Stocks are giving back some ground in the early going today after a mixed showing Tuesday. Crude oil, gold, and silver are hovering around the flatline, as are Treasuries. The dollar is modestly higher.
Apple (AAPL) is throwing in the towel...on a self-driving car, that is. After spending years of time and money on an effort to build “the ultimate mobile device,” Apple walked away from the “Project Titan” program. Instead, the tech behemoth will redirect its investments into Artificial Intelligence-related projects and products like its VR headset.
Speaking of which, plenty of people have asked the question: “Is the AI stock boom a bubble?” Today, it was the Wall Street Journal’s turn in this in-depth article. The piece compares the surge in value for Nvidia (NVDA) and its AI cohorts to the “Nifty Fifty” stocks of the 1970s – and recounts various post-era academic studies on whether THAT was a bubble or not.
Nvidia (NVDA)
The general conclusion? Probably not, but volatility should be expected regardless. Unlike many stocks in the Dot-Com bubble, most of today’s AI names (and their 1970s predecessors) actually make (or made) money. Plus, most of the Nifty Fifty names survived and thrived long after that boom, with only a handful like Polaroid and Eastman Kodak eventually failing. We aren’t seeing a flood of AI-related Initial Public Offerings (IPO) that could overwhelm investors, either.
Yesterday, we learned that Wendy’s Co. (WEN) meals could cost more at certain times of day as it implements “surge pricing.” Today, we’re learning that tickets to Walt Disney Co. (DIS) theme parks will cost more soon. The cost to visit Walt Disney World parks in 2025 will rise $5-$10 from 2024, climbing to as much as $189 for peak 1-day passes at the Magic Kingdom, for instance. After a rough patch last year, DIS shares are up more than 21% so far in 2024.
