Mind Matters Natural and Artificial Intelligence News and Analysis

TagJeffrey Lee Funk

unicorn-on-gold-cube-mountain-start-up-illustration-concept-of-leader-on-a-market3d-rendering-3d-illustration-stockpack-adobe-stock
unicorn on gold cube mountain . start up, illustration concept of leader on a market.3d rendering. 3d illustration.
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post
Author
News
Date
September 14, 2022
Categorized
Business and Finance, Economics
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Warning: Unicorn Stocks May Be Nearing Bankruptcy, Fire Sales

Uber, Airbnb, and DoorDash seem so lifestyle-friendly … they even became part of our vocabulary
News
September 14, 2022
3
Business and Finance, Economics

In an article today, Jeffrey Funk and Gary Smith puzzle over the way investors have “rained cash” on unprofitable companies like Uber, Airbnb, DoorDash, etc. Yes, they are icons of popular culture. No, unlike Apple and Google, they do not make money: Here are their stats from the table the authors offer: Company Founded Funds Raised Cumulative LossesUber Technologies 2009 $25.2 billion $31.7 billionAirbnb 2008 $6.0 billion $6.0 billionDoor Dash 2013 $2.5 billion $4.6 billion Only one of the 15 companies they list — including some other culture icons — has ever had a profitable quarter: Any hopeful arguments that profitability is just around the corner ring hollow when every company is at least nine years old and two are Read More ›

close-up-of-stock-market-trader-looking-at-graph-stockpack-adobe-stock
Close up of stock market trader looking at graph
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post
Author
News
Date
August 15, 2022
Categorized
Business and Finance
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Not All False Prophets Are Promoting Religions…

False finance prophets’ credentials or charisma are much more impressive than their track records — but we need a way to tell
News
August 15, 2022
3
Business and Finance

Recently, our authors Jeffrey Lee Funk and Gary Smith alerted MarketWatch readers to the problem of “false prophets” in the investment world: We could write a long book about false prophets on Wall Street. What is interesting is how easily people are enchanted by charismatic personalities — some who peddle advice, some who run companies. A decade ago, for example, Yahoo tried to save itself by paying almost $1 billion to five charismatic CEOs (Terry Semel, Jerry Yang, Carol Bartz, Scott Thompson, and Marissa Mayer), four of them outsiders, who were hired over a five-year period and arguably did more harm than good. Jeffrey Lee Funk and Gary N. Smith, “Sensible stock investors put their money on a company’s real Read More ›

Go-game
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post
Author
News
Date
June 14, 2022
Categorized
Artificial Intelligence, Business and Finance
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Would AI Still Win at Go If the Board Shrunk: 19 to 17 Spaces?

No, say Jeffrey Funk and Gary Smith — and would-be investors need to grasp AI’s weaknesses as well as strengths, for success
News
June 14, 2022
3
Artificial Intelligence, Business and Finance

Statistician Jeffrey Lee Funk and business prof Gary N. Smith offer a warning for investors: Some AI stocks have been good investments but most high tech unicorns never pay off. It’s a not surprising, they say, when we consider that AI is powerful but brittle. An example they offer: AI easily beats humans at the game of go which features a 19 × 19-square board. If the game switched to a 17 × 17-square board, humans would quickly adjust but AI would flounder. They offer examples of how this sort of limitation plays out in the real world, including the true tale of a hapless AI-driven insurance company: An insurance company with the quirky name Lemonade was founded in 2015 Read More ›

unicorn-stockpack-adobe-stock
unicorn
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Author
News
Date
October 25, 2021
Categorized
Artificial Intelligence, Business and Finance, Economics
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Tech Stocks: Are the Unicorns Losing Their Horns? Their Magic?

Jeffrey Lee Funk and Gary N. Smith reveal at MarketWatch that widely publicized, iconic unicorns have never made money or made only a little
News
October 25, 2021
2
Artificial Intelligence, Business and Finance, Economics

Technology consultant Jeffrey Lee Funk and Pomona business prof Gary N. Smith are not exactly bullish on the new high tech-dependent startups (unicorns) that everybody talks about. Lots of media interest and commentating, sure, but where’s the money? In a recent op-ed at MarketWatch, Funk and Smith warn, “Unicorn losses are unprecedented in the history of U.S. startups and threaten stock markets and the economy.” Not what you heard? Think about this then: The authors, regular contributors at Mind Matters News, point out that many investors and analysts worry about China’s Evergrande Group’s current woes ($300 billion in liabilities). But Evergrand was once profitable. And the Ubers and Airbnbs? They’ve never been profitable and the liabilities are growing: Unicorn losses Read More ›