That’s gotta Hertz

Adding "AI" to your company's name used to be a blessing. Right now it's a curse.

Sherwood Media/Datawrapper Presented by Hey Snackers, Call us petty, but we kind of enjoy when one Big Tech competitor razzes another. Case in point: Google, which recently put out an ad directly mocking Apple's failure to deliver a better, AI-powered Siri for its iPhones. Yesterday, Google debuted its new Pixel 10 and showed off AI features Apple has long promised were "coming soon." From early reviews, it seems its Gemini assistant is succeeding, though the real proof will come when the new smartphone hits the hands of actual consumers next week. What was shaping up to be a repeat of Tuesday's AI momentum wreck seemingly turned on a dime into another buy-the-dip moment. Though major indexes all retreated on the session, they turned around sharply shortly before 11 a.m. ET to finish well off their lows. In the end, the S&P 500 gave back 0.2%, the Nasdaq 100 underperformed with a 0.6% drop, and the Russell 2000 dipped 0.3%. AI AI AI Adding "AI" to your company's name used to be a blessing. Right now it's a curse. For years, there has been a simple way to convince investors that your company has promise, regardless of its actual business: just jam "AI" into its name. Simple, yet effective, there is no better way to make sure everyone knows you're in the AI business than literally putting it in your name, a tactic many US publicly traded companies have turned to to try to ensure their stocks get their fair share of any halo effect from the theme.  But when there's a nascent pullback in everything AI, that also means you stick out like a sore thumb. We scanned the S&P 500 Total Market Index for companies whose names make it clear they're in the artificial intelligence business (mostly relatively smaller stocks). Think companies like Arrive AI, BigBear.ai, Blaize Holdings, Bullfrog AI Holdings, C3.ai, Datavault AI, Jet.ai, Palladyne AI, Scantech AI Systems, SES AI, SoundHound AI, and Spectral AI. Those stocks were down a lot this week, as charted here. A Bank of America basket of mostly large-cap US AI beneficiaries also dropped over the same period. SoundHound AI is at the bottom of the pack despite a dearth of company-specific news, and fell another 6.6% yesterday.  THE TAKEAWAY Adding "AI" to your name could be a sincere way to bring the forefront of a company's business to top of mind for investors, or it could more cynically be perceived as a cheap stunt to juice the stock. Whichever way you see it, one thing is now clear: it's far from without risk.  Read more Presented by Pacaso Keep This Stock Ticker on Your Watchlist They may not be trading on the Nasdaq yet, but Pacaso just reserved the ticker "$PCSO."1  Created by a former Zillow exec who sold his first venture for $120M, Pacaso brings co-ownership to the $1.3T vacation home industry.2 They've generated $1B+ worth of luxury home transactions and service fees since inception across 2,000+ owners. That's good for more than $100M in gross profit since 2021, including 41% YoY growth last year alone.3  No surprise the same firm that has backed large-cap S&P 500 companies already invested in Pacaso. What is unique is Pacaso is giving the opportunity to become an early shareholder to everyday investors, and 10,000+ people have already joined them. And you can join them today for just $2.90/share.4 But don't wait too long. Invest in Pacaso before the round ends September 18.5 THAT'S GOTTA HERTZ Amazon dabbles in used cars; the industry winces  Rental car giant Hertz announced it will begin selling some of its massive inventory of used vehicles on Amazon. The news sent shares of the used car company up 6 points, while it dinged stocks like Carvana and CarMax as investors came to grips with the idea that Amazon might be muscling in on their turf. The program will start in four cities before eventually expanding to 45 US locations. Hertz, which has posted seven consecutive quarterly losses, has been on the hunt for profit-boosting strategies as of late. It's also rolled out controversial AI damage scanners at several US airport locations that, according to some customers, charge hefty fines for minuscule scratches and dents. In its latest earnings report, Hertz said it had a fleet of more than 540,000 vehicles. Carvana sold more than 143,000 vehicles in its second quarter, and has a lofty goal to sell 3 million vehicles annually in 5 to 10 years. If Amazon continues to expand into the used car business, that may become even tougher. THE TAKEAWAY The four most dangerous words for any company are: "Amazon likes your industry." Even a cursory expansion to an existing business line — Amazon's toe in the water in the auto world is the aptly named Amazon Autos, which has so far mostly been an arrangement with Hyundai — is enough to wreak havoc on an unsuspecting industry's share prices.  Read more THE BEST THING WE READ TODAY Xiaomi is speedrunning building an electric vehicle business In 2021, no one at Xiaomi knew how to make cars. Going from smartphones to EVs isn't exactly a logical or easy next step — just ask Apple, which gave up on its moon shot car project after a decade. But facing trade sanctions in its phone business, the company launched Xiaomi Auto and, less than four years later, predicts it will deliver 350,000 electric vehicles this fiscal year. See how long it took Tesla and BYD to hit that milestone. Presented by Hims Regrowth in your morning routine. Re-grow your hair in as little as 3-6 months6 with doctor-trusted formulas through Hims. No waiting rooms or prescription pick-ups. Answer a few simple questions and a board-licensed provider can determine which once-a-day formula is right for you: chewables, serum or Hims' best-selling topical spray.  Solve hair loss your way through Hims.7 MOVES Yesterday's Big Daily Movers  CoreWeave dropped after a top shareholder sold nearly 1.5 million shares TJX, the parent of T.J. Maxx, Marshalls, and HomeGoods, hit an all-time high after a knockout Q2 earnings report Estée Lauder sank after reporting disappointing guidance in its Q4 earnings call Target beat Q2 expectations, but the stock sank as management continues to warn of a sales slump Micron fizzled on a report that Samsung's new memory chip passed Nvidia's reliability tests What else we're Snackin' It looks like Tesla CEO Elon Musk is giving up on starting the "America Party" Analyst Dan Ives warns that "Skeptics of Tech Rally Will Be Proven Wrong (Again)" Spot ethereum ETFs are on pace for their highest outflows ever since the funds started Shein wants to move back to China in a scramble to find a way to IPO Snack Fact of the Day As of today, the price of every new Sony PS5 costs $50 more. Thursday Earnings expected from Walmart, Alibaba, Intuit, Workday, and Ross    Advertiser's disclosures: 1 Pacaso recently received their ticker reservation with Nasdaq ($PCSO). Reserving the ticker symbol is not a guarantee that the company will go public. Listing on the Nasdaq is subject to approvals. 2 Pacaso estimates the U.S. market at $1.3 trillion and the European market as $500 billion. See website for further details.  3 The $100M gross profit is calculated from 2021-2024. For more details on the gross profit for 2021- 2023, please see management discussion of the financial condition section of the offering circular. For more details on the 2024 gross profit, please see the 1-K Financial Statements section. Past performance is not indicative of future results. 4 The minimum investment is $1,035.52 when including the 3.5% investor fee. This is a paid advertisement for Pacaso's Regulation A offering. Please read the offering circular and related risks at invest.pacaso.com. 5 Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities. 6 Based on separate individual studies of oral minoxidil and oral finasteride. 7 Hair Hybrids are compounded products and have not been approved by the FDA. The FDA does not verify the safety or effectiveness of compounded drugs. Restrictions apply, see website for full details. Prescription products require an online consultation with a healthcare provider who will determine if a prescription is appropriate. Restrictions apply. See website for full details and important safety information. Was this email forwarded to you? Don't miss out on future stories — subscribe to Snacks and get your daily dose of financial news straight to your inbox.  Craving more insights in your inbox? Subscribe to Chartr and The Wrap for quality reads. 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