The environmental impact of AI: a case studyIn our previous blog, Will AI workloads consume all the world’s energy?, we looked at the relationship between increasing processing power and an increase in energy demand, and what this means for artificial intelligence (AI) from an environmental standpoint. In this latest blog, we aim to further illuminate this discussion with a case study of the world’s biggest large language model (LLM), BLOOM.
Case study on environmental impact: BLOOM
An accurate estimate of the environmental impact of an LLM being run is far from a simple exercise. One must understand, first, that there is a general ‘model life cycle.’ Broadly, the model life cycle could be thought of as three phases1:
Inference: This is the phase when a given model is said to be ‘up-and-running.’ If one is thinking of Google’s machine translation system, for example, inference is happening when the system is providing translations for users. The energy usage for any single request is small, but if the overall system is processing 100 billion words per day, the overall energy usage could still be quite large.
Training: This is the phase when the parameters of a model have been set and the system is exposed to data from which it is able to learn such that outputs in the inference phase are judged to be ‘accurate’. There are cases where the greenhouse gas emissions impact for training large, cutting-edge models can be comparable to the lifetime emissions of a car.
Model development: This is the phase when developers and researchers are seeking to build the model and will tend to experiment with all sorts of different options. It is easier to measure the impact of training a finished model that becomes public, as opposed to seeking to measure the impact of the research and development process, which might have included many different paths prior to getting to the finished model that the public actually sees.
Therefore, the BLOOM case study focuses on the impact from training the model.
BLOOM is trained on 1.6 terabytes of data in 46 natural languages and 13 programming languages.
Note, at the time of the study, Nvidia did not disclose the carbon intensity of this specific chip, so the researchers needed to compile data from a close approximate equivalent setup. It’s an important detail to keep in mind, in that an accurate depiction of the carbon impact of training a single model requires a lot of information and, if certain data along the way is not disclosed, there must be more and more estimates and approximations (which will impact the final data).
If AI workloads are always increasing, does that mean carbon emissions are also always increasing2?
Considering all data centres, data transmission networks, and connected devices, it is estimated that there were about 700 million tonnes of carbon dioxide equivalent in 2020, roughly 1.4% of global emissions. About two-thirds of the emissions came from operational energy use. Even if 1.4% is not yet a significant number relative to the world’s total, growth in this area can be fast.
Currently, it is not possible to know exactly how much of this 700 million tonne total comes directly from AI and machine learning. One possible assumption to make, to come to a figure, is that AI and machine learning workloads were occurring almost entirely in hyperscale data centres. These specific data centres contributed roughly 0.1% to 0.2% of greenhouse gas emissions.
Some of the world’s largest firms directly disclose certain statistics to show that they are environmentally conscious. Meta Platforms represents a case in point. If we consider its specific activities:
Overall data centre energy use was increasing 40% per year from 2016.
Overall training activity in machine learning was growing roughly 150% per year.
Overall inference activity was growing 105% per year.
But Meta Platforms’ overall greenhouse gas emissions footprint was down 90% from 2016 due to its renewable energy purchases.
The bottom line is, if companies just increased their compute usage to develop, train and run models—increasing these activities all the time—then it would make sense to surmise that their greenhouse gas emissions would always be rising. However, the world’s biggest companies want to be seen as ‘environmentally conscious’, and they frequently buy renewable energy and even carbon credits. This makes the total picture less clear; whilst there is more AI and it may be more energy intensive in certain respects, if more and more of the energy is coming from renewable sources, then the environmental impact may not increase at anywhere near the same rate.
Conclusion—a fruitful area for ongoing analysis
One of the interesting areas for future analysis will be to gauge the impact of internet search with generative AI versus the current, more standard search process. There are estimates that the carbon footprint of generative AI search could be four or five times higher, but looking solely at this one datapoint could be misleading. For instance, if generative AI search actually saves time or reduces the overall number of searches, in the long run, more efficient generative AI search may help the picture more than it hurts3.
Just as we are currently learning how and where generative AI will help businesses, we are constantly learning more about the environmental impacts.
Sources
1 Source: Kaack et al. “Aligning artificial intelligence with climate change mitigation.” Nature Climate Change. Volume 12, June 2022.
2 Source: Kaack et al., June 2022.
3 Source: Saenko, Kate. “Is generative AI bad for the environment? A computer scientist explains the carbon footprint of ChatGPT and its cousins.” The Conversation. 23 May 2023.
Meta
Harvesting Alpha with Beta HedgingImagine this. Dark skies, earth tremors and thunder roars. Shelter is top priority. Size matters in a crisis. When the tsunami strikes and lightning splits the sky, investors shudder in fear; But the super seven stand tall, shielding investors from the fury.
Dramatic metaphors aside, we truly live in unprecedented times. Risk lurks everywhere.
List is endless. Unstable geopolitics. Sticky inflation. Recession expectations. Unprecedented deepening of yield curve inversion. Unfinished regional banking crisis. Weak manufacturing. Tightening financial conditions. Extremely divisive global politics, to just name a few.
Despite severe headwinds, US equity markets are roaring. YTD, S&P is up +15% and Nasdaq is up +32%.
At the start of 2023, the consensus was for US equities to be in doldrums dragged down by recession. Halfway through the year, markets are at the cusp of one of the best first half for US equity markets in twenty years.
This is among the narrowest and top-heavy rally ever. Only a sliver of stocks - precisely seven of them - defines this optimism. This paper will refer to these as the Super Sevens.
These are the biggest members of the S&P 500 index. Super Sevens are Amazon, Apple, Google, Meta, Microsoft, Nvidia, and Tesla.
This paper argues that the Super Sevens will deliver above market returns in the short term as investors seek safe haven from a vast array of macro risks.
The paper articulates a case study to demonstrate the use of beta hedging to extract alpha from holding long positions in Super Sevens and hedging them against sharp reversals using CME Micro E-Mini S&P 500 index futures ("CME Micro S&P 500 Futures").
THE RISE AND RISE OF SUPER SEVENS
Super Sevens have an outsized impact as S&P 500 is a market weighted index.
Merely five of these seven form 25% of the S&P 500 market capitalisation. At $2.9 trillion in market capitalisation, Apple is greater than all of UK’s top 100 listed companies put together.
If that were not enough, Apple's market capitalisation alone is greater than the aggregate market capitalisation of all the firms in the Russell 2000 index.
Nvidia has been soaring on hopes of AI driven productivity gains. On blow out revenue guidance, it has rallied $640 billion in market cap YTD. That increment alone is larger than the combined market cap of JP Morgan & Bank of America the two largest banks in the US.
The heatmap summarises analyst targets & technical signals on pathway for prices ahead:
In part 2 of this paper, Mint will cover the detailed analyst price forecasts, technical signals and summary narratives covering value drives and intrinsic risk factors.
WHAT DRIVES INVESTOR CONCENTRATION INTO THE SUPER SEVENS?
As reported in the Financial Times last week, two broad market trends appear to have fed into this investor concentration.
First, Passive investing. When funds merely deliver the performance of an index by replicating its composition, the higher the index weights, the more these passive funds buy into these names.
Second, ESG investing. Rising push towards ESG has forced investment into tech and away from carbon-heavy sectors such as energy.
Collectively, this has resulted in all types of investors – active, passive, momentum, ESG- all going after the same names.
Question is, what happens now? Will the broader market catch up with the Super Sevens? Or will the Super Sevens suffer a sharp pullback?
That depends on the broader US economy. Will it have a hard landing, soft landing, or no landing at all?
Given market expectations of (a) resilient earnings capacity, and (b) solid growth potential among Super Sevens, we expect that in the near to mid-term the Super Sevens will continue to outperform the broader market.
In ordinary times, investors could have simply established long positions in Super Sevens and wait to reap their harvests. However, we live in unprecedented times.
WE LIVE IN TRULY UNPRECEDENTED TIMES
Risks abound but no signs of it in equity markets. Historically, geopolitical instability, tightening financial conditions, and a deeply inverted curve could have led to crushing returns in the US equity markets. Not this time though.
Peak concentration
As mentioned earlier, bullishness in equity markets can be vastly attributed to just the Super Sevens. These seven have delivered crushing returns rising between 40% and 192% YTD. The S&P 500 index is market cap weighted. Super Sevens represent the largest companies in the index by market cap and their stellar performance has an outsized impact on the index.
Is this a bull run or a bear market clouded by over optimism among Super Sevens?
Deeply inverted yield curve
In simple words, it costs far more to borrow for the near term (2 year) relative to the borrowing for long term (10-year). The US Treasury yield curves have been inverted for more than a year now. The difference between the 2-Year and 10-Year treasuries is at its widest level since the early 1980s.
Inversion in yield curve has historically been a credible signal of recession ahead. When bonds with near term duration yield higher rates than those with longer-dated expiries, this precedes trouble in the economy.
Recession. What recession?
This period might go into the record books for the most long-awaited recession that is yet to come. For the last 12 months, experts have been calling for recession to show up in 3 months.
While manufacturing sector seems feeble, labour market remains solid. Corporate balance sheets are robust. Consumer finances and consumer confidence are in good health.
The VIX remains sanguine while the only fear indicator that appears unsettled is the MOVE index which indicates volatility in the bond markets. After having spiked earlier in the year, the MOVE is starting to soften as well.
BETA HEDGING FOR PURE ALPHA
In times of turbulence, risk management is not an afterthought but a necessity.
Hedge delivers the edge. When there are ample arguments to be made for bullish and bearish markets, taking a directional position can be precarious.
This paper posits Super Sevens holdings be hedged with CME Micro S&P 500 Futures. Hedging single stocks is nuanced. The stocks and the index do not always move in tandem. A given stock may be more volatile or less volatile relative to the benchmark. Beta is the sensitivity of the stock price relative to a benchmark.
Beta is computed from daily returns over a defined historical period. Stocks with high Beta move a lot more than the underlying index. Stocks that move narrowly relative to its underlying benchmark exhibits low Beta.
Beta hedging involves adjusting the notional value of a stock price based on its beta. Using beta-adjusted notional, hedging then involves taking an offsetting position in an index derivative contract to match the notional value.
TradingView publishes beta values computed based on daily returns over the last 12 months. The following table illustrates the beta-adjusted notional for the Super Sevens based on the last traded prices as of close of market on June 16th.
Beta hedging using CME Micro S&P 500 Futures enables investors to precisely scale their portfolio exposures to the index. A small contract size enables investors to manage risks with finer granularity.
CME allows conversion of micro futures into a classic E-mini futures position, and vice versa. Round the clock liquidity combined with tight spreads and sizeable open interest across the two front contract months, investors can enter and exit the market at ease.
BETA-HEDGED TRADE SET UP
In unprecedented times like today, markets may continue to rally or come crashing. To harness pure alpha, this paper posits a spread with long positions in Super Sevens hedged by a short position in CME Micro S&P 500 Futures expiring in September 2023.
This trade set-up gains when (a) Super Sevens rise faster than the S&P 500, or (b) Super Sevens suffers drop in value but falls lesser relative to S&P 500, or (c) Super Sevens gain while S&P 500 falls.
This trade setup loses when (a) Super Seven falls faster than S&P 500, or (b) S&P 500 rises faster than Super Seven, or (c) S&P 500 rises while Super Sevens pullback
Each CME Micro S&P 500 Futures has a multiplier of USD 5. The September contract settled on June 16th at 4453.75 implying a notional value of USD 22,269 (4453.75 * USD 5).
Effective beta hedge requires that notional of the hedging trade is equivalent to the beta-adjusted notional value of single stock. Given the beta-adjusted notional value of USD 2,561 for single shares in Super Sevens and the notional value for each lot of CME Micro S&P 500 Futures at USD 22,269, the spread trade requires:
a. A long position in 26 shares each across all the Super Sevens translating to a beta-adjusted notional of USD 66,576.
b. Hedged by a short position with 3 lots of CME Micro S&P 500 Futures which provides a notional exposure of USD 66,807.
The following table illustrates the hypothetical P&L of this spread trade under various scenarios:
MARKET DATA
CME Real-time Market Data helps identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
DISCLAIMER
This case study is for educational purposes only and does not constitute investment recommendations or advice. Nor are they used to promote any specific products, or services.
Trading or investment ideas cited here are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management or trading under the market scenarios being discussed. Please read the FULL DISCLAIMER the link to which is provided in our profile description.
Does META's stock trend shift from rising to fluctuating?Does META's stock trend shift from rising to fluctuating?
This chart shows the weekly candle chart of META stocks over the past two years. The top to bottom golden section of August 2021 is superimposed in the figure. As shown in the figure, since the end of October 2022, the META stock has shown an almost consistent upward rebound trend! In the past three weeks, the price of META stock has been in a long short competition around the top to bottom golden split of 1.382 (265)! The next strong pressure for META stocks will be at the opening price of the big negative line at the end of January 2022 (300.68), which is also the starting point for big bearish positions after peaking!
$META Spinning Top DetectedNASDAQ:META Spinning Top detected. Buyers and Sellers not able to decide which direction to send it, however, today it went up. There are other indicators in favor of positive price action, and we have ER in later part of July. This may push the price higher. It could also see a small pull back shortly. I think $286 is a good target and like everyone else when they announce "AI" efforts it may certainly push higher.
*Disclaimer*
The information is purely for *entertainment* purposes, and is not meant to be, and does not constitute, financial, investment, trading, or other types of advice or recommendations. Do Your Own Due Diligence (DYODD)
Meta -> Rally Not Over YetHello Traders,
welcome to this free and educational multi-timeframe technical analysis.
On the weekly timeframe you can see that Meta stock started a crazy dump in September of 2021, dropping roughly 80% in a very short period of time but bounced back significantly.
You can also see that the recovery started in October of 2022 and from there Meta created a rally of 200% towards the upside and is now approaching resistance at the $300 level from which I do expect a short term rejection away towards the downside.
On the daily timeframe you can see that Meta stock is still massively bullish, creating new highs every single day so I am now just waiting for a retest of the previous resistance at the $275 level and then I do expect a final blow-off to retest the $300 resistance zone.
Thank you for watching and I will see you tomorrow!
You can also check out my previous analysis of this asset:
I'm not that techno-optimistic. I tend to share the view that the tech sector at SPX is pulling the whole S&P company's along with it in many ways.
Consideration of the whole SPX for a while loses its meaning, separation is necessary.
Let's group a few big horses together and see what's out there.
Okay:
NASDAQ:AAPL*NASDAQ:NVDA*NASDAQ:GOOGL*NASDAQ:MSFT*NASDAQ:META
could be more, but I think that would be quite telling.
Oh my God, Carl...
99.2%
The last time this overbought was in 2019.
And you think these guys will go even higher without a correction?
META H&S can send it skyrocket to $294, unless the MA100 breaksMETA has arguably been one of the hottest, if not the hottest, stocks of the year.
The minor (for its parabolic state) correction since Tuesday has seen it hit the MA100 (1h), which is so far holding.
This has completed a Head and Shoulders pattern, which is technically a bearish structure.
If the neckline but more importantly the MA50 (1h) breaks, we expect the price to invalidate the bearish signal of the H&S.
Trading Plan:
1. Buy if the price closes above the 268.50 neckline and the MA50 (1h).
2. Sell if it closes under the MA100 (1h).
Targets:
1. 294 (Fibonacci 2.0).
2. 250 (the MA200 1h).
Tips:
1. The RSI (1h) has crossed over the MA trendline. This is a short term signal of bullish strength.
Please like, follow and comment!!
When the Dollar Breaks This Supply Zone, It Will Bring Pain!With the stock market already trading near the 2031 fair value target of $434.98, it's a wonder how far out investors are willing to bet on S&P 500 earnings. Apple and Meta found some resistance near their average analyst targets, and now we have to figure out what comes next. For me I see t least a 50% retracement for the S&P 500, which sits around $412 per share. A strong dollar and other potential catalysts from the economic landscape could also lead to SPY falling lower. I have a fair value range between $370 and $400.
Take a listen to the Equity Channel Podcast on Apple, Amazon and Spotify for more information on trading and investing.
META - KEYLEVELS 1htfMETA - KEYLEVELS 1htf
Meta is strong on his up trend , also beacuse we have a broken resitance on weekly time frame.
But now this zone looks more and more like a distribution zone , carefful on short META , if you wanna do it, maybe you need to wait for a broken red line ( neckline ) with a scalp trade.
Meta is Continuing the Rally towards the Next Key LevelFollowing the recent breakout on the initial key level, a continuation of the bullish rally is expected, driving the price further upward. The anticipation is for the price to maintain its bullish momentum and move towards the next key zone formed.
Continue to buy METAContinue to buy META as TikTok is likely to be banned from the Apple store! meaning new apple device will no longer have access to the app, nor will there be any updates.
In Addition, there are rumors, retailers have banned together to bypass Apple's tracking restriction by creating a customer influencer database tracking centered around META technology! this technology no longer relies on cookies but on AI on places you have visited and likely to visit.
Meta SELL ShortMY STRATEGY SHORT
More than 190,000 tech-sector employees have lost their jobs since the start of 2023
Meta Platforms Inc. stock underperforms Friday when compared to competitors
The tech giant is trading its ownership of the business-software startup for a minority stake with no guaranteed payment in return
When Meta Platforms closed a deal last year to acquire business-software provider Kustomer for $1 billion, the tech giant had high hopes for how it could integrate the services of the startup.
Meta said the acquisition would enable companies to use its messaging apps for customer service, helping fulfill its longstanding ambition to turn its platforms into e-commerce giants.
The Federal Trade Commission proposed barring Meta Platforms META -0.32%decrease; red down pointing triangle from profiting off data it collects from young users, accusing the company of misleading parents and repeatedly violating a 2020 privacy order.
The FTC action Wednesday represents an unwelcome return to controversy for Meta and its major platforms, including Facebook and Instagram. The company agreed in 2019 to pay a $5 billion civil penalty following a previous FTC investigation into its privacy practices.
“Facebook has repeatedly violated its privacy promises,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, in a statement. “The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.”
The new allegations represent an aggressive move by the FTC, and the company vowed to contest them. Meta has 30 days to formally respond.
A Meta spokesperson termed the FTC action “a political stunt.”
“Despite three years of continual engagement with the FTC around our agreement, they provided no opportunity to discuss this new, totally unprecedented theory,” the spokesperson said. “We have spent vast resources building and implementing an industry-leading privacy program under the terms of our FTC agreement. We will vigorously fight this action and expect to prevail.”
The spokesperson added that the FTC was seeking to “usurp the authority of Congress to set industrywide standards and instead single out one American company.”
Some lawmakers and President Biden have proposed restricting targeted advertising to children. The FTC action could limit Meta’s ability to do that but wouldn’t affect other companies.
As part of the FTC’s proposed sanctions, Meta—which changed its name from Facebook in October 2021—would be prohibited from profiting from data it collects from users under 18. It would also be subject to other new limitations, including on its use of facial-recognition technology, and would be required to provide additional protections for users.
FTC Commissioner Alvaro Bedoya also questioned the agency’s authority to impose the restriction on monetization of kids’ data, saying the connection between the company’s actions and the penalty weren’t clear.
“There are limits to the Commission’s order modification authority,” Mr. Bedoya said in a statement. “Based on the record before me today, I have concerns about whether such a nexus exists” for the limits on use of children’s data. He voted for Wednesday’s action, which was approved on a 3-0 vote, but added that he looks forward to hearing additional arguments and “will consider these issues with an open mind.”
Some Meta critics characterized the FTC move as a long overdue response to a range of harms to kids caused by the company’s products.
“The FTC has rightly recognized Meta simply cannot be trusted with young people’s sensitive data and proposed a remedy in line with Meta’s long history of abuse of children,” said Josh Golin, executive director of Fairplay, a nonprofit that advocates for children’s online privacy.
The agency press release, which specifically cited kids’ data from virtual reality as part of its proposed ban, came less than a month after Meta opened its Horizon Worlds metaverse to teens.
The proposal marks the third time the agency has taken action against the company for failing to protect users’ privacy. The FTC filed a complaint against Facebook in 2011, and obtained an order in 2012 barring the company from misrepresenting its privacy practices.
The FTC later alleged that Facebook violated that order, by engaging in misrepresentations related to the use of millions of Facebook users’ data by a political analytics firm, Cambridge Analytica.
In 2019, Facebook agreed to a second order—which took effect in 2020—resolving claims that it had violated the FTC’s first order. Wednesday’s action alleges that Facebook violated the 2020 order as well. It also accuses the company of violating FTC rules protecting children’s data.
The FTC said on Wednesday that Facebook continued to give third-party app developers access to users’ private information after promising to cut off such access if users had not used those apps in the previous 90 days. In certain circumstances, Facebook continued to allow third-party app developers to access that user data until mid-2020, the FTC said.
In addition, the FTC has asked the company to respond to allegations that, from late 2017 until mid-2019, Facebook misrepresented that parents could control whom their children communicated with through its Messenger Kids product.
The FTC also said an independent third-party assessor, empowered to oversee the company’s privacy protections under the 2020 order, identified several gaps and weaknesses in Facebook’s privacy program.
The proposed changes to the 2020 order, which would apply to Facebook and Meta’s other services such as Instagram, WhatsApp, and Oculus, include a blanket prohibition against monetizing data of children and teens under 18—a provision that aims at the company’s core business of showing ads to users based on what it learns about their interests.
The FTC also wants the company to pause on the launch of new products and services unless it receives written confirmation from the independent assessor that its privacy program is in full compliance with privacy protections.
The FTC would place new limits on future uses of facial-recognition technology. For example, Meta would be required to obtain users’ affirmative consent for any future uses of facial-recognition technology.
AI strategy drives NVDA MSFT GOOG METAAs we navigate through the ever-evolving world of technology, it is becoming increasingly evident that artificial intelligence (AI) is the driving force behind some of the biggest players in the market. Companies such as NVIDIA (NVDA), Microsoft (MSFT), Google (GOOG), and Meta Platforms (META) have all implemented AI strategies that have propelled them to the forefront of their respective industries. In this email, we will explore how these companies are utilizing AI to gain a competitive edge and what it means for their future growth potential. So, buckle up and let's dive into the world of AI and its impact on the stock market.
Additionally, it's crucial to have a long-term investment strategy and to not make emotional decisions based on short-term market fluctuations. It's also wise to diversify your portfolio across different industries and sectors to minimize risk. Seeking the advice of a financial advisor can also be helpful in making informed investment decisions.
Additionally, it's important to have a long-term investment strategy and not make emotional decisions based on short-term market fluctuations. It's also wise to consider factors such as the company's financial health, industry trends, and management team before investing in individual stocks. Diversification is key to managing risk, so it's advisable to have a mix of individual stocks and diversified portfolios in your investment portfolio. Finally, seeking the advice of a financial advisor can help you make informed investment decisions and manage your risk effectively.
Mega stock and what are meta perspectives? 😳In 2022, Facebook NASDAQ:META performed fantastically and fell -76% from its peak!
On the channel, we warned that this was a gift of fate and shares should be bought, because the company still has a huge audience, revenue and profit.
Yes, revenue is no longer growing at a rapid pace, but rather falling from quarter to quarter.
But the company boldly declared that it was changing the concept of business and moving into the creation of the Metaverses.
For half a year, the stock grew by 175% and became the most profitable in the Sp500 index.
What to do with the company now?
It is not yet entirely clear whether the company will be able to realize its plans in the meta world, but the positive action has already played well.
According to technical analysis, there is a slight upside to $290.
It was there that the first gap formed, after which the company began a landslide fall.
The chart does not like emptiness, so we can see the final upward spurt.
But then the stock has downside potential to $136, which is where the strong support is.
At this level, we will decide whether to re-enter the stock.
🔰 Now recommendation: stay away from the action.
You can think of a short, but only with a short stop.
There are more interesting ideas on the market now.
You can find even more profitable ideas in the profile header 🎩
If you are interested in analysis of any other asset - write in the comments and I will do it.
Overvalued Tech: Time for Tangible Assets & Fair ValuationsThe tech sector, specifically the 'Big Tech' companies have seen massive gains since the massive accumulation in 2010-2014. However, these increases seem disconnected from the companies' actual value or tangible contributions to the real-world economy. Their high price-to-earnings ratios suggest overvaluation and potential for a market correction.
Invest in sectors with real-world utility and reasonable valuations - Allocate capital to sectors like industrials, materials, consumer staples, or healthcare. These sectors provide tangible products and services and often have more reasonable valuations.
1. High Valuations: Tech stocks, in particular, often trade at high multiples of their earnings or revenues. These high valuations can make them more vulnerable to market downturns, as they can fall more dramatically if investors reassess their growth prospects or risk tolerance.
2. (GOOGL, APPL, AMZN, MSFT, META, NVDA, ADBE, and TSLA) all represent a significant portion of the SNP-500 index due to their large market capitalizations.
3. So, in a S&P-500 meltdown , these tech companies could potentially see significant declines in their stock prices due to these factors. However, it's important to remember that the specifics would depend on a wide range of factors, including the reasons for the market downturn, the companies' financial health and growth prospects, and overall investor sentiment.
4. I would choose Tesla as the only pick out of all 8 as this company has shown lots of potential compared to our tech giants of the now. Even with the upbringing of AI it is not enough to save google or meta, but Apple and Microsoft might hold up strong as they are largest caps.
5.
Google (Alphabet) : ~$1.5 trillion
Apple Inc. (AAPL): ~$2.5 trillion
Amazon (AMZN): ~$1.7 trillion
Microsoft (MSFT): ~$2.2 trillion
Meta Platforms : ~$1 trillion
NVIDIA (NVDA): ~$500 billion
Adobe (ADBE): ~$300 billion
Tesla (TSLA): ~$800 billion
TOTAL = 10 Trillion roughly