Artificial Intelligence Is the New Stock Market Hype Machine- Morning Brief
It’s a bit like 2017 on the market right now.
This was the peak of companies’ rush to add “blockchain” to their corporate names or use the term in press releases to promote new products and partnerships.
This Reuters headline summarizes the trend: “Long Island Iced Tea skyrockets following renaming itself Long Blockchain” It didn’t go well.
Artificial intelligence is the new fad.
Take a look at the Yahoo Finance trending page right away (one of my favorites), and you will likely find a company whose name includes “AI” or a company that just released a new product touting the use of artificial intelligence.
Exhibit A: BigBear.ai ( BBAI). SPAC made public the “end-to end data analytics platform operationalizing AI and machine learning at large scale” via a transaction that closed on Dec. 8, 2021. The shares closed that day at $9.25. They trade at $5.50 today.
BigBear.ai does not make money. Its primary customers are the federal government, which includes the Department of Defense.
