Latest / Best of Business / Scott Shellady: US markets analyst explains why US experts are worried about DeepSeek

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Scott Shellady: US markets analyst explains why US experts are worried about DeepSeek · Best of Business

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  Speaker 2: London with the EDNA Brady before the top of the hour.
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  Speaker 2: Right now, US tech stocks have taken a huge hit today.
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  Speaker 2: You would have seen this in the news this after
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  Speaker 2: the Chinese AI company entered the scene. Deep Seek is
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  Speaker 2: its name. It's an app that claims to need fewer
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  Speaker 2: and less advanced chips to make work now. US chip
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  Speaker 2: maker Nvidia lost six hundred billion US dollars off its
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  Speaker 2: market cap in a single day, and the Nasdaq lost
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  Speaker 2: about three percent on the whole. Scott she Lady is
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  Speaker 2: a US markets analyst. Scott Hello, good morning. Are invest
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  Speaker 2: is I mean, obviously they're freaking out? Are they right
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  Speaker 2: to freak count?
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  Speaker 3: Well, yeah, I think it deserves a little bit of worry.
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  Speaker 3: I mean we were pretty much Price of Perfection number one.
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  Speaker 3: Number two is until fret until probably last Monday. We
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  Speaker 3: could go today. The idea that there was any competition
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  Speaker 3: with a probably surprise me, which it did. But yeah,
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  Speaker 3: they need to take heed. I'm not quite sure it's
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  Speaker 3: the end of anything. We you know, there's not a
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  Speaker 3: lot of folks that are going to pack the truck
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  Speaker 3: up and connect with China. We have to take China's
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  Speaker 3: word for a lot of it. But there has been
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  Speaker 3: some reports that say that this deep de seek is
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  Speaker 3: is is the real deal. But they say that they
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  Speaker 3: only spent five point six million dollars on it, when
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  Speaker 3: we're spending one hundred million dollars in hours. They say
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  Speaker 3: they've done it in a short time frame. All of
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  Speaker 3: that stuff is still esoterical. You can't really you know,
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  Speaker 3: put your finger on it, but it's something that to
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  Speaker 3: be considered. And uh, you know, the amount of money
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  Speaker 3: I think that really was getting people worried was, uh
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  Speaker 3: the economics spend of all these companies that are getting
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  Speaker 3: involved with they I is that going to change because
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  Speaker 3: they don't have to spend as much. I mean, they're
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  Speaker 3: still gonna sell a lot and video is going to
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  Speaker 3: sell a lot of chips, but maybe, just maybe the
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  Speaker 3: price of I'm changed today.
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  Speaker 2: Hugely significant time for this to be going down as well,
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  Speaker 2: because you've got Meta and Microsoft and all that coming
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  Speaker 2: out with their they're called a forcern right this week.
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  Speaker 2: So so will this potentially affect their calculations? Will it
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  Speaker 2: affect how they spend their money?
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  Speaker 3: It depends on how how how you know, how seriously,
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  Speaker 3: how seriously the investors take it. I mean, I think
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  Speaker 3: they should take heed. About how how much heed they
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  Speaker 3: take that's going to be the real debate. I mean,
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  Speaker 3: I just don't see a ton of people backing up
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  Speaker 3: and connecting with a Chinese product, especially now that we've
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  Speaker 3: got this TikTok debate in this country for a year too.
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  Speaker 3: But I also do know that the we've had some
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  Speaker 3: people here look at what they put out and it's
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  Speaker 3: the real deal. So however long it's taken to make
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  Speaker 3: it in forever, how much it took them to spend
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  Speaker 3: to make it could be up for debate. But there
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  Speaker 3: is competition out there, so you know, today and Video
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  Speaker 3: had the I think a seventeen percent decline, which was
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  Speaker 3: the largest one data climb in the history of our
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  Speaker 3: stock market. It was a six hundred billion dollars market
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  Speaker 3: cap selloff. Okay, that's that's pretty significant. However, if you
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  Speaker 3: look at the top ten, and Video owns seven of
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  Speaker 3: the biggest selloffs, so we're in an environment where things
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  Speaker 3: are pretty pretty valuable. Again, I think we were priced
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  Speaker 3: to perfection two years ago and Video was up two
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  Speaker 3: hundred and thirty nine percent. Last year was up one
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  Speaker 3: hundred and seventy one percent, So we shall see. I mean,
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  Speaker 3: it's it's been a pretty heavy climb. It's just probably,
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  Speaker 3: I think probably is this it needs to be taken serious.
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  Speaker 3: But you don't need to throw the baby out with
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  Speaker 3: the bath water. I still think there's a ton of
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  Speaker 3: growth to be had there. But maybe everybody got a
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  Speaker 3: little bit of a wake up call so they think,
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  Speaker 3: you know, that there might be some competition.
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  Speaker 2: Donald Trump's come out and said basically, this is a
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  Speaker 2: good thing. I mean, and American companies should be looking
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  Speaker 2: at this top of innovation and trying to emulate it.
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  Speaker 3: Well, I mean, there's nothing wrong with saying that. And
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  Speaker 3: I think that, like I said about you know, TikTok
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  Speaker 3: and the Chinese, there's a lot of skepticism in this
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  Speaker 3: country about the Chinese and technology, and rightfully so. I
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  Speaker 3: mean for years and years and years. This is what
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  Speaker 3: he's been elected to do, by the way, because they've
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  Speaker 3: been taking a lot of our intellectual property rights to
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  Speaker 3: the tune of at least five hundred million dollars a year,
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  Speaker 3: maybe a lot more. So there's still a lot of
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  Speaker 3: skepticism there, but it does remind everybody that it wasn't
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  Speaker 3: a straight shot to the moon. You know, these companies don't,
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  Speaker 3: these stock rices don't grow to the sky, and I
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  Speaker 3: think that was a much needed sell up and maybe
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  Speaker 3: there should be some more. We are going to have
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  Speaker 3: a tech revolution, we are going to have an ur
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  Speaker 3: s intelligence revolution, but maybe it's just not going to
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  Speaker 3: be as expensive as everybody thought, and maybe that means
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  Speaker 3: there's a lot more people that come to that party.
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  Speaker 2: Well, that does sound like a good thing, Scott, Thank
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  Speaker 2: you for that, Scott Slady, he's a US markets analyst.
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