“Mama Cathie” Denies AI Bubble Rumors… Accidentally Gives the Funniest Confirmation Yet

When “Mama Cathie” starts lecturing us on the definition of a “bubble,” you know we’re cooked…

Cathie Wood (the original WallStreetBets member with diamond hands) just told CNBC that an “AI reality check” is coming. And naturally, she did it from Saudi Arabia’s Future Investment Initiative, the annual “Davos in the Desert” where billionaires gather to convince themselves the robots will fix everything.

The ARK Invest CEO (best known for her batsh*t Bitcoin prophecies and eternal faith in “disruption”) says the market’s about to get a reality check. Cathie warned that a “shudder” is coming next year when interest rates reverse course and start climbing again.

(Source: Fortune)

Then, in true Cathie fashion, she pulled out the whiteboard to debunk one of her favorite myths… that innovation and interest rates move in opposite directions. “They think innovation and rates are inversely correlated… that’s not true over history,” she said, prompting thousands of Robinhood traders to exit out of the tab and retreat to their “stonks only go up” Discords.

Still, she admits the algos are gonna alg… meaning, yes, there’s probably a pullback coming. “We think there will be a reality check,” she said, describing it as more of a systems update than a meltdown. Think of it like the market clearing its cache before the next upgrade to euphoria 2.0.

And she might be right. Despite Jamie Dimon, Kristalina Georgieva, and half of the IMF yelling “brace for impact,” Big Tech keeps cranking out record earnings and trillion-dollar valuations out of thin air.

Still, Mama Cathie’s sticking to her script… AI isn’t inflated, it’s underappreciated. She even praised Palantir as the dark horse that’ll haul every legacy company into the AI renaissance. When it’s all said and done, she says, the gains will make early 2000s tech mania look like pocket change.

That said, maybe hold the hallelujahs. Her ARK Innovation ETF is still down about 5% over the last five years… so forgive me for sprinkling a little skepticism (and a gravel-sized grain of salt) on her sermon.

At the time of publishing this article, Stocks.News holds positions in Robinhood as mentioned in the article.