As I start to see companies pivot towards AI strategies, it reminds me of a chapter I read a while back in A Random Walk Down Wall Street.
The author talks about how during the dotcom bubble a traditional company could just mention a web strategy or put .com at the end of their name and suddenly their entire revenue stream (even the parts completely unrelated to web) were being measured by a much more generous P/E standard or revenue multiple. Toto as an example still has a large part of their revenue generated from their traditional business, but a 25 P/E on that would look cheap nowadays because of this mentioned pivot.
Not trying to give an opinion one way or another but just wanted to share.
Posted by RollCall829