$TSLA Rally, AI Stocks, Microsoft vs Google, SEC Crypto Staking and More!!!
$TSLA, $GOOGL, $MSFT, and AI Stocks are all the rage this week, see why!!!
Tesla.. A “short covering for the ages” according to analyst..
Tesla Stock has nearly doubled since it’s January 6th low, when it dropped to $101.81. TSLA 0.00%↑ is now trading at $207.95 at the time of this writing, up 91.79% on year to date.
"The demand outlook for 2023 has surpassed even the bull case scenario and caused a short covering for the ages," tech analyst Dan Ives stated.
Tesla cut the prices of their Electric Vehicles in early January, which led to renewed demand for Tesla. Their Model Y Long Range dropped $13K (now priced at $52K), and their Model 3 base Version dropped $3K (now priced at $43K).
"The price cuts have been a genius move by Musk and are paying massive dividends in the field," Dan Ives also stated.
Tesla bull and Ark Invest founder Cathie Woods said of the move; “I think traditional auto manufacturers are going to have trouble keeping up with the price declines that Tesla's technology is enabling."
However some experts think that price cuts will damage the Tesla brand over the long term and hurt profit margins.
Kraken hit with $30 Million fine and shuts down US Crypto Staking as part of a settlement with the SEC.
The SEC charged Kraken with “selling unregistered securities through its crypto asset staking-as-a-service program.” The SEC has been planning on clamping down on Crypto Staking programs for a while now, but it looks like it is finally happening.
Coinbase’s CEO tweeted about the possibility that the SEC might shut down Crypto Staking in the US, saying that staking is “an important innovation” and not a security risk. The SEC seems to disagree, saying in a press release that this move will “make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection.”
According to the SEC, Kraken took investors’ crypto and put it into staking pools, with the incentive being that in exchange for locking up your crypto you will earn interest on that crypto. However the SEC says that by doing this Kraken’s promises were “untethered to any economic realities” and provided “zero insight into, among other things, its financial condition and whether it even had the means of paying marketed returns in the first place.”
Ethereum (ETH) took a big hit when the news broke, dropping almost 5% in half an hour, and Coinbase stock COIN 0.00%↑ fell 14% after the SEC settlement.
Microsoft vs. Google, Who Will Be King of AI?
The race for AI dominance is on between Microsoft and Google. Microsoft has recently announced a new AI-powered Bing Homepage that users can chat with. This is seen as a direct challenge to Google, which currently dominates the search market.
Microsoft’s MSFT 0.00%↑ partnership with OpenAI has them investing at least $1 billion into the AI research organization, with a commitment of $10 billion in the future.
Google, on the other hand, has debuted a chat service called Bard that appears to be their answer to ChatGPT. However, on Monday of this week, Bard made an error during a demo which resulted in Google GOOGL 0.00%↑ shares losing $100 billion and a 7.7% decrease. When asked “What new discoveries from the James Webb Space Telescope can I tell my 9 year old about?” part of Bard's response said; “JWST took the very first pictures of a planet outside of our own solar system.” However according to NASA, "the first image showing an exoplanet — or any planet beyond our solar system — was actually taken by the European Southern Observatory’s Very Large Telescope nearly two decades ago, in 2004.”
Despite this setback, the competition between Microsoft and Google for AI dominance is far from over. Both companies are constantly investing in new AI technologies and pushing the boundaries of what is possible. The future of AI is bright, and the competition between these two tech giants will likely result in many new breakthroughs and advancements in the field. Both companies are committed to investing in AI and pushing the boundaries of what is possible. Regardless of who wins the race, it is clear that AI will play a significant role in shaping our future
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AI Stock Rally Legit?? Not Another Meme Stock Rally?
The recent rally in AI stocks has been the subject of much discussion and speculation in the financial world. Some investors are worried that this could be another repeat of the meme stock rallies seen in companies like GameStop GME 0.00%↑ , AMC AMC 0.00%↑ , and Bed Bath & Beyond BBBY 0.00%↑ . However, analysts are saying that the AI stock rally is different and is a justified rally.
One of the reasons why the AI stock rally is being seen as a justified rally is due to the recent advancements in AI technology. For example, C3.ai recently unveiled a new set of tools that support generative AI for enterprise applications. As a result of this announcement, the company's stock has exploded by 129% this year AI 0.00%↑ .
The excitement around AI technology has spilled over into more speculative AI names such as SoundHound SOUN 0.00%↑ and BigBear.ai BBAI 0.00%↑ . These companies are also seeing a rise in their stock prices as investors look to capitalize on the growing demand for AI solutions.
While there are always risks involved in investing in any stock, including AI stocks, the general consensus among analysts is that the AI stock rally is not another meme stock rally. Instead, it is a result of the real potential for AI to revolutionize many industries and drive long-term growth for companies in the sector. With the rapid advancements in AI technology and the growing demand for AI solutions, the future looks bright for the AI sector. Investors looking to invest in AI stocks should do their due diligence and understand the risks involved before making any investment decisions.
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