AI Tractors: How the Latest Breakthrough Will Create Winners and Losers

The transformative potential of AI is difficult to grasp and profit from, but investing in companies that effectively utilize AI can lead to rare investment opportunities. Eric Fry compares AI to Henry Ford's revolutionary tractor, which eliminated farm jobs and reshaped the American economy over a century ago.

Just as the internet's infrastructure boom enabled companies like Netflix and Amazon to thrive in the 1990s, AI is transforming commerce today. However, this also means that some companies will be negatively impacted by AI. Eric Fry identifies Shutterstock (SSTK) as one such stock that is struggling due to its inability to adapt to GenAI technologies.

Shutterstock's financial situation has worsened since Fry issued his warning two years ago, with a 17% year-over-year revenue decline and a net loss of $155.9 million compared to a net income of $29.4 million. The company's stock has dropped about 80% since then.

Fry emphasizes the importance of examining every prospective investment through the lens of AI and being aware of both the opportunities and hazards it will create. He proposes a three-step process for identifying companies that will survive and thrive on the Road to AGI: investing in AI infrastructure, alongside AI companies, or in stealth AI.