Hello & welcome to Market Mood, After Hours 🌃 edition — like a nightclub for your portfolio. What can we get ya? It’s on the house 🥂

🤜 Battle Of The Titans 🤛

In the last 3 months, Artificial Intelligence has gone from synergystic buzzword to a practical application in a massive way. The road to where we are now is littered with academic papers improving on State of the Art performance over various benchmarks, but little adoption in large public companies.

The conversation goes parabolic with the release of ChatGPT, the newest public AI model from OpenAI. Simply put, it’s the most advanced (and expensive) chatbot on Earth. In practice, it can write poems about quantum mechanics, machine learning programs, and even legally binding contracts — in addition to it’s day job answering questions.

This doesn’t mean it’s not an idiot sometimes. Famously, it refused to believe that the fastest aquatic mammal could be anything other than the Peregrine Falcon. But idiot or not, investors are pricing in lucrative futures for companies that are poised to capitalize on the tech, and punishing those that look like they could be automated away in its wake.

So… who’s sitting on a pile of cash, and who’s on the chopping block?

Winners 📈 and Losers 📉

Microsoft

🟢 | Investors Bet: 📈

Microsoft (allegedly) invested an additional $10B in OpenAI this January. As a kickback, Azure becomes the sole cloud provider for the AI Lab, and they get first dibs on product integration:

+7% since announcing the investment on Jan 23rd.

BuzzFeed

🟢 | Investors Bet: 📈

BuzzFeed, creator of banger quizzes such as ‘Build A House From Scratch And I'll Totally Reveal What Kind Of Fairy You Are’, announced on January 26th that it would use ChatGPT org-wide to help their writers pump out content, and personalize interaction with their readers. The stock pumped a cool 300% after the announcement, but now settled in only 125% above previous levels. The price is still deep in the red from where it was a year ago, looks like Mr & Mrs Market are waiting to see if this actually moves the needle. But I would bet money that we see a “Guess Which Quizzes ChatGPT wrote” quiz in the next month.

Twilio

🟢 | Investors Bet: 📉

Twilio, the company that sends you texts tracking your DoorDash order (among other things), is the unprofitable behemoth of the CPaaS space. That’s Communications Platform as a Service, and Twilio eats ~50% of that $5B+ market annually. But the rapid dissemination of these public language models has some analysts spooked:

There’s still a chance Twilio could beat competitors to the punch and start shipping some AI features, but this will be the first serious competition they’ve faced. Best of luck!

Google

🟢 | Investors Bet: 📉?

Google has been relatively quiet since ChatGPT’s release, and investors know that Microsoft is coming for their browser market share:

Google still has its reputation as an innovator, but have they been coasting on reputation alone? We’ll find out soon, if they choose to release their model.

With a massive suite of existing tools to connect, and the pressure turned up, now would seem like a great time to start demoing some viral features of their own. And to add to the story of it all, a familiar face came out of retirement and put hands to keyboard.

So the AI-powered search market will be up for grabs in the coming months and years, but the outcome either way will be some cool tools for us, so cheers to that my friends!

Quick Note

Here at Market Mood, we’d never outsource writing these newsletters to some chat bot. At least, not until you’re getting more insight-per-word than you are now.

But maybe there are some questions about your portfolio you’d like to ask an AI. You’d probably want one that was trained specifically for finance, and maybe it’d even cite its sources with real-time data and historical trends. Who knows, that’s just what I want. If you want it too, get it soon here on Babbl:

P.s. — The “ALPHA” promo code is still running, so a premium account is only $4/mo for life

Thanks y’all, and happy trading

How would you rate today’s post?

1. Incredible 🔥🔥🔥🔥🔥

2. Considerably decent 😺😺😺

3. Not your best bro 👎

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

SENTIMENT KEY: 🟢=bullish, 🌑=neutral, 🔴=bearish