Meet Kevin Sounds the Alarm: Market Dump & Oracle’s AI Crisis – Is a Crash Imminent?

LOS ANGELES, CA – In a chilling new analysis that has sent tremors through the financial world, popular YouTuber and financial commentator Meet Kevin has sounded the alarm on a looming market downturn. His latest video dissects shocking negative news emanating from Oracle regarding its AI ventures, painting a grim picture of an overvalued stock market teetering on the brink of collapse. According to Kevin, this is the “second shot heard around the world for the AI play,” and it’s a warning every investor needs to heed.

“Well, the market’s dumping. Why is the market dumping? We got the answer for you. It’s because of this news out of Oracle, and it’s absolutely bad. It is the second shot heard around the world for the AI play, which is basically the only thing that is propping up GDP right now. It’s not great,” Kevin declared, his voice laced with urgency.

Kevin, referencing the “Oracle of Omaha” (Warren Buffett), highlighted the alarming overvaluation of the stock market. According to the Buffet indicator, the market is 217% overvalued, the highest in history. And, as Kevin pointed out, “we’re up from June 30th, so we’re even more overvalued.” This stark assessment underscores the precarious position of the current market.

The core of Kevin’s concern stems from a recently filed 8K document (a current report) from Oracle. This disclosure, he explained, reveals a troubling situation with Coreweave, a company forcing Nvidia to buy unused leases for Coreweave data centers that are operated by or using Nvidia chips. The only way out of this, Kevin ominously noted, is bankruptcy.

Further deepening the crisis, Kevin revealed internal Oracle documents that expose a shockingly low gross margin of 14% on AI chips. This figure is even lower than Oracle’s net margins, which stand at 19.6%. The more AI data centers Oracle engages in, the more their net margins are declining. This, coupled with a lack of a standard definition for depreciation in these companies, paints a picture of financial instability.

Kevin passionately argued that assets like chips, cars, planes, and boats inevitably depreciate to zero over time. He contrasted this with real estate, which acts as an inflation hedge and appreciates in value. He criticized the common practice of adding back depreciation for depreciating assets, calling it “losing their mind.”

Meet Kevin’s analysis also touched upon Nvidia’s investment in OpenAI and its implications for AMD. He explained how Nvidia invests a billion dollars for every gigawatt deployed into OpenAI, and how OpenAI will then use that money to spend on AMD chips, leading to AMD stock going up. This complex web of investments and dependencies highlights the interconnectedness of the AI industry and the potential for a domino effect if one piece of the puzzle falters.

Adding to the market’s woes, Kevin also discussed Tesla’s regulatory issues in California, with regulators threatening to suspend or revoke its insurance business license after a surge of consumer complaints. This, he argued, is another sign of the broader market instability.

Finally, Kevin touched upon PayPal’s financial situation, suggesting that the company would be smart to get into mortgage lending. He also discussed Qashqari’s warnings about inflation and interest rate cuts, further emphasizing the precarious state of the global economy.

Meet Kevin’s analysis is a stark warning to investors. He believes that the current market is built on a shaky foundation, with the AI sector, once seen as the savior, now showing cracks. The implications of Oracle’s struggles, coupled with the broader market overvaluation, suggest that a significant correction could be on the horizon.

What do you think of Meet Kevin’s market analysis? Are we heading for an AI-fueled market crash? Share your thoughts in the comments below, and let’s navigate these turbulent financial waters together!

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