HAS Reddit Mentions | ChartExchange

Besides that really good to know information,
the whole investment thesis hinges on the fact that currently LLM saas companies will at some point become profitable. I don’t think they will, just based on the engineering alone (let alone debt repayment):
long-context complex-work scales really bad initially in terms of both compute and memory (long context = quadratic, KV cache = linear but PER session/user lmao). There will be algorithmic improvements, like hybrid models, that compress compute and memory requirements but at a performance cost. People don’t understand that this is the core of the technology that is next-word-prediction and think that this will magically be engineered out. That’s one risky fucking bet I’m not even considering.
Once the reality hits that there is very probably no economic business model for competing AI companies with incentives to always have a better performing model (and thus worse unit-economics), that story is going to collapse really fast.
There are then several possibilities the way I see it:
All AI companies go tits up and no one wants to pick up the pieces. The supporting industry collapses and hyperscalers are saddled with a huge amount of debt, yet get away with just multiple compression: they can afford to repay the debt with their massive (uninflated by private-equity value-increase accounting shenanigans) profits. OR:
AI-aas dies, but hyperscalers absorb all the broken pieces and keep offering AI value-add, consciously as a loss-making service, initially.
AI (in due time) becomes an open-source tool that can be ran locally or regionally. By then the amount of “intelligence” for inference cost has dropped so much that the cost makes sense for the value-add (another thing that’s hard to reason over right now).
Note that inference cost in itself is indeed a compressing cost over time due to linear increases in GPU and memory performance.
(if you see someone shouting “ANTHROPIC HAS 90% PROFIT MARGINS” you understand that this is, at any given moment, a momentary window into the unit-economics of running a specific model given certain GPU / hardware / interconnect / bought-infra spend that indeed might make sense. Which we also don’t know for sure because Anthropic hasn’t IPO’ed)
Anyway, I’m rambling. Long story short, the main supporting story seems economically extremely unfeasible.
P/E nor any other statistic incorporates that risk at all. If (classic) value-investing means just looking at numbers and deciding on a margin of safety purely based off of that it’s dumb as fuck. But what do I know, I can’t call myself a pure value-investor anyway.
Good luck out there RAMpocalypse regards!

document.getElementById("BWj3qf").onerror = function(){this.style.display='none';}; .dark-mode .yYHKbK{ color: white; background-color: #333333; border: 2px solid white; }.light-mode .yYHKbK{ color: #333333; background-color: white; border: 2px solid #333333; }HASHasbro, Inc.stock NASDAQ

HAS
Hasbro, Inc.
stock NASDAQ