this post was submitted on 15 Jul 2024
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Fuck AI

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[โ€“] [email protected] 4 points 1 month ago (1 children)

You got me thinking a bit on this one. One possibility is if you want to make a bet on it failing to deliver value in the near future, look at the companies whose stock prices have fallen on the fear of AI putting them out of business. For example, Concentrix does call center outsourcing and their stock is down significantly from their 2022 peak, partially on the expectation that AI is going to take business from them. Now, their profit margin is tiny and they don't seem to be growing much, so I don't know that they are a great investment, but there could be upside if the negative cloud of AI is removed. There are probably better examples out there, this one just came to mind.

Note: I have not done any research on this idea or on Concentrix and don't know if this is a good idea, but at least less risky than shorting the AI hype.

[โ€“] [email protected] 3 points 1 month ago

The thing is... this type of "risk" is already priced into the value of shares like Concentrix. There's a phrase... "the market is always perfectly priced", which means that if all information is available to everyone then the price you pay is the correct price, adjusted for risk.

To say the same thing another way, the current price for Concentrix shares is the price they would be if the AI bubble popped, less an adjustment for the risk that the bubble doesn't pop.