5 ms·

The pre-open market doesn't see it as a big win for MSFT. The stock is still lower than it was at Friday's open.

by zone411 3y ago

alexb_ 3y ago
If Mr. Market was perfectly rational and correct, profit would cease to exist.
- panragon 3y ago
  That's not true, Capital would still accumulate returns higher than the cost of inventory plus wages, the return would just be the same 'everywhere', and you'd have a perfect market alpha for all stocks, whether it be 1, 2, 5, or 10%. Even perfectly rational markets do not establish socialism overnight. Now maybe you could argue under a Marxist lens that exploitation would be more 'visible', causing socialism to arrive out of social rebellion faster, but that's really besides the point. What would cease to exist would simply be speculation and arbitrage. Since all prices are perfect, you simply wouldn't be able to make more (or even less, for that matter) money than the return on capital everyone gets by buying and selling shares quickly.
- latency-guy2 3y ago
  Why? That is a gigantic statement to make to provide no backing for.
HarHarVeryFunny 3y ago
It doesn't seem like it is a big win for MSFT. Hard to argue that MSFT is now in a better position than they were before this happened. Best case scenario for MSFT probably would have been to negotiate Altman et al back to OpenAI with some governance changes to boost stability. Keep the OpenAI GPT-N momentum going that they have harnessed for themselves. MSFT have managed to neutralize (for now) the threat of Altman et al creating a competitor, but this has come at the cost of souring their relationship with OpenAI who they will continue to be dependent on for AI for next couple of years. Big question here is what happens to OpenAI - can they keep the momentum going, and how do they deal with their sugar-daddy & compute-provider MSFT now also being a competitor? How much of the team will leave, and can they recover from that ?
- chucke1992 3y ago
  The thing is Satya has played the best possible hand in the current situation. MSFT did not fall much and 1-2% deviation does not mean much on the long run.
  - HarHarVeryFunny 3y ago
    Agreed - he contained the damage as best as could be done.
deleted 3y ago
[deleted]
airstrike 3y ago
MSFT is also at an all-time high so it's natural for them to be slightly lower

The pre-open market doesn't see it as a big win for MSFT. The stock is still lower than it was at Friday's open.

alexb_ 3y ago

If Mr. Market was perfectly rational and correct, profit would cease to exist.

panragon 3y ago
That's not true, Capital would still accumulate returns higher than the cost of inventory plus wages, the return would just be the same 'everywhere', and you'd have a perfect market alpha for all stocks, whether it be 1, 2, 5, or 10%. Even perfectly rational markets do not establish socialism overnight. Now maybe you could argue under a Marxist lens that exploitation would be more 'visible', causing socialism to arrive out of social rebellion faster, but that's really besides the point. What would cease to exist would simply be speculation and arbitrage. Since all prices are perfect, you simply wouldn't be able to make more (or even less, for that matter) money than the return on capital everyone gets by buying and selling shares quickly.
latency-guy2 3y ago
Why? That is a gigantic statement to make to provide no backing for.

HarHarVeryFunny 3y ago

It doesn't seem like it is a big win for MSFT. Hard to argue that MSFT is now in a better position than they were before this happened. Best case scenario for MSFT probably would have been to negotiate Altman et al back to OpenAI with some governance changes to boost stability. Keep the OpenAI GPT-N momentum going that they have harnessed for themselves. MSFT have managed to neutralize (for now) the threat of Altman et al creating a competitor, but this has come at the cost of souring their relationship with OpenAI who they will continue to be dependent on for AI for next couple of years. Big question here is what happens to OpenAI - can they keep the momentum going, and how do they deal with their sugar-daddy & compute-provider MSFT now also being a competitor? How much of the team will leave, and can they recover from that ?

chucke1992 3y ago
The thing is Satya has played the best possible hand in the current situation. MSFT did not fall much and 1-2% deviation does not mean much on the long run.
- HarHarVeryFunny 3y ago
  Agreed - he contained the damage as best as could be done.

deleted 3y ago

[deleted]

airstrike 3y ago

MSFT is also at an all-time high so it's natural for them to be slightly lower