It's Derby Week in Louisville and I'm already at the track gearing up for the big day — so I thought I'd tap into artificial intelligence (AI) to help write today's Derby City Daily post… You already learned about the sports betting stocks riding a Kentucky Derby high in our April 25 issue. And I'll share my AI bets here too in just a moment as consumer interest around this investing trend continues to surge higher. But first, why not look at actual horse racing wagers for the main event? I asked ChatGPT for a “Kentucky Derby betting guide for an audience of individual investors” and gave it some simple parameters. About 10 seconds later, it gave me this… Alright, stock market enthusiasts, let's get ready for some action-packed entertainment this weekend while the market is closed. We've got some interesting betting strategies for the Kentucky Derby to keep you entertained. Think of these bets as investment plays, just for a day of horse racing. Let's dive into some strategies to suit every investor's risk appetite… 🏇 Safe Play: The Blue-Chip Show Bet Just like investing in blue-chip stocks, we're going for a stable and steady return. Place a show bet on Forte (3-1). This colt is like the Apple Inc. of the racing world, boasting strong fundamentals and a history of solid performance. A $20 show bet on Forte would cost you $20, and based on historical payouts, you can expect a potential return of around $40-$60 if he finishes in the top 3. 🏇 Aggressive Play: The High-Growth Trifecta Wheel For the aggressive investors who love chasing high-growth stocks, we've got the trifecta wheel. We'll select five horses (akin to high-potential companies) and create a trifecta wheel with them. Let's go with Forte (3-1), Tapit Trice (5-1), Two Phil's (12-1), Kingsbarns (12-1), and Practical Move (10-1). This bet is like buying a basket of promising growth stocks, and hoping at least three of them will make it big. A $1 trifecta wheel with these five horses will cost you $60 (5 x 4 x 3). The potential reward can be massive, just like investing in the right high-growth stocks. Based on historical payouts, a winning trifecta wheel can return anywhere from $300 to $3,000+. 🏇 YOLO Play: The Penny Stock Superfecta Box This one's for the daredevils, the penny stock chasers, and the risk-lovers. We're going for a superfecta box with six longshots. Let's pick Reincarnate (50-1), Sun Thunder (50-1), Disarm (30-1), Lord Miles* (30-1), Raise Cain (50-1), and Continuar (50-1). These horses are like penny stocks — highly speculative, but with the potential for a massive payout. A $1 superfecta box with these six longshots will cost you $360 (6 x 5 x 4 x 3). It's a long shot, but if you strike it right, the potential reward can be life-changing, just like investing in a successful penny stock. Historically, winning superfecta boxes in the Kentucky Derby have paid out anywhere from $7,000 to $150,000+. Remember, these strategies are for entertainment purposes only, so have fun and enjoy the thrill of the race! *Editor's Note: Due to unforeseen circumstances that unfolded after this story was written, Lord Miles has been suspended from participating in the Derby. Impressive, right? I think I'll actually make all three of those bets just to see what happens. Maybe ChatGPT will make me some money tomorrow… But if not, I'll at least enjoy the race — and if you're watching I hope you'll enjoy it wherever you are. For those of you wanting to tap into the real profit potential of AI, I've got you covered. I'll even break it down by risk appetite like our AI friend did with one safe play, one aggressive play, and one YOLO play… Prefer to read online? Click here AI Opportunities to Suit Every Investor's Risk Appetite 🤖 The Safe AI Play The “blue-chip show bet” of AI right now is Microsoft (MSFT). In February, it released its ChatGPT-4-integrated versions of Bing and Edge to the public before Google had a chance to push out its own version (Bard). That gave Microsoft a serious edge over the rest of the market. Our database has been picking up significant usage and engagement upticks on these tools thanks to improved consumer experiences and new features. Bing Purchase Intent (PI) mentions are up an eye-popping 679% on a year-over-year basis since the AI integration: Even without AI, Microsoft is a steady investment that's returned upwards of 200% gains over the last five years with dividend payments to boot. Check out our latest analysis on MSFT here to learn more. 🤖 The Aggressive AI Play If you're looking for a high-growth potential AI stock, look no further than Nvidia (NVDA). Nvidia invented the GPU (graphics processing unit) in 1999… You know, those computer chips that make just about everything in your life “go,” including ChatGPT? Nvidia has actually teamed up with Microsoft to build an advanced cloud-based supercomputer to help enterprises train, deploy, and scale AI state-of-the-art models. NVDA stock sold off in a big way in 2022, falling nearly 60% from its November 2021 peak to end the year at $146. It's already gained back 90% as interest in AI surges to new heights. Demand is regaining ground too, with Purchase Intent (PI) mentions up 15% from the year prior: And we believe this is just the beginning. 🤖 The YOLO AI Play The “long shot” opportunity here could be Pinterest (PINS). I know what you're thinking: Isn't it a social media company where people are sharing recipes? The short answer is no… Because it's really an AI stock in disguise. Pinterest realized the importance of seamlessly blending content and ads where people weren't even really able to tell where one began and the other ended. It bought the recommendation engine tech startup Kosei, which could recognize “400 million relationships between 30 million products,” in 2015. More recently, it signed a definitive agreement to acquire The Yes, an AI-powered shopping platform. Using algorithms and machine learning, Pinterest is perfecting the art of matching marketers and users. And consumers are loving it. The market just hasn't quite caught on yet. Until next time, |
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