The Algorithm and the Abyss: Two Stocks

The fever pitch surrounding these… ‘artificial intelligences’… is, shall we say, unsettling. It mirrors the frantic gold rushes of old, the desperate grasping for salvation in a machine. Investors, bless their naive hearts, believe they can predict the future, that they can discern the divine spark within the silicon. They pile in, hoping to replicate past triumphs – the internet, the smartphone – as if history were a simple equation. But the market, like the human soul, is riddled with contradictions. It promises a supercharging of earnings, yes, but at what cost? What dark bargain is being struck with this new god?

And yet, amidst this hysteria, a curious thing emerges. Certain companies, those who truly understand the abyss they are peering into, remain… reasonably priced. It is as if they acknowledge the inherent uncertainty, the terrifying potential for failure. Two, in particular, offer a glimmer of hope, or perhaps merely a slightly less precipitous fall. Let us examine them, not with the giddy optimism of the crowd, but with the weary skepticism of one who has witnessed too many fortunes rise and crumble.

1. Meta Platforms

Meta Platforms (META 2.95%) – a name that once evoked images of frivolous connection, of curated realities. Now, they speak of double-digit revenue growth, of an ‘important year for AI.’ The stock has climbed, naturally. But the valuation… it remains intriguing. Almost… cheap. Trading at a mere 24 times forward earnings. It’s as if the market suspects something, a hidden flaw, a moral compromise. Perhaps they are right.

We know them for Facebook, Instagram – the purveyors of fleeting moments, of manufactured desires. They drive revenue, yes, through the relentless bombardment of advertisements. But now, they dabble in something far more profound: large language models, tools capable of… what, exactly? Mimicking intelligence? Amplifying our own failings? They aim to ship new models soon, to unleash these creations upon the world. And in that moment, before the inevitable chaos, is perhaps the time to… participate. To observe the unfolding tragedy with a vested interest.

2. Amazon

Amazon (AMZN 1.00%) – the behemoth, the everything store. We think of e-commerce, of packages delivered to our doorsteps with unsettling efficiency. They have built a leadership there, selling us not just necessities, but the very idea of need. But beneath the surface lies another empire, one built on chips, platforms, and the sale of intelligence to others. Through Amazon Web Services (AWS), they offer the tools of creation – and destruction – to all who can afford them.

AWS grew even before the age of AI, a testament to the insatiable hunger for data, for connection. But now, AI is fueling that growth, adding to the already formidable power. Their annual revenue run rate has reached $132 billion. A staggering sum. And they are using these tools to improve their own business, to streamline processes, to lower costs. To perfect the machine. Like Meta, Amazon remains… reasonably priced. Trading at 30 times forward earnings. A bargain, perhaps, for those willing to gaze into the abyss and profit from the darkness.

2026-02-01 04:12

1. Meta Platforms

2. Amazon

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