How to spot an AI stock bubble without losing your marbles

Chapter 1

The anatomy of a hype cycle

Chapter 2

Inside the AI gold rush

Chapter 3

How to spot the warning signs

Chapter 4

Smart strategies for calm heads

Ch 3 · How to spot the warning signs

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Understanding the price-to-earnings ratio

nic Dividing share price by earnings per share calculates the P/E ratio, which soared over 400 during the 1999 tech bubble.

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Quiz

How is a company's price-to-earnings (P/E) ratio calculated?

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Quiz

What does an extremely high price-to-earnings (P/E) ratio usually indicate about a stock?

nic Fear of missing out drives panic buying that inflates artificial AI stock bubbles.

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Quiz

Why is buying a stock due to FOMO dangerous for your savings?

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Quiz

What does the financial acronym 'FOMO' stand for?

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Fun Fact

Dot-com name change: In 1999, a company called Zapata changed its name to Zap.com, causing its stock to double instantly.

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Quiz

What are corporate 'earnings calls' in the financial world?

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Quiz

Why might a struggling company repeatedly mention 'AI' during its earnings call?

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Glossary

margin debt (noun)
The amount of money borrowed by an investor from a brokerage firm to purchase securities. United States margin debt crossed one trillion dollars for the first time in 2025.

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Quiz

Who famously avoided the 1929 stock market crash after receiving stock tips from a shoe-shine boy?

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Quiz

What does the 'shoe-shine boy indicator' suggest about a stock market trend?

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Gossip

What is the biggest warning sign of a bubble?

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