The story of the week was simple; the reasons behind it were more complicated. The Dow was up for the week, but indexes heavily focused on technology stocks were not.
The headline answer is that higher-than-expected inflation readings are causing investors to sell technology stocks and look for safety in out-of-favor dividend-paying stocks. The thinking is that higher interest rates have become a near certainty, so investors are rotating into value.
On top of that, a Gartner report that 80% of neocloud companies could shut down or merge by 2030 due to a "severe mismatch" between AI infrastructure spending and achievable revenue turned the uncertainty that some investors have about the AI trade into outright fear.
The key will be earnings. Big tech earnings aren't for a couple of weeks, and the results will either confirm or contradict this pullback. The MarketBeat analysts will be on top of those reports. In the meantime, here are some of our most popular stories from this week.
Articles by Thomas Hughes
Earnings season is here, and Thomas Hughes thinks the S&P 500 could blow past consensus again. After big upside surprises in the first two quarters, he explained why AI demand gives investors reason to expect another beat, and which cybersecurity and chip names could lead the way.
ASML NASDAQ: ASML can’t build its machines fast enough. Hughes showed why the CEO’s warning that demand will outstrip supply through 2028 is actually good news for shareholders.
Johnson & Johnson NYSE: JNJ delivered a solid third quarter and raised guidance. But Hughes says the bigger story is a newly approved surgical robot that puts the company in direct competition with an industry leader. He explained why that could keep the stock’s uptrend intact.
Articles by Sam Quirke
Tesla NASDAQ: TSLA isn’t content to design its own chips anymore. It wants to make them too. Ahead of the company’s Oct. 21 earnings report, Sam Quirke looked at what could go wrong with Elon Musk’s chip fab ambitions and why a premium valuation leaves little room for error.
Amazon NASDAQ: AMZN has committed $220 billion to AI, and the bill is still growing. With third-quarter earnings approaching, Quirke asked whether the company's results can justify the spending.
Royal Caribbean Cruises NYSE: RCL is moving from the open water to dry land with a $3 billion stake in the company behind Sandals resorts. The stock has jumped about 25% since the announcement. Quirke explained what the deal means for the cruise line’s next leg of growth and the risks that come with it.
Articles by Chris Markoch
National brands are still growing sales, but they’re doing it by charging more, not selling more. Chris Markoch explained why the battle for grocery shelf space is shifting and which side of the trade investors may want to own.
A new federal inquiry sent agricultural equipment stocks sharply lower. Markoch looked at what the FTC and USDA probe means for three ag equipment makers that were just starting to recover.
Withdrawals from investment accounts now fund nearly 7% of U.S. household spending. Markoch highlighted three stocks positioned to benefit as Wall Street wealth fuels consumer spending.
Articles by Ryan Hasson
The utilities sector has gone through a rough stretch with a leading sector ETF at three-year lows. But it may have found its bottom. Ryan Hasson explained what that could mean for two utility giants and whether the sector is ready for its next rally.
Concerns about AI and stretched valuations are pushing money into other corners of the market. For investors who believe this could be the start of a broader rotation, Hasson highlighted three sectors leading the rotation.
The holiday shopping season is almost here. That's normally bullish for retail stocks. Hasson identified five retail picks to watch as consumers start filling their carts.
Articles by Leo Miller
Synopsys NASDAQ: SNPS is putting $1 billion into an accelerated share buyback after a strong rally. That announcement came with SNPS already up 30% over 30 days, but Leo Miller explained why there may be more upside to come.
Broadcom NASDAQ: AVGO is lining up $60 billion in financing tied to Anthropic, deepening its bet on the AI company ahead of an expected IPO. Miller explained how the deal raises the stakes for shareholders.
Articles by Nathan Reiff
Tesla showed off its Cybercab robotaxi in Europe for the first time at the Paris Motor Show. Meanwhile, Nathan Reiff argued that the bigger story in Paris is the fight over affordable EVs.
The Pentagon is putting $350 million toward quantum computing. Reiff explained why one quantum stock could benefit more than its rival.
Reports that Apple cut iPhone 18 orders could ripple through its supply chain. Reiff looked at what the news could mean for two key suppliers.
Articles by Dan Schmidt
It can be tempting to buy stocks that are down sharply. They have to come back, right? But not every stock that’s been cut in half is a bargain. Dan Schmidt explained why three fallen giants may be facing structural problems rather than a temporary dip.
The big banks beat third-quarter estimates, yet their shares still fell. Schmidt explained why the market isn’t rewarding strong earnings.
The rise of prediction markets is causing many traditional sportsbooks to spend heavily on promotions. But did this spending actually win back bettors? Schmidt compared the marketing strategies of three gambling stocks.
Articles by Jeffrey Neal Johnson
Bank of America went straight from Underperform to Buy on Salesforce NYSE: CRM, a rare double upgrade. Jeffrey Neal Johnson broke down what changed, including a small AI acquisition and a shift in how the company prices its AI products.
A Chinese rival spooked memory stocks, and Micron Technology NASDAQ: MU took the hit. But Johnson believes the fundamentals tell a different story. This week, he explored how worried Micron investors should be.
IonQ NYSE: IONQ fell 9% after announcing an all-stock deal worth up to $1.3 billion. Johnson explained why Wall Street may be missing something and why the dip could be a buying opportunity.
Articles by Peter Frank
Securitize NYSE: SECZ is riding the buzz around tokenization, but its revenue and losses are moving in different directions. Peter Frank explained why its blockchain ambitions face a reality check.
Solaris Energy Infrastructure NYSE: SEI is benefiting from the race to power AI data centers. But Frank warned that a rich valuation comes with mounting risks.
Birkenstock NYSE: BIRK keeps growing, but its share price hasn’t kept up. Frank demonstrated why that gap could create a buying opportunity.
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