WealthyReadings
I am part of those who believe the AI trade is over.
Not that AI is useless. Compute demand isn’t going to disappear and I don’t think we’re in a bubble. But I believe the massive overperformance we’ve seen in AI infra names over the past two years is behind us.
Some stocks will keep ripping as the market focuses on new narratives; I own two I believe will outperform, deservedly so. But going into 2026 assuming that any dip is an obvious buy feels like a great way to underperform.
The rotation already begun. It would be foolish to ignore it.
I have a few ideas where liquidity is headed, am already positioned in some names with more on my watchlist awaiting confirmation. None of those are AI related. They’re definitely not the names everyone is still fixated on around here. If I were to be wrong, I would still have those two stock who are great hold at today's price, so I keep a feet on the game.
But it’s time to start fishing in another pond, aside from a handful exceptions.
tweet
I am part of those who believe the AI trade is over.
Not that AI is useless. Compute demand isn’t going to disappear and I don’t think we’re in a bubble. But I believe the massive overperformance we’ve seen in AI infra names over the past two years is behind us.
Some stocks will keep ripping as the market focuses on new narratives; I own two I believe will outperform, deservedly so. But going into 2026 assuming that any dip is an obvious buy feels like a great way to underperform.
The rotation already begun. It would be foolish to ignore it.
I have a few ideas where liquidity is headed, am already positioned in some names with more on my watchlist awaiting confirmation. None of those are AI related. They’re definitely not the names everyone is still fixated on around here. If I were to be wrong, I would still have those two stock who are great hold at today's price, so I keep a feet on the game.
But it’s time to start fishing in another pond, aside from a handful exceptions.
tweet
Wasteland Capital
$KLAR trying to pump its dumpster-IPO stock by announcing that they gave loans to literally ANYONE cash-poor who asked for it during Black Friday.
Unsecured lending to desperate consumers? Huh, noone’s tried that before. I wish them well.
But, this is bullish retailers.
tweet
$KLAR trying to pump its dumpster-IPO stock by announcing that they gave loans to literally ANYONE cash-poor who asked for it during Black Friday.
Unsecured lending to desperate consumers? Huh, noone’s tried that before. I wish them well.
But, this is bullish retailers.
BNPL exploded this holiday season
Klarna saw a 45% year-over-year increase in U.S. sales from November 1 through Black Friday. Footwear, tech, beauty, and home goods all performed strongly. tweet
X (formerly Twitter)
Special Situations 🌐 Research Newsletter (Jay) (@SpecialSitsNews) on X
BNPL exploded this holiday season
Klarna saw a 45% year-over-year increase in U.S. sales from November 1 through Black Friday. Footwear, tech, beauty, and home goods all performed strongly.
Klarna saw a 45% year-over-year increase in U.S. sales from November 1 through Black Friday. Footwear, tech, beauty, and home goods all performed strongly.
Offshore
Photo
Fiscal.ai
Last Call ⏰
12 Hours left to get 30% off any Fiscal AI paid plan.
Offer ends at 11:59PM EST tonight. https://t.co/eXyGifOqrE
tweet
Last Call ⏰
12 Hours left to get 30% off any Fiscal AI paid plan.
Offer ends at 11:59PM EST tonight. https://t.co/eXyGifOqrE
tweet
Wasteland Capital
I was reading some research today and was blown away by the lack of ability by these analysts to identify what’s important.
Endless words and data. Zero insights.
Yet insight is all that matters.
And any insight can be expressed in a paragraph or two, a chart, or both.
tweet
I was reading some research today and was blown away by the lack of ability by these analysts to identify what’s important.
Endless words and data. Zero insights.
Yet insight is all that matters.
And any insight can be expressed in a paragraph or two, a chart, or both.
tweet
Offshore
Video
memenodes
When she finds out you don’t panic about the dips, you just buy more https://t.co/WOt92fGpFv
tweet
When she finds out you don’t panic about the dips, you just buy more https://t.co/WOt92fGpFv
tweet
Offshore
Photo
AkhenOsiris
OpenAI $NVDA $GOOGL
https://t.co/N7fbQNh0UB
Ben Thompson:
It’s also worth pointing out, as Eric Seufert did in a recent Stratechery Interview, that Google started monetizing Search less than two years after its public launch; it is search revenue, far more than venture capital money, that has undergirded all of Google’s innovation over the years, and is what makes them a behemoth today. In that light OpenAI’s refusal to launch and iterate an ads product for ChatGPT — now three years old — is a dereliction of business duty, particularly as the company signs deals for over a trillion dollars of compute.
And, on the flip side, it means that Google has the resources to take on ChatGPT’s consumer lead with a World War I style war of attrition; OpenAI’s lead should be unassailable, but the company’s insistence on monetizing solely via subscriptions, with a degraded user experience for most users and price elasticity challenges in terms of revenue maximization, is very much opening up the door to a company that actually cares about making money.
To put it another way, the long-term threat to Nvidia from TPUs is margin dilution; the challenge of physical products is you do have to actually charge the people who buy them, which invites potentially unfavorable comparisons to cheaper alternatives, particularly as buyers get bigger and more price sensitive. The reason to be more optimistic about OpenAI is that an advertising model flips this on its head: because users don’t pay, there is no ceiling on how much you can make from them, which, by extension, means that the bigger you get the better your margins have the potential to be, and thus the total size of your investments. Again, however, the problem is that the advertising model doesn’t yet exist.
tweet
OpenAI $NVDA $GOOGL
https://t.co/N7fbQNh0UB
Ben Thompson:
It’s also worth pointing out, as Eric Seufert did in a recent Stratechery Interview, that Google started monetizing Search less than two years after its public launch; it is search revenue, far more than venture capital money, that has undergirded all of Google’s innovation over the years, and is what makes them a behemoth today. In that light OpenAI’s refusal to launch and iterate an ads product for ChatGPT — now three years old — is a dereliction of business duty, particularly as the company signs deals for over a trillion dollars of compute.
And, on the flip side, it means that Google has the resources to take on ChatGPT’s consumer lead with a World War I style war of attrition; OpenAI’s lead should be unassailable, but the company’s insistence on monetizing solely via subscriptions, with a degraded user experience for most users and price elasticity challenges in terms of revenue maximization, is very much opening up the door to a company that actually cares about making money.
To put it another way, the long-term threat to Nvidia from TPUs is margin dilution; the challenge of physical products is you do have to actually charge the people who buy them, which invites potentially unfavorable comparisons to cheaper alternatives, particularly as buyers get bigger and more price sensitive. The reason to be more optimistic about OpenAI is that an advertising model flips this on its head: because users don’t pay, there is no ceiling on how much you can make from them, which, by extension, means that the bigger you get the better your margins have the potential to be, and thus the total size of your investments. Again, however, the problem is that the advertising model doesn’t yet exist.
tweet
AkhenOsiris
$AMZN
Amazon’s AI chatbot, Rufus, saw a surge of adoption on Black Friday, according to new data published over the weekend by market intelligence firm Sensor Tower. In the U.S., Amazon sessions that resulted in a purchase surged 100% on Black Friday compared with the trailing 30 days, while sessions that resulted in a purchase and didn’t include Rufus increased by only 20%.
In addition, Amazon saw a 75% day-over-day increase for sessions that included Rufus and resulted in a purchase, compared with just a 35% day-over-day increase for sessions without Rufus that had resulted in a purchase.
tweet
$AMZN
Amazon’s AI chatbot, Rufus, saw a surge of adoption on Black Friday, according to new data published over the weekend by market intelligence firm Sensor Tower. In the U.S., Amazon sessions that resulted in a purchase surged 100% on Black Friday compared with the trailing 30 days, while sessions that resulted in a purchase and didn’t include Rufus increased by only 20%.
In addition, Amazon saw a 75% day-over-day increase for sessions that included Rufus and resulted in a purchase, compared with just a 35% day-over-day increase for sessions without Rufus that had resulted in a purchase.
tweet