Artificial intelligence (AI) is rapidly becoming one of the most discussed issues in technology. It has already transformed numerous areas, like healthcare and banking, but what does this imply for the IT industry? Based on a podcast with Dan Ives of Wedbush Securities and Mandeep Singh of Bloomberg Intelligence talking about this issue, both experts shared their thoughts on critical issues like Tesla’s Twitter preoccupation, Airbnb’s performance since the epidemic began, and Apple’s prospective entrance into self-driving automobiles.
Dan started by criticizing Elon Musk’s present status at Tesla Motors; “Musk’s goalposts have continued to be moved out, “He was referring to Musk’s propensity to concentrate on Twitter rather than his main job position as CEO of Tesla Motors.
“When it comes down to it, I believe investors want him laser-focused on Tesla – both defensively and offensively.” When asked how Telsa’s pricing is set, he said they aim “to create a balance between supply and demand,” which may be difficult due to shifting market circumstances. He then discussed Ross Gerber, who was recently interviewed by Carol Masser for Bloomberg Business Week and expressed concern about a lack of succession plan should something happen to Elon Musk’s health or overall presence within Tesla Motors, given that Kimball is unlikely to return anytime soon given her current position as Chief Technology Officer at The Verge company.
Mandeep then explained Airbnb’s recent stock spike, stating that “pent-up travel demand mixed with price hikes and solid business strategy” was to blame. “Compared to competitors such as Uber Live DoorDash, etc., they were responsible for their growing numbers. She also said how Google’s marketing budget helps them stay competitive despite other OTAs having greater leverage models since recurrent transactions don’t need them to spend much money on sales and marketing, particularly given their target audience is Gen Z customers.
Dan finally discussed his best idea right now, which was Caca after expressing some initial doubts surrounding technology stocks earlier this year; “We still look names like Microsoft & Salesforce given Activism puts a floor beneath those stocks…our Top Pick continues to be Apple – we believe will regain 3 Trillion mark”. When asked whether an Apple automobile will ever be launched, Dan responded favorably, reinforcing analyst/investor confidence in a likely release around 2026, noting growing concentration on AI research through 8-10 billion dollar expenditures yearly with install base advantages no other business presently possesses (2 Billion).
Mandeep’s final thoughts centered on Digital Ads, specifically Metas’s negative sentiment over the past 12 months, even though it has increased 47% so far in 2020 alone; she believes cost-cutting strategies thus far, combined with the cyclical rebound, could prove beneficial shortly, especially given that pocket digital ads has been the worst performing sector yet due to trough valuations hitting bottom = time sequential increase top-line growth moving forward.
Overall, as mentioned earlier, there is tremendous optimism around the topics raised throughout their talk, indicating that positives clearly outnumber negatives; nevertheless, only time will tell whether these forecasts become a reality.
