“Man Bites Dog”, but for AI

[] it’s a twist in the ongoing AI saga [View in browser]( [View in browser]( [] JUNE 18, 2024 [] [] PROSPERITY PUB MARKET TALK “Man Bites Dog”: AI Losing Its Job at McDonald's Drive-Thrus… To Humans We've heard of plenty of jobs being replaced by AI, but here’s a new twist. It seems an IBM-supplied AI system, which McDonald's was testing in its drive-thrus, is losing its job to humans. McDonald's is ending its trial of the Automated Order Taker (AOT) AI drive-thru technology, developed in partnership with IBM, across more than 100 restaurants. The technology was meant to streamline operations with voice-activated ordering, but it faced challenges interpreting different accents and dialects, which impacted order accuracy. As a result, the AI system will be shut off by July 26, according to a memo sent to franchisees. Despite the end of this particular experiment, McDonald's hasn't abandoned its AI ambitions. The company remains optimistic about the future role of AI in its drive-thrus, acknowledging the potential for voice ordering solutions to enhance customer experience. The fast-food giant's decision comes amidst a broader industry trend of experimenting with AI and robotics to streamline operations. While other restaurant chains like Chipotle and Yum Brands have made significant strides in AI and robotics investments, McDonald's continues to evaluate long-term, scalable solutions for its operations. Interestingly, Alphabet's Google might be the next player in McDonald's AI journey. Speculation arose after Google's significant presence at McDonald's Worldwide Convention in April, hinting at a possible partnership to replace IBM. For now, the focus remains on achieving accuracy of at least 95% and cost savings, with McDonald's franchisees expressing frustration over the AOT's performance. McDonald’s Stock — The Golden Arches Are Sagging Meanwhile, our own Geof Smith weighed in on MCD in no uncertain terms: “Think about this: The S&P is up 15% on the year, NQ is up 18%, the Dow up 3% and MCD is down 15% on the year. MCD is a DOG.” He went on to share his view of where MCD is headed next, including key levels: “I think if it breaks below 249 it will probably test 246 and if it gets below 245.40 next stop is 241, then 235, then 231, after that, it is not too far from the 2022 lows of 217.” It seems the downside outlook on MCD is unanimous, as Jeffry Turnmire weight in with his commentary: “MCD might be heading down regardless. The setup is bearish. The target is a lower low than the low that was struck back in October 2023. 232-239 area would be the "ideal" spot to find a bottom, and if it moves on down.... well that might mean a longer correction is in store for MCD.” He shared [the following chart]( pointing out that the past 18 months of MCD’s price action resembles a giant McDonald’s logo: [] He went on to remind us of a topic he’s been mentioning periodically for the past year or so: the Commercial Real Estate problem. “Remember for a long time [McDonald’s has] said they were a real estate company that sells hamburgers... For more than a year now, I have been discussing the problems brewing in CRE.” — The Prosperity Pub Team [] [] [ALERT] 3 Energy Stocks Set to Explode! Discover the top 3 energy stocks driving the current super trend! These stocks have already surged by up to 135.1% and are projected to keep soaring! Jack Carter reveals how you can tap into these high-growth opportunities with a solid weekly income strategy! [Click now to get the 3 stocks!]( [] [] SCOTT WELSH’S TICKER TALES Pizza Time? (DPZ) For a long time, Domino’s (DPZ) has been a sneaky-good growth stock. It’s gone from $94 to $530 since 2015. And now it’s climbing toward another breakout level. Keep in mind, when DPZ hit its last breakout level, it went from $413 to $500. Here’s the chart: [] If it breaks above $542.75, we could see another nice move. We’ll keep an eye on it. Happy trading, — Scott Welsh P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on [this Ask The Pros episode]( starting at timestamp 20:45. [] [] [] [] JUNE 18, 2024 [] [] PROSPERITY PUB MARKET TALK “Man Bites Dog”: AI Losing Its Job at McDonald's Drive-Thrus… To Humans We've heard of plenty of jobs being replaced by AI, but here’s a new twist. It seems an IBM-supplied AI system, which McDonald's was testing in its drive-thrus, is losing its job to humans. McDonald's is ending its trial of the Automated Order Taker (AOT) AI drive-thru technology, developed in partnership with IBM, across more than 100 restaurants. The technology was meant to streamline operations with voice-activated ordering, but it faced challenges interpreting different accents and dialects, which impacted order accuracy. As a result, the AI system will be shut off by July 26, according to a memo sent to franchisees. Despite the end of this particular experiment, McDonald's hasn't abandoned its AI ambitions. The company remains optimistic about the future role of AI in its drive-thrus, acknowledging the potential for voice ordering solutions to enhance customer experience. The fast-food giant's decision comes amidst a broader industry trend of experimenting with AI and robotics to streamline operations. While other restaurant chains like Chipotle and Yum Brands have made significant strides in AI and robotics investments, McDonald's continues to evaluate long-term, scalable solutions for its operations. Interestingly, Alphabet's Google might be the next player in McDonald's AI journey. Speculation arose after Google's significant presence at McDonald's Worldwide Convention in April, hinting at a possible partnership to replace IBM. For now, the focus remains on achieving accuracy of at least 95% and cost savings, with McDonald's franchisees expressing frustration over the AOT's performance. McDonald’s Stock — The Golden Arches Are Sagging Meanwhile, our own Geof Smith weighed in on MCD in no uncertain terms: “Think about this: The S&P is up 15% on the year, NQ is up 18%, the Dow up 3% and MCD is down 15% on the year. MCD is a DOG.” He went on to share his view of where MCD is headed next, including key levels: “I think if it breaks below 249 it will probably test 246 and if it gets below 245.40 next stop is 241, then 235, then 231, after that, it is not too far from the 2022 lows of 217.” It seems the downside outlook on MCD is unanimous, as Jeffry Turnmire weight in with his commentary: “MCD might be heading down regardless. The setup is bearish. The target is a lower low than the low that was struck back in October 2023. 232-239 area would be the "ideal" spot to find a bottom, and if it moves on down.... well that might mean a longer correction is in store for MCD.” He shared [the following chart]( pointing out that the past 18 months of MCD’s price action resembles a giant McDonald’s logo: [] He went on to remind us of a topic he’s been mentioning periodically for the past year or so: the Commercial Real Estate problem. “Remember for a long time [McDonald’s has] said they were a real estate company that sells hamburgers... For more than a year now, I have been discussing the problems brewing in CRE.” — The Prosperity Pub Team [] [] [ALERT] 3 Energy Stocks Set to Explode! Discover the top 3 energy stocks driving the current super trend! These stocks have already surged by up to 135.1% and are projected to keep soaring! Jack Carter reveals how you can tap into these high-growth opportunities with a solid weekly income strategy! [Click now to get the 3 stocks!]( [] [] SCOTT WELSH’S TICKER TALES Pizza Time? (DPZ) For a long time, Domino’s (DPZ) has been a sneaky-good growth stock. It’s gone from $94 to $530 since 2015. And now it’s climbing toward another breakout level. Keep in mind, when DPZ hit its last breakout level, it went from $413 to $500. Here’s the chart: [] If it breaks above $542.75, we could see another nice move. We’ll keep an eye on it. Happy trading, — Scott Welsh P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on [this Ask The Pros episode]( starting at timestamp 20:45. [] [] [] [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](