AI boosts market cap by 87billion dollars, then erases it
2023Since 27at least 87U.S.-listed companies have added AI to their names or shifted their businesses toward AI. Compared with just before the name changes, their market capitalization rose by a total of 106 billion dollars (7%), but as of last month, more than half of those gains had disappeared, and at least companies had a lower market cap than before the changes.
2023Since 27at least companies have added AI-related terms to their names or shifted their business direction toward AI, and in the process, some stocks surged.
As one example, sneaker maker Allbirds changed its name to Smartbird last month and shifted its focus to premium servers equipped with AI chips.
The market capitalization of the companies that changed their names increased by a total of 87billion dollars, or 106%, at the peak compared with just before the changes.
But as of last month, more than half of those gains had already disappeared, and 7 companies now have a smaller market capitalization than before the name change.
Owen Lamont, portfolio manager at Acadian Asset Management, said that as retail investor influence grows, companies are increasingly trying to use investor attention to engineer short-term share-price gains.
Most of the companies that changed their names were microcaps or OTC-listed firms, and some were companies that were already struggling because of weak core businesses or management difficulties.
There is also research comparing these cases with the past. 2000A study published in that year examined similar cases during the dot-com bubble.
The study said that companies that announced they were adding ".com" recorded average excess returns of 10 over 72%
Sources: 뉴시스 경제
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