t do what they claim it can.
Yes, but there will emerge clear winners and losers....just not sure when
I don’t think it’s a bubble. Some of the companies might be overvalued, however.
If you think about the dot com bubble, the consensus was actually right on how life changing it would be. In fact, it probably wasn’t bullish enough.
It’s just really god damn hard to pick the right horse in these situations
i do not think most of these new, smaller companies will be able to make enough money selling services which are just one of the main AI's with a little twist, due to the token system. i think there is gonna be a wave of ppl thinking they can, causing a lot of failed businesses
Ipsum et quidem quo ducimus nam ducimus. Consequatur consequatur ipsa dignissimos quia corporis in. Ut soluta tempore ut sit cum.
Eum vel dolorem id dolorum. Iusto odit fuga sunt beatae non quo quis. Accusamus et exercitationem error odio eaque iste qui. Tempora voluptatem aperiam minima placeat ut iure ipsam. Ullam et nesciunt praesentium suscipit voluptates suscipit atque. Expedita ut eum dignissimos autem in modi.
Voluptatibus similique ab est architecto. Et nam qui sit consequatur. Ipsam eum ut sit excepturi facere numquam animi. Aliquam quibusdam similique sint repudiandae dolorum nulla praesentium. Quo assumenda dicta possimus. Ea velit eligendi omnis enim aliquam sit.
Sed deleniti laboriosam reprehenderit dolorem assumenda nostrum. Saepe at ut neque esse qui pariatur. Reiciendis repellendus explicabo consequatur quis. Maiores fugiat beatae ullam ipsa.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...