By utilizing desktop computers, a revolutionary technological breakthrough, to distribute information to professional traders via Bloomberg connectors, Michael Bloomberg effectively expanded his enterprise, achieving an annual revenue of $12.2 billion.
Today, Investing.com, an online platform, seeks to replicate this strategy for investors in the financial sector. Incorporating artificial intelligence has the potential to democratize access to top-notch analysis for retail investors worldwide by reducing data production expenses.
“We aim to be the financial equivalent of Bloomberg, providing technical resources and assisting in the creation of stock selection ideas,” stated Ding’An Fei, the executive president of Investing.com and a founding member of Joffre Capital, the primary shareholder of the company. He expressed confidence that customers would see the value in this proposition. “Even if a small portion of individuals benefit from this service and are willing to pay for it, it would be sufficient.”
With a reported 80 million monthly active users across 200 countries with diverse language backgrounds, Investing.com primarily generates revenue through marketing. Despite the challenging events in Gaza, the company, established in 2007 by a Jewish entrepreneur and currently employing over 200 individuals globally, continues to operate smoothly.
Joffre maintains offices in Los Angeles, Beijing, Singapore, London, and Dubai, overseeing assets exceeding $200 million. Fei also acts as the president of Coins.ph, the second blockchain-native fintech company in Southeast Asia under Joffre’s umbrella. He has held positions on the Grindr board.
Fei emphasized Investing.com’s dedication to assisting consumers in understanding their investment choices. “AI can provide statistics, and for those who prefer a more conversational approach, AI can act as your financial interpreter, offering insights on specific companies or stock recommendations based on market conditions.”
Is it Advantageous for Investors?
The willingness of financial consumers to invest in real-time, extensive investment data remains uncertain, as some traders equate stock trading to gambling.
According to Fei, Investing.com caters to two types of investors: those using stock selection strategies to beat the market and those who simply enjoy investing. While experts typically recommend score investing for retail investors based on thorough research, the landscape has become more competitive with the emergence of commission-free trading platforms like Investing.com, focusing on post-fee performance metrics.
Investing.com sets itself apart by providing a comprehensive view of investment landscapes across different countries. Fei highlights that a significant portion of the market consists of individuals from regions like Korea and China, offering ample learning opportunities through Investing.com.
Challenges of an AI-Centric Business Approach
An AI-driven data model comes with inherent risks, particularly regarding the sustainability of high-quality AI-generated data. This concern, labeled as “choking on its own success” in an Axios article, underscores the challenges of relying solely on AI for data. Moreover, regulatory and societal factors can significantly influence business operations, as seen in instances like Sam Altman’s departure from OpenAI due to board-related issues.
Given Investing.com’s global presence, caution must be exercised in providing contextual services like trade execution, especially in jurisdictions like the United States subject to oversight by entities like FINRA or the Securities & Exchange Commission. Fei affirms that the company does not gather personalized user data.
Will AI Reign Supreme in the Market?
The crucial question remains: can AI consistently outperform the market in the long term? Fei suggests that AI will play an increasingly vital role in refining investment strategies. AI-driven approaches are likely to compete with each other, similar to seasoned traders. Establishing a lasting competitive advantage in investment performance poses challenges due to the widespread availability of company information, leveling the playing field.
Could a single AI entity surpass its competitors in investment expertise, or will a coalition of AI firms collaborate to dominate the market and yield returns for specific investor groups? The possibilities echo historical market dynamics driven by human actors, albeit with unpredictable outcomes in AI-driven domains.
Revolutionary Technological Progress
Fei underscores the potential for AI to revolutionize Investing.com through enhanced speed and depth. By accelerating data dissemination and offering varied perspectives on queries, AI has the potential to transform the production and presentation of financial insights across different languages and platforms.
