Market confidence in artificial intelligence may be lacking, and companies with large investments in it appear to be dismissing supporters. The financial times notes that, during the last week, about $ 1 trillion in stock value has been deleted from Siliman Valley’s small hitters, all of which have been heavily invested in AI generative AI. Those companies include Oracle, Meta, Palantir, and Nvidia, the outlet notes. The outlet is calling Wall Street’s worst week since Trump’s “independence day.” “
The decline in tech stocks does not contain big industry winners. There are also companies like sweetegreen, a salad company that has tried to position itself as an automatic side salad company. Indeed, Sweetgreen has tried to integrate various technologies, including AI and robotics. However, that dream seems to be dead, as the company recently sold its robotics division to surprise and its stock was completely wiped out last year.
And then there’s Microsoft, which – despite being one of the most powerful and prominent companies in Silicon Valley – seems to have a lot of ground to lose. Bloomberg reported on Friday that its stock had hit 8.6 percent more than eight days, a decline that already appeared $ 350 billion in the market valuation. That’s the company’s worst decline since 2011, when the company’s stock saw nine straight days of losses, the outlet reports.
At the heart of the stock’s stumble, there seems to be growing concern about the AI business, which is expensive to operate and doesn’t seem to be paying off in any concrete way. Bloomberg notes that the Wall Street may be growing due to the large amount of money poured into AI (Microsoft spent about $ 35 billion in costs during its last quarter) while the profit remains good. Reporting on Microsoft’s Stock Slump, exit notes:
The stock has been flat since reporting its quarterly results in late October. While the report presents a number of figures, including the best growth in the Azure Cloud-Computing Business, Wall Street is increasingly skeptical of the big things that companies are spending in the early stages of building AI.
At the same time, tech slumps can be part of the shit-sandwich of the overall economy, with many indicators available (official economic data is currently unavailable due to the government shutdown) that seem to paint a grim picture. Indeed, a recent report from career services Career Challenger, Gray and Christmas showed that last month’s job losses were the worst since 1933. Amazon revealed those items to be lost, the report showed.
Want more proof that our economy is currently a dumpster fire? A monthly survey from the University of Michigan showed that consumer sentiment has currently hit the lowest levels in the survey’s history. “With the Federal Government Shutdown Dungelwa for more than a month, now consumers are now showing concerns about the negative effects on the economy,” Joannes Hsu, Director of the Survey, said. “This month’s decline was broad-based, across age, income, and political affiliation,” it added.
In other words, we are in the middle of a very large economy”. Yes, welcome to the new “golden age”, where jobs are few and far between, everything is expensive, and there is fear in the air! What a great place to be.
