Name: Stock market slide fueled by tech slump
Uploaded: 2025-11-19T16:36:09.879Z
Duration: 5 min 57 s
Description: Tracy Byrnes, a business analyst, joins to discuss the stock market, the possibility of an AI bubble, and more.

Tracy Byrnes, a business analyst, joins to discuss the stock market, the possibility of an AI bubble, and more.

The stock market has experienced a downturn, largely fueled by a slump in technology stocks, particularly those involved in artificial intelligence. Business analyst Tracy Burns emphasized that, unlike the dot-com bubble, today's leading AI companies are well-capitalized, but investor anxiety is rising as questions about returns and potential overvaluation persist.

High-profile investors have reduced their stakes in companies like NVIDIA, prompting calls for diversification and portfolio rebalancing. While NVIDIA remains a dominant force in AI, experts caution that concentrated investments in tech could amplify market volatility, especially if key earnings reports disappoint. Bitcoin's recent price drop and its growing correlation with tech stocks were also discussed as part of the broader market landscape.

Stock market slide fueled by tech slump

Joining me now to discuss Tracy burns a business analyst and vice president of women and investing at Leventhal global investors Great to have you on Tracy Thanks for having me. So so much so much many questions for you. We have It's hard hard to decide but let's start here Investors minds where they are right now Is there an AI bubble the good, you know the CEO of Google telling BBC this week that the AI investment boom has quote elements of Irrationality so so is the bubble about to burst I mean look if I knew that it wouldn't be here talking to you But what I will tell you is that it's very different this time than the dot-com bubble I was I lived through that dot-com bubble and it was stressful and exhausting mainly because companies didn't have any money They had nothing to go on. These are big companies that have a lot of money Okay, the problem of course is when they start using debt. So let's just say for simplicity sake They're using cash right now to pay for all this stuff. They're investing and investing and investing But if they get to a point where they run out of cash and they start using some debt to do this then people get Nervous because well, can you pay your debt back? So that's where we're at right now. We got a lot of money out there It's like a trillion dollars and people are starting to say show me the money What am I getting for this investment? And that's probably what is causing some of the volatility here We touched on the intro to you Michael Burry betting against AI companies like NVIDIA and Planeteer here. He's not alone in the last quarter Peter Thiel's hedge fund also sold its entire stake in NVIDIA more than 500,000 shares worth about a hundred million bucks. What do you think is happening there and should to the average, you know Investor should they be paying attention and watching all this? So I think this is a staunch reminder for diversification you cannot have all your eggs in one basket I think there's been a lot of FOMO out there a lot of fear missing out people jumping in on these stocks just because they Hear them at cocktail parties. You have to take a step back take a breath and Rebalance your portfolio quite frankly because at this point I guarantee you those stocks have run up and you've made a lot of money Don't be greedy. Take some money off the table. Let this thing right out NVIDIA is the number one company right now But we all know you can't be number one forever. Ask any athlete that's been on the cover of Sports Illustrated. They're gone So this right, so we're waiting to see what happens here. Yeah. Well, well, let's and then let's talk about that No doubt that you know NVIDIA is dominating really all taking all the oxygen in the room in terms of AI It's worth more than four trillion dollars annual net income It grew almost 600% between 23 and 24 even now some high-profile investors believe it's still still Undervalued even up, you know with all this chatter going on. Let's listen to this real quick How big are NVIDIA's earnings on Wednesday night? It's just super bull not not just for tech earnings, but I think this market, right? I mean the reality is is that there's only one godfather of AI and that's Jensen and NVIDIA Look, it's the foundation in terms of what demand looks like in terms of what we're seeing in your gene I talk about it often I think it's gonna be actually a huge positive growth catalyst that we see not just for NVIDIA but for tech stocks So Tracy, how do you think the markets are gonna react watching the earnings come back today? Dan, I'm sorry. It's the Super Bowl of earnings tonight And so everyone is on pins and needles waiting but NVIDIA seems to keep pulling it off Look at the end of the day AI is not going anywhere, you know Pets.com did and we could see why but AI is changing the way we do things and we see it and we're using it And so I am sort of team NVIDIA here in that it's not even if they disappoint They are not going anywhere for a very long time. They have got their place in this market there And the interesting thing is that they're all starting to invest in each other Google and Apple and Apple and meta and everyone is moving around Kind of joining forces here. So this is here. It's here to stay. Is it over inflated right now? Very hard to tell But it is it is a wake-up call to investors to say you should not have all your eggs in this AI basket But if they're all interwoven Tracy and they're kind of you know You know really relying on each other for growth at this point if the earnings report comes back and it's you know Negative tonight, which many are anticipating down Does it set off a ripple effect right across your portfolio if you're invested in Google and all the other things? Well, yes is the short answer, right? It'll pull the market down. But again, we have been on a tear We've been in a bull market for a couple years now and this is this is like science What goes up must come down at some point. We were anticipating a pullback No one can ever call when it's gonna happen It wouldn't be surprised if it does and again if it creates opportunity be smart about it If you have some cash on the sidelines get in the names you were looking at Rebalance might be a good time to buy but we're not offering any advice here, right? I can't let you go before talking Bitcoin very quickly Tracy about a month ago. It was 126,000 this week it dipped below 90,000 with all this volatility Volatility for people who have their eye or have been thinking about Bitcoin Is this still something they should be doing looking at Bitcoin right now your thoughts as we close out? Yeah again you know that the really smart people that I get to speak to are still only playing with one or two percent of your Portfolio in it. It's not going anywhere I think we're still trying to figure it out. The good news is the regulation is starting to show up around it Very interestingly though. It is starting to follow tech So not so much a hedge like people thought in the beginning but more I'm with what's going on in the tech world So it'll be interesting to continue to watch it. I feel smarter talking to you all the time I appreciate it business analyst and vice president of women investing at Leventhal global advisors. Tracy Burns. Thank you. Thank you

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