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Tuesday 18 June 2024
This New Idea is Set to Shock the World
Nvidia Is Pivoting to Solve Big Tech's $1 Trillion Problem
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“Man Bites Dog”, but for AI
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PROSPERITY PUB MARKET TALK “Man Bites Dog”: AI Losing Its Job at McDonald's Drive-Thrus… To Humans We've heard of plenty of jobs being replaced by AI, but here’s a new twist. It seems an IBM-supplied AI system, which McDonald's was testing in its drive-thrus, is losing its job to humans. McDonald's is ending its trial of the Automated Order Taker (AOT) AI drive-thru technology, developed in partnership with IBM, across more than 100 restaurants. The technology was meant to streamline operations with voice-activated ordering, but it faced challenges interpreting different accents and dialects, which impacted order accuracy. As a result, the AI system will be shut off by July 26, according to a memo sent to franchisees. Despite the end of this particular experiment, McDonald's hasn't abandoned its AI ambitions. The company remains optimistic about the future role of AI in its drive-thrus, acknowledging the potential for voice ordering solutions to enhance customer experience. The fast-food giant's decision comes amidst a broader industry trend of experimenting with AI and robotics to streamline operations. While other restaurant chains like Chipotle and Yum Brands have made significant strides in AI and robotics investments, McDonald's continues to evaluate long-term, scalable solutions for its operations. Interestingly, Alphabet's Google might be the next player in McDonald's AI journey. Speculation arose after Google's significant presence at McDonald's Worldwide Convention in April, hinting at a possible partnership to replace IBM. For now, the focus remains on achieving accuracy of at least 95% and cost savings, with McDonald's franchisees expressing frustration over the AOT's performance. McDonald’s Stock — The Golden Arches Are Sagging Meanwhile, our own Geof Smith weighed in on MCD in no uncertain terms: “Think about this: The S&P is up 15% on the year, NQ is up 18%, the Dow up 3% and MCD is down 15% on the year. MCD is a DOG.” He went on to share his view of where MCD is headed next, including key levels: “I think if it breaks below 249 it will probably test 246 and if it gets below 245.40 next stop is 241, then 235, then 231, after that, it is not too far from the 2022 lows of 217.” It seems the downside outlook on MCD is unanimous, as Jeffry Turnmire weight in with his commentary: “MCD might be heading down regardless. The setup is bearish. The target is a lower low than the low that was struck back in October 2023. 232-239 area would be the "ideal" spot to find a bottom, and if it moves on down.... well that might mean a longer correction is in store for MCD.” He shared the following chart, pointing out that the past 18 months of MCD’s price action resembles a giant McDonald’s logo: He went on to remind us of a topic he’s been mentioning periodically for the past year or so: the Commercial Real Estate problem. “Remember for a long time [McDonald’s has] said they were a real estate company that sells hamburgers... For more than a year now, I have been discussing the problems brewing in CRE.” — The Prosperity Pub Team [ALERT] 3 Energy Stocks Set to Explode! Discover the top 3 energy stocks driving the current super trend! These stocks have already surged by up to 135.1% and are projected to keep soaring! Jack Carter reveals how you can tap into these high-growth opportunities with a solid weekly income strategy! Click now to get the 3 stocks! SCOTT WELSH’S TICKER TALES Pizza Time? (DPZ) For a long time, Domino’s (DPZ) has been a sneaky-good growth stock. It’s gone from $94 to $530 since 2015. And now it’s climbing toward another breakout level. Keep in mind, when DPZ hit its last breakout level, it went from $413 to $500. Here’s the chart: If it breaks above $542.75, we could see another nice move. We’ll keep an eye on it. Happy trading, — Scott Welsh P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45. |
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ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. |
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