PS

Pershing Square (PS) stock has fallen 25% from its October peak of $60 to $45 after Citi and Bank of America downgraded it to sell/underperform, citing overvaluation at 54x forward earnings. Both analysts lowered earnings projections due to tepid investment performance and modest expected returns, despite the stock's 87% surge since its April IPO.

Bill Ackman criticizes the Federal Reserve's September 2024 rate hike, arguing that higher interest rates may backfire in the AI era. He contends that tech companies racing for artificial general intelligence will continue massive spending on AI compute regardless of borrowing costs, making demand inelastic. This could cause higher interest rates to be reflected only in AI product prices, potentially increasing rather than decreasing inflation.