Why did it even crash? They just make the chips not the models, no? I know they have contracts with some of the AI companies, so maybe that’s why. That stock is trading like GME lol
Discussion
Less demand for infinite chips if the ai is more efficient I guess. Plus I think ppl just realized they were trading off hopes and dreams
I guess less network switches are also required
Hardware turns into a commodity too . They just should buy bitcoin lol
Interesting point. Better to convert money in hardware commodity to digital commodity. Those ANET switches can't get zapped around the globe.
PE of 48. Seems incredibly risky.
A lot of these boomer stocks are ridiculously priced to me . Today seems to be a big wake up call in the market tho
It feels like the dot com era, everybody jumping on without any real thought just hopium
Grok says PE ratios were
1880s to 1890: below 10
1900: 10 to 15
1920s: up to 20 and some beyond
1950s 10 to 15
1960s:18 to 20
Grok also says 4 trillion would need to exit the S&P500 to bring average PE down to 10
These companies better start buying bitty lolll
So wild to me that most companies haven’t adopted the Saylor playbook. 90% of S&P500 is dead weight returning a loss in real terms.
Gradually and then suddenly
This is the suddenly year. Can’t ignore a MSTR at a $500B marker cap or $1T
Get on board or die a not so slow death
It’s becoming very obvious having no bitcoin in your treasury is a very bad idea. And when USA start buying more bitcoin to hold on reserves it’ll be the suddenly moment
Similar to ASICS I imagine
I think folks are starting to understand that there is effectively no sustained profit for commodities.
Without monopolies and economies of scale afforded by network effects, valuations for AI should be closer to an oil and gas producer not a SAAS or advertising-funded digital business.
Still have a long way to go until NVIDIA is appropriately priced.