Finding the True AI Superstars

How to decide what's real and what's not real about AI... SPECIAL OPPORTUNITIES [The Oxford Club Special Opportunities]( Note From Editorial Director Justin Fritz-Rushing: It's hard to avoid the term artificial intelligence (AI) these days. As Manward Press' Chief Investment Strategist Shah Gilani says in today's article, AI was the buzzword of 2023. And it's easy to see why, given its transformational potential. The problem for investors going forward will be separating the real investment opportunities in AI from companies that are just trying to jump on the AI bandwagon. Shah has you covered... --------------------------------------------------------------- Steer Clear of Hype and Find Real AI Profit Plays Shah Gilani, Chief Investment Strategist, Manward Press [Shah Gilani] Every investor knows AI is hot. It was the buzzword of 2023. It's what launched stock market indexes higher last year. It's what almost every listed company's management now says they're using. And it's what companies have shouted the loudest about when they've announced their IPOs, or initial public offerings. Chipmaker Arm Holdings (Nasdaq: ARM) touted AI leading up to its September 14 IPO. It highlighted its focus on GPU chips, the not-so-secret sauce powering AI applications. And its IPO, initially priced at $51, opened at $56.10, traded up to $66.28 and closed the first day at $63.59. Instacart (Nasdaq: CART), formally known as Maplebear, also touted AI leading up to its September 19 IPO. And its first day as a public company was almost as explosive as Arm's. But it didn't last. Maybe that was because Instacart's AI-infused hype was more about getting investors to buy into the IPO than actually powering Instacart's revenues or profits. And therein lies a warning for investors. It's important to know what's real and what's not real about AI... who's using it to hype up stock prices and who's using it to actually make money... That's why investors need a road map when it comes to companies touting AI. In May 2023, when rumors that Instacart was planning an IPO started circulating, the company launched its AI-powered charm offensive. Leading up to the IPO, Instacart announced several major updates to its Storefront platform, all of them AI-driven. The platform powers storefronts for more than 550 retail brands, including Costco. The updates, according to VentureBeat, included conversational search capabilities powered by OpenAI's ChatGPT as well as proprietary AI models. The company also announced AI upgrades to its Caper Carts, the checkout technology it acquired in 2021 when it bought startup Caper AI for $350 million. There's nothing wrong with touting AI when a company actually uses it. What's wrong is advertising AI use or contemplated AI use to hype a company's stock price. Instacart priced its IPO at $30 a share. The buzz around the IPO was about how the company's new AI upgrades were powering sales and profits - which, in fact, they were. So it was no surprise the stock opened its first day of trading at $42, 40% above its IPO price. It got up to $42.95 that day but closed at $33.70 - still a decent 12.3% above the initial price. Then the AI hype, pushed by the IPO's underwriters, faded as reality took hold. The stock has been on a downward slope since its debut. It's now trading below the IPO price at $22 and some change. I was asked by Fox Business News hosts about Instacart and the AI prospects driving its profitability when it came to market. I told them I thought the hype was more about inflating the IPO and the stock than the company's profitability and that I couldn't in good conscience recommend it. Investors have been taken in by AI hype a lot lately, and it's going to wreck a lot of portfolios and retirement prospects. Instacart faces stiff competition from DoorDash, Uber and, of course, Amazon. Looking at it in this light takes out the AI hype and flighty narratives and focuses your analysis on actual numbers. As I write, Uber trades at 2.8 times revenue, DoorDash trades at 3.5 times revenue and Instacart started trading at 4 times revenue. On that basis alone, it's expensive, and I wouldn't recommend it. AI hype aside, I would consider buying Instacart below $20... and it's headed there. Down there, it's worth buying for its growth potential, its profitability and its AI tech. That's what I mean when I say you need a road map to navigate all the AI hype. There's no doubt that every investor needs exposure to the AI space and its explosive growth potential... but if you're not careful and just go after every ticker that has an AI angle right now, you're going to lose your shirt. Fortunately, I've hand-picked what I think are the absolute best ways to profit from the AI boom right now. [Go here to learn more.]( Cheers, Shah OPPORTUNITIES OF INTEREST - [ChatGPT Admits, "[Industry X] Will Grow at the Same Rate as the AI Industry..." but These Stocks Sell for up to 97% Less. Click for Details.]( - [Whatever You Do, DON'T Invest in the Wrong AI Companies.]( - [The Next Big Short Is Here! Go here now for your shot at a historic opportunity.]( SPONSORED [Financial Bestseller DESTROYS the Big Banks in New Video]( [Marc - Safe Money Income Secrets]( Find out the "[Magic Code]( that can FORCE the big banks to pay you [up to 255 times more income](... how to make BIG income off even your checking account... the secret way to buy gold with [ZERO downside](... and more. [The Oxford Club] You are receiving this email because you subscribed to Oxford Club Special Opportunities. Oxford Club Special Opportunities is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. [Privacy Policy]( | [Whitelist Oxford Club Special Opportunities]( | [Unsubscribe]( © 2024 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [1.800.589.3430](#) | International: [+1.443.353.4334](#) | Fax: [1.410.329.1923](#) [Oxfordclub.com]( Your Legal Questions... Answered What is The Oxford Club? The Oxford Club is a financial publisher with a highly rated track record. We deliver unique and well-researched financial and investment ideas to our Members. What do you do? We share our team of experts' industry knowledge and timely insights with our Members so they have the financial literacy and tools needed to build a rich, fulfilling life. We do not provide any personalized financial advice or advocate the purchase or sale of any security or investment for any specific individual. Instead, the information we share is directed toward a larger audience of all subscribed Members. So you'll make me rich? Maybe! But not exactly. Our goal is to provide the research and information required to help you make you rich. Investment markets have inherent risks, and we can't guarantee future profits. Why should I trust you? We offer information based on what we think will provide the most value to our Members. Our business depends on Members' interest in our ideas and satisfaction with their results. We've been around for 30-plus years because our Members have continually chosen to stay with us (many of them for life). Nothing published by The Oxford Club should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed personalized investment advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after publication before trading on a recommendation. Should I still consult my investment advisor? Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.