Barron’s: “How to fight AI? The ‘Rolex effect’ could lift Apple and other consumer brands”
By datatrekresearch in IN THE NEWS
Excerpt from Barron's quoting DataTrek co-founder Nick Colas:
What do luxury Swiss watch makers and companies like Apple, Walmart and Coca-Cola have in common? Strong brand loyalty. That emotional connection, one strategist argues, could help shield leading consumer stocks from the worst effects of the artificial-intelligence revolution.
DataTrek Research made that case in a report Friday, arguing that just as companies like Rolex, Audemars Piguet and Patek Philippe adapted to the introduction of less expensive quartz watches from Seiko in the late 1960s by marketing their mechanical watches as a high-end status symbol, today’s top consumer brands may be able to survive and thrive by touting how their products and services make customers feel.
“As investors weigh which sectors may be threatened by a new AI-powered offering, consider this simple approach: how emotionally connected are consumers to the people and products in question? No one has an emotional bond to enterprise software, and these companies’ stocks are under pressure,” said Nicholas Colas, co-founder of DataTrek Research"....
Full article here on Barron's.
