Missing April's stock market rebound cost investors years of gains, Kevin O'Leary says. Still, he sees strength in artificial intelligence and tariffs.
The "Shark Tank" investor told Business Insider this month that skipping the rally was like losing three years of returns, though he is not worried about an AI bubble or tariff pain.
AI Savings Versus Bubble Fears
O'Leary said today's AI isn't "the same hype that the internet bubble was" because companies can measure productivity "on a dollar-by-dollar basis." He cited Fly Guys, a drone firm he has invested in that scans rooftops and provides "AI-ready aerial imagery" to maintenance systems.
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Large chains such as Walmart (NYSE:WMT) and Home Depot (NYSE:HD) can spot issues and automatically generate work orders, cutting waste. "That saves millions of dollars," he said, adding that those gains could offset tariff costs.
Tariffs, ‘Liberation Day' And A Market Rebound
Stocks swooned after President Donald Trump announced "Liberation Day" tariffs in early April, then turned higher. O'Leary said panic selling back then proved costly, adding that investors who bailed missed "the sort of returns they might expect over three years in just 88 trading sessions."
The White House set reciprocal tariffs in July, including 10% for the UK and 15% for Japan. For the European Union, goods whose existing tariff was below 15% were raised to 15%, while those already at or above that rate were left unchanged.
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Inflation Signals And What Earnings May Show
O'Leary said the feared tariff shock — "input costs killing gross margin" — hasn't appeared in company results so far. The Bureau of Labor Statistics reported last week that the consumer price index rose 0.2% in July after a 0.3% increase in June. Over the past year, overall prices climbed 2.7%, while core inflation, which excludes food and energy, rose 3.1%.
O'Leary said the next 12–18 months of earnings will reveal whether AI-driven savings can offset trade costs. He also pointed to clearer tariff rates and said some are "very manageable" at 10% to 15% for partners such as the EU.
Looking ahead, O'Leary said he and his business managers are building inventory in preparation for the holiday season. "So that gives you some indication, we're net bullish," he added, according to Business Insider.
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