Nagarjuna Y

@microcp2mltibgr Retailers ALERT: While fwd looking EPS is lking gud,mid & small cap reported 25% growth. Now JPM started blaming SIP investors, asking to stop sip. What did USA did last few decades with 401k,they are selling rentelessly yet SIP not giving up, they are frustrated at this point.

This @HedgieMarkets post illustrates where the infinity scalable asset-light technology model meets the physical realities of an asset-heavy business that faces an upward sloping supply curve. We have long argued that AI compute is just another bit-atom commodity (like crypto) that uses a lot natural resources to create a valuable (unlike crypto) virtual asset. On the bit side, Big Tech is a price-maker with fat margins. On the atom side, a price-taker. Big Tech grew up in bits — search, social, e-commerce, office software: asset-light, infinitely scalable, natural monopolies. Build once, serve billions, watch costs fall every year. So they assume AI is the same game and will spend whatever it takes to own the market. But inference is also atoms, i.e. land, critical minerals and electrons, which are mostly molecules. In the commodity world, competition drives price to marginal cost: P = MC, which is upward sloping as volume rises. The better the models get, the faster they compete their own margins down to the physical floor which rises with volume. You can already see it. Microsoft just cancelled Claude Code because the cost to run it exceeded the value it returned — demand retreating the moment price met real cost. The irony: the customer pulling back was itself a hyperscaler. In April, Uber confirmed once again that AI compute demand is price elastic. Bottom line: they assumed AI costs would keep falling like they always did on the bit side; however, on the atom side, there is a hard floor that likely rises in the short run. I am not denying that the margins are still fat. But it’s not the same model. These guys are running towards obsolescing their own pricing power. Why did Rockefeller stop at the gas station and not vertically integrate into cars?

#uscrude Breaking down

@5WavesOfficial Run behind FII's narratives. If markets have crashed the same influencer says, due to retail stopped SIP. First, where is EPS growth from sep 2024, recent quarter only midcap has breakout of EPS from past 2 years. Focus on earnings of companies rather blaming retailers.

@5WavesOfficial Run behind FII's narratives. If markets have crashed the same influencer says, due to retail stopped SIP. First, where is EPS growth from sep 2024, recent quarter only midcap has breakout of EPS from past 2 years. Focus on earnings of companies rather blaming retailers.

@5WavesOfficial Run behind FII's narratives. If markets have crashed the same influencer says, due to retail stopped SIP. First, where is EPS growth from sep 2024, recent quarter only midcap has breakout of EPS from past 2 years. Focus on earnings of companies rather blaming retailers.

Nifty range of last 8 days . Fresh momentum of any kind is only above 23840 ( on closing basis ) @preetiplutus @plutusadvisors