The other side to AI boom, dead stocks
Woke up to a nice 30% gain on my short position on Wix this morning…there is no way they compete with AI….$200/year for website hosting and development using crappy templates feels like 90s tech at this point. They had a nice price point until they didnt.
Other things to short? All of these are like 50% down in the past year, but i think there is downside risk
* All the consulting companies that are not all govt contracts
* All the Indian consulting companies…the rupee is collapsing as i type this
* SaaS companies
What else? Basically i am not saying these companies are going out of business, but i am saying they will be challenged to have any rev growth, which means they trade then at book value(equity on the balance sheet) which is normally peanuts
** Edited by MrBayAreaHokie at 5/13/2026, 8:40:45 PM
2 Replies
2mo
From my perspective, AI sucks at overcoming crappy human input, and that describes the majority of the information I deal with...
(In response to this post by MrBayAreaHokie)
2mo
Those that work across an organization are still needed. Those that are niche players are going to be in for more tough sledding.
Certainly the P/E ratios have come down but does not mean the companies will all go away
(In response to this post by MrBayAreaHokie)