🍋 AI Stonks Are Back

AI is here to stay, and ChatGPT is poised to be one of the biggest disruptions since the likes of Google or Facebook. However, in the short term, investors should proceed with caution. Despite the potential for short-term growth, many AI companies are still unprofitable and investors should do their due diligence before jumping in.

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"We can now say for the first time that the disinflationary process has started." — Jerome Powell

Good Morning! The cost of eggs has plummeted 40% from its avian flu high, but don't break out the omelet pan just yet - the protein is still pricey. Yesterday the Fed has announced it will only raise interest rates by a measly 25bps, causing stocks to soar in response.

Tech stocks are all the rage recently, but the CEO of Palantir declared yesterday that Silicon Valley has "obviously failed" to make the world a better place.

A recent study uncovered a concerning trend in the US - people are still drinking bleach as a home remedy! The study, conducted by searching for "Miracle Mineral Solution" on Amazon, revealed that the majority of items for sale contain MMS, also known as industrial-grade bleach.

Porsche made a costly misstep when they accidentally listed a $148,000 sports car for only $18,000, causing hundreds of customers to jump at the opportunity to put down a deposit.

Today's sponsor, InvestorPlace is giving out their much anticipated report: 5 Bulletproof Retirement Stocks. Click here to claim your free copy.

1. Story of the Day: AI Stonks Are Back

The rise of ChatGPT is sending shockwaves throughout the tech and finance world, and it's no surprise why. This innovative AI tool has the potential to revolutionize industries and change the game for both businesses and investors. With Microsoft investing a whopping $10 billion in the OpenAI creation, it's clear that ChatGPT is no flash in the pan.

But as the AI trend continues to heat up, investors are starting to worry that they might be experiencing déjà vu. The AI-fueled market is starting to resemble the blockchain mania of 2017, which ultimately turned into a bubble. As a result, some venture capital investors are becoming nervous about overpaying for AI companies that are riding the hype wave.

However, it's not just AI-focused companies that are seeing a boost. Nvidia, the company that powers ChatGPT, saw a 46% increase in January, and the NASDAQ (tech-focused index) had its best January since 2001. With the AI trend showing no signs of slowing down, it's likely that more technology companies will try to capitalize on the latest trend by incorporating AI into their names and business focus.

Takeaway: AI is here to stay, and ChatGPT is poised to be one of the biggest disruptions since the likes of Google or Facebook. However, in the short term, investors should proceed with caution. Despite the potential for short-term growth, many AI companies are still unprofitable and investors should do their due diligence before jumping in.

2. Markets Rundown

If you want access to Wall Street insider interviews, industry deep-dives, premium research/resources and weekly Knowledge Drop newsletter, check out our Insiders membership.

Stocks closed higher as investors look past the Fed's rate hikes.

Movers & Shakers

  • (+) Peloton ($PLTN) +27% after the company announced Q4 earnings.

  • (+) Advanced Micro Demographics ($AMD) +13% after the company's earnings exceeded analyst expectations.

  • (–) Snapchat ($SNAP) -10% after poor earnings and demand for ad revenue.

Private Dealmaking

  • Stonepeak completed its $2.4 billion acquisition of Intrado from Apollo

  • ABB E-Mobility, a Swiss EV charging solutions platform, raised $355 million

  • Our Next Energy, an EV battery maker founded by former Apple employees, raised $300 million

  • LeafLink, a New York-based wholesale cannabis platform, raised $100 million

  • Enko, a Connecticut-based plant health company, raised $80 million

  • Ariana Grande will pay $15 million to buy back her r.e.m. beauty brand from Forma Brands

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3. Top Reads

  • How the pandemic changed the rules of personal finance (NPR)

  • Bond King expects one more rate hike (CNBC)

  • Netflix reveals first details of password sharing crackdown (YF)

  • Why does it feel Amazon is making itself worse? (NYMag)

  • The Fed will be in the thick of the debt limit mess (Axios)

  • Meta’s ‘Year of Efficency’ was all Wall Street needed to hear (CNBC)

  • The deflationary process has started (YF)

  • Peloton’s cash burn slows amid turnaround effects (Reuters)

  • EV maker Rivian cutting 6% of workforce (Fox)

  • GoodRX shared users data with Google and Facebook (Axios)

4. Book of the Day: The Aftermath

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Philip Bump, a reporter as adept with a graph as with a paragraph, is popular for his ability to distill vast amounts of data into accessible stories.

THE AFTERMATH is a sweeping assessment of how the baby boom created modern America, and where power, wealth, and politics will shift as the boom ends.

How much longer than we'd expected will Boomers control wealth? Will millennials get shortchanged for jobs and capital as Gen Z rises? What kind of pressure will Boomers exert on the health care system?

How do generations and parties overlap? When will regional identity trump age or ethnic or racial identity? Who will the future GOP voter be, and how does that affect Democratic strategies? What does the Census get right, and terribly wrong?

The questions are myriad, and Bump is here to fight speculation with fact.

“The number of kids born during the baby boom, was equal to more than half of the entire population of the United States in 1945.”

5. Short Squeez Picks

What Else to Read: Calling All Sports Fans

If you’re into (or even sort of into) sports: The GIST is a must-subscribe newsletter that provides a refreshing female voice and perspective on sports 4x a week.

If ‘do the thing and score the points’ is your baseline understanding of sports, you might enjoy this to uplevel your knowledge!

6. Daily Visual: TikTok is Boomin'

Q1 to Q4 2022

Source: Axios

7. Daily Acumen

Marc Andreessen on why he has read hundreds of biographies:

There are thousands of years of history in which lots and lots of very smart people worked very hard and ran all types of experiments on how to create new businesses, invent new technology, new ways to manage etc.

They ran these experiments throughout their entire lives. At some point, somebody put these lessons down in a book.

For very little money and a few hours of time, you can learn from someone's accumulated experience.

There is so much more to learn from the past than we often realize.

You could productively spend your time reading experiences of great people who have come before and you learn every time.

8. Job Board

9. Memes of the Day

 

 

 

 

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