Loading ...Where’s The Demand? Alibaba Slashes AI Pricing By Up To 97%, Igniting Discount War Across China
Over the cliff. The anecdotal evidence continues to mount. Price cuts by major retailers and grocery stores. Defaults and deliquencies on real estate, credit cards and loans. Auto repos, AI companies cutting prices or giving services away to entice users, etc. As I mentioned in previous posts, interest rates have come down over the last month or so, inflation as well(not going away but slowing) and the stock market is ready to roll over. Of course the FED is going to start cutting soon and depending on what else they do and how much additional printing takes place, stocks and other assets could have more upside after this coming cliff dive. https://www.zerohedge.com/technology/ai-demand-troubles-alibaba-cuts-llm-pricing-97-sparking-discount-war
Sir CM,
Having worked for Cisco, I know full well how Huawei killed Cisco’s profit margins by offering similar products at 80% lesser price.
AI / NVDA: is just a rhyme for the famous Cisco crash of the early 2000s. Prior to that, no stock had split so many times like Cisco: I think eventual was 144:1 taking into account the arithmetic of the splits. NVDA might still hit a new all time high but that Cisco mania is one for the books, unlikely to be repeated.
Macro:
Whether rate cuts happen or not, QE seems to resume.
https://x.com/Schuldensuehner/status/1792846928285155482
GL
Agree, GL