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Microsoft-backed OpenAI's AI chatbot ChatGPT has been making headlines ever since it was released to the public on November 30. It can break down complex scientific concepts, compose poems, write stories, code, and create malware…the list is endless. OpenAI has also released a paid version of the chatbot. Known as 'ChatGPT Professional', it is available at $42 per month.
ChatGPT3 has even raised alarms within Google – according to a recent report by The New York Times, 'Google now intends to unveil more than 20 new products and demonstrate a version of its search engine with chatbot features this year'.
Students have also been using the chatbot to complete assignments. It turns out it can clear examinations, too, with flying colors. Christian Terwiesch, a professor at the Wharton School School of Business, University of Pennsylvania, tested the performance of ChatGPT in an MBA exam. He questioned the chatbot on Operations Management, a core MBA subject.
The paper, titled 'Would Chat GPT3 Get a Wharton MBA? A Prediction Based on Its Performance in the Operations Management Course', delved into the implications of ChatGPT's 'academic performance'.
Christian Terwiesch
Based on the test, Terwiesch found that the answers were correct, and the chatbot provided excellent explanations. However, ChatGPT also made mistakes in relatively simple calculations at the sixth-grade math level, which can be massive in magnitude.
Terwiesch also noted that the current version of ChatGPT cannot handle more advanced process analysis questions, even if they are based on fairly standard templates.
Terwiesch concluded by stating in his study that ChatGPT has "remarkable skills in handling problems as used extensively in the training and testing of our MBA students. Combining the results of the questions, I would grade this performance as a B to B-".
The professor also added a reference point to put the chatbot's performance into perspective: "Until Wharton allowed students more flexibility in which courses they take, this Operations Management course was a required course that every student had to take. However, we did allow students to waive this course if they could demonstrate content mastery on a waiver exam. The performance of Chat GPT3 reported above would have been sufficient to pass the waiver exam, though by a very small margin."
Christian Terwiesch
Terwiesch didn't stop there. The professor wanted to find out if Chat GPT3 could develop a question paper. "By now, I have written thousands of questions, and, at times, I feel I have exhausted my imagination for new problems. Can I turn to Chat GPT3 to come up with new exam questions?" he asks in the study.
It was found that the questions were plausible and humorous. Terwiesch mentioned that the questions were good enough to be taken advantage of in upcoming question papers.
Professor Terwiesch compared the effect electronic calculators had on the corporate world to the impact ChatGPT could have on academia. "Prior to the introduction of calculators and other computing devices, many firms employed hundreds of employees whose task it was to manually perform mathematical operations such as multiplications or matrix inversions. Obviously, such tasks are now automated, and the value of the associated skills has dramatically decreased. In the same way, any automation of the skills taught in our MBA programs could potentially reduce the value of an MBA education," he said in the study.
Andrew Karolyi, dean of Cornell University’s SC Johnson College of Business, resonated with the same. He told the Financial Times: "One thing we all know for sure is that ChatGPT is not going away. If anything, these AI techniques will continue to get better and better. Faculty and university administrators need to invest to educate themselves."
Study Abstract:
OpenAI’s Chat GPT3 has shown a remarkable ability to automate some of the skills of highly compensated knowledge workers in general and specifically the knowledge workers in the jobs held by MBA graduates including analysts, managers, and consultants. Chat GPT3 has demonstrated the capability of performing professional tasks such as writing software code and preparing legal documents. The purpose of this paper is to document how Chat GPT3 performed on the final exam of a typical MBA core course, Operations Management. Exam questions were uploaded as used in a final exam setting and then graded. The “academic performance” of Chat GPT3 can be summarized as follows. First, it does an amazing job at basic operations management and process analysis questions including those that are based on case studies. Not only are the answers correct, but the explanations are excellent. Second, Chat GPT3 at times makes surprising mistakes in relatively simple calculations at the level of 6th grade Math. These mistakes can be massive in magnitude. Third, the present version of Chat GPT is not capable of handling more advanced process analysis questions, even when they are based on fairly standard templates. This includes process flows with multiple products and problems with stochastic effects such as demand variability. Finally, ChatGPT3 is remarkably good at modifying its answers in response to human hints. In other words, in the instances where it initially failed to match the problem with the right solution method, Chat GPT3 was able to correct itself after receiving an appropriate hint from a human expert. Considering this performance, Chat GPT3 would have received a B to B- grade on the exam. This has important implications for business school education, including the need for exam policies, curriculum design focusing on collaboration between humans and AI, opportunities to simulate real-world decision-making processes, the need to teach creative problem-solving, improved teaching productivity, and more.
Known as ART, the amphibious robot could help with monitoring challenging terrestrial-aquatic ecosystems.
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With the stock market constantly fluctuating, it can be difficult to know which stocks to sell and which ones to hold onto. But you can avoid these three for now
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With tech stocks continuing to rise, it is becoming increasingly difficult to decide which companies are worth buying, and which are simply stocks to sell. This article will give readers an overview of the best tech stocks to sell to maximize their returns.
The U.S., European, and Chinese stock markets have experienced positive gains since the start of the year. However, despite this recent bullishness, UBS Global Wealth Management cautioned against being over-confident in the sustainability of this run. Factors like high inflation and other market conditions could still be unfavorable for stocks in the early months of 2023.
Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, voiced his concern over the possibility of a ‘head fake’ rally, and that economic data may not achieve the market’s expectations in a recent note to clients. He cautioned that it’s still too soon to infer that inflation is no longer a concern. Additionally, he highlighted the possibility of core inflation being higher than anticipated, along with other potential risks facing the markets.
Investors could not be happier with the positive start to this year. However, they should also remain watchful. Although the market is looking up, economic data are still uncertain. Thus, it’s far from guaranteed that this impressive progress we’ve seen will remain for the rest of 2023.
Accordingly, for those looking to trim equity exposure, here are three stocks to sell.
DocuSign (NASDAQ:DOCU) is a company providing digital signature solutions to a broad base of large and small corporate clients. This business model has made the company one of the most sought-after tech stocks during the pandemic. Indeed, as businesses of all sizes adjusted their operations as a result of the pandemic, many leaned on digital solutions like electronic signatures and the document management tools that DocuSign offers.
DocuSign’s yearly revenue has seen tremendous growth in the last three years. In 2022, the company reported $2.1 billion in revenue, a 45% increase on a year-over-year basis. Impressively, 2021’s $1.453 billion in revenue was also roughly 50% higher over 2020, meaning this is a compounder with some serious clout. That said, revenue growth has slowed of late, with the company reporting top-line growth of 24.5% for the 12 months ended Oct. 31, 2022.
Growth has slowed further, to just 18%, as pr the company’s recently-released Q3 and fiscal 2023 financial results. Subscription income came in at $624.1 million, an increase of 18% compared to the year prior. Professional services and other revenue registered a boost of 27%, amounting to $21.4 million compared to the same period last year. However, the numbers signify a decrease sequentially, and reflect a general decline in growth for this previous high-flyer.
In addition, the dip in the residential real estate market is a cause for worry. When he published his piece on tech stocks to sell in December, InvestorPlace contributor Larry Ramer made an astute evaluation. That is, that the housing market was among the driving forces behind this organization’s success. The data proves Ramer is right.
Unfortunately, the US housing market saw another decline in December, extending the slump to four consecutive months in 2022. This marked a difficult year for the industry, which experienced its first annual decrease in housing starts since 2009.
Many people, including Larry, used the software when purchasing a house. However, the market downturn has intensified downward pressure on DocuSign, which is why it is on this list of tech stocks to sell.
Opendoor Technologies (NASDAQ:OPEN) is bringing about a revolution in the home-buying process with its disruptive technology. It aims to provide an automated solution for a smoother, quicker, and more convenient buying experience. Accordingly, it’s no surprise to see the influx of investors to this stock, when it made its debut in 2020.
In 2020, when Opendoor made its stock market debut, investors swarmed to the investment opportunity. This was at the pandemic’s peak, when investors were flush with cash and looking for a place to grow it. As a result, the stock did very well during its initial few weeks, surging in value as speculators entered the market.
However, Opendoor’s stock price has hit a rough patch over the past year. This is primarily due to increasingly bearish market sentiment. OPEN stock has lows two-thirds of its value over the past year, with expectations building that more in the way of declines could be on the horizon.
That’s largely due to the widespread aforementioned decline in the real estate market. Higher interest rates have killed this market, with home starts seeing one of the worst declines on record. Redfin anticipates that there will be a 16% decline in the number of existing home sales from 2022 to 2023, resulting in 4.3 million total sales. According to the company’s report, buyers are hesitant to make purchases due to affordability issues such as inflation, higher mortgage rates, and pricey homes, along with the possibility of an economic recession. Morgan Stanley (NYSE:MS) experts are also anticipating a fall in the housing sector by 2023, which could be damaging to those who bought their homes the previous year in 2022.
Undoubtedly, Opendoor’s business model is disruptive. But market trends are going against the stock, making this a top stock to sell in my books right now.
Ah, how time flies! It seems like yesterday we were all discussing Silvergate Capital (NYSE:SI), a Californian bank that mainly specializes in cryptocurrency transactions. However, after the epic downturn in the crypto markets and the spectacular collapse of FTX, Silvergate Capital is on the ropes.
On Jan. 17, Silvergate Capital revealed its fiscal Q4 earnings, recording a net loss of $1.0 billion or ($33.16 per share). Average digital asset deposits declined to $7.3 billion from the prior quarter’s $12.0 billion. Following these results, investors have clearly priced in worries about a run on the bank, which could lead to a collapse in Silvergate Capital in short order. Fortunately, this hasn’t occurred yet, due in part to the company’s reported total deposits of $3.8 billion at the end of the quarter.
That said, during the quarter, management reported $5.2 billion in sales of debt and securities at a disadvantageous expense of $718 million, to ensure sufficient liquidity. The firm reported a massive loss, and the company’s stock price reflected this reality as well.
Those who think that this lower stock price provides a great entry point should be warned. The selling pressure with SI stock may be far from over. Many investors didn’t think the company will be able to make it out of this crypto winter. And while Silvergate Capital may continue to sustain itself temporarily on trading fees from its exchange-traded products, it’s unclear how much investor demand will remain for its shares, should another contagion event take place.
On the publication date, Faizan Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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Article printed from InvestorPlace Media, https://investorplace.com/2023/01/3-tech-stocks-to-sell-in-january-before-they-get-torpedod-docu-open-si/.
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