The Weekly Pop
Apple Sinks & Meta Jumps, Secoo Traps Shorts, GPT-3's Gold Rush
Apple Sinks & Meta Jumps
In an unusual turn of events given both companies’ recent track records, Apple stock fell after reporting earnings - from GPT-3:
Apple ($AAPL) reported earnings and missed on both revenue and EPS. The stock gapped down when earnings hit the tape, but reversed over the course of the following trading day as everyone anticipated weak iPhone sales.
Apple ($AAPL) Social Data [bars] vs Price [line]
And for Meta:
META has been performing well this year, gaining over 20% on their earnings reaction day and currently ranking as the 10th biggest one-day gainer. Last year, three trends kept the stock down: too much spending, Apple privacy laws and TikTok; however, all three of these are now reversing with cost-responsible measures being rewarded by the market. Additionally, Facebook reported an earnings beat on revenue but a EPS miss for META which saw its price break out over $154 post earnings. Jim Cramer recently praised META's most recent earnings success after apologizing for recommending it just one quarter ago.
We’ll leave you with an imagining of “Apple Stock Sinking” by OpenAI’s MidJourney:
No, this isn’t really Tim Cook
Secoo’s Small Cap Short Trap
In the world of small cap stocks, Secoo Holding Ltd jumped to #1 on our Popping Stocks list (making it the stock with the greatest social increase versus its average in the US stock market), with shorts caught in a tight squeeze:
SECO is a hot stock with news and low float, making it susceptible to short squeezes. It's part of the Chinese AI theme and has been subject to bear traps. The target price for SECO today is $5 with potential HOD touch coming up. Secoo Group is transforming luxury goods operation models with AIGC and ChatGPT Technologies which makes it even more appealing to investors.
Secoo ($SECO) Social Data [bars] vs Price [line]
While this might seem like an easy play to those watching social, this kind of discussion very closely mirrors what we saw from Atlas Trading - so be wary of influencers pumping “easy money.” One never knows what’s happening behind the scenes!
The GPT-3 / ChatGPT Gold Rush
The speed of ChatGPT’s user acquisition has been staggering. It reportedly has reached 100 million users as of February 3rd, making it the fastest growing product in internet history (and probably regular history too).
Apps, chatbots, and content generators are starting to abound - this represents the lowest hanging fruit for product creation. It’s going to be tough to stand out as a marketing content generator when anyone can hook into APIs from GPT-3 or ChatGPT and instantly make a decent product. GPT-3 will probably also wipe out any existing proprietary general text summarization or chatbot AI startup.
The biggest winners will be those with the most valuable data. AI is about to be (or may already just have been) successfully commoditized, which makes unique and valuable training data the most valuable aspect of a GPT-3/ChatGPT product.
Think big players with huge client datasets - AWS, Hubspot, Salesforce, and Snowflake, for example. If these companies can successfully integrate GPT-3 - or similar technologies - they will stand to gain tremendously.
The biggest early institutional player looks to be Microsoft. We’ve called this out before in our newsletter, but if Microsoft can nail Bing/GPT-3 search, it will fundamentally change the internet.