Q: We're approaching January, many of which have a lot of turbulence as fund managers sell winning stocks/sectors from this year to buy into what they think will be the winning stocks/sectors for 2026. Do you have any insight on what we should expect from them this time around? Canadian banking has been insanely good this year. Will they bet on that continuing or sell off to buy tech? Or will they go for gold or the long neglected healthcare or real estate sectors?
I presume there will also be a lot of retail selling of winners this year from people who put it off so the taxes would be delayed. Though I'm not sure how much retail moves the needle compared to funds.
I presume there will also be a lot of retail selling of winners this year from people who put it off so the taxes would be delayed. Though I'm not sure how much retail moves the needle compared to funds.
Q: Hi 5i team,
I would like to hear your take on these three points:
1. AI is a low margin business like energy/manufacturing
The idea is that, unlike software, AI has high marginal costs per query. Serving 100M queries costs roughly 2x as much as 50M. So as models get more complex, computing costs (electricity and water)scale up linearly. Doesn't this trap AI companies in a CAPEX-heavy, OPEX-intensive, and low-margin game instead of the high-margin SaaS story everyone's betting on?
2. Anthropic has a better business model than OpenAI
OpenAI relies heavily on consumer subscriptions (ChatGPT Plus), which are volatile. Anthropic gets 80+% revenue from enterprise/API deals much stickier. So Anthropic's actually in a stronger position long term?
3. $1 trillion OpenAI IPO doesn't make sense
Above reasons plus they're burning $14B+ annually by 2027, mostly going to Microsoft for cloud credits. Plus, the circular logic of their investors funding startups that buy OpenAI credits. Sounds like WeWork all over again?
Best,
Matt
I would like to hear your take on these three points:
1. AI is a low margin business like energy/manufacturing
The idea is that, unlike software, AI has high marginal costs per query. Serving 100M queries costs roughly 2x as much as 50M. So as models get more complex, computing costs (electricity and water)scale up linearly. Doesn't this trap AI companies in a CAPEX-heavy, OPEX-intensive, and low-margin game instead of the high-margin SaaS story everyone's betting on?
2. Anthropic has a better business model than OpenAI
OpenAI relies heavily on consumer subscriptions (ChatGPT Plus), which are volatile. Anthropic gets 80+% revenue from enterprise/API deals much stickier. So Anthropic's actually in a stronger position long term?
3. $1 trillion OpenAI IPO doesn't make sense
Above reasons plus they're burning $14B+ annually by 2027, mostly going to Microsoft for cloud credits. Plus, the circular logic of their investors funding startups that buy OpenAI credits. Sounds like WeWork all over again?
Best,
Matt
Q: I came across SMX stock. It shows 52 week from 3 to 66k. Is this worth investing. Can you please give your opinion.
Thanks for the excellent service
Thanks for the excellent service