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REVIEW PREVIEW NEWSLETTER Worry List. The worries about software stocks—the so-called SaaSpocalypse—returned with a vengeance on Friday, expanding across the tech complex to chips and other hardware plays, as well. Continue Reading
Key Points Berkshire Hathaway continued reducing exposure to the tech and banking sectors in Buffett's final quarter as CEO. The company made another big investment in a leading energy company in Q4. 10 stocks we like better than Chevron › Warren Buffett stepped down as Berkshire Hathaway's (NYSE: BRKB)(NYSE: BRKB) CEO at the end of 2025, passing the reins to Greg Abel. While Buffett remains at Berkshire as the chairman of the company's board of directors, his departure from the CEO position marks the end of a legendary and highly lauded era. Read on for a look at three stocks Berkshire heavily sold out of in the fourth quarter -- and one high-yield dividend stock it continued to pile into. Image source: The Motley Fool. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Berkshire sold large blocks of these three stocks Berkshire Hathaway was once again a net seller of stocks in the fourth quarter, and its divestitures were heavily concentrated across three companies: Amazon -- Berkshire sold 7.7 million shares of Amazon stock in the fourth quarter, reducing its total holdings in the company by 77%. The tech stock now accounts for just 0.1% of Berkshire's holdings.Apple -- Buffett's company continued to trim its exposure to Apple stock in last year's fourth quarter. The company sold 10.3 million shares of the tech giant's stock in the period, reducing its total holdings by 4.3%. Apple stock still ranks as the holding company's top holding by weight, accounting for 19.5% of its total stock portfolio.Bank of America -- Berkshire sold roughly 50.8 million shares of Bank of America in Q4, reducing its total share count by 8.9%. Bank of America ranks as the fourth-largest holding in the company's stock portfolio, accounting for 8.2% of total weight. Berkshire's stock moves in Q4 continued the trend of reducing exposure to the tech and banking industries, with another round of big sales of Apple stock and Bank of America stock playing big roles in reducing the holding company's exposure to equities and boosting its cash pile. Berkshire bought this high-yield stock In addition to initiating a stake in The New York Times and increasing its position in Chubb, Berkshire notably increased its holdings in one high-yield dividend stock in Buffett's last quarter as CEO. The investment conglomerate purchased more than 8 million additional shares of energy giant Chevron's (NYSE: CVX) stock last quarter, increasing its total holdings by 6.6%. Chevron currently ranks as Berkshire's fifth-largest holding by weight and accounts for roughly 7.6% of its total public stock holdings.As of this writing, the stock carries a forward yield of 3.9%. While concerns about an artificial intelligence (AI) valuation bubble and the possibility that AI technologies will drive disruption in the software-as-a-service (SaaS) space have spurred volatility for tech stocks, the energy sector has emerged as a hot defensive play. In addition to its defensive characteristics, the energy sector offers exposure to the AI trend, because data centers have massive power requirements. Chevron stock has risen 18% over the last year and delivered a dividend-adjusted total return of roughly 22% across the stretch. With Berkshire moving out of Bank of America shares and adding to its holdings of the energy giant, it wouldn't be surprising to see Chevron become the investment conglomerate's fourth-largest holding sometime this year. Should you buy stock in Chevron right now? Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $456,188!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,413!* Now, it’s worth noting Stock Advisor’s total average return is 916% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of February 27, 2026. Bank of America is an advertising partner of Motley Fool Money. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Chevron, and The New York Times Co. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The feud between Anthropic and the Department of Defense ratcheted up on Friday after President Trump ordered all government agencies to immediately cease using the artificial intelligence startup's technology. "We don’t need it, we don’t want it, and will not do business with them again!" Trump posted on Truth Social. The president weighed in on the standoff after Anthropic CEO, Dario Amodei, said on Thursday that the company would cut ties with the government rather than lift restrictions on its AI model's usage. "We cannot in good conscience accede to their request," Amodei wrote in response to the Defense Department's demands to use the AI model for "all lawful purposes." The government has given Anthropic until 5:01 p.m. on Friday to answer its request to use models as it sees fit. OpenAI (OPAI.PVT) also joined the fray, with the Wall Street Journal reporting that CEO Sam Altman told his staff that the ChatGPT maker was working on a deal to help resolve the feud between the startup's rival Anthropic (ANTH.PVT) and the Department of Defense. “We would like to try to help de-escalate things,” Altman wrote in a note to employees. OpenAI (OPAI.PVT) also announced on Friday that it raised $110 billion in a record-breaking funding round and counted SoftBank (SFTBY), Nvidia (NVDA), and Amazon (AMZN) among its backers. The startup's latest fundraising round values the company at $730 billion pre-money. Follow along for the latest updates on the tech sector.LIVE29 updates Featured just now Daniel Howley Trump demands federal goverment stop using Anthropic amid Pentagon dispute President Trump on Friday ordered the federal government to cease all use of Anthropic's technology, amid the ongoing standoff between the AI company and the Department of Defense (DOD). In a post on Truth Social, Trump wrote, "I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology. We don’t need it, we don’t want it, and will not do business with them again!" Anthropic is seeking to put guardrails in place that would prevent the DOD from using its models for the mass surveillance of Americans or to develop fully autonomous weapons. The DOD has pushed back, saying it should have access to Anthropic's technology for all lawful purposes. In his post, Trump said there will be a six-month phase-down period for agencies such as the DOD that use Anthropic's products. He also threatened that if the company doesn't "get their act together, and be helpful" during the phase-out period, he will "use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow." Read the full story here. Featured Thu, February 26, 2026 at 11:55 PM UTC Daniel Howley Anthropic says it won't agree to Pentagon's AI demands Anthropic (ANTH.PVT) CEO Dario Amodei issued a statement Thursday evening, saying his company won't submit to the Department of Defense’s demands that it be allowed to use its AI technology as it sees fit, within the law. The Defense Department and Secretary of Defense Pete Hegseth have threatened to force Anthropic to give the Pentagon full use of its models under the Defense Production Act — or, conversely, declare it a supply chain threat and force other Pentagon vendors who work with the AI company to stop using its software. “These threats do not change our position: we cannot in good conscience accede to their request,” Amodei said in his statement. Anthropic and the Pentagon have been in an ongoing standoff about how the DOD will use its Claude AI. The company says that while it already works with the Defense Department, including within the government's classified networks and by advocating for strong chip export controls to China, it wants assurances that the DOD will not use its models for the mass surveillance of Americans or for fully autonomous weapons. Earlier Thursday, chief Pentagon spokesman Sean Parnell said the DOD had no desire to surveil Americans or develop fully autonomous weapons. "This is a simple, common-sense request that will prevent Anthropic from jeopardizing critical military operations and potentially putting our warfighters at risk. We will not let ANY company dictate the terms regarding how we make operational decisions. They have until 5:01 PM ET on Friday to decide," Parnell wrote in a post on X. In a separate statement, an Anthropic spokesperson said the DOD's latest contract language doesn't address the company's concerns. "The contract language we received overnight from the Department of War made virtually no progress on preventing Claude's use for mass surveillance of Americans or in fully autonomous weapons," the spokesperson said. "New language framed as compromise was paired with legalese that would allow those safeguards to be disregarded at will. Despite DOW's recent public statements, these narrow safeguards have been the crux of our negotiations for months." 30 mins ago Jake Conley Bloomberg: SpaceX considering confidential filing for IPO in March SpaceX (SPAX.PVT) is looking at confidentially filing paperwork for an initial public offering as early as next month, according to Bloomberg. The move to file with the SEC in March would keep Elon Musk's rocketry company on track for a June offering, ahead of other potential mega-IPOs this year from frontier AI developers OpenAI (OPAI.PVT) and Anthropic (ANTH.PVT). After acquiring Musk's xAI company in February, SpaceX is now valued at $1.25 trillion. Through the IPO process, the company may look for a valuation of more than $1.75 trillion. Such an offering would immediately place SpaceX among the "Magnificent Seven" and other Big Tech giants as among the largest companies in the world. The SpaceX IPO would raise as much as $50 billion, outstripping Saudi Aramco's record $29 billion IPO, according to Bloomberg. In December, Bloomberg reported that SpaceX had told employees the company was entering the regulatory "quiet period" required ahead of a public offering, and that the IPO would be aimed at funding an “insane flight rate” for its developmental Starship rocket, a base on the moon, and data centers in space. Today at 4:01 PM UTC Grace O'Donnell Microsoft, OpenAI clarify that their partnership has not changed Microsoft (MSFT) and OpenAI (OPAI.PVT) jointly reaffirmed that their partnership hasn't changed despite the ChatGPT maker's new agreement with Amazon (AMZN). "The partnership remains strong and central," a statement on the Microsoft blog read. "Microsoft and OpenAI continue to work closely across research, engineering, and product development, building on years of deep collaboration and shared success." The companies reasserted that their IP relationship, commercial and revenue-sharing relationship, and AGI processes remain unchanged. Azure remains the exclusive cloud provider for stateless OpenAI APIs, Microsoft said, following Amazon's announcement on Friday that it will be the exclusive third-party cloud distribution provider for OpenAI Frontier. The clarification was intended to reassure Microsoft shareholders and enterprise customers of the partnership as OpenAI's complicated web of investors and deals expands. Today at 3:13 PM UTC Daniel Howley OpenAI enters the Anthropic's showdown with the Pentagon OpenAI is entering the fray. In a note to employees, CEO Sam Altman said the company is working toward establishing a contract with the Department of Defense that would give the DOD access to its AI models, according to The Wall Street Journal. The catch? Altman says he wants to institute the same guardrails that have put the department and its rival Anthropic at loggerheads: no using models for mass surveillance of Americans and no using them to develop fully autonomous weapons. The news comes just hours before a 5:01 p.m. ET deadline set by the DOD for Anthropic to agree to allow the Pentagon to use its models as it sees fit or face the consequences. The department has said it will either label Anthropic a supply chain threat, which would force vendors that work with the DOD to stop using its models, or institute the Defense Production Act, which would force Anthropic to give the Pentagon full access to its models. Thursday evening, Anthropic CEO Dario Amodei wrote in a blog post that while the company is still working to negotiate with the DOD, he and his company "cannot in good conscience accede to their request." Today at 2:06 PM UTC Grace O'Donnell OpenAI announces $110 billion in new investments, partnership with Amazon OpenAI (OPAI.PVT) said on Friday that it has received $110 billion in new investments, including $30 billion from SoftBank (SFTBY), $30 billion from Nvidia (NVDA), and $50 billion from Amazon (AMZN), to help scale its artificial intelligence products. As part of the announcement, OpenAI and Amazon announced a strategic partnership to co-create a system for AWS customers to build generative AI applications and agents using OpenAI models. AWS will be the exclusive third-party cloud distribution provider for OpenAI Frontier, Amazon said in a statement. OpenAI also expanded its partnership with Nvidia, receiving 3 gigawatts of dedicated inference capacity and 2 gigawatts of training on Vera Rubin systems. Nvidia and Amazon stocks fell in premarket trading. The close of the fundraising round valued OpenAI at $730 billion pre-money, a good step up from the $500 billion valuation reported in October that demonstrates how high expectations have run for the AI startup's technology. Markets have become jumpy in recent weeks as spending on AI technology has continued to ramp up, companies have entered complex webs of financing with one another, and competition among OpenAI, Anthropic, and Alphabet has increased. Today at 12:30 AM UTC Bex Evans CoreWeave slides as surging capex, backlog risks overshadow small revenue beat CoreWeave (CRWV), an AI cloud-computing company that counts hyperscalers like Google parent Alphabet (GOOG, GOOGL) and Microsoft (MSFT) as both clients and competitors, saw its shares slump as much as 10% in after-hours trading after the company announced a slight earnings beat but predicted a massive jump in spending for 2026. On an earnings call with analysts, CEO Michael Intrator said capital expenditures would increase from $15.4 billion in 2025 to at least $30 billion in 2026. The company also said that its net loss in the fourth quarter surged to $284 million from $36 million last year and noted issues with its revenue backlog. From Reuters: CoreWeave has fielded criticism for being part of a web of circular AI funding between companies like Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG, GOOGL), and the still-private OpenAI (OPAI.PVT). Read more here. Thu, February 26, 2026 at 9:36 PM UTC Daniel Howley Anthropic has until 5:01 p.m. ET Friday to answer Pentagon's AI demands Anthropic's deadline to respond to the Pentagon's demands to allow it to use the company's AI model for "all lawful purposes" expires at 5:01 p.m. ET on Friday. The AI firm and its CEO, Dario Amodei, have been locked in a standoff with the Pentagon about whether the company will continue to limit the Department of Defense's use of the model. Specifically, Anthropic is asking for assurances that the Pentagon won't use its technology to perform mass surveillance of Americans and produce autonomous weapons. According to The New York Times, Defense Secretary Pete Hegseth has threatened to invoke the Defense Production Act to force Anthropic to allow the Defense Department to use the AI models as it sees fit. He's also threatened to label the company a supply chain risk, which would prevent the Pentagon from using the company's models. Labeling Anthropic as a supply chain risk would force the Pentagon's various vendors to cut ties with the company. In a post on X, chief Pentagon spokesperson Sean Parnell pushed back against Anthropic's demands. "The Department of War has no interest in using AI to conduct mass surveillance of Americans (which is illegal) nor do we want to use AI to develop autonomous weapons that operate without human involvement." Parnell claimed the assumption that the Pentagon will use Anthropic's tools for the mass surveillance of Americans or to develop autonomous weapons is a fake narrative "peddled by leftists in the media." Thu, February 26, 2026 at 8:39 PM UTC Daniel Howley Report: Smartphone shipments to see worst year-over-year drop ever on memory shortage The global memory shortage is set to impact everything from consumer electronics to enterprise devices, and the smartphone industry, in particular, will face serious headwinds from the dearth of chips. According to the International Data Corporation (IDC), the smartphone market will see its largest year-over-year decline ever in 2026, plummeting 13% to its lowest levels in a decade. "What we are witnessing is not a temporary squeeze, but a tsunami-like shock originating in the memory supply chain, with ripple effects spreading across the entire consumer electronics industry,” Francisco Jeronimo, vice president of worldwide client devices at IDC, said in a statement. “The global smartphone market, particularly Android manufacturers, faces a significant threat," he added. Memory chips are a key component in data centers. But a small number of global manufacturers, including Micron (MU), Samsung (005930.KS), and SK Hynix (000660.KS), means there's only so many to go around. And because data center memory offers higher margins, chipmakers favor it over memory for consumer electronics. The result: fewer available devices, higher prices, or degraded products with less memory. For consumer electronics companies, that translates to fewer sales. Thu, February 26, 2026 at 7:42 PM UTC Grace O'Donnell The AI spending boom is creating winners beyond the 'Mag 7.' Why one sector could see big gains. Yahoo Finance's Francisco Velasquez reports: Read the full story here. Thu, February 26, 2026 at 5:54 PM UTC Grace O'Donnell C3.ai slashes 26% of staff as CEO admits failure to deliver and 'burning too much money' Yahoo Finance's Francisco Velasquez reports: Read more here. Thu, February 26, 2026 at 2:53 PM UTC Myles Udland Apple CEO Tim Cook teases product unveil for next week with new MacBook, iPhone expected Apple's next product rollout starts on Monday. The company is expected to unveil new MacBooks, a new lower-cost iPhone, and potentially a new iPad Air, according to MacRumors. Apple is not expected to livestream a rollout announcement like it typically does during its WWDC event, which is held in September and usually features the announcement of its latest iPhone lineup. Thu, February 26, 2026 at 1:23 PM UTC Grace O'Donnell Nvidia's CEO prepares investors for a renewed battle with Intel, AMD Nvidia (NVDA) made a fortune on its specialized graphics processing units (GPUs) used to power artificial intelligence servers. But on the earnings call Wednesday, CEO Jensen Huang said he's ready to push ahead into making the CPUs, or central processing units, that Intel (INTC) and AMD (AMD) are known for. Reuters reports: Read more here. Wed, February 25, 2026 at 10:41 PM UTC Grace O'Donnell Meta, Microsoft, and Amazon stocks move lower as Jensen Huang says he's 'confident' in their cash flow growth Meta (META), Microsoft (MSFT), and Amazon (AMZN) ticked modestly lower in the wake of Nvidia's earnings report, even as Nvidia CEO Jensen Huang expressed his vote of confidence in their future cash flows and, therefore, capex spending. The three hyperscalers moved between 0.1% and 0.4% lower in extended trading, while Nvidia stock pared initial gains during the earnings call to rise 0.5%. "I am confident in their cash flow growing," Huang said of the hyperscalers on the earnings call. "The reason for that is very simple: We have now seen the inflection of agentic AI and the usefulness of agents across the world and enterprises everywhere. You're seeing incredible compute demand because of it in this new world of AI. ... In this new world of AI, compute equals revenues." Other chipmakers, including Intel (INTC) and AMD (AMD), also moved lower in extended trading. Wed, February 25, 2026 at 9:55 PM UTC Myles Udland Hyperscalers accounted for more than 50% of Nvidia's data center sales in Q4 Big Tech giants can't get enough of Nvidia's chips. Nvidia (NVDA) on Wednesday reported fourth quarter results that topped forecasts and signaled demand for its most advanced chips remains insatiable. And a growing portion of that demand is coming from the so-called hyperscalers like Microsoft, Amazon, and Meta, who now account for more than half of the company's sales in its data center segment. "Data Center revenue for the fourth quarter was a record $62.3 billion, up 75% from a year ago and up 22% sequentially, driven by the major platform shifts – accelerated computing and AI," Nvidia CFO Colette Kress said in a statement. "For the fourth quarter, hyperscaler revenue increased and remained our largest customer category at slightly over 50% of Data Center revenue, while growth was led by the rest of our Data Center customers as revenue diversified." The last time the company specified was portion of its data center sales were to these customers, the company said it was "approximately" 50%. And while these are small percentage moves, the dollars at this scale are notable, and the increasing portion of sales going to these customers shows where these companies' massive capex plans show up. Wed, February 25, 2026 at 9:54 PM UTC Grace O'Donnell Nvidia earnings beat, guidance sends stock higher after hours Nvidia (NVDA) earnings and revenue both topped Wall Street estimates, sending the stock higher in after-hours trading. The company also offered Q1 guidance between $76.44 billion and $79.56 billion, above Wall Street's estimates of $72.8 billion without factoring in revenue from China. Read the full earnings breakdown here > Wed, February 25, 2026 at 9:31 PM UTC Grace O'Donnell Nvidia earnings slam into market with no patience for AI hiccups Nvidia stock (NVDA) climbed 1.4% on Wednesday as investors eagerly awaited (or braced for) the AI giant's fourth quarter report. While Nvidia is widely expected to clear expectations, markets have been jumpy around artificial intelligence lately, making the report critical for sentiment across a host of other AI companies and the broader market. Bloomberg reports: Read more here. Wed, February 25, 2026 at 7:23 PM UTC Grace O'Donnell Samsung's new Galaxy S26 smartphone lineup goes big on AI as Apple works to catch up Samsung's (005930.KS) latest line of Galaxy S26 smartphones features a variety of new AI features as the company seeks to expand its lead in artificial intelligence over Apple (AAPL). Yahoo Finance's Daniel Howley reports: Read more here. Wed, February 25, 2026 at 4:37 PM UTC Grace O'Donnell Trump lays out a new ground rule for Big Tech's AI build-out: Bring your own power Yahoo Finance's Jake Conley reports: Read more here. Wed, February 25, 2026 at 2:03 PM UTC Grace O'Donnell Anthropic drops hallmark safety pledge in race with AI peers Bloomberg reports: Read more here. Story Continues View Comments
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is one of 15 stocks with the biggest hedge fund momentum, after gaining 27 hedge fund holders during the fourth quarter of 2025. On February 24, Apple said that it is on track to purchase more than 100 million advanced chips produced by Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) at its Arizona facility, marking a significant increase in orders from 2025. The iPhone maker said that it sourced more than 20 billion U.S.-made chips from 24 factories across 12 states, including those of partners like Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), Broadcom, and Texas Instruments.Apple to Purchase 100M Chips from Taiwan Semiconductor Manufacturing (TSM) Arizona Facility Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process. Apple also said GlobalWafers has begun production at its new $4 billion bare silicon wafer facility in Sherman, Texas. Wafers produced in Sherman will be used by Apple’s chip manufacturing partners in the U.S., including Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) and Texas Instruments. This disclosure from Apple followed NVIDIA CEO Jensen Huang’s remarks in January that his company had already overtaken the iPhone maker as TSMC’s largest customer, according to a January 26 CNBC report. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is the world’s largest semiconductor foundry and is engaged in the manufacturing and designing of semiconductor chips. These chips are used by companies across several end markets, including personal computers and peripheral products, consumer electronics, wired and wireless communications systems, and automotive and industrial equipment. While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Hot Stocks to Buy with the Highest Upside Potential and 10 Best High-Upside Materials Stocks to Buy Disclosure: None. Follow Insider Monkey on Google News. View Comments
Traditional “quality” stocks slump as AI threatens industry moats The quantitative strategies that have governed trillions of dollars in global capital are facing a historic identity crisis. As artificial intelligence reshapes the economic landscape, long-held definitions of "safe" and "expensive" stocks are being turned upside down. In February, the "Quality" factor, usually a sanctuary of high-margin companies like Microsoft Corporation (NASDAQ:MSFT), trailed "Value" counterparts by more than 5 percentage points. This represents the worst underperformance for quality-indexed stocks in five years. This shift comes as investors grow wary of companies whose high valuations were once protected by wide competitive moats. There is a burgeoning fear that AI could bridge those moats overnight, rendering legacy software and service-based business models obsolete. Consequently, professional money managers are rotating out of "future-growth" tech and into "here-and-now" fundamentals. Companies with physical infrastructure, such as Coca-Cola Co (NYSE:KO) and utility providers, are seeing a resurgence. Investors are now prioritizing assets with low risk of technological displacement. Momentum distorted as investors chase “Halo” assets The "Momentum" trade, the practice of riding the market’s strongest winners, is also flashing warning signs. According to analysts at Man Group, recent market winners have shown little correlation to traditional earnings revisions. Instead, the primary driver for stock appreciation has become a company’s perceived insulation from, or utility to, the AI revolution. This has birthed the "HALO" trade (Heavy Assets, Low Obsolescence), where manufacturers of grids, pipelines, and semiconductors are being treated as the new defensive staples. Adding to the volatility, a viral "thought experiment" regarding AI’s impact on white-collar employment recently sent shockwaves through the tech sector. The report caused IBM to post its largest decline in 25 years and sent software stocks to fresh lows. With uncertainty at an all-time high, the appetite for long-term bets has vanished. Exchange-traded funds (ETFs) focusing on immediate cash returns, dividends, and buybacks have seen an influx of $7 billion this month alone. As one CIO noted, the market has essentially become a concentrated AI risk portfolio. Related articles AI “factor flip”: Why Wall Street is dumping tech quality for traditional value JPMorgan outlines ten strategic themes that could shape the outlook for 2026 Goldman expects lower but still attractive stock market returns in 2026 View Comments
The S&P 500 Index ($SPX) (SPY) on Friday closed down -0.43%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -1.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.30%. March E-mini S&P futures (ESH26) fell -0.47%, and March E-mini Nasdaq futures (NQH26) fell -0.38%. Stock indexes on Friday added to Thursday’s losses, with the Dow Jones Industrial Average falling to a 3.5-week low as the disruptive potential of AI weighed on markets. Bank stocks tumbled on Friday as the collapse of the UK’s private lender Market Financial Solutions Ltd added to fears that banks could face rising defaults. Also, the weakness in software companies and cybersecurity stocks weighed on the broader market. In addition, stocks fell after the US Jan PPI report rose more than expected, dampening any speculation that the Fed would cut interest rates in the near term.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily. Stock indexes recovered from their worst levels on Friday after the Feb MNI Chicago PMI and Dec construction spending reports rose more than expected, which are signs of economic strength. Also, Dell Technologies surged more than +21% following a strong sales forecast for its AI servers. In addition, lower bond yields are supportive of stocks as the 10-year T-note yield fell to a 4-month low Friday at 3.96%. US Jan PPI final demand rose +0.5% m/m and +2.9% y/y, stronger than expectations of +0.3% m/m and +2.6% y/y. Jan PPI ex-food and energy rose +3.6% y/y, stronger than expectations of +3.0% y/y and the largest increase in 10 months. The US Feb MNI Chicago PMI unexpectedly rose by 3.7 points to 57.7, stronger than expectations of a decline to 52.1 and the fastest pace of expansion in 3.75 years. US Dec construction spending rose +0.3% m/m, stronger than expectations of +0.2% m/m. Geopolitical risks remain a negative for stocks. WTI crude oil (CLJ26) rallied more than +2% to a 7-month high on Friday after President Trump sounded downbeat about diplomatic talks with Iran, saying, "They cannot have nuclear weapons, and we're not thrilled with the way they're negotiating." Axios reported that US negotiators, Kushner and Witkoff, left Geneva disappointed by what they heard from Iranian officials in the US-Iranian nuclear talks. Iran's state media reported that Iran won't allow enriched uranium to leave the country. The enrichment of uranium remains a sticking point in the nuclear negotiations, with the US saying Iran would have to send such stocks of uranium to another country or dilute them. The nuclear talks are scheduled to resume next week in Vienna. President Trump said that he’s considering a limited military strike on Iran to ramp up pressure on the country to strike a deal over its nuclear program and gave them a March 1-6 deadline for an agreement over the country’s nuclear activities and has threatened military strikes if it fails to comply. In Tuesday night’s State of the Union address, President Trump doubled down on his commitment to tariffs. President Trump’s new 10% global tariffs went into effect on Tuesday after the Supreme Court struck down his global “reciprocal” tariffs last Friday. Mr. Trump subsequently threatened to raise the global tariff rate to 15%, and an administration official said the White House is working on a formal order to implement that higher rate, but the timeline for its implementation has not been finalized. Mr. Trump is applying the 10% baseline levy under Section 122 of the 1974 Trade Act, which allows the president to impose the charge for 150 days without congressional approval. Q4 earnings season is nearing its end, with more than 90% of the S&P 500 companies having reported earnings results. Earnings have been a positive factor for stocks, with 74% of the 472 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%. The markets are discounting a 6% chance for a -25 bp rate cut at the next policy meeting on March 17-18. Overseas stock markets settled mixed on Friday. The Euro Stoxx 50 closed down -0.38%. China’s Shanghai Composite closed up +0.39%. Japan’s Nikkei Stock 225 closed up +0.16%. Interest Rates March 10-year T-notes (ZNH6) on Friday closed up by +14 ticks. The 10-year T-note yield fell -4.2 bp to 3.962%. Mar T-notes rallied to a 4.5-month high on Friday, and the 10-year T-note yield fell to a 4-month low of 3.955%. Friday’s stock slump has boosted safe-haven demand for T-notes. Also, private credit jitters and heightened US-Iran tensions boosted safe-haven demand for T-notes. In addition, end-of-month buying by bond dealers boosted T-notes as they extended the duration of their portfolios and bought longer-term government debt. European government bond yields moved lower on Friday. The 10-year German bund yield dropped to a 3.5-month low of 2.643% and finished down -4.7 bp on that low. The 10-year UK gilt yield fell to a 14.75-month low of 4.231% and finished down -4.2 bp to 4.233%. Eurozone Jan ECB 1-year CPI expectations fell to 2.6%, weaker than expectations of 2.7%. Jan 2-year CPI expectations were unchanged from Dec at 2.6%, stronger than expectations of 2.5%. German Feb CPI (EU harmonized) rose +0.4% m/m and +2.0% y/y, weaker than expectations of +0.5% m/m and +2.1% y/y. Swaps are discounting a 4% chance of a -25 bp rate cut by the ECB at its next policy meeting on March 19. US Stock Movers Bank stocks and credit card companies sank on Friday as the collapse of the UK’s private lender Market Financial Solutions Ltd added to fears that banks could face rising defaults. American Express (AXP) closed down more than -7% to lead losers in the Dow Jones Industrials. Also, Goldman Sachs (GS) closed down more than -7%, and Morgan Stanley (MS), Capital One Financial (COF), and Synchrony Financial (SYF) closed down more than -6%. In addition, Wells Fargo (WFC), Citigroup (C), Citizens Financial Group (CFG), and Regions Financial (RF) closed down more than -5%. Chipmakers slid on Friday, weighing on the overall market. Nvidia (NVDA) closed down more than -4%, and NXP Semiconductors NV (NXPI), Lam Research (LRCX), and Qualcomm (QCOM) closed down more than -2%. Also, Advanced Micro Devices (AMD) and ARM Holdings Plc (ARM) closed down more than -1%. Zscaler (ZS) closed down more than -12% to lead cybersecurity stocks lower and losers in the Nasdaq 100 despite reporting Q2 adjusted EPS of $1.01, better than the consensus of 90 cents. Also, Okta (OKTA) closed down more than -4%, and CrowdStrike Holdings (CRWD) closed down more than -2%. In addition, Cloudflare (NET) closed down more than -1%. Software stocks retreated on Friday, a negative factor for the broader market. Atlassian (TEAM) closed down more than -5%, and Datadog (DDOG), Oracle (ORCL), and Thomson Reuters (TRI) closed down more than -3%. Also, Salesforce (CRM) closed down more than -2%, and Microsoft (MSFT) and ServiceNow (NOW) closed down more than -1%. Airline stocks sold off on Friday after WTI crude oil jumped to a 7-month high, which will boost jet fuel prices and potentially cut into airlines’ profits. United Airlines Holdings (UAL) closed down more than -8% to lead losers in the S&P 500. Also, American Airlines Group (AAL), Delta Air Lines (DAL), and Alaska Air Group (ALK) closed down more than -6%. In addition, Southwest Airlines (LUV) closed down more than -3%. CoreWeave (CRWV) closed down more than -18% after reporting a Q4 loss per share of -89 cents, wider than the consensus of -72 cents per share. Flutter Entertainment Plc (FLUT) closed down more than -14% after reporting Q4 revenue of $4.74 billion, below the consensus of $4.94 billion, and forecasting full-year US revenue of $7.4 billion to $8.2 billion, weaker than the consensus of $8.73 billion. Duolingo (DUOL) closed down more than -14% after forecasting full-year revenue of $1.20 billion to $1.22 billion, well below the consensus of $1.26 billion. Apollo Global Management (APO) closed down more than -8% after cutting its quarterly dividend to 31 cents a share from 38 cents, citing a markdown in its portfolio from soured loans. Rocket Lab (RKLB) closed down more than -5% after pushing back the launch of its Neutron rocket to the fourth quarter of this year. Dell Technologies (DELL) closed up more than +21% to lead gainers in the S&P 500 after reporting Q4 adjusted operating income of $3.54 billion, better than the consensus of $3.27 billion, raised its annual dividend by 20%, and boosted its stock buyback program by $10 billion. Paramount Skydance (PSKY) closed up more than +20% after agreeing to pay $111 billion for Warner Bros Discovery, outbidding Netflix for the company. Block (XYZ) closed up more than +16% after raising its full-year gross profit estimate to $12.20 billion from a previous estimate of $11.98 billion, above the consensus of $11.91 billion, and said it was reducing its workforce by nearly half. Netflix (NFLX) closed up more than +13% to lead gainers in the Nasdaq 100 after dropping out of the competition to acquire Warner Bros Discovery. NCR Atleos Corp (NATL) closed up more than +5% after being acquired by The Brink’s Company for $6.6 billion. Autodesk (ADSK) closed up more than +4% after reporting Q4 adjusted EPS of $2.85, stronger than the consensus of $2.65, and forecasting 2027 adjusted EPS of $12.29 to $12.56, well above the consensus of $11.59. Caris Life Sciences (CAI) closed up more than +4% after forecasting full-year revenue of $1.00 billion to $1.02 billion, stronger than the consensus of $993 million. Earnings Reports(3/2/2026) AAON Inc (AAON), ADT Inc (ADT), AES Corp/The (AES), AST SpaceMobile Inc (ASTS), Ingram Micro Holding Corp (INGM), MongoDB Inc (MDB), Norwegian Cruise Line Holdings (NCLH), Sealed Air Corp (SEE), Trump Media & Technology Group (DJT). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Key Points DigitalOcean provides cloud and AI services exclusively to small and medium-sized businesses. The company's annual run-rate revenue for its AI business soared by a whopping 150% year over year in Q4. Despite a 68% gain over the last 12 months, DigitalOcean stock still looks cheap based on two widely used valuation metrics. 10 stocks we like better than DigitalOcean › The cloud computing industry is dominated by trillion-dollar tech giants like Amazon and Microsoft, which offer hundreds of solutions to help their business customers thrive in the digital age. They include everything from simple data storage to complex software development tools. DigitalOcean(NYSE: DOCN) is another cloud provider, but it exclusively serves small and medium-sized businesses (SMBs) with a targeted suite of cost-effective solutions. It's now using that blueprint to help its customers develop and deploy artificial intelligence (AI) software, by providing them with computing capacity from state-of-the-art data centers, and a growing portfolio of third-party models from companies like Anthropic. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » DigitalOcean stock has soared by 68% over the last 12 months, but with a market capitalization of just $5.7 billion, it's still a tiny player in the cloud and AI space. Here's why further upside might be on the horizon. Image source: Getty Images. Helping even the smallest businesses tap into AI The largest providers in the cloud industry primarily focus on customers with the highest spending potential, so SMBs are often underserved. DigitalOcean built its entire business on filling that gap by offering SMBs highly personalized service, transparent and affordable pricing, and a simple dashboard which makes deploying cloud and AI services easy. This is an ideal combination of features for small enterprises with limited financial resources. To serve its AI customers, DigitalOcean has set up a series of data centers fitted with advanced chips from suppliers like Nvidia and Advanced Micro Devices. It allows customers to start with just one chip and scale up as needed, which is perfect for deploying basic chatbots or web-based customer service assistants. DigitalOcean says its prices are up to 75% cheaper than similar infrastructure offered by the hyperscale cloud providers. These data centers and chips provide the necessary computing capacity for AI workloads, but SMBs also need access to ready-made large language models (LLMs) to achieve their AI software or agentic goals. DigitalOcean's Gradient platform hosts the latest models from top developers like OpenAI, Anthropic, Meta Platforms, and more, giving SMBs a versatile set of options to cover all their needs. Revenue growth is accelerating, thanks to AI DigitalOcean had a record $970 million in annual recurring revenue (ARR) at the end of the fourth quarter of 2025, which was an 18% increase from the year-ago period. It was the second consecutive quarter in which that growth rate accelerated, primarily because of soaring demand for AI services. In fact, DigitalOcean had $120 million in ARR from its AI products and services, specifically, which was up by an eye-popping 150% year over year. The company expects its overall revenue growth to accelerate to 21% in 2026 and then to 30% in 2027, thanks to the incredible momentum in its AI business. DigitalOcean's strong top-line results also flowed to the bottom line in 2025. The company produced a generally accepted accounting principles (GAAP) net income of $259.3 million, which grew by a staggering 207% from the previous year. Even after excluding a series of one-off tax benefits, DigitalOcean's adjusted net income still grew by 13% to $223.2 million for the year. DigitalOcean stock still looks attractive Despite the 68% gain in DigitalOcean stock over the past year, it's still trading at a price-to-sales (P/S) ratio of just 7.3, which is actually a discount to its average of 8.1 since going public in 2021. The stock looks even cheaper when measured against the company's forecasted 2026 revenue, which places it at a forward P/S ratio of just 5.3. Data by YCharts. In other words, DigitalOcean stock would have to soar by 51% before the end of this year just to trade in line with its long-term average P/S ratio of 8.1. Moreover, based on DigitalOcean's 2025 GAAP earnings of $2.52 per share, its stock is trading at a price-to-earnings (P/E) ratio of just 24.9. That is a discount to the overall market, with the S&P 500 index trading at a P/E ratio of 25.4, and the Nasdaq-100 index trading at a P/E ratio of 31.6. DigitalOcean stock looks cheap based on two widely used valuation metrics, so it certainly has room to build on its recent gains. That means it could be a great buy right now, especially for investors who are willing to hold it for at least the next two years. That will give the company time to deliver on its forecasted acceleration in revenue growth during 2026 and 2027. Should you buy stock in DigitalOcean right now? Before you buy stock in DigitalOcean, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DigitalOcean wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $456,188!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,413!* Now, it’s worth noting Stock Advisor’s total average return is 916% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of February 27, 2026. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, DigitalOcean, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Despite posting blowout quarterly results as usual, Nvidia NVDA stock is now down over 6% since its Q4 report on Wednesday. This comes as the chip giant’s Q4 sales of $68.12 billion and EPS of $1.62 stretched 73% and 82% year over year, respectively, and represented significant sequential growth as well. Still, the stellar results didn't calm deeper investor concerns about the sustainability of the AI boom, concentration risks, and future growth, although Nvidia impressively surpassed Wall Street’s expectations.Zacks Investment Research Image Source: Zacks Investment Research AI Sustainability Concerns Notably, a recurring theme across analyst commentary is skepticism about how long hyperscalers can keep spending tens of billions on AI infrastructure. Others question whether AI monetization is happening fast enough to justify the spending, and the shift in sentiment is weighing on Nvidia because it’s the primary beneficiary of that spending. Furthermore, 90% of Nvidia’s revenue now comes from data centers, and much of that is just from five major cloud providers, which include Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Oracle ORCL, and Alibaba BABA. That level of dependency raises questions about what happens if even one of those customers slows orders. Investors are also increasingly concerned about competition from AMD AMD, and that hyperscalers are working on their own in-house AI accelerators, with an emphasis on Alphabet and Amazon building out custom AI chips, with others likely to eventually follow suit. In other words, even if Nvidia remains dominant, the fear is that margins or growth rates could eventually compress. Nvidia’s Reassuring Revenue Guidance While Nvidia didn’t provide CapEx or EPS guidance, which is consistent with its long-standing practice of typically only providing revenue guidance, its top-line forecast reassuringly beat Wall Street’s expectations. For its current fiscal 2027, Nvidia issued Q1 revenue guidance of $78B plus or minus 2%, which came in pleasantly above analysts’ expectations of about $72.8B and would equate to at least 73% YoY growth and 12% sequentially. Tracking the Trend of EPS Revisions Following Nvidia’s stellar Q4 results and positive guidance, EPS estimates for its FY27 and FY28 have trended over 3% higher in the last week. In the last 90 days, these revisions have risen roughly 7% respectively. Nvidia’s annual earnings are now expected to leap 60% in FY27 and are projected to increase another 20% in FY28 to $9.13 per share.Zacks Investment Research Image Source: Zacks Investment Research Story Continues More astonishing, the year-ago EPS estimates picture shows that Nvidia’s FY27 and FY28 revisions have climbed over 40%.Zacks Investment Research Image Source: Zacks Investment Research Nvidia’s Compelling P/E Valuation Further encouraging is that Nvidia is trading near its cheapest forward P/E valuation in a decade, offering a noticeable discount to its median of 45X during this period, and well below highs of 118X. It’s noteworthy that NVDA is only trading at a slight premium to the benchmark S&P 500 and is beneath its Zacks Semiconductor-General Industry average of 27X.Zacks Investment Research Image Source: Zacks Investment Research Conclusion & Final Thoughts Even with AI sustainability concerns looming, it doesn’t look like the time to count Nvidia out. Ultimately, investors shouldn’t dismiss Nvidia despite rising concerns about the long-term sustainability of AI spending because the company continues to demonstrate overwhelming demand, structural dominance, and is the leader in a revolutionary technology — factors that outweigh near-term worries about energy use, customer concentration, or a potential AI spending plateau. Based on a very positive trend of EPS revisions, Nvidia stock currently sports a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments
CoreWeave(NASDAQ:CRWV), a cloud provider optimized for AI workloads, closed Friday at $79.56, down 18.51% after investors punished its Q4 results and heavy-spending outlook. The stock moved lower as widening losses, below-consensus Q1 revenue guidance, and plans to more than double 2026 capex raised margin and leverage concerns. Investors are also watching how effectively that aggressive buildout converts its large contracted backlog into profitable growth. Trading volume reached 57.7 million shares, coming in about 109% above its three-month average of 27.7 million shares. CoreWeave IPO'd in 2025 and has grown 99% since going public. How the markets moved today The S&P 500(SNPINDEX:^GSPC) slipped 0.43% to 6,879, while the Nasdaq Composite(NASDAQINDEX:^IXIC) fell 0.92% to 22,668 as growth stocks broadly lost ground. Within cloud computing services, industry peers Nvidia(NASDAQ:NVDA) closed at $177.19 (-4.16%) and Microsoft(NASDAQ:MSFT) finished at $392.74 (-2.24%) as investors reassessed high-multiple AI infrastructure names. What this means for investors CoreWeave reported a larger net loss even as revenue more than doubled in Q4. Investors particularly didn’t like the company’s first-quarter guidance for revenue of about $1.95 billion as well as soaring capital expenditure plans. On the conference call for investors, management predicted about $6.5 billion in Q1 capex, and as much as $35 billion for the fully year. That will make the road to profitability even tougher, and had some investors bailing out of CoreWeave stock today. Should you buy stock in CoreWeave right now? Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $456,188!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,413!* Now, it’s worth noting Stock Advisor’s total average return is 916% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of February 27, 2026. Howard Smith has positions in Microsoft and Nvidia and has the following options: short March 2026 $175 calls on Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Alphabet (GOOGL) ended the recent trading session at $311.69, demonstrating a +1.4% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.92%. Shares of the internet search leader witnessed a loss of 9.13% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.21%, and the S&P 500's loss of 0.5%. The investment community will be paying close attention to the earnings performance of Alphabet in its upcoming release. The company's earnings per share (EPS) are projected to be $2.76, reflecting a 1.78% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $91.96 billion, indicating a 20.23% upward movement from the same quarter last year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.6 per share and a revenue of $414.99 billion, signifying shifts of +7.31% and +21.02%, respectively, from the last year. It's also important for investors to be aware of any recent modifications to analyst estimates for Alphabet. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.92% higher within the past month. Currently, Alphabet is carrying a Zacks Rank of #3 (Hold). In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 26.49. This signifies a premium in comparison to the average Forward P/E of 14.47 for its industry. Meanwhile, GOOGL's PEG ratio is currently 1.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.8. The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 26% of all 250+ industries. Story Continues The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments
Alphabet Inc. (GOOG) closed at $311.43 in the latest trading session, marking a +1.39% move from the prior day. This move outpaced the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 1.05%, while the tech-heavy Nasdaq depreciated by 0.92%. Shares of the company witnessed a loss of 9.3% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 3.21%, and the S&P 500's loss of 0.5%. Investors will be eagerly watching for the performance of Alphabet Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.76, showcasing a 1.78% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $91.96 billion, reflecting a 20.23% rise from the equivalent quarter last year. For the full year, the Zacks Consensus Estimates are projecting earnings of $11.6 per share and revenue of $410.04 billion, which would represent changes of +7.31% and +19.58%, respectively, from the prior year. Investors might also notice recent changes to analyst estimates for Alphabet Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.91% higher within the past month. Alphabet Inc. is currently a Zacks Rank #3 (Hold). From a valuation perspective, Alphabet Inc. is currently exchanging hands at a Forward P/E ratio of 26.47. Its industry sports an average Forward P/E of 14.47, so one might conclude that Alphabet Inc. is trading at a premium comparatively. Investors should also note that GOOG has a PEG ratio of 1.8 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.8 at yesterday's closing price. The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 26% of all 250+ industries. Story Continues The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments
Google stock's IPO provided a near-perfect set of technical conditions that traders can use to filter new market debuts. Continue Reading
Tesla stock fell on Friday. The move came after Victor Nechita, Tesla’s Cybercab vehicle program manager, announced his departure from the company on LinkedIn. “Leading the team through the development of Cybercab has been a humbling experience, watching so many dedicated individuals develop a product that has pushed the boundaries of efficiency, safety, and affordability,” wrote Nechita. Continue Reading
The earnings focus remains on the retail space, with several bellwether operators on deck to report results this week, including Target TGT, Best Buy BBY, Costco COST, Macy’s M, and others. The earnings releases thus far provide a reassuring view of consumer spending, with broad spending trends largely stable and in line with what we have been seeing in recent quarters. That said, cumulative inflation remains a headwind, particularly at the lower end of income distribution. The stable aggregate spending trends reflect strength among high-income and younger consumer groups, with the bulk of the outlays going towards essentials and experiences. Demand for discretionary spending categories such as big-ticket merchandise has remained soft in the post-COVID period, though recent results from Walmart WMT show some signs of improvement. Weakness in the discretionary spending categories explains a big part of Target’s underperformance relative to Walmart and others over the past year, though Target shares are off to a great start in 2026. The chart below shows the one-year performance of Target (green line; down -8.7%), Best Buy (blue line; down -31.5%), Costco (purple line; down – 4.7%), Walmart (orange line; up +29.2%), and the S&P 500 index (red line; up +18.8%).Zacks Investment Research Image Source: Zacks Investment Research As noted earlier, Target shares have done exceptionally well this year, up +15.6% and outperforming Walmart’s 15% rise and the broader market’s +0.6% gain. Target shares were down following each of the last five quarterly releases. Still, the stock’s recent momentum suggests that market participants expect management to provide a positive outlook when they report before the market’s open on Tuesday (March 3rd). The expectation is for Target to report $2.17 per share in earnings on $30.52 billion in revenues, representing year-over-year changes of -10% and -1.3%, respectively. Estimates had modestly inched up following the February 10th management update but have remained unchanged since then. Comps are expected to be down -2.48%, which would follow the company’s disappointing showing on this count in the preceding period, when it reported a -2.7% comp decline vs. expectations of -1.89%. Best Buy is expected to come out with EPS of $2.48 on $13.91 billion in revenues Tuesday morning, representing year-over-year changes of -3.9% and -0.3%, respectively. With respect to same-store sales, the expectation is a +0.14% gain, following the +2.7% gain in the last quarterly release on November 25th, relative to expectations of +1.57% comp growth. Story Continues Best Buy shares were up following the November release, as the Q3 comp growth had beaten expectations in a big way. The revisions trend has been modestly negative, reflecting the relatively soft holiday sales for the electronics category. There is likely not a whole lot of downside risk in Best Buy shares at this stage, but negative surprises on the comps front will likely put more pressure on the stock. With respect to the Retail sector’s 2025 Q4 earnings season scorecard, we now have results from 22 of the 30 retailers in the S&P 500 index. Regular readers know that Zacks has a dedicated stand-alone economic sector for the retail space, which is unlike the placement of the space in the Consumer Staples and Consumer Discretionary sectors in the Standard & Poor’s standard industry classification. The Zacks Retail sector includes not only Target, Best Buy, and other traditional retailers, but also online vendors like Amazon AMZN and restaurant players. Total Q4 earnings for these 22 retailers that have reported are up +6.9% from the same period last year on +8.6% higher revenues, with 50% beating EPS estimates and 77.3% beating revenue estimates. The comparison charts below put the Q4 beats percentages for these retailers in a historical context.Zacks Investment Research Image Source: Zacks Investment Research As you can see above, the proportion of these companies beating consensus EPS estimates is the lowest at 50% for this group of 22 retailers in the index over the preceding 5-year period. We should also note that the sector’s 50% EPS beats percentage is the lowest, along with the Auto sector, of all 16 Zacks sectors this earnings season. With respect to the elevated earnings growth rate at this stage, we like to show the group’s performance with and without Amazon, whose results are among the 22 companies that have already reported. As we know, Amazon’s Q4 earnings were up +5.9% on +13.6% higher revenues, as it missed EPS and revenue expectations. The two comparison charts below show Q4 earnings and revenue growth relative to other recent periods, with Amazon’s results included (left side chart) and excluded (right side chart).Zacks Investment Research Image Source: Zacks Investment Research Q4 Earnings Season Scorecard Through Friday, February 27th, we have seen Q4 results from 481 S&P 500 members, or 96.2% of the index’s total membership. Total earnings for these companies are up +15.1% from the same period last year on +9.4% higher revenues, with 74.8% beating EPS estimates and 73.4% beating revenue estimates. We have more than 300 companies on deck to report results this week, including 12 index members. The week’s line-up includes Broadcom, along with the aforementioned retailers. The comparison charts below display the growth rates for the companies that have reported with what we had seen from this same group of companies in other recent periods.Zacks Investment Research Image Source: Zacks Investment Research The comparison charts below show the Q4 EPS and revenue beats percentages for this group of companies relative to what we had seen from them in other recent periods.Zacks Investment Research Image Source: Zacks Investment Research The comparison chart below shows the Q4 net margins for the 481 companies that have reported in a historical context.Zacks Investment Research Image Source: Zacks Investment Research The Earnings Big Picture The chart below shows the Q4 earnings and revenue growth expectations in the context of where growth has been in the preceding four quarters and what is expected in the coming four quarters.Zacks Investment Research Image Source: Zacks Investment Research Estimates for the current period (2026 Q1) have inched down in recent days after consistently moving higher earlier, as the chart below shows.Zacks Investment Research Image Source: Zacks Investment Research The chart below shows the overall earnings picture on a calendar-year basis, with double-digit earnings growth expected in 2025 and 2026.Zacks Investment Research Image Source: Zacks Investment Research For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Retail Sector Earnings in Focus Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments
The Nasdaq Composite and the S&P 500 suffered back-to-back declines on Friday following a hot produc PREMIUM Upgrade to read this MT Newswires article and get so much more. A Silver or Gold subscription plan is required to access premium news articles. Upgrade Already have a subscription? Sign in
STORY: U.S. stocks tumbled on the last trading day in February, with the Dow dropping one percent, the S&P 500 falling just under half a percent and the Nasdaq losing just under one percent.The Dow posted its biggest weekly drop since November, while the S&P 500 and Nasdaq marked their largest monthly declines in nearly a year.Friday's session kicked off with a hotter-than-expected Producer Price Index that dampened investors' spirits, explains Jason Betz, private wealth advisor at Redwood Wealth Advisors/Ameriprise Financial."Today's big PPI miss really throws water on this market's hope that we're going to see continued substantial rate cuts in 2026. I mean, it was hard for me to make a case that we'd see anything in terms of rate cuts for the first half of the year. Now, with today's number, you got to wonder if we're going to even see anything for the remainder of this year. Traders certainly don't like that."Friday's losses were also driven by uncertainty over AI costs, revived tariffs and simmering geopolitical tensions.Financial stocks were among the hardest hit, after reports that Barclays, Jefferies, Wells Fargo and other banks face potential losses related to the collapse of UK mortgage provider Market Financial Solutions Ltd.Wells Fargo, Jefferies and U.S.-listed shares of Barclays all ended sharply lower.And tech shares continued to weigh, with Nvidia sliding more than 4%, extending the previous session's 5.5% drop despite solid earnings.Shares of Zscaler plunged more than 12% after the cloud security firm reported a wider net loss in the second quarter.::Dell / FileOn the flip side, shares of Dell shot up nearly 22% after the PC maker said it expects revenue from its key AI-optimized servers business to double in fiscal year 2027 and promised to return more cash to shareholders. View Comments
Stocks are falling, inflation is growing, the Fed may be hamstrung. What else could go wrong? At least there are bargains in business development companies whose stocks were crushed. Continue Reading
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