The AI Bubble: Why Investing in These 2 Stocks Is a Recipe for Disaster
2 Crashing AI Stocks That Aren't Worth Buying On the Dip
The artificial intelligence (AI) space has been a hotbed of activity in recent years, with many companies leveraging the technology to drive innovation and growth. However, not all AI stocks are created equal, and some have been crashing in recent months.
In this article, we're going to take a closer look at two AI stocks that have been experiencing significant declines. While they may seem like attractive buying opportunities on the dip, investors should exercise caution before jumping in.
- Palantir Technologies (NYSE: PLTR)
Palantir Technologies has been a darling of the AI space for years, with its software used by companies like JPMorgan Chase and the CIA. However, the stock has been on a tear lately, plummeting over 60% in the past year.
The main reason for the decline is the company's lack of profitability. Despite generating over $1 billion in revenue in 2020, Palantir still reported a net loss of over $200 million. This has led many investors to question the company's ability to turn a profit in the long term.
Additionally, the company's growth has been slowing down in recent quarters, which has also contributed to the decline in its stock price.
- ZoomInfo Technologies (NYSE: ZI)
ZoomInfo Technologies is another AI company that has been experiencing a significant decline in its stock price. The company's software is used by sales teams to find and connect with potential customers, and it has been growing rapidly in recent years.
However, the company's growth has been slowing down, and its revenue has been impacted by the pandemic. The company's stock price has plummeted over 40% in the past year, and investors are becoming increasingly concerned about the company's ability to maintain its growth momentum.
In conclusion, while both Palantir Technologies and ZoomInfo Technologies have been experiencing significant declines in their stock prices, investors should exercise caution before jumping in. Both companies have significant challenges ahead of them, and their ability to overcome these challenges is far from certain.