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Nidia just helped this mean stock go up
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over 140% in one day but you might be
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wondering why am I even talking about
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this stock funny enough I actually own
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this stock and it's probably one of my
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biggest losers so I want to share what's
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going on with sens and Share My overall
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story because I think it shows how even
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if you are right you can still be wrong
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let's take a closer look in today's
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episode but first make sure to hit the
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thumbs up make sure to hit the Subscribe
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Button as this is going to be the best
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for the subscription service now let's
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continue with today's episode all right
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so first let's just quickly start with
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my story and sens was a stock that was
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first covered in my channel in January
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5th of 2020 it's pretty crazy I've been
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doing this YouTube thing for quite a
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while and looking at that video it
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definitely shows how I have evolved as
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one an investor and also a content
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creator and also how much weight I've
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put on in the past few years as well now
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the biggest thing about this is too long
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don't watch my main bullish point for
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suren is that it was building
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conversational AI for the automotive
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market and I believe AI was going to be
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the future if we kind of take a closer
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look at this overall Max we can see when
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I first talked about this company the
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stock was sitting at around $20 then we
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had kind of this whole covid craze and
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every stock was just going up like crazy
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where the stock saw some massive massive
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returns and it was funny right cuz it
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it's a learning experience and I
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mentioned right that you can both be
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right and wrong at the same time and I
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want to say I believe I was right
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because I thought AI was going to be the
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future and a few years later AI took
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over the industry right Chad GPT took
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over nearly 3 years after that first
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video of sens cat GPT came out on
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December of 2022 and my first video of
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this was like I mentioned January of
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2020 now I was happy that AI was the
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thing because a lot of my investments
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were focused around that aspect
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unfortunately with Innovation two things
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happened first is sometimes the
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Innovation and the rate of the adoption
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takes a lot longer than you think as we
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saw my bullish thesis for S was in early
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2020 it took multiple years for us to
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really see that technology evolve the
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second thing is that sometimes that
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Innovation that you are bullish on can
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destroy mostes of companies pretty
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quickly and that is what happened with
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sens overall large language model was a
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huge rival to conversational AI so where
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seren used to have a mo that Mo was now
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becoming a form of commodity by other
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players like open Ai and other companies
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as well so there are other aspects why
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the stock is failing one other thing was
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the core Revenue being dependent on the
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automotive market and the aut Mar Market
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has been extremely weak for the past few
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years but this lesson came with amazing
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learning points so I just want to share
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these learning points because there are
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certain industries that I believe are
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looking like this stock did a few years
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ago and it's funny how the market
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forgets so the first thing is valuations
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can go up like crazy and can stay
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gracely elevated for a long time the
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second thing that we can see is once the
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market pulls down things can pull down
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pretty pretty hard so just be careful I
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know we're seeing things like this in
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like Quantum Computing right now and I
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want to say my second learning point was
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probably the best learning point that I
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got from this let your winner win which
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is the most important thing even though
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sens failed because of other big Winners
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like Nvidia it barely affected my
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portfolio now if I had sold my winners
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early if I would have sold Nvidia early
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then that would have been a bigger hit
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on my portfolio than having this loser
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and that is why I enjoy my investment
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style of a growth investor focusing in
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markets that can grow dramatically but I
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can never only choose one player it's
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because of the experience that I have
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seen through my own investment Style now
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I want to say over the years though I
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have become more likely to have less
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positions than when I first started for
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example I think when I was investing and
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in 2020 I had already a few years in the
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investing world I had kind of I want to
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say 40 50 plus positions in My overall
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portfolio now that has changed
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dramatically I want to say my core
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products are less than 15 companies at a
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time right and I try to shift them over
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time and over the years so it has
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definitely been a nice learning stage
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and I think as any investor experiences
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like this is what help you evolve to
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become a better investor so I pretty
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much learn is you can be right about the
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Innovation taking place but so many
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things can go wrong like the timeline or
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like I mentioned how that same
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Innovation that you were bullish on was
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the reason your investment didn't make
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it now that's my overall story now I
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kind of want to talk a little bit of
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what's happening with s so I mentioned
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this is a company that is focusing on
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conversational AI and it's mainly meant
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on the automotive Market very similar to
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SoundHound right many people might think
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of it as a SoundHound competitor I
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personally enjoy sence a little bit more
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than SoundHound SoundHound definitely
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has its own industry and it's really
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focusing more kind of like in the
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restaurant and Hospitality Market where
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seren its core Market is more the
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mobility space so while they both focus
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in conversational AI they both have
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their own segments at the moment I have
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no intentions of of buying suren at the
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moment and I have no intentions of
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buying SoundHound either now I want to
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talk about the news that really drove
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this stock price to kind of go up so
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sens AI expands collaborations with
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Nvidia to advance is C llm family of
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language models now the reason I don't
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like companies in the AI space right now
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is they use Nvidia a lot of companies
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use Nvidia just to make it seem like
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they're the next big thing and for
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example here if we look at the title of
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this press release the company will
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Leverage The Nvidia AI enterprise
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software platform including the Nvidia
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tensor RT llm open- Source library and
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the Nvidia Nemo framework to optimize
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performance so I mean just from that you
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can see that this isn't really a
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partnership or collaboration it's just
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suren one way or another just being a
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big customer of Nvidia and using Nvidia
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software solutions to improve their own
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solution so I think this is just more of
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how Nvidia continues to win so I want to
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say there's a lot of just fluff here in
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this press release and this is why I
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personally don't get too excited when I
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see this I think this gives me bad taste
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so I have no intentions of buying any
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Cen at the moment I also have no
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intentions of selling it at the moment
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right now right it's such a small
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position in My overall portfolio to be
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honest what I'm right now is more of a
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gamble with my portfolio you can either
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continue to go up because s is a highly
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short interested stock roughly 177% of
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its Shares are shorted when this was upd
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last updated in December 15th so
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obviously with the recent runup that
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could be a little bit different right
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now but there's probably still high
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interest which can draw more of a short
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squeeze so this is more money that I
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already had in my portfolio that was
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kind of sitting so I'll rather kind of
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take the gamble a little bit more and
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see what happens in the next few days
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right I mean if SoundHound can easily do
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about a 900% in the past year or so
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there's nothing sto being surren to kind
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of do the same thing again I personally
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wouldn't buy it if I didn't have it in
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my portfolio it was dead money and now
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that dead money has some optionality to
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do something um so again very small
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position of My overall portfolio less
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than 1% but I just wanted to be honest
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with what I was thinking to do with my
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overall position now again I don't like
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this tactic as a investor right it's
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just them using invidious name to
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benefit some form of positive reaction
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for the overall stock now the only thing
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I can see now bullish for this and I
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want to say conversational AI has
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definitely lost its mop of where it's at
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I believe that's why SoundHound in my
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opinion is valued at the same time
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obviously stock prices can continue to
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go up the market can be a lot more
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irrational um and take a lot longer to
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be be rational than you can handle I
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mean we saw this very similar in sent
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back in 2020 where the valuations were
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crazy now learning from past experience
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this is not saying that I would ever
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short any of these stocks I'm never
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going to say hey you should short this
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company because at the end of the day I
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understand the market can be crazy but
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to me I I think conversational AI has
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lost this mode and especially as large
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language models have become more of a
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commodity and they are improving almost
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extremely at a high amount on a yearly
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basis that every time we see the next
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generation of our large language models
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I think conversational AI companies lose
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their MO even more and more the only
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thing that I want to say can help out
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conversational AI especially suren in
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the mobility Market is if we're entering
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something like robotics which is a form
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of Mobility that is a growth opportunity
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for them again that's a very very unique
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gambo and I personally wouldn't buy s at
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this moment but like I mentioned because
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it's dead money in my portfolio I was
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honest with how I would use it but as an
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investor I also wanted to kind of
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showcase this press release right
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because these are press releases that
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for me personally leave a bad taste it's
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like there's really no benefits in surr
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with this partnership it was just more
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saying that hey look we're going to
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spend money using Nvidia solutions to
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improve our Solutions congratulations
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that's every other company out there so
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right now the market definitely anything
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tied up with Nvidia and AI is definitely
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seeing a nice rise in price and this is
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another industry right while I am
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bullish in the AI Market I believe there
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are stocks that are not representative
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of where the AI Market is right now so I
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hope you guys enjoy this episode I hope
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my learning story uh or or My overall
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story was also an experience of how I
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was as an investor back then and again
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how even though I was right about the AI
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Market it was still wrong in that
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investment which I think is pretty funny
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right so take care have a good day and
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see you all next time
