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US AI stock sell-off shakes markets from Wall Street to Asia

theguardian.com

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Re: US AI stock sell-off shakes markets from Wall Street to Asia

#21

Post by tonyedgecombe »

potamic wrote: post #18

All these media people who write about markets need to adjust their perspectives on what a sell-off means. A 2% reduction for a market cap of 80 trillion dollars still leaves about 78 trillion dollars in the market. The way the market behaves when there's 78 trillion dollars would be very different from how it would if there were 20 trillion dollars. With volumes of these kind, the instrument becomes a currency in it…

The money isn’t in the market, when you buy shares the money goes to the seller.

Re: US AI stock sell-off shakes markets from Wall Street to Asia

#22

Post by cicko »

embedding-shape wrote: post #17
andersmurphy wrote: post #9

Earlier quoted context omitted.

Neither of the companies you mentioned are listed.

Really strange parent comment indeed. Or did we all miss IPOs here? Where did parent even see any prices at all? Searching "OpenAI stock price" would make it very evident it doesn't exists.

you never know what people are smoking

Re: US AI stock sell-off shakes markets from Wall Street to Asia

#24

Post by general1465 »

What even is a point on looking on stock charts which are detached from fundamentals of companies? Just casino. Usually numbers go up, sometimes they go down.

It has no effect on your life.

It has no effect on companies either. When your market share value is 10USD or 1000USD does not change if you are profitable or not.

Re: US AI stock sell-off shakes markets from Wall Street to Asia

#26

Post by shubb »

andersmurphy wrote: post #9
p0w3n3d wrote: post #7

Tbh I am unable to find any proving stocks' charts. Anthropic stays flat, openAi lost a little bit, etc. When I read 'sell-off' and 'shakes' I was imagining it differently

Neither of the companies you mentioned are listed.

There are pre-ipo tokens, which are a bet on the price at ipo and proved accurate fit SpaceX (lots of caveats here). Anyway we can see it as a prediction market where the price may have information because insiders can trade without SEC oversight or something?

OpenAI and anthropic tokens are down 30% in the start of the month but flat on the week, possibly meaning that market front ran this sell off, possibly not.

Re: US AI stock sell-off shakes markets from Wall Street to Asia

#27

Post by khurs »

potamic wrote: post #18

All these media people who write about markets need to adjust their perspectives on what a sell-off means. A 2% reduction for a market cap of 80 trillion dollars still leaves about 78 trillion dollars in the market. The way the market behaves when there's 78 trillion dollars would be very different from how it would if there were 20 trillion dollars. With volumes of these kind, the instrument becomes a currency in it…

>All these media people who write about markets need to adjust their perspectives on what a sell-off means...

err... they already know. It's click bait stories to get readership.

Re: US AI stock sell-off shakes markets from Wall Street to Asia

#28

Post by potamic »

tonyedgecombe wrote: post #21
potamic wrote: post #18

All these media people who write about markets need to adjust their perspectives on what a sell-off means. A 2% reduction for a market cap of 80 trillion dollars still leaves about 78 trillion dollars in the market. The way the market behaves when there's 78 trillion dollars would be very different from how it would if there were 20 trillion dollars. With volumes of these kind, the instrument becomes a currency in it…

The money isn’t in the market, when you buy shares the money goes to the seller.

Money in this context is just proxy for value. You have exchanged cash for an equal value of stock. After this either could go up or down in value as the market determines. Sometimes the market doesn't like one kind of cash even and that value can reduce. On the other hand, if everyone is invested into a certain kind of cash then it's unlikely that cash would ever lose its value. Stocks have to work the same way fundamentally. The difference so far has been the volume at which these transactions happen. But since 2008, the volume of stock transactions has been growing exponentially. Has it crossed a critical mass ensuring its value will be propped up for a really long time?

Re: US AI stock sell-off shakes markets from Wall Street to Asia

#29

Post by khurs »

latentframe wrote: post #3

People often compare this to the dot-com bubble but today's leaders are generating very big cash flows => a valuation reset and a business collapse are two very different things

> but today's leaders are generating very big cash flows => a valuation reset and a business collapse are two very different things

All the new entrants have no existing revenue base like Google and Meta do, and these new companies are heavily funded by investors.

Any self respecting current AI company appears to be worth north of $1bn from day 0... based on investment valuation.

As long as the investors get THEIR money back, they won't care about a collapse.

Re: US AI stock sell-off shakes markets from Wall Street to Asia

#30

Post by khurs »

general1465 wrote: post #24

What even is a point on looking on stock charts which are detached from fundamentals of companies? Just casino. Usually numbers go up, sometimes they go down. It has no effect on your life. It has no effect on companies either. When your market share value is 10USD or 1000USD does not change if you are profitable or not.

>It has no effect on your life.

Public Pensions, private company pensions and the investments of public organisations and academic institutions are all tied up in these investments.

If they get it wrong, the impact on people is enormous.

In todays financial news, the pension fund of a telecoms firm lost £300m in an investment in a utility company. https://archive.ph/CmA59

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