AI is changing the world in the entire way that people work throughout history when we go through these major technological changes a lot of people get left behind you do not want to be the guy who never learned how to use a computer or go on the internet and while some of you are already living in fear about being replaced by AI you have to view it as a tool learn it take advantage of its capabilities and use it to increase your own productivity now some of you may have tried chat GPT when it first
launched a few years ago and came to the conclusion that it was bad for complex and data intensive tasks like stock analysis and you were kind of right I also thought that there were way too many hallucinations and just poor responses overall plus I already had my preferred methods for stock analysis however the newer models are getting a lot better and these companies whether it's open Ai and thropic xai meta they are investing billions and billions of dollars into training the Next Generation models and when you combine that with real-time verified financials and data visualizations
AI is starting to get very useful so today I'm going to share the four key use cases I have found to use AI for stock analysis I will share the exact prompts with the example outputs and also mention the mistakes to avoid but hey why should you be listening to me well I have an interesting combination of skill sets here first off I'm a trained data scientist I have a pretty technical background as I was able to build this whole stock research platform myself I've been studying stock analysis for over 5 years and a lot
of that has been learning from greats like Warren Buffett and Charlie Munger so I would say that they have a very good understanding of all the team metrics you need to look at whether that's for Value investors dividend investors dividend growth investors or growth investors my tips today are really not for short-term trading I've grown my personal investment accounts to over $300,000 and I'm 25 years old so that's not that bad that's $148,000 of gains and for years I've been sharing my stock analysis videos here on YouTube where I break down exactly how a company
makes their money and give my updated thoughts and an estimated valuation and I'm telling you AI has started to get very useful in my research but let's be real this is still a rather novel technology and you have to know what prompts to use if you enter a bad prompt you're going to get a bad result it can take a lot of trial and error but eventually you can shape the responses to get exactly what you're looking for and the results are powerful for example today I'm going to share how I use AI to summarize
earnings calls and quarterly reports learn exactly how and where a business makes their money calculate the intrinsic value of a stock using Financial models like discounted cash flow and using to find stocks that fit specific Financial metrics and to do so I will be using my newest tool which just launched over on dividend dat.com think of this as chat GPT but specifically trained for financial analysis and loaded with real-time financial data if you want to try it out now is the best time to sign up we have our Black Friday sale where you can get
50% off membership for life you are locking in that 50% discount there's also a 30-day money back guarantee so no risk in trying it out and you have to act fast this offer will no longer be available after Cyber Monday so if you find this tool to be interesting and want to start learning how to use AI for stock analysis then click the link in the description and pin comment or enter the promo code Black Friday 2024 at checkout also after signing up you'll get sent this PDF which is basically my cheat sheet to help
you use AI for stock analysis and I will be making even more detailed versions of this to be sent out soon so first let's go over summarize so in example prompt here you would say something like summarize the latest quarter and earnings call for NVIDIA ticker symbol and d da and you can see that reads from the real- time data and then it will start to formulate a response and this basically lets you save an hour of listening to an earnings call and get the key details right away plus this is all sourced directly from
the earnings transcript so I don't know about you but I like to actually closely follow most of my investments plus I have a watch list of tons of other companies that I find interesting or follow cuz I want to learn more before investing in them but realistically I can't listen to every earnings call but because of this I'm actually able to keep up with way more companies and as I've been using this over the past month this has become one of my power user features especially during Peak earning Seasons when there's like five stocks a
day I want to look at plus you can view the company's Revenue by product segment so you know exactly how they're making their money and that's especially important with a stock like Nvidia where the entirety of their growth is their Data Center business by the way you will not be getting charts like this in something like chat gbt all right the next major use case I have found is analyze and I like to view this as a launching pad to learn a lot about a business that may have taken hours to get from other sources
so say you had a company you didn't know a lot about and you wanted to figure out really how they make their money let's use Microsoft as an example I would write a prompt like write a research report on Microsoft stock ticker symbol msft it's very good to be specific and make sure you include the name of the company and the ticker and then I add some more details for how I want the response to be framed so I said how do they make money what are the key business metrics and then I also wanted
to know what some analyst price targets were so I said provide price targets and here you can see that it's reading from the data and starts to write its response and here you can see it generated this whole Report with all the key financial metrics the latest data on their various business segments key insights and growth initiatives such as Microsoft's largest growth business Microsoft Azure growing Revenue 33% year-over-year in the latest quarter you can see the latest analyst price targets with the average being $54.90 and the recommendation score with it being very bullish and then
of course you get data visualizations breaking down their key metrics so you can see how this can be pretty useful if you didn't know anything about a company to then in a few seconds be able to get a full picture look of exactly how they make money where it comes from Etc plus you can ask follow-up questions for example if I wanted to know about Microsoft's dividend yield it will respond with the yield and the latest dividend payments plus you can view the daily yield that Microsoft stock traded at over the years some dividend investors
really like this as for some stocks they like to optimize the entry point of yield and you can even view the total return so including dividends reinvested Microsoft has just been a crazy compounder you can use AI to help calculate the intrinsic value and this gets pretty interesting in how it can do multiple methods so one you can do something like discounted cash flow for Hershey stock ticker symbol hsy and it will use all the financial metrics for Hershey and it will do it for you and according to the ai's default calculations there's yourself to
make the calculations accurate to what you think will happen and you can do your DCF based on a multiple of free cash flow or apply a terminal growth rate in perpetuity for example perpetuity is how they got to that 39% upside but a break down discount cash flow almost needs an entire video itself so I'm going to share another interesting valuation method that I just discovered doing my recent alphabet stock review video given all the news about Google potentially being broken up I thought it was a good idea to do a sum of the parts
valuation so I asked can you do a sum of the parts valuation for alphabet ticker symbol g o l assign a multiple based on annual revenue and profit to each segment and add them together and I want to emphasize I didn't even know that the tool could do this I was just messing around with prompting and I got it to be able to do this for me it definitely took some trial on error but you can get it there so here it shows each segment and then how it determines the different multiples and then the
math of adding it all together and it gives a sum of the parts valuation of $2.9 billion how however if you disagree with any of the multiples it chose you can just do a follow-up prompt and ask it to keep refining this this can be like a collaborative process the final use case I'm going to share is Discovery and this is basically where you can get the AI to act like a stock screener and you can use hundreds of possible different filters so you could ask something like find US Stocks with a 5-year dividend growth
rate of greater than 10% and a current yield of at least 1% and you can turn a natural language question into an output and the data in the screen is updated daily plus you can then go and change the options used adding a lower and upper bound hit regenerate and you'll get a new list including a lower yielding stock like Microsoft and you can even add countless new filters for example let's say I wanted to put Ford PE ratio and I only wanted a Ford P below 30 and boom you see Ford p is now
included and the list is different Microsoft popped out of the list and this has Endless Possibilities it's really whatever your mind can think of AI is just a new tool it's not always 100% accurate and you shouldn't look at it as the gospel but it's getting a lot better and it's useful and we're still in the first inning this is only going to get better and better so the best time to learn is now and yes I may be biased in that this is on my platform but the entire purpose of everything I built on
this platform is to make what I want in a stock research tool I built what I would find useful so if you want to try it out then sign up at dividend dat.com it's much better than chat GPT for stock analysis plus you get all of my other stock analysis tools to help you verify the information the best time to join is now we have our Black Friday sale which gets you 50% off for life you got to sign up now cuz this is about to go away after Cyber Monday There's a 30-day money back
guarantee so no risk in trying it out I would recommend the annual plan that's our best deal just click the link in the description and pin comment to get right to this sale page or create an account on the web app and enter the promo code Black Friday 2024 at checkout if you enjoyed the video please leave a like comment and subscribe to the channel I'll see you in the next one
