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Trump Aides Envision Presidential Trip to China With CEOs in Tow
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Bloomberg
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AI Is Bad at Snacks
People have been worried for a while about private equity buying up every company and coming to dominate the economy. 'Private equity,' in this worry, tends to mean specifically the large private-equity firms that have their roots in doing leveraged buyouts of mature cash-flowing companies. But the fun hipster alternative is, what if venture capital buys up every company and comes to dominate the economy? Historically no one worried about that much, because historically venture capital was about making concentrated bets on small startups that might change the world, not about buying the local pest-control company or medical practice in every town in America. But that's changing. We have talked a few times about 'AI rollups,' where a venture capital firm buys a bunch of small companies, combines them, and sprinkles them with artificial intelligence. One way to think about it is that each of PE and VC has a powerful general-purpose technology that it can apply indiscriminately to every company. PE's magic technology is leverage: You buy the local plumber or pest control company or medical practice, you put a lot of non-recourse debt on it, you get a lot of upside if it does well and limited downside if it does poorly. VC's magic technology is artificial intelligence: You buy the local plumber or pest control company or medical practice, you replace the customer-service reps and bookkeepers with AI agents, you cut costs and improve profits, and eventually you also replace the plumbers and exterminators and doctors with AI and then you really start to make money. Here's a Financial Times story about AI rollups:
Yahoo
32 minutes ago
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IonQ (NYSE:IONQ) Stock Soars 92% Last Quarter Amid Market Optimism
IonQ recently achieved significant breakthroughs in quantum computing, including the first simulation of neutrinoless double-beta decay and a major milestone in protein folding, which align with the broader trend of rising tech stocks. The company's stock surged by 92% over the last quarter, benefiting from positive market conditions as the S&P 500 and Nasdaq reached all-time highs. In addition, IonQ's alliances with industry leaders like AstraZeneca and AWS to enhance drug development processes may have supported this robust gain, making the company's advancements particularly relevant against a backdrop of tech sector optimism. We've discovered 5 weaknesses for IonQ (1 can't be ignored!) that you should be aware of before investing here. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Over the last three years, IonQ's total shareholder return, including share price appreciation and dividends, experienced a very large increase. This substantial growth far surpassed the US Tech industry's 4.5% decline over the past year, indicating a strong performance relative to the sector. The stock's recent surge aligns with IonQ's advancements in quantum computing and strategic partnerships, as outlined in the introduction, suggesting that these developments may bolster its revenue and earnings forecasts despite current unprofitability. IonQ's stock is trading at a slight discount to consensus analyst price targets as of today, which raises questions about potential market misalignment or anticipation of future growth. While the company's revenue is projected to grow by 40.22% annually, earnings are expected to decline by 2.2% per year over the next three years, indicating ongoing challenges in achieving profitability. The company's strategic initiatives, such as collaborations with AstraZeneca and AWS, may contribute to long-term growth potential, but the market seems cautious given the current valuation. Assess IonQ's previous results with our detailed historical performance reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:IONQ. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@