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| 06.12.25 21:45:00 |
The Secret to Finding the Next Broadcom Is Hiding in Plain Sight |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
Broadcom has delivered huge returns over the past five years. The company's AI chips have played a key role in its success. Investors can find the next Broadcom by considering the key factors that led to its surge.10 stocks we like better than Broadcom ›
Broadcom(NASDAQ: AVGO) has been one of the best stocks to hold over the past decade. It has rallied by almost 4,000% during that stretch, including a return of 10x over the past five years.
Investors can't expect those types of returns from Broadcom over the next decade. The artificial intelligence (AI) chipmaker's market cap would exceed the annual U.S. GDP if the stock soared by almost 4,000%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
That's why investors look for the next Broadcom. They want to be on the ground floor before a stock rallies by 4,000% over the past decade.
Some investors refer to these types of gains as "generational returns," but such opportunities occur far more frequently than once in a generation. The jaw-dropping rallies for Tesla and Palantir Technologies are only separated by a few years.
Broadcom shares several key factors in common with other high-growth stocks that have delivered what many investors would consider generational returns. Knowing what made Broadcom into the company it is today can help you identify the next long-term winner.
Image source: Getty Images.
Broadcom solves an important problem
The biggest companies solve incredible problems, and Broadcom is no exception. The company has been producing semiconductor chips long before the advent of AI, and Broadcom chips were once found in every iPhone. Its tech forms the foundation that allows other companies to solve big problems.
Broadcom chips are in many computers, wireless routers, video game consoles, and other devices. Those products have significant consumer demand, but they also require chips to operate. Broadcom isn't the only chipmaker, but it is a leader in the industry. Computers and other critical products cannot function without chips.
AI has increased the demand for advanced chips, and it's been a boon for Broadcom. The technology can revolutionize the world far more than the internet in its best-case scenario.
Tesla CEO Elon Musk recently shared on X that AI can solve hunger, disease, and poverty. Sundar Pichai, the CEO of Google and its parent company, Alphabet, also said that AI is "more important than fire or electricity."
If AI is that important, then chipmakers like Broadcom are that important, by extension. Broadcom powers the technology that business leaders have said can solve hunger and is more important than electricity. Very few companies are solving that type of problem, and that's why Broadcom is one of the largest corporations on the planet.
Considering which companies are solving problems that can become consequential may lead to the next Broadcom.
The chipmaker serves large customers
There are two ways to grow a business. You can either focus on serving a few high-paying customers or offer products or services to a large customer base. While Walmart does a good job of attracting millions of people to its stores each day, Broadcom doesn't have as many customers.
The company also works with smaller enterprises, but most of its revenue comes from large corporations, especially tech giants that want chips. Broadcom has a deep partnership with Google that includes designing custom AI chips, and that got Meta Platforms' attention. Facebook's parent company is discussing a multibillion-dollar deal for Google's chips, which bodes well for Broadcom.
When Broadcom signs a new customer, it can result in a multibillion-dollar deal, and such transactions can significantly boost the stock price. Investors saw that play out recently, with Broadcom soaring by more than 10% on news that Meta Platforms was in talks to buy Google's AI chips.
Examining how the largest companies allocate their resources can reveal promising growth stocks, especially when they are just starting to gain momentum.
The company has used acquisitions to fill in gaps
Broadcom has made several acquisitions over the years that prepared it for the AI boom. Ironically, one of the biggest acquisitions was when Avago acquired Broadcom for $37 billion and rebranded as Broadcom. That's why Broadcom trades under the ticker AVGO instead of a symbol that more closely resembles Broadcom's spelling.
That decision made Broadcom more competitive against other chipmakers and significantly helped in attracting large customers. The firm also acquired semiconductor firm LSI Corporation for $6.6 billion in 2013. More recently, Broadcom acquired VMware to expand its software business.
Other tech giants have acquired their way to more market share. Google bought YouTube to get an early start in video content, Amazon bought Whole Foods to boost its grocery store footprint, and Meta Platforms bought Instagram to capitalize on a high-engagement social network.
Each of those companies has made additional acquisitions and investments. It's part of becoming a corporate giant like Broadcom.
This AI stock checks the boxes to become the next Broadcom
Broadcom has long-term customers and offers essential technology, and Iren(NASDAQ: IREN) also checks those boxes. Instead of creating AI chips, Iren creates AI data centers at scale and just signed a five-year, $9.7 billion deal with Microsoft. It also supplies energy, which is currently the major bottleneck in AI development.
Iren already has multiple gigawatts and AI data centers to support additional deals, and co-CEO Dan Roberts recently told CNBC that the company "can't meet demand fast enough." That's a good bullish indicator, especially since most AI demand is coming from tech giants with lots of money to spend.
Iren's data centers are optimized for the rigorous energy demands of AI tools and software. Regular data centers aren't good enough for this new tech boom because they can't handle AI workloads. Iren is still a small company with a market cap below $15 billion, but it's solving the same exact problems as Broadcom.
As Iren grows, expect the AI data center provider to acquire smaller companies to increase its market share. That will further put it on the path to becoming the next Broadcom.
Should you invest $1,000 in Broadcom right now?
Before you buy stock in Broadcom, 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 Broadcom 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 $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
Marc Guberti has positions in Broadcom and Iren. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, Palantir Technologies, Tesla, and Walmart. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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. |
| 06.12.25 21:10:52 |
SA Asks: What's the most attractive cybersecurity stock right now? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | [Zscaler, CrowdStrike, Palo Alto Networks, CyberArk. Assorted American cybersecurity company]
Robert Way
What's the most attractive cybersecurity stock right now for investors?
Seeking Alpha analysts Dair Sansyzbayev [https://seekingalpha.com/author/dair-sansyzbayev] and Michael Del Monte [https://seekingalpha.com/author/michael-del-monte] weigh in.
Dair Sansyzbayev [https://seekingalpha.com/author/dair-sansyzbayev]: I believe that CrowdStrike (CRWD [https://seekingalpha.com/symbol/CRWD]) is the most attractive investment opportunity among cybersecurity companies because they are doing a lot in terms of expanding their footprint in AI cybersecurity. This market is likely to grow rapidly as generative AI and AI agents create new challenges in terms of cybersecurity that were never seen before. I like CrowdStrike's (CRWD [https://seekingalpha.com/symbol/CRWD]) balance of maintaining stellar profitability while investing in innovation and developing AI-related features as well. The company's customer base is growing, and revenue per customer growth indicates robust cross-selling potential. Therefore, I believe that CRWD's premium valuation is justified, as we are likely to see dramatic P/E contraction over the long term.
Michael Del Monte [https://seekingalpha.com/author/michael-del-monte]: Cybersecurity may largely be directed by the industry trends in identity management; I believe Palo Alto Networks (PANW [https://seekingalpha.com/symbol/PANW]) and Zscaler (ZS [https://seekingalpha.com/symbol/ZS]) present appealing opportunities for growth over the coming years, particularly as enterprises lean more heavily into utilizing agentic AI. CrowdStrike (CRWD [https://seekingalpha.com/symbol/CRWD]) remains a top pick for its single-platform solution despite the high valuation. CrowdStrike's (CRWD [https://seekingalpha.com/symbol/CRWD]) initiative is to simplify security operations through automation, an appealing strategy during a period of economic growth concerns.
* Top Systems Software Stocks [https://seekingalpha.com/screeners/9409aed042-Top-Systems-Software-Stocks]
MORE ON CROWDSTRIKE, ZSCALER, ETC.
* CrowdStrike's AI Reality Check [https://seekingalpha.com/article/4850793-crowdstrike-ai-reality-check]
* CrowdStrike Holdings, Inc. (CRWD) Presents at UBS Global Technology and AI Conference 2025 Transcript [https://seekingalpha.com/article/4849818-crowdstrike-holdings-inc-crwd-presents-at-ubs-global-technology-and-ai-conference-2025]
* CrowdStrike: Cybersecurity Leader With Defensive Strength, But Has Valuation Issues [https://seekingalpha.com/article/4849804-crowdstrike-cybersecurity-leader-with-defensive-strength-but-has-valuation-issues]
* Notable analyst calls this week: Novartis, Albemarle and Zscaler among top picks [https://seekingalpha.com/news/4529036-notable-analyst-calls-this-week-novartis-albemarle-and-zscaler-among-top-picks]
* CrowdStrike's results, guidance seen as 'major validation moment,' analysts say [https://seekingalpha.com/news/4528033-crowdstrikes-results-guidance-seen-as-major-validation-moment-analysts-say]
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| 06.12.25 21:05:00 |
The Secret to Finding the Next Broadcom Is Hiding in Plain Sight |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
Broadcom has delivered huge returns over the past five years. The company's AI chips have played a key role in its success. Investors can find the next Broadcom by considering the key factors that led to its surge. 10 stocks we like better than Broadcom ›
Broadcom(NASDAQ: AVGO) has been one of the best stocks to hold over the past decade. It has rallied by almost 4,000% during that stretch, including a return of 10x over the past five years.
Investors can't expect those types of returns from Broadcom over the next decade. The artificial intelligence (AI) chipmaker's market cap would exceed the annual U.S. GDP if the stock soared by almost 4,000%.
That's why investors look for the next Broadcom. They want to be on the ground floor before a stock rallies by 4,000% over the past decade.
Some investors refer to these types of gains as "generational returns," but such opportunities occur far more frequently than once in a generation. The jaw-dropping rallies for Tesla and Palantir Technologies are only separated by a few years.
Broadcom shares several key factors in common with other high-growth stocks that have delivered what many investors would consider generational returns. Knowing what made Broadcom into the company it is today can help you identify the next long-term winner.Image source: Getty Images.
Broadcom solves an important problem
The biggest companies solve incredible problems, and Broadcom is no exception. The company has been producing semiconductor chips long before the advent of AI, and Broadcom chips were once found in every iPhone. Its tech forms the foundation that allows other companies to solve big problems.
Broadcom chips are in many computers, wireless routers, video game consoles, and other devices. Those products have significant consumer demand, but they also require chips to operate. Broadcom isn't the only chipmaker, but it is a leader in the industry. Computers and other critical products cannot function without chips.
AI has increased the demand for advanced chips, and it's been a boon for Broadcom. The technology can revolutionize the world far more than the internet in its best-case scenario.
Tesla CEO Elon Musk recently shared on X that AI can solve hunger, disease, and poverty. Sundar Pichai, the CEO of Google and its parent company, Alphabet, also said that AI is "more important than fire or electricity."
If AI is that important, then chipmakers like Broadcom are that important, by extension. Broadcom powers the technology that business leaders have said can solve hunger and is more important than electricity. Very few companies are solving that type of problem, and that's why Broadcom is one of the largest corporations on the planet.
Story Continues
Considering which companies are solving problems that can become consequential may lead to the next Broadcom.
The chipmaker serves large customers
There are two ways to grow a business. You can either focus on serving a few high-paying customers or offer products or services to a large customer base. While Walmart does a good job of attracting millions of people to its stores each day, Broadcom doesn't have as many customers.
The company also works with smaller enterprises, but most of its revenue comes from large corporations, especially tech giants that want chips. Broadcom has a deep partnership with Google that includes designing custom AI chips, and that got Meta Platforms' attention. Facebook's parent company is discussing a multibillion-dollar deal for Google's chips, which bodes well for Broadcom.
When Broadcom signs a new customer, it can result in a multibillion-dollar deal, and such transactions can significantly boost the stock price. Investors saw that play out recently, with Broadcom soaring by more than 10% on news that Meta Platforms was in talks to buy Google's AI chips.
Examining how the largest companies allocate their resources can reveal promising growth stocks, especially when they are just starting to gain momentum.
The company has used acquisitions to fill in gaps
Broadcom has made several acquisitions over the years that prepared it for the AI boom. Ironically, one of the biggest acquisitions was when Avago acquired Broadcom for $37 billion and rebranded as Broadcom. That's why Broadcom trades under the ticker AVGO instead of a symbol that more closely resembles Broadcom's spelling.
That decision made Broadcom more competitive against other chipmakers and significantly helped in attracting large customers. The firm also acquired semiconductor firm LSI Corporation for $6.6 billion in 2013. More recently, Broadcom acquired VMware to expand its software business.
Other tech giants have acquired their way to more market share. Google bought YouTube to get an early start in video content, Amazon bought Whole Foods to boost its grocery store footprint, and Meta Platforms bought Instagram to capitalize on a high-engagement social network.
Each of those companies has made additional acquisitions and investments. It's part of becoming a corporate giant like Broadcom.
This AI stock checks the boxes to become the next Broadcom
Broadcom has long-term customers and offers essential technology, and Iren (NASDAQ: IREN) also checks those boxes. Instead of creating AI chips, Iren creates AI data centers at scale and just signed a five-year, $9.7 billion deal with Microsoft. It also supplies energy, which is currently the major bottleneck in AI development.
Iren already has multiple gigawatts and AI data centers to support additional deals, and co-CEO Dan Roberts recently told CNBC that the company "can't meet demand fast enough." That's a good bullish indicator, especially since most AI demand is coming from tech giants with lots of money to spend.
Iren's data centers are optimized for the rigorous energy demands of AI tools and software. Regular data centers aren't good enough for this new tech boom because they can't handle AI workloads. Iren is still a small company with a market cap below $15 billion, but it's solving the same exact problems as Broadcom.
As Iren grows, expect the AI data center provider to acquire smaller companies to increase its market share. That will further put it on the path to becoming the next Broadcom.
Should you invest $1,000 in Broadcom right now?
Before you buy stock in Broadcom, 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 Broadcom 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 $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% 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 December 1, 2025
Marc Guberti has positions in Broadcom and Iren. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, Palantir Technologies, Tesla, and Walmart. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The Secret to Finding the Next Broadcom Is Hiding in Plain Sight was originally published by The Motley Fool
View Comments |
| 06.12.25 20:30:42 |
SA Quant ranks IVES AI 30 list after its latest shakeup |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | [Machine Learning. AI Neural Network Concepts]
Wedbush's Dan Ives, one of Wall Street's most bullish tech analysts, earlier this week updated his list of 30 companies that he sees as being the most instrumental to the artificial intelligence revolution.
CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]), Iren (IREN [https://seekingalpha.com/symbol/IREN]), and Shopify (SHOP [https://seekingalpha.com/symbol/SHOP]) were added [https://seekingalpha.com/news/4526804-coreweave-iren-added-salesforce-servicenow-removed-from-ives-ai-30-list-heading-into-2026-wedbush] to the IVES AI 30 list, while SoundHound (SOUN [https://seekingalpha.com/symbol/SOUN]), ServiceNow (NOW [https://seekingalpha.com/symbol/NOW]), and Salesforce (CRM [https://seekingalpha.com/symbol/CRM]) were removed.
Seeking Alpha took a look at the updated list and ranked its 30 constituents according to their Quant Ratings.
The list is topped by Micron Technology (MU [https://seekingalpha.com/symbol/MU]), Taiwan Semiconductor Manufacturing (TSM [https://seekingalpha.com/symbol/TSM]), and AMD (AMD [https://seekingalpha.com/symbol/AMD]), all with Strong Buy ratings of 4.99, 4.97, and 4.84, respectively. These three companies have shown impressive YTD performances, with MU leading at +181.9% growth. All other companies on the list maintain Hold ratings. Note that CoreWeave (CRWV [https://seekingalpha.com/symbol/CRWV]) does not have a Quant rating.
Here is the full IVES AI 30 list ranked by Seeking Alpha's Quant Ratings:
* Micron Technology (MU [https://seekingalpha.com/symbol/MU]), Quant Rating: 4.99 - Strong Buy [https://seekingalpha.com/symbol/MU/ratings/quant-ratings].
* Taiwan Semiconductor Manufacturing (TSM [https://seekingalpha.com/symbol/TSM]), Quant Rating: 4.97 - Strong Buy [https://seekingalpha.com/symbol/TSM/ratings/quant-ratings].
* AMD (AMD [https://seekingalpha.com/symbol/AMD]), Quant Rating: 4.84 - Strong Buy [https://seekingalpha.com/symbol/AMD/ratings/quant-ratings].
* Alphabet (GOOGL [https://seekingalpha.com/symbol/GOOGL]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/GOOGL/ratings/quant-ratings].
* Iren (IREN [https://seekingalpha.com/symbol/IREN]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/IREN/ratings/quant-ratings].
* Nebius (NBIS [https://seekingalpha.com/symbol/NBIS]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/NBIS/ratings/quant-ratings].
* Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/NVDA/ratings/quant-ratings].
* Broadcom (AVGO [https://seekingalpha.com/symbol/AVGO]), Quant Rating: 3.49 - Hold [https://seekingalpha.com/symbol/AVGO/ratings/quant-ratings].
* Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]), Quant Rating: 3.48 - Hold [https://seekingalpha.com/symbol/AMZN/ratings/quant-ratings].
* Palantir Technologies (PLTR [https://seekingalpha.com/symbol/PLTR]), Quant Rating: 3.48 - Hold [https://seekingalpha.com/symbol/PLTR/ratings/quant-ratings].
* Apple (AAPL [https://seekingalpha.com/symbol/AAPL]), Quant Rating: 3.48 - Hold [https://seekingalpha.com/symbol/AAPL/ratings/quant-ratings].
* Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]), Quant Rating: 3.46 - Hold [https://seekingalpha.com/symbol/MSFT/ratings/quant-ratings].
* IBM (IBM [https://seekingalpha.com/symbol/IBM]), Quant Rating: 3.43 - Hold [https://seekingalpha.com/symbol/IBM/ratings/quant-ratings].
* Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]), Quant Rating: 3.42 - Hold [https://seekingalpha.com/symbol/TSLA/ratings/quant-ratings].
* Oklo (OKLO [https://seekingalpha.com/symbol/OKLO]), Quant Rating: 3.41 - Hold [https://seekingalpha.com/symbol/OKLO/ratings/quant-ratings].
* MongoDB (MDB [https://seekingalpha.com/symbol/MDB]), Quant Rating: 3.41 - Hold [https://seekingalpha.com/symbol/MDB/ratings/quant-ratings].
* Oracle (ORCL [https://seekingalpha.com/symbol/ORCL]), Quant Rating: 3.41 - Hold [https://seekingalpha.com/symbol/ORCL/ratings/quant-ratings].
* Alibaba (BABA [https://seekingalpha.com/symbol/BABA]), Quant Rating: 3.35 - Hold [https://seekingalpha.com/symbol/BABA/ratings/quant-ratings].
* Palo Alto Networks (PANW [https://seekingalpha.com/symbol/PANW]), Quant Rating: 3.34 - Hold [https://seekingalpha.com/symbol/PANW/ratings/quant-ratings].
* Meta Platforms (META [https://seekingalpha.com/symbol/META]), Quant Rating: 3.32 - Hold [https://seekingalpha.com/symbol/META/ratings/quant-ratings].
* CrowdStrike (CRWD [https://seekingalpha.com/symbol/CRWD]), Quant Rating: 3.30 - Hold [https://seekingalpha.com/symbol/CRWD/ratings/quant-ratings].
* GE Vernova (GEV [https://seekingalpha.com/symbol/GEV]), Quant Rating: 3.30 - Hold [https://seekingalpha.com/symbol/GEV/ratings/quant-ratings].
* Pegasystems (PEGA [https://seekingalpha.com/symbol/PEGA]), Quant Rating: 3.28 - Hold [https://seekingalpha.com/symbol/PEGA/ratings/quant-ratings].
* Innodata (INOD [https://seekingalpha.com/symbol/INOD]), Quant Rating: 3.25 - Hold [https://seekingalpha.com/symbol/INOD/ratings/quant-ratings].
* Shopify (SHOP [https://seekingalpha.com/symbol/SHOP]), Quant Rating: 3.23 - Hold [https://seekingalpha.com/symbol/SHOP/ratings/quant-ratings].
* Baidu (BIDU [https://seekingalpha.com/symbol/BIDU]), Quant Rating: 3.23 - Hold [https://seekingalpha.com/symbol/BIDU/ratings/quant-ratings].
* Roblox (RBLX [https://seekingalpha.com/symbol/RBLX]), Quant Rating: 3.21 - Hold [https://seekingalpha.com/symbol/RBLX/ratings/quant-ratings].
* Zscaler (ZS [https://seekingalpha.com/symbol/ZS]), Quant Rating: 3.21 - Hold [https://seekingalpha.com/symbol/ZS/ratings/quant-ratings].
* Snowflake (SNOW [https://seekingalpha.com/symbol/SNOW]), Quant Rating: 3.11 - Hold [https://seekingalpha.com/symbol/SNOW/ratings/quant-ratings].
Here are some exchange-traded funds tied to the technology sector: (VGT [https://seekingalpha.com/symbol/VGT]), (XLK [https://seekingalpha.com/symbol/XLK]), (IYW [https://seekingalpha.com/symbol/IYW]), (FTEC [https://seekingalpha.com/symbol/FTEC]), (IXN [https://seekingalpha.com/symbol/IXN]), and (RSPT [https://seekingalpha.com/symbol/RSPT]).
MORE ON TECH
* Micron: Why An Exit From Consumer Isn't Scary [https://seekingalpha.com/article/4850267-micron-why-an-exit-from-consumer-isnt-scary]
* IGM Over IYW: Why Diversification Trumps Concentration In Today's Tech Rally [https://seekingalpha.com/article/4850194-igm-over-iyw-why-diversification-trumps-concentration-in-todays-tech-rally]
* 3 Well-Positioned AI Stocks From Steven Cress [https://seekingalpha.com/article/4849909-3-well-positioned-ai-stocks-from-steven-cress]
* Elon Musk says 'EU should be abolished' days after Europe slaps $140M fine on X [https://seekingalpha.com/news/4529114-elon-musk-says-eu-should-be-abolished-a-day-after-europe-slaps-140m-fine-on-x]
* SK Hynix chief says AI not in bubble, but stocks might face correction: report [https://seekingalpha.com/news/4528898-sk-hynix-chief-says-ai-not-in-bubble-but-stocks-might-face-correction-report]
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| 06.12.25 20:24:04 |
Elon Musk Says He Warned Donald Trump To Drop Tariffs Over Fears of Job Losses: 'President Loves Tariffs, I've Tried To Dissuade Him' |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Elon Musk has said that he failed in his attempts to convince President Donald Trump to hold back on implementing tariffs.
What Happened: During an interview, Musk voiced his concerns about the potential market distortions caused by tariffs, which could lead to a recession and an increase in the prices of goods.
He discussed these issues in relation to Tesla‘s recent decision to stop orders for certain models in China, which was facing a retaliatory 125% tariff.
Simultaneously, US manufacturers are linking Trump’s tariffs to industry contraction and job cuts, which is contrary to Trump’s goal of bringing back American factory jobs. The tariffs seem to be having the opposite effect.
"The president has made it clear he loves tariffs. I've tried to dissuade him from this point of view, but unsuccessfully," Musk said during the interview.
Also Read: Elon Musk Tells Joe Rogan: ‘Trump Actually Is Not Perfect, but He’s Not Evil’
"Would you want tariffs between you and everyone else at an individual level? That would make life very difficult. Would you want tariffs between each city? No, that would be very annoying. Would you want tariffs between each state within the United States? No, that would be disastrous for the economy. So then, why do you want tariffs between countries?" he continued.
Recent job data from the U.S. Bureau of Labor Statistics supports these concerns, showing a decrease of 6,000 manufacturing jobs in October. This brings the total number of lost manufacturing jobs since Trump’s tariff push in April to 59,000.
Despite improving trade relations between the U.S. and China, some manufacturers predict that workforce reductions will continue as long as tariffs remain an issue.
Why It Matters: The concerns raised by Musk and American manufacturers highlight the potential negative impacts of tariffs on the economy. The tariffs, intended to protect domestic industries, appear to be causing industry contraction and job losses instead.
This situation underscores the complexity of international trade policies and their potential unintended consequences.
Read Next
Elon Musk’s Father Says America Will Collapse if White Population Becomes Minority: ‘You Want To See the US Go Down?’
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga:
APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report
Story Continues
This article Elon Musk Says He Warned Donald Trump To Drop Tariffs Over Fears of Job Losses: 'President Loves Tariffs, I've Tried To Dissuade Him' originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
View Comments |
| 06.12.25 19:10:01 |
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
TQQQ has delivered a much higher one-year return and greater technology exposure, but with far steeper historical drawdowns than SSO Both funds use daily leverage resets, amplifying both gains and losses compared to traditional index ETFs TQQQ charges a slightly higher fee and offers a marginally higher dividend yield, but also carries dramatically higher risk as shown by its beta and volatilityThese 10 stocks could mint the next wave of millionaires ›
Leveraged exchange-traded funds (ETFs), such as ProShares UltraPro QQQ (TQQQ) and ProShares Ultra S&P 500 (SSO) are tempting investment options, but are they the right choice for long-term buy-and-hold investors? Here's what retail investors need to know about these popular leveraged ETFs.
Snapshot (cost & size) MetricSSOTQQQIssuerProSharesProSharesExpense ratio0.87%0.82%1-yr return (as of 2025-11-28)18.8%36.5%Dividend yield2.5%2.7%Beta2.023.36AUM$7.3 billion$30.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
TQQQ charges a marginally lower expense ratio than SSO, making it a bit more affordable for cost-conscious traders. TQQQ also offers a slightly higher dividend yield, which could appeal to those seeking a small income boost alongside leveraged growth.
Performance & Risk Comparison MetricSSOTQQQMax drawdown (5 y)-46.77%-81.76%Growth of $1,000 over 5 years$2,735$2,760
What's Inside
TQQQ tracks triple the daily returns of the Nasdaq-100 and is heavily tilted toward technology (54%), with additional weight in communication services (17%) and consumer cyclical stocks (13%). The fund holds 123 positions, with top weights in Nvidia(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), and has operated for nearly 16 years. The daily leverage reset is a critical quirk, meaning returns can diverge from long-term index moves, especially in volatile markets.
SSO, in contrast, delivers 2x daily S&P 500 exposure, resulting in a broader sector mix—technology (31%), a large allocation to cash and others (30%), and financial services (9%). Its top holdings are Nvidia, Apple, and Microsoft, but with lower individual weights. Both funds use daily leverage resets, a structure that can magnify losses as well as gains over time.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
While the prospect of doubling or tripling the returns of a benchmark index like the S&P 500 is tantalizing, investors should understand the finer points of leveraged ETFs before they take the plunge. Here are some key takeaways for average investors.
First off, investors need to remember that leverage cuts both ways. That means in addition to big returns there are hefty drawdowns. The TQQQ, for example, experienced a drawdown of 82% back in 2022. Such a drawdown represents extreme volatility, and everyone should be aware that such moves are possible for funds that employ 2x or 3x leverage.
Next, there's another side effect of big leverage -- daily leverage resets and time decay. In short, this process means that over the long term, these leveraged ETFs don't deliver 2x or 3x returns. What's more, the funds themselves acknowledge this.
In short, these funds are designed to deliver 2x or 3x returns on a daily basis -- not monthly or yearly. That's why the TQQQ has delivered a five-year compound annual growth rate (CAGR) of 22.9% versus a CAGR of 16.1% for the QQQ. If the fund were delivering 3x returns over the long term, its CAGR should be closer to 48%, rather than 16%.
Lastly, both funds charge higher-than-average fees through expense ratios that are above 0.80%. While that's not the highest expense ratio around, it's not cheap either.
To sum up, leveraged ETFs are designed to deliver amplified short-term (daily) returns versus their respective benchmarks. As such, they fail to measure up over longer time horizons. What's more, their reliance on leverage means they experience extreme drawdowns in corrections and bear markets, which can cause many investors to bail out at the worst possible time. Finally, they both charge higher-than-average expense ratios. In other words, be forewarned: These leveraged ETFs are not for the faint-of-heart or for buy-and-hold investors.
Glossary
Leveraged ETF: An exchange-traded fund designed to amplify daily returns of an underlying index, often using financial derivatives.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest observed percentage drop from a fund’s peak value to its lowest point over a specified period.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a set multiple of index returns.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: A stock market index tracking 500 large U.S. companies, widely used as a market benchmark.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Sector allocation: The distribution of a fund’s investments across different industry sectors.
Volatility: The degree of variation in a fund’s price over time, indicating risk or uncertainty.
Growth of $1,000: The increase in value of a $1,000 investment over a specified period, assuming all returns are reinvested.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 999%* — a market-crushing outperformance compared to 194% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you joinStock Advisor.
See the stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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. |
| 06.12.25 19:10:01 |
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? |
|
|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
TQQQ has delivered a much higher one-year return and greater technology exposure, but with far steeper historical drawdowns than SSO Both funds use daily leverage resets, amplifying both gains and losses compared to traditional index ETFs TQQQ charges a slightly higher fee and offers a marginally higher dividend yield, but also carries dramatically higher risk as shown by its beta and volatilityThese 10 stocks could mint the next wave of millionaires ›
Leveraged exchange-traded funds (ETFs), such as ProShares UltraPro QQQ (TQQQ) and ProShares Ultra S&P 500 (SSO) are tempting investment options, but are they the right choice for long-term buy-and-hold investors? Here's what retail investors need to know about these popular leveraged ETFs.
Snapshot (cost & size) MetricSSOTQQQIssuerProSharesProSharesExpense ratio0.87%0.82%1-yr return (as of 2025-11-28)18.8%36.5%Dividend yield2.5%2.7%Beta2.023.36AUM$7.3 billion$30.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
TQQQ charges a marginally lower expense ratio than SSO, making it a bit more affordable for cost-conscious traders. TQQQ also offers a slightly higher dividend yield, which could appeal to those seeking a small income boost alongside leveraged growth.
Performance & Risk Comparison MetricSSOTQQQMax drawdown (5 y)-46.77%-81.76%Growth of $1,000 over 5 years$2,735$2,760
What's Inside
TQQQ tracks triple the daily returns of the Nasdaq-100 and is heavily tilted toward technology (54%), with additional weight in communication services (17%) and consumer cyclical stocks (13%). The fund holds 123 positions, with top weights in Nvidia(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), and has operated for nearly 16 years. The daily leverage reset is a critical quirk, meaning returns can diverge from long-term index moves, especially in volatile markets.
SSO, in contrast, delivers 2x daily S&P 500 exposure, resulting in a broader sector mix—technology (31%), a large allocation to cash and others (30%), and financial services (9%). Its top holdings are Nvidia, Apple, and Microsoft, but with lower individual weights. Both funds use daily leverage resets, a structure that can magnify losses as well as gains over time.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
While the prospect of doubling or tripling the returns of a benchmark index like the S&P 500 is tantalizing, investors should understand the finer points of leveraged ETFs before they take the plunge. Here are some key takeaways for average investors.
First off, investors need to remember that leverage cuts both ways. That means in addition to big returns there are hefty drawdowns. The TQQQ, for example, experienced a drawdown of 82% back in 2022. Such a drawdown represents extreme volatility, and everyone should be aware that such moves are possible for funds that employ 2x or 3x leverage.
Next, there's another side effect of big leverage -- daily leverage resets and time decay. In short, this process means that over the long term, these leveraged ETFs don't deliver 2x or 3x returns. What's more, the funds themselves acknowledge this.
In short, these funds are designed to deliver 2x or 3x returns on a daily basis -- not monthly or yearly. That's why the TQQQ has delivered a five-year compound annual growth rate (CAGR) of 22.9% versus a CAGR of 16.1% for the QQQ. If the fund were delivering 3x returns over the long term, its CAGR should be closer to 48%, rather than 16%.
Lastly, both funds charge higher-than-average fees through expense ratios that are above 0.80%. While that's not the highest expense ratio around, it's not cheap either.
To sum up, leveraged ETFs are designed to deliver amplified short-term (daily) returns versus their respective benchmarks. As such, they fail to measure up over longer time horizons. What's more, their reliance on leverage means they experience extreme drawdowns in corrections and bear markets, which can cause many investors to bail out at the worst possible time. Finally, they both charge higher-than-average expense ratios. In other words, be forewarned: These leveraged ETFs are not for the faint-of-heart or for buy-and-hold investors.
Glossary
Leveraged ETF: An exchange-traded fund designed to amplify daily returns of an underlying index, often using financial derivatives.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest observed percentage drop from a fund’s peak value to its lowest point over a specified period.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a set multiple of index returns.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: A stock market index tracking 500 large U.S. companies, widely used as a market benchmark.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Sector allocation: The distribution of a fund’s investments across different industry sectors.
Volatility: The degree of variation in a fund’s price over time, indicating risk or uncertainty.
Growth of $1,000: The increase in value of a $1,000 investment over a specified period, assuming all returns are reinvested.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 999%* — a market-crushing outperformance compared to 194% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you joinStock Advisor.
See the stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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. |
| 06.12.25 18:30:01 |
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? |
|
|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
TQQQ has delivered a much higher one-year return and greater technology exposure, but with far steeper historical drawdowns than SSO Both funds use daily leverage resets, amplifying both gains and losses compared to traditional index ETFs TQQQ charges a slightly higher fee and offers a marginally higher dividend yield, but also carries dramatically higher risk as shown by its beta and volatility These 10 stocks could mint the next wave of millionaires ›
Leveraged exchange-traded funds (ETFs), such as ProShares UltraPro QQQ (TQQQ) and ProShares Ultra S&P 500 (SSO) are tempting investment options, but are they the right choice for long-term buy-and-hold investors? Here's what retail investors need to know about these popular leveraged ETFs.
Snapshot (cost & size)
Metric SSO TQQQ Issuer ProShares ProShares Expense ratio 0.87% 0.82% 1-yr return (as of 2025-11-28) 18.8% 36.5% Dividend yield 2.5% 2.7% Beta 2.02 3.36 AUM $7.3 billion $30.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
TQQQ charges a marginally lower expense ratio than SSO, making it a bit more affordable for cost-conscious traders. TQQQ also offers a slightly higher dividend yield, which could appeal to those seeking a small income boost alongside leveraged growth.
Performance & Risk Comparison
Metric SSO TQQQ Max drawdown (5 y) -46.77% -81.76% Growth of $1,000 over 5 years $2,735 $2,760
What's Inside
TQQQ tracks triple the daily returns of the Nasdaq-100 and is heavily tilted toward technology (54%), with additional weight in communication services (17%) and consumer cyclical stocks (13%). The fund holds 123 positions, with top weights in Nvidia(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), and has operated for nearly 16 years. The daily leverage reset is a critical quirk, meaning returns can diverge from long-term index moves, especially in volatile markets.
SSO, in contrast, delivers 2x daily S&P 500 exposure, resulting in a broader sector mix—technology (31%), a large allocation to cash and others (30%), and financial services (9%). Its top holdings are Nvidia, Apple, and Microsoft, but with lower individual weights. Both funds use daily leverage resets, a structure that can magnify losses as well as gains over time.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
While the prospect of doubling or tripling the returns of a benchmark index like the S&P 500 is tantalizing, investors should understand the finer points of leveraged ETFs before they take the plunge. Here are some key takeaways for average investors.
Story Continues
First off, investors need to remember that leverage cuts both ways. That means in addition to big returns there are hefty drawdowns. The TQQQ, for example, experienced a drawdown of 82% back in 2022. Such a drawdown represents extreme volatility, and everyone should be aware that such moves are possible for funds that employ 2x or 3x leverage.
Next, there's another side effect of big leverage -- daily leverage resets and time decay. In short, this process means that over the long term, these leveraged ETFs don't deliver 2x or 3x returns. What's more, the funds themselves acknowledge this.
In short, these funds are designed to deliver 2x or 3x returns on a daily basis -- not monthly or yearly. That's why the TQQQ has delivered a five-year compound annual growth rate (CAGR) of 22.9% versus a CAGR of 16.1% for the QQQ. If the fund were delivering 3x returns over the long term, its CAGR should be closer to 48%, rather than 16%.
Lastly, both funds charge higher-than-average fees through expense ratios that are above 0.80%. While that's not the highest expense ratio around, it's not cheap either.
To sum up, leveraged ETFs are designed to deliver amplified short-term (daily) returns versus their respective benchmarks. As such, they fail to measure up over longer time horizons. What's more, their reliance on leverage means they experience extreme drawdowns in corrections and bear markets, which can cause many investors to bail out at the worst possible time. Finally, they both charge higher-than-average expense ratios. In other words, be forewarned: These leveraged ETFs are not for the faint-of-heart or for buy-and-hold investors.
Glossary
Leveraged ETF: An exchange-traded fund designed to amplify daily returns of an underlying index, often using financial derivatives.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest observed percentage drop from a fund’s peak value to its lowest point over a specified period.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a set multiple of index returns.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: A stock market index tracking 500 large U.S. companies, widely used as a market benchmark.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Sector allocation: The distribution of a fund’s investments across different industry sectors.
Volatility: The degree of variation in a fund’s price over time, indicating risk or uncertainty.
Growth of $1,000: The increase in value of a $1,000 investment over a specified period, assuming all returns are reinvested.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $465,781!* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $54,057!* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $560,649!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you joinStock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? was originally published by The Motley Fool
View Comments |
| 06.12.25 18:30:01 |
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? |
|
|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
TQQQ has delivered a much higher one-year return and greater technology exposure, but with far steeper historical drawdowns than SSO Both funds use daily leverage resets, amplifying both gains and losses compared to traditional index ETFs TQQQ charges a slightly higher fee and offers a marginally higher dividend yield, but also carries dramatically higher risk as shown by its beta and volatility These 10 stocks could mint the next wave of millionaires ›
Leveraged exchange-traded funds (ETFs), such as ProShares UltraPro QQQ (TQQQ) and ProShares Ultra S&P 500 (SSO) are tempting investment options, but are they the right choice for long-term buy-and-hold investors? Here's what retail investors need to know about these popular leveraged ETFs.
Snapshot (cost & size)
Metric SSO TQQQ Issuer ProShares ProShares Expense ratio 0.87% 0.82% 1-yr return (as of 2025-11-28) 18.8% 36.5% Dividend yield 2.5% 2.7% Beta 2.02 3.36 AUM $7.3 billion $30.9 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
TQQQ charges a marginally lower expense ratio than SSO, making it a bit more affordable for cost-conscious traders. TQQQ also offers a slightly higher dividend yield, which could appeal to those seeking a small income boost alongside leveraged growth.
Performance & Risk Comparison
Metric SSO TQQQ Max drawdown (5 y) -46.77% -81.76% Growth of $1,000 over 5 years $2,735 $2,760
What's Inside
TQQQ tracks triple the daily returns of the Nasdaq-100 and is heavily tilted toward technology (54%), with additional weight in communication services (17%) and consumer cyclical stocks (13%). The fund holds 123 positions, with top weights in Nvidia(NASDAQ:NVDA), Apple(NASDAQ:AAPL), and Microsoft(NASDAQ:MSFT), and has operated for nearly 16 years. The daily leverage reset is a critical quirk, meaning returns can diverge from long-term index moves, especially in volatile markets.
SSO, in contrast, delivers 2x daily S&P 500 exposure, resulting in a broader sector mix—technology (31%), a large allocation to cash and others (30%), and financial services (9%). Its top holdings are Nvidia, Apple, and Microsoft, but with lower individual weights. Both funds use daily leverage resets, a structure that can magnify losses as well as gains over time.
For more guidance on ETF investing, check out the full guide at this link.
Foolish Take
While the prospect of doubling or tripling the returns of a benchmark index like the S&P 500 is tantalizing, investors should understand the finer points of leveraged ETFs before they take the plunge. Here are some key takeaways for average investors.
Story Continues
First off, investors need to remember that leverage cuts both ways. That means in addition to big returns there are hefty drawdowns. The TQQQ, for example, experienced a drawdown of 82% back in 2022. Such a drawdown represents extreme volatility, and everyone should be aware that such moves are possible for funds that employ 2x or 3x leverage.
Next, there's another side effect of big leverage -- daily leverage resets and time decay. In short, this process means that over the long term, these leveraged ETFs don't deliver 2x or 3x returns. What's more, the funds themselves acknowledge this.
In short, these funds are designed to deliver 2x or 3x returns on a daily basis -- not monthly or yearly. That's why the TQQQ has delivered a five-year compound annual growth rate (CAGR) of 22.9% versus a CAGR of 16.1% for the QQQ. If the fund were delivering 3x returns over the long term, its CAGR should be closer to 48%, rather than 16%.
Lastly, both funds charge higher-than-average fees through expense ratios that are above 0.80%. While that's not the highest expense ratio around, it's not cheap either.
To sum up, leveraged ETFs are designed to deliver amplified short-term (daily) returns versus their respective benchmarks. As such, they fail to measure up over longer time horizons. What's more, their reliance on leverage means they experience extreme drawdowns in corrections and bear markets, which can cause many investors to bail out at the worst possible time. Finally, they both charge higher-than-average expense ratios. In other words, be forewarned: These leveraged ETFs are not for the faint-of-heart or for buy-and-hold investors.
Glossary
Leveraged ETF: An exchange-traded fund designed to amplify daily returns of an underlying index, often using financial derivatives.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: The annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest observed percentage drop from a fund’s peak value to its lowest point over a specified period.
Daily leverage reset: The process by which leveraged ETFs adjust their exposure each day to maintain a set multiple of index returns.
Nasdaq-100: An index of 100 of the largest non-financial companies listed on the Nasdaq stock exchange.
S&P 500: A stock market index tracking 500 large U.S. companies, widely used as a market benchmark.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Sector allocation: The distribution of a fund’s investments across different industry sectors.
Volatility: The degree of variation in a fund’s price over time, indicating risk or uncertainty.
Growth of $1,000: The increase in value of a $1,000 investment over a specified period, assuming all returns are reinvested.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $465,781!* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $54,057!* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $560,649!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you joinStock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of December 1, 2025
Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Making Sense of Leveraged ETFs: Are They the Right Choice for Long-Term Investors? was originally published by The Motley Fool
View Comments |
| 06.12.25 18:30:00 |
What Is 1 of the Best Artificial Intelligence Stocks to Buy Now? |
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|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
The artificial intelligence (AI) industry relies on advanced semiconductor chips sold by businesses such as Nvidia. One company is a global leader in the manufacturing of AI chips. In the wake of strong AI demand, this company, popularly known as TSMC, is expanding operations.10 stocks we like better than Taiwan Semiconductor Manufacturing ›
The hot field of artificial intelligence (AI) has boosted the fortunes of many businesses. Perhaps the most famous example is semiconductor chip leader Nvidia. It's a great AI company to invest in, but far from the only one.
Another compelling AI stock to consider is Taiwan Semiconductor Manufacturing (NYSE: TSM), commonly referred to as TSMC. Nvidia is one of its customers, as is major Nvidia competitor AMD.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Many reasons make TSMC a top AI stock to buy now. Here's a look at some of them to explain why it's a worthwhile investment.
Image source: Getty Images.
TSMC's AI-fueled success
TSMC plays a critical role in the AI industry. It manufactures the advanced semiconductor chips sold by Nvidia and AMD, and is the world's leading foundry in this area.
As a result, TSMC's sales are soaring. In the third quarter, the company reported revenue of 989.9 billion New Taiwan dollars ($33.1 billion), an impressive 30% year-over-year increase. This contributed to 39% year-over-year growth in diluted earnings per share (EPS) to 17.44 New Taiwan dollars ($2.92).
In fact, with the advent of AI, shareholders have been rewarded by TSMC's rising EPS over the past few years.
Data by YCharts.
Given its AI chip manufacturing leadership, TSMC is well-positioned to see continued growth. The customer demand is such that the company is building three new foundries in the U.S., as well as packaging and R&D facilities, totaling a $165 billion investment.
TSMC stock is a buy now because of its share price valuation. Its price-to-earnings (P/E) ratio is notably lower than both Nvidia and AMD.
Data by YCharts.
This indicates TSMC shares possess an attractive valuation compared to its prominent AI peers. It's also far more reasonable than rival Intel, which has a P/E multiple exceeding 4,000.
Combined with growing sales, EPS, and ongoing business expansion, TSMC looks like a great AI investment for the long term.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing 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 $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
Robert Izquierdo has positions in Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. 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. |
| 06.12.25 17:50:00 |
What Is 1 of the Best Artificial Intelligence Stocks to Buy Now? |
|
|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
The artificial intelligence (AI) industry relies on advanced semiconductor chips sold by businesses such as Nvidia. One company is a global leader in the manufacturing of AI chips. In the wake of strong AI demand, this company, popularly known as TSMC, is expanding operations. 10 stocks we like better than Taiwan Semiconductor Manufacturing ›
The hot field of artificial intelligence (AI) has boosted the fortunes of many businesses. Perhaps the most famous example is semiconductor chip leader Nvidia. It's a great AI company to invest in, but far from the only one.
Another compelling AI stock to consider is Taiwan Semiconductor Manufacturing (NYSE: TSM), commonly referred to as TSMC. Nvidia is one of its customers, as is major Nvidia competitor AMD.
Many reasons make TSMC a top AI stock to buy now. Here's a look at some of them to explain why it's a worthwhile investment.Image source: Getty Images.
TSMC's AI-fueled success
TSMC plays a critical role in the AI industry. It manufactures the advanced semiconductor chips sold by Nvidia and AMD, and is the world's leading foundry in this area.
As a result, TSMC's sales are soaring. In the third quarter, the company reported revenue of 989.9 billion New Taiwan dollars ($33.1 billion), an impressive 30% year-over-year increase. This contributed to 39% year-over-year growth in diluted earnings per share (EPS) to 17.44 New Taiwan dollars ($2.92).
In fact, with the advent of AI, shareholders have been rewarded by TSMC's rising EPS over the past few years.Data by YCharts.
Given its AI chip manufacturing leadership, TSMC is well-positioned to see continued growth. The customer demand is such that the company is building three new foundries in the U.S., as well as packaging and R&D facilities, totaling a $165 billion investment.
TSMC stock is a buy now because of its share price valuation. Its price-to-earnings (P/E) ratio is notably lower than both Nvidia and AMD.Data by YCharts.
This indicates TSMC shares possess an attractive valuation compared to its prominent AI peers. It's also far more reasonable than rival Intel, which has a P/E multiple exceeding 4,000.
Combined with growing sales, EPS, and ongoing business expansion, TSMC looks like a great AI investment for the long term.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Story Continues
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
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*Stock Advisor returns as of December 1, 2025
Robert Izquierdo has positions in Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
What Is 1 of the Best Artificial Intelligence Stocks to Buy Now? was originally published by The Motley Fool
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| 06.12.25 17:47:00 |
Closed beverage facility revived by rival after abrupt shutdown |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | As the cost of daily necessities continues to rise and federal policy changes tighten eligibility for key assistance programs, many households are feeling increased pressure on their budgets and finding it harder to meet their basic needs.
According to Capital One Shopping, U.S. online grocery sales increased 104% during the pandemic and are projected to grow 12.3% annually through 2029.
In response, many food and beverage companies have begun consolidating their operations, resulting in the closure of fulfillment centers and manufacturing plants across the country. Grocery stores have also followed suit by shutting down locations, leaving many communities with even fewer options for affordable food and household goods.
Despite the current uncertain climate, a major company is defying the concerning trend by saving a shuttered facility and restoring hundreds of jobs.
AriZona Beverages rescues a shuttered facility and saves hundreds of jobs
Harry Davis & Company, an asset solutions firm, confirmed that AriZona Beverages' subsidiary, U.S. Beverage Packers West LLC, has acquired a beverage packing facility and its equipment in Anaheim, California, from Manna Beverages for an undisclosed amount.
AriZona Beverages, founded in 1992 and best known for its popular canned iced teas, has since evolved into a major food and beverage manufacturer with a diverse portfolio that spans energy drinks, cold brew coffee, cocktails, juices, and snacks.
The acquisition follows Manna Beverages' closure of its facilities in Anaheim, Chino, and Sacramento in October 2025, resulting in the elimination of more than 600 jobs, according to CBS. AriZona's purchase will enable the Anaheim plant to reestablish production and restore hundreds of jobs for local workers.
"As with the Sacramento facility, our team quickly recognized that the Anaheim operation held exceptional strategic value for the beverage industry," said HDC CEO Lenny Davis in a press release. "Manna's exit opened a meaningful market opportunity, and the facility's fully integrated West Coast manufacturing and distribution platform drew immediate interest.
Manna Beverages is a supply chain company with a network of facilities that manufacture ready-to-drink products.AriZona Beverages' subsidiary, U.S. Beverage Packers West LLC, acquires a beverage packaging facility and its equipment in Anaheim, California, from Manna Beverages.Shutterstock
Food and beverage rivals face industry-wide struggles
While AriZona Beverages' acquisition will revive operations and bring jobs back to Anaheim, many competitors continue to cut costs amid weakening demand and rising expenses due to inflation.
According to the U.S. Bureau of Labor Statistics' Employment Situation update, 911,000 fewer jobs than expected were added in the 12 months through March 2025, signaling a clear economic slowdown.
In August, only 22,000 new non-farm payrolls were recorded, and the unemployment rate rose to 4.3%, the highest level in nearly four years.
"While the pace of layoffs has picked up somewhat, the hiring rate remains quite low. It is increasingly difficult for those laid off, and for new entrants into the job market, to find a position," said The Mortgage Bankers Association Chief Economist Mike Fratantoni in a statement.
More Closures:
Kroger announces unexpected closures ahead of holiday season 100-year-old grocery chain’s stores acquired by rival after closures 109-year-old grocery chain makes major cuts ahead of holiday season
Research from Harvard Business School notes that relying on layoffs to mitigate temporary economic shifts is often unsuccessful and has hidden costs that make companies less profitable, innovative, and productive over time.
"While layoffs may provide immediate financial relief, they often incur significant long-term costs that can undermine the very stability and performance they aim to protect," said Headhunter & Talent Strategist Bryan Blair.
Other facility closures across the industry
Kroger (KR): Closing 10 fulfillment centers by the end of 2026. General Mills (GIS): Shuttering three manufacturing plants in Missouri by the end of fiscal 2028. PepsiCo (PEP):
Closed two Frito-Lay manufacturing facilities in Orlando, affecting 500 employees. Partly closed its Detroit manufacturing plant, eliminating 83 jobs. Shuttered two Frito-Lay facilities in New York and California, impacting nearly 767 workers. Del Monte Foods: Closed multiple processing plants before filing for Chapter 11 bankruptcy in July 2025. Post Holdings: Planning to close cereal manufacturing facilities in Nevada and Ontario by the end of 2025, affecting around 300 employees.
Related: 98-year-old beer store chain has closed nearly 100 locations so far
This story was originally published by TheStreet on Dec 6, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
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| 06.12.25 16:15:00 |
Here's the Smartest Way to Invest in the S&P 500 in December |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | One of my main goals in investing is to simplify it as much as possible. While in-depth analysis may be beneficial in some instances, effective investing can, for the most part, be as simple as consistently investing in the S&P 500.
Tracking the largest 500 U.S. companies in the stock market, the S&P 500 acts as a de facto representation of the U.S. economy. The index consists of the top companies leading the top industries in the U.S., so as they go, so does the U.S. economy.
If you're looking to invest in the S&P 500 in December, look no further than the Vanguard S&P 500 ETF(NYSEMKT: VOO).
VOO data by YCharts.
Should you go with the standard or equal-weight S&P 500 ETF?
Most S&P 500 exchange-traded funds (ETFs) are market-cap weighted, so larger companies (by market capitalization) make up more of the fund than smaller companies. As an example, here are the top 10 holdings of the Vanguard S&P 500 ETF: CompanyPercentage of the ETFApple7.11%Nvidia6.76%Microsoft6.26%Amazon3.61%Meta Platforms2.57%Alphabet (Class A)2.08%Alphabet (Class C)1.72%Berkshire Hathaway (Class B)1.71%Broadcom1.64%Tesla1.44%
Source: Vanguard. Percentages as of Oct. 31, 2024.
Market caps fluctuate with stock-price changes, and the weight of each holding is also adjusted quarterly, but the above table gives at least a snapshot of how companies' sizes compared to each other as of Oct. 31. For perspective, Apple's market value as of Dec. 4 was around $3.7 trillion, while News Corp -- the ETF's smallest holding -- had a market cap of around $17.5 billion.
On the other hand, there are equal-weight S&P 500 ETFs, in which each S&P 500 company accounts for roughly the same portion of the fund. Recently, these have grown in popularity.
In December and heading into the new year, I believe investing in a standard, market-cap-weighted S&P 500 ETF is a good choice because its largest positions are some of the world's top companies and have a lot of momentum behind them.
Considering the growth opportunities in areas like artificial intelligence (AI), cloud computing, cybersecurity, semiconductors, and electric vehicles, this ETF's top holdings (almost 35% of the ETF) have an opportunity to continue the impressive run we've seen recently from mega-cap stocks.
Why the Vanguard S&P 500 and not another ETF?
Aside from the Vanguard S&P 500, there are a couple of popular S&P 500 ETFs like the SPDR S&P 500 ETF Trust and the iShares Core S&P 500 ETF. Each of these mirrors the S&P 500, so there's no tangible difference between them besides the costs. The Vanguard S&P 500 ETF and iShares CORE S&P 500 ETF have expense ratios of 0.03%, but the SPDR S&P 500 ETF Trust's expense ratio is more than three times higher at 0.0945%.
How much of a difference can that relatively small amount in fees make? Let's imagine you invest $500 monthly into the three ETFs and average 10% annual returns over 25 years. With the Vanguard and iShares ETF, you would've paid around $2,600 in fees over that time. With the SPDR ETF, you would've paid around $8,300.
If you're wondering why I chose the Vanguard ETF over the iShares ETF, the answer is that the Vanguard ETF is more actively traded. This makes it easier to buy and sell shares without price swings.
Slow and steady wins the race
Regardless of which S&P 500 ETF you choose, a great approach would be to dollar-cost average. When you do this, you decide how much you can invest in the S&P 500 and then establish an investing schedule that you stick to no matter what the prices are at the time. For example, if you decide you can invest $300 monthly into an S&P 500 ETF, you could invest $75 every Monday, $150 every other Friday, $300 at the start of each month, or whatever makes the most sense for your personal situation.
The frequency of your investments isn't as important as sticking to your schedule. Consistent investments in the S&P 500 have proven to be one of the surest ways to build wealth over the long haul.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $369,349!*Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,990!*Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $504,097!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
See 3 “Double Down” stocks »
*Stock Advisor returns as of December 2, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple, Microsoft, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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. |
| 06.12.25 14:35:00 |
1 Magnificent S&P 500 Dividend Stock Down 14% to Buy and Hold Forever |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | This will go down in history as an incredible year for stocks. The S&P 500 hit a new all-time high 50 times. For perspective, there are about 250 trading days in the year. So, on average, the market made history every five days this year. This is excellent for existing portfolios, but makes it challenging to find bargains.
Higher prices mean that dividend investors get lower yields on new positions. The key is to be selective and take advantage of dips in prices of high-quality dividend companies. AbbVie(NYSE: ABBV) recently dipped nearly 20% and is still down 14%, offering an enticing 3.7% forward yield. Here's what makes AbbVie a long-term buy-and-hold dividend gold mine.
Why did AbbVie's stock dip?
Like growth stocks, pharmaceutical stocks can have wild swings as the market digests -- and often overreacts to -- news. This is the case here. AbbVie acquired the clinical-stage pharma company Cerevel Therapeutics in late 2023 for $8.7 billion. Cerevel brought seven pipeline drugs to the fold in various stages of the approval process. Its most promising drug, emraclidine, failed to meet its primary endpoint in a phase 2 trial to treat schizophrenia. This is disappointing; however, the drug is still being tested for use in Alzheimer's, and there are other drugs in the pipeline.
Did the market overreact? It sure looks like it. As shown below, the stock lost as much as $69 billion in market cap after that announcement before recovering slightly.
ABBV Market Cap data by YCharts.
Considering the Cerevel acquisition price and that its pipeline is more of a cherry on top for AbbVie rather than something expected to be its future bread and butter, this huge loss is another golden opportunity for investors.
Here's why AbbVie is an excellent dividend stock
Despite the Cerevel setback, AbbVie's current lineup and pipeline are robust. The main cogs are Skyrizi and Rinvoq, which are expected to replace the revenue lost when Humira biosimilars hit the market. Humira sales peaked at $21 billion in 2022, falling to $14 billion in 2023. AbbVie expects the new all-stars to exceed $27 billion in annual sales within three years, as you can see below.
AbbVie
AbbVie's other recent acquisition was ImmunoGen, whose signature drug, Elahere, is on the market. It is currently only approved to treat a specific type of ovarian cancer. However, four other indications are in the phase 2 or phase 3 approval stage. It was also just approved in Europe in November. AbbVie also has strong sales in its oncology, aesthetics, and neuroscience segments. This is why the company hit $55 billion in sales over the trailing 12 months (just slightly lower than the $58 billion during peak-Humira 2022), and should eclipse this next year.
AbbVie has raised the dividend every year since its 2013 spinoff from Abbott Laboratories. The company currently pays $1.64 per share each quarter, or $6.56 per share annually. The aforementioned 3.7% forward yield is near the best value for AbbVie in 2024, save the November lows seen in the chart above. Income investors should expect the dividend to continue to rising like clockwork, given the company's history, rising revenues, current products, and strong pipeline, making AbbVie an excellent stock to own.
Should you invest $1,000 in AbbVie right now?
Before you buy stock in AbbVie, 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 AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $853,765!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns as of December 9, 2024
Bradley Guichard has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie. 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. |
| 06.12.25 14:35:00 |
1 Magnificent S&P 500 Dividend Stock Down 14% to Buy and Hold Forever |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | This will go down in history as an incredible year for stocks. The S&P 500 hit a new all-time high 50 times. For perspective, there are about 250 trading days in the year. So, on average, the market made history every five days this year. This is excellent for existing portfolios, but makes it challenging to find bargains.
Higher prices mean that dividend investors get lower yields on new positions. The key is to be selective and take advantage of dips in prices of high-quality dividend companies. AbbVie(NYSE: ABBV) recently dipped nearly 20% and is still down 14%, offering an enticing 3.7% forward yield. Here's what makes AbbVie a long-term buy-and-hold dividend gold mine.
Why did AbbVie's stock dip?
Like growth stocks, pharmaceutical stocks can have wild swings as the market digests -- and often overreacts to -- news. This is the case here. AbbVie acquired the clinical-stage pharma company Cerevel Therapeutics in late 2023 for $8.7 billion. Cerevel brought seven pipeline drugs to the fold in various stages of the approval process. Its most promising drug, emraclidine, failed to meet its primary endpoint in a phase 2 trial to treat schizophrenia. This is disappointing; however, the drug is still being tested for use in Alzheimer's, and there are other drugs in the pipeline.
Did the market overreact? It sure looks like it. As shown below, the stock lost as much as $69 billion in market cap after that announcement before recovering slightly.
ABBV Market Cap data by YCharts.
Considering the Cerevel acquisition price and that its pipeline is more of a cherry on top for AbbVie rather than something expected to be its future bread and butter, this huge loss is another golden opportunity for investors.
Here's why AbbVie is an excellent dividend stock
Despite the Cerevel setback, AbbVie's current lineup and pipeline are robust. The main cogs are Skyrizi and Rinvoq, which are expected to replace the revenue lost when Humira biosimilars hit the market. Humira sales peaked at $21 billion in 2022, falling to $14 billion in 2023. AbbVie expects the new all-stars to exceed $27 billion in annual sales within three years, as you can see below.
AbbVie
AbbVie's other recent acquisition was ImmunoGen, whose signature drug, Elahere, is on the market. It is currently only approved to treat a specific type of ovarian cancer. However, four other indications are in the phase 2 or phase 3 approval stage. It was also just approved in Europe in November. AbbVie also has strong sales in its oncology, aesthetics, and neuroscience segments. This is why the company hit $55 billion in sales over the trailing 12 months (just slightly lower than the $58 billion during peak-Humira 2022), and should eclipse this next year.
AbbVie has raised the dividend every year since its 2013 spinoff from Abbott Laboratories. The company currently pays $1.64 per share each quarter, or $6.56 per share annually. The aforementioned 3.7% forward yield is near the best value for AbbVie in 2024, save the November lows seen in the chart above. Income investors should expect the dividend to continue to rising like clockwork, given the company's history, rising revenues, current products, and strong pipeline, making AbbVie an excellent stock to own.
Should you invest $1,000 in AbbVie right now?
Before you buy stock in AbbVie, 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 AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $853,765!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns as of December 9, 2024
Bradley Guichard has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie. 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. |
| 06.12.25 14:07:21 |
Is It Too Late To Consider Booking After Its Massive Multi Year Share Price Surge? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Wondering if Booking Holdings is still a smart buy after its massive run up, or if most of the value has already been priced in? Let us walk through what the numbers are really saying about the stock today. After a strong multi year climb, Booking is now trading around $5,197, with returns of 5.7% over the last week, 5.8% over the last month, and 5.5% year to date, even though the 1 year return is a slightly negative 1.2% against a 161.5% gain over 3 years and 152.8% over 5 years. Recent headlines have focused on shifting travel demand, competition from alternative lodging platforms, and ongoing debates about how sustainable post pandemic travel trends really are. Together, these stories help explain why investor sentiment has been a bit choppy, even as the long term performance track record remains strong. On our valuation checks, Booking scores a 3 out of 6. This suggests the shares look undervalued on some metrics but fully priced on others. We will break down what each method says about fair value, before ending with a more intuitive way to think about valuation that goes beyond the standard models.
Booking Holdings delivered -1.2% returns over the last year. See how this stacks up to the rest of the Hospitality industry.
Approach 1: Booking Holdings Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model estimates what a business is worth today by projecting the cash it can generate in the future and then discounting those cash flows back to the present.
For Booking Holdings, the latest twelve month Free Cash Flow stands at about $8.2 billion. Analysts forecast cash flows rising to roughly $13.4 billion by 2029, with the next decade of cash flows extending toward the high teens in billions of dollars as projections are extrapolated beyond the formal analyst horizon. These projections are based on a 2 Stage Free Cash Flow to Equity model that first uses detailed analyst estimates, then tapers growth as the company matures.
When those future cash flows are discounted back, the model arrives at an intrinsic value of about $7,593 per share. Relative to a current share price around $5,197, the DCF output implies the stock is trading at roughly a 31.6% discount to its estimated fair value, assuming the projected cash flow path is realized.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Booking Holdings is undervalued by 31.6%. Track this in your watchlist or portfolio, or discover 906 more undervalued stocks based on cash flows.BKNG Discounted Cash Flow as at Dec 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Booking Holdings.
Story Continues
Approach 2: Booking Holdings Price vs Earnings
For a mature, highly profitable business like Booking Holdings, the price to earnings ratio is a useful way to gauge how much investors are willing to pay for each dollar of current profits. Higher growth and lower perceived risk tend to justify a higher normal PE, while slower growth or greater uncertainty usually call for a lower multiple.
Booking currently trades on a PE of about 33.2x, above the broader Hospitality industry average of roughly 21.2x and also higher than its direct peer group average of around 28.5x. To refine that comparison, Simply Wall St uses a proprietary Fair Ratio, which for Booking is estimated at 39.1x. This Fair Ratio represents the PE investors might reasonably expect given the company’s earnings growth profile, margins, size, industry, and risk factors.
Because the Fair Ratio incorporates these fundamentals, it offers a more tailored yardstick than blunt peer or industry averages. With Booking’s actual PE of 33.2x sitting below the Fair Ratio of 39.1x, this multiple-based view suggests the shares are trading at a discount to what its fundamentals would typically warrant.
Result: UNDERVALUEDNasdaqGS:BKNG PE Ratio as at Dec 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth.
Upgrade Your Decision Making: Choose your Booking Holdings Narrative
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Booking Holdings’ future with a financial forecast and an explicit fair value estimate. A Narrative is your story behind the numbers, where you set assumptions for revenue growth, earnings, and margins, and the Simply Wall St platform, used by millions of investors, turns that story into projected cash flows, a Fair Value, and a clear comparison to today’s share price on the Community page. Because Narratives link the business story to the forecast and then to valuation, they make it easier to decide whether Booking looks like a buy, hold, or sell at current levels, and they update dynamically as new earnings, news, or guidance arrives so your view never goes stale. For example, one Booking Narrative might lean bullish and line up with a fair value near $7,218 if you expect AI and new travel verticals to drive strong growth, while another, more cautious Narrative might sit close to $5,200 if you are more worried about macro risks and competitive pressure.
Do you think there's more to the story for Booking Holdings? Head over to our Community to see what others are saying!NasdaqGS:BKNG Community Fair Values as at Dec 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BKNG.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
View Comments |
| 06.12.25 14:07:21 |
Is It Too Late To Consider Booking After Its Massive Multi Year Share Price Surge? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Wondering if Booking Holdings is still a smart buy after its massive run up, or if most of the value has already been priced in? Let us walk through what the numbers are really saying about the stock today. After a strong multi year climb, Booking is now trading around $5,197, with returns of 5.7% over the last week, 5.8% over the last month, and 5.5% year to date, even though the 1 year return is a slightly negative 1.2% against a 161.5% gain over 3 years and 152.8% over 5 years. Recent headlines have focused on shifting travel demand, competition from alternative lodging platforms, and ongoing debates about how sustainable post pandemic travel trends really are. Together, these stories help explain why investor sentiment has been a bit choppy, even as the long term performance track record remains strong. On our valuation checks, Booking scores a 3 out of 6. This suggests the shares look undervalued on some metrics but fully priced on others. We will break down what each method says about fair value, before ending with a more intuitive way to think about valuation that goes beyond the standard models.
Booking Holdings delivered -1.2% returns over the last year. See how this stacks up to the rest of the Hospitality industry.
Approach 1: Booking Holdings Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model estimates what a business is worth today by projecting the cash it can generate in the future and then discounting those cash flows back to the present.
For Booking Holdings, the latest twelve month Free Cash Flow stands at about $8.2 billion. Analysts forecast cash flows rising to roughly $13.4 billion by 2029, with the next decade of cash flows extending toward the high teens in billions of dollars as projections are extrapolated beyond the formal analyst horizon. These projections are based on a 2 Stage Free Cash Flow to Equity model that first uses detailed analyst estimates, then tapers growth as the company matures.
When those future cash flows are discounted back, the model arrives at an intrinsic value of about $7,593 per share. Relative to a current share price around $5,197, the DCF output implies the stock is trading at roughly a 31.6% discount to its estimated fair value, assuming the projected cash flow path is realized.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Booking Holdings is undervalued by 31.6%. Track this in your watchlist or portfolio, or discover 906 more undervalued stocks based on cash flows.BKNG Discounted Cash Flow as at Dec 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Booking Holdings.
Story Continues
Approach 2: Booking Holdings Price vs Earnings
For a mature, highly profitable business like Booking Holdings, the price to earnings ratio is a useful way to gauge how much investors are willing to pay for each dollar of current profits. Higher growth and lower perceived risk tend to justify a higher normal PE, while slower growth or greater uncertainty usually call for a lower multiple.
Booking currently trades on a PE of about 33.2x, above the broader Hospitality industry average of roughly 21.2x and also higher than its direct peer group average of around 28.5x. To refine that comparison, Simply Wall St uses a proprietary Fair Ratio, which for Booking is estimated at 39.1x. This Fair Ratio represents the PE investors might reasonably expect given the company’s earnings growth profile, margins, size, industry, and risk factors.
Because the Fair Ratio incorporates these fundamentals, it offers a more tailored yardstick than blunt peer or industry averages. With Booking’s actual PE of 33.2x sitting below the Fair Ratio of 39.1x, this multiple-based view suggests the shares are trading at a discount to what its fundamentals would typically warrant.
Result: UNDERVALUEDNasdaqGS:BKNG PE Ratio as at Dec 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth.
Upgrade Your Decision Making: Choose your Booking Holdings Narrative
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Booking Holdings’ future with a financial forecast and an explicit fair value estimate. A Narrative is your story behind the numbers, where you set assumptions for revenue growth, earnings, and margins, and the Simply Wall St platform, used by millions of investors, turns that story into projected cash flows, a Fair Value, and a clear comparison to today’s share price on the Community page. Because Narratives link the business story to the forecast and then to valuation, they make it easier to decide whether Booking looks like a buy, hold, or sell at current levels, and they update dynamically as new earnings, news, or guidance arrives so your view never goes stale. For example, one Booking Narrative might lean bullish and line up with a fair value near $7,218 if you expect AI and new travel verticals to drive strong growth, while another, more cautious Narrative might sit close to $5,200 if you are more worried about macro risks and competitive pressure.
Do you think there's more to the story for Booking Holdings? Head over to our Community to see what others are saying!NasdaqGS:BKNG Community Fair Values as at Dec 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BKNG.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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| 06.12.25 14:00:02 |
Salesforce Is One of the Dogs of the Dow. Should You Buy the Dip in CRM Stock Now? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | The prestigious Dow Jones Industrial Average ($DOWI), home to 30 blue-chip leaders across tech, finance, healthcare, and consumer goods, remains a key pulse check on corporate America's performance. And while it hasn’t matched the stronger gains of the S&P 500 Index ($SPX) or the tech-heavy Nasdaq Composite ($NASX) this year, the Dow is far from struggling. In fact, the index is still up a modest 12.78% in 2025, proving it’s doing just fine despite the comparisons.
Still, the strength of the index doesn’t mean every Dow component is enjoying the ride. Twenty-two of its 30 members are in the green this year, yet software giant Salesforce (CRM) has tumbled into double-digit losses as questions swirl around the slow adoption of its artificial intelligence (AI) offerings and intensifying competition. That makes it the second-worst performer in the entire Dow, trailing only UnitedHealth (UNH).
More News from Barchart
SoFi Stock Breaks Below Key Moving Averages on $1.5B Offering. Should You Buy the Dip? 3 High-Yield Stocks to Invest in Oracle’s AI Growth with Less Volatility Most “Safe” Dividend Stocks Don’t Grow Like This… But These 3 Did Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!
With Salesforce shares stuck deep in the red this year, does this pullback present an opportunity for investors, or a warning sign?
About Salesforce Stock
San Francisco-based Salesforce is the world’s leading customer relationship management (CRM) platform, built to help businesses strengthen and grow their customer relationships. Since pioneering cloud-based CRM back in 1999, the company has continued to reinvent the operations of organizations, now ushering them into the era of AI.
Its most significant AI innovation, Agentforce, introduces autonomous AI agents that can step in to handle tasks for employees and customers, making everyday work faster and smoother. Salesforce also brings together data from across a company’s systems so every team has a full 360-degree view of each customer, and its tools for sales, service, marketing, commerce, and IT help teams stay aligned and informed.
Altogether, Salesforce offers a more intuitive, intelligent way for organizations to manage relationships and adapt to a rapidly changing digital world. The company’s subsidiaries include Slack Technologies, Tableau, and MuleSoft. Despite being a major force in enterprise software, Salesforce has run into some unexpected bumps in 2025.
Revenue growth has cooled more than investors would like, and its big swing into AI with Agentforce hasn’t sparked the instant excitement many anticipated. While Salesforce is pushing hard to lead in the AI era, the market remains unconvinced, especially amid growing chatter about an AI bubble and rising fears that powerful AI tools could one day undercut the very software platforms Salesforce builds. All of this caution has kept investors on the sidelines, and it shows in the numbers.
Story Continues
Salesforce, with a market capitalization of roughly $235.6 billion, has seen its stock tumble nearly 22% in 2025. That drop doesn’t just put CRM behind the Dow Jones’ double-digit gains. It also leaves the company trailing its own tech peers by a wide margin. The technology S&P 500 Technology Select Sector SPDR (XLK), a popular benchmark for the sector, is up an impressive 21.92% this year, highlighting just how sharply Salesforce has fallen out of step with the broader tech rally.www.barchart.com
Inside Salesforce’s Latest Earnings Report
But despite a rocky year for the stock, Salesforce managed to grab investors’ attention on Dec. 3 after delivering an upbeat fiscal 2026 third-quarter earnings report, and the market responded quickly. The raised full-year outlook further helped spark a 3.7% jump in the shares on Dec. 4, giving CRM a much-needed boost after months of sluggish performance. The numbers offered a mix of positives and near-misses.
Revenue came in at $10.26 billion, up 9% year-over-year (YOY), though it landed just shy of Wall Street’s expectations. But earnings were a different story. Adjusted EPS of $3.25 surged an impressive 35% YOY, easily beating the Street’s forecast of $2.86. Salesforce showed healthy momentum in its backlog, with current remaining performance obligation (cRPO) rising to $29.4 billion, up 11% annually. Total RPO also climbed to $59.5 billion, up 12%, reflecting solid demand across the business.
Meanwhile, its core engine, subscription and support revenue, grew 10% YOY to $9.7 billion, reinforcing the strength and consistency of its recurring revenue model. CEO Marc Benioff highlighted the momentum behind Agentforce, Salesforce’s AI platform for building custom autonomous agents, calling it a major growth driver alongside the company’s expanding data products.
Annual recurring revenue (ARR) from Agentforce and Data 360 soared a stunning 114% YOY to $1.4 billion. Agentforce alone crossed half a billion dollars in ARR in Q3, rising a whopping 330% YOY. Since launch, Salesforce has closed more than 18,500 Agentforce deals, including over 9,500 paid deals, a 50% quarter-over-quarter (QOQ) increase.
Additionally, the software giant continued rewarding shareholders. The company returned $4.2 billion through $3.8 billion in share buybacks and $395 million in dividends, reinforcing its commitment to capital returns. Free cash flow remained strong as well, growing 22% to reach $2.18 billion for the quarter.
Looking ahead, Salesforce struck an optimistic tone with updated guidance for fiscal 2026. The company now expects full-year adjusted EPS of $11.75 to $11.77 and revenue between $41.45 billion and $41.55 billion. Both ranges come in above its prior forecast of EPS of $11.33 to $11.37 on revenue of $41.1 billion to $41.3 billion.
How Are Analysts Viewing Salesforce Stock?
Analysts broadly welcomed Salesforce’s latest results and growing AI momentum, though opinions varied on how quickly the upside will show up in the stock. Wedbush reiterated its “Outperform” rating and $375 target, pointing to the strong earnings beat and upbeat guidance as signs that Agentforce is beginning to drive real momentum.
Evercore (EVR) also kept its “Outperform” rating but lowered its price target to $340, highlighting the company’s solid cRPO growth and strong bookings, and even elevating CRM into its “Top Five Ideas for 2026.” Morgan Stanley (MS) leaned even more bullish, reaffirming its “Overweight” rating and a $405 target, citing accelerating cRPO and the rapid Agentforce ramp as clear signs of growing momentum.
Wells Fargo (WFC), on the other hand, stayed cautious with an “Equal Weight” rating and a $265 target, saying it wants to see more proof that Agentforce can drive the meaningful acceleration expected over the next year or so. Even though Salesforce hasn’t been winning over investors this year, Wall Street’s confidence in the company is still surprisingly strong.
Among the 49 analysts covering CRM, the consensus rating still lands at a “Strong Buy.” Of these, 35 analysts are firmly in the “Strong Buy” camp, two recommend a “Moderate Buy,” 11 suggest “Hold,” and just one analyst has issued a “Strong Sell.” The optimism shows up in the price targets, too.
Analysts, on average, see the stock heading to $328.52, suggesting about 26% upside from current levels. And for the most bullish voices on the Street, the potential is even bigger. The highest target of $430 implies Salesforce could surge nearly 65% if the company regains momentum.www.barchart.comwww.barchart.com
On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
View Comments |
| 06.12.25 14:00:02 |
Salesforce Is One of the Dogs of the Dow. Should You Buy the Dip in CRM Stock Now? |
|
|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | The prestigious Dow Jones Industrial Average ($DOWI), home to 30 blue-chip leaders across tech, finance, healthcare, and consumer goods, remains a key pulse check on corporate America's performance. And while it hasn’t matched the stronger gains of the S&P 500 Index ($SPX) or the tech-heavy Nasdaq Composite ($NASX) this year, the Dow is far from struggling. In fact, the index is still up a modest 12.78% in 2025, proving it’s doing just fine despite the comparisons.
Still, the strength of the index doesn’t mean every Dow component is enjoying the ride. Twenty-two of its 30 members are in the green this year, yet software giant Salesforce (CRM) has tumbled into double-digit losses as questions swirl around the slow adoption of its artificial intelligence (AI) offerings and intensifying competition. That makes it the second-worst performer in the entire Dow, trailing only UnitedHealth (UNH).
More News from Barchart
SoFi Stock Breaks Below Key Moving Averages on $1.5B Offering. Should You Buy the Dip? 3 High-Yield Stocks to Invest in Oracle’s AI Growth with Less Volatility Most “Safe” Dividend Stocks Don’t Grow Like This… But These 3 Did Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!
With Salesforce shares stuck deep in the red this year, does this pullback present an opportunity for investors, or a warning sign?
About Salesforce Stock
San Francisco-based Salesforce is the world’s leading customer relationship management (CRM) platform, built to help businesses strengthen and grow their customer relationships. Since pioneering cloud-based CRM back in 1999, the company has continued to reinvent the operations of organizations, now ushering them into the era of AI.
Its most significant AI innovation, Agentforce, introduces autonomous AI agents that can step in to handle tasks for employees and customers, making everyday work faster and smoother. Salesforce also brings together data from across a company’s systems so every team has a full 360-degree view of each customer, and its tools for sales, service, marketing, commerce, and IT help teams stay aligned and informed.
Altogether, Salesforce offers a more intuitive, intelligent way for organizations to manage relationships and adapt to a rapidly changing digital world. The company’s subsidiaries include Slack Technologies, Tableau, and MuleSoft. Despite being a major force in enterprise software, Salesforce has run into some unexpected bumps in 2025.
Revenue growth has cooled more than investors would like, and its big swing into AI with Agentforce hasn’t sparked the instant excitement many anticipated. While Salesforce is pushing hard to lead in the AI era, the market remains unconvinced, especially amid growing chatter about an AI bubble and rising fears that powerful AI tools could one day undercut the very software platforms Salesforce builds. All of this caution has kept investors on the sidelines, and it shows in the numbers.
Story Continues
Salesforce, with a market capitalization of roughly $235.6 billion, has seen its stock tumble nearly 22% in 2025. That drop doesn’t just put CRM behind the Dow Jones’ double-digit gains. It also leaves the company trailing its own tech peers by a wide margin. The technology S&P 500 Technology Select Sector SPDR (XLK), a popular benchmark for the sector, is up an impressive 21.92% this year, highlighting just how sharply Salesforce has fallen out of step with the broader tech rally.www.barchart.com
Inside Salesforce’s Latest Earnings Report
But despite a rocky year for the stock, Salesforce managed to grab investors’ attention on Dec. 3 after delivering an upbeat fiscal 2026 third-quarter earnings report, and the market responded quickly. The raised full-year outlook further helped spark a 3.7% jump in the shares on Dec. 4, giving CRM a much-needed boost after months of sluggish performance. The numbers offered a mix of positives and near-misses.
Revenue came in at $10.26 billion, up 9% year-over-year (YOY), though it landed just shy of Wall Street’s expectations. But earnings were a different story. Adjusted EPS of $3.25 surged an impressive 35% YOY, easily beating the Street’s forecast of $2.86. Salesforce showed healthy momentum in its backlog, with current remaining performance obligation (cRPO) rising to $29.4 billion, up 11% annually. Total RPO also climbed to $59.5 billion, up 12%, reflecting solid demand across the business.
Meanwhile, its core engine, subscription and support revenue, grew 10% YOY to $9.7 billion, reinforcing the strength and consistency of its recurring revenue model. CEO Marc Benioff highlighted the momentum behind Agentforce, Salesforce’s AI platform for building custom autonomous agents, calling it a major growth driver alongside the company’s expanding data products.
Annual recurring revenue (ARR) from Agentforce and Data 360 soared a stunning 114% YOY to $1.4 billion. Agentforce alone crossed half a billion dollars in ARR in Q3, rising a whopping 330% YOY. Since launch, Salesforce has closed more than 18,500 Agentforce deals, including over 9,500 paid deals, a 50% quarter-over-quarter (QOQ) increase.
Additionally, the software giant continued rewarding shareholders. The company returned $4.2 billion through $3.8 billion in share buybacks and $395 million in dividends, reinforcing its commitment to capital returns. Free cash flow remained strong as well, growing 22% to reach $2.18 billion for the quarter.
Looking ahead, Salesforce struck an optimistic tone with updated guidance for fiscal 2026. The company now expects full-year adjusted EPS of $11.75 to $11.77 and revenue between $41.45 billion and $41.55 billion. Both ranges come in above its prior forecast of EPS of $11.33 to $11.37 on revenue of $41.1 billion to $41.3 billion.
How Are Analysts Viewing Salesforce Stock?
Analysts broadly welcomed Salesforce’s latest results and growing AI momentum, though opinions varied on how quickly the upside will show up in the stock. Wedbush reiterated its “Outperform” rating and $375 target, pointing to the strong earnings beat and upbeat guidance as signs that Agentforce is beginning to drive real momentum.
Evercore (EVR) also kept its “Outperform” rating but lowered its price target to $340, highlighting the company’s solid cRPO growth and strong bookings, and even elevating CRM into its “Top Five Ideas for 2026.” Morgan Stanley (MS) leaned even more bullish, reaffirming its “Overweight” rating and a $405 target, citing accelerating cRPO and the rapid Agentforce ramp as clear signs of growing momentum.
Wells Fargo (WFC), on the other hand, stayed cautious with an “Equal Weight” rating and a $265 target, saying it wants to see more proof that Agentforce can drive the meaningful acceleration expected over the next year or so. Even though Salesforce hasn’t been winning over investors this year, Wall Street’s confidence in the company is still surprisingly strong.
Among the 49 analysts covering CRM, the consensus rating still lands at a “Strong Buy.” Of these, 35 analysts are firmly in the “Strong Buy” camp, two recommend a “Moderate Buy,” 11 suggest “Hold,” and just one analyst has issued a “Strong Sell.” The optimism shows up in the price targets, too.
Analysts, on average, see the stock heading to $328.52, suggesting about 26% upside from current levels. And for the most bullish voices on the Street, the potential is even bigger. The highest target of $430 implies Salesforce could surge nearly 65% if the company regains momentum.www.barchart.comwww.barchart.com
On the date of publication, Anushka Mukherji 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. This article was originally published on Barchart.com
View Comments |
| 06.12.25 13:55:00 |
1 Magnificent S&P 500 Dividend Stock Down 14% to Buy and Hold Forever |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Apple Inc** | Key Points
Altria’s core market is shrinking, but its business is evolving. The company is expanding its smoke-free portfolio and aggressively trimming its expenses. Altria's low valuation and high yield make it a good defensive play in a messy market. 10 stocks we like better than Altria Group ›
The S&P 500 has risen about 16% this year and is hovering near its all-time high. It looks historically expensive at 31 times earnings, and plenty of near-term headwinds -- including sticky inflation, elevated Treasury yields, geopolitical conflicts, and the Trump administration's unpredictable policy shifts -- could compress those valuations.
However, investors should remember that most of the S&P 500's rally was driven by high-growth tech giants like Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla. Those "Magnificent Seven" companies still account for more than a third of the index's entire market cap and often overshadow its smaller and less popular stocks.
But if we look beyond the Magnificent Seven stocks, we'll see plenty of undervalued stocks in the S&P 500 that are trading well below their all-time highs. Some of them also pay high dividends -- and they could attract more income investors as interest rates decline. One of those stocks is Altria(NYSE: MO), the largest tobacco company in America. It's currently trading 14% below its all-time high, but I believe it's still a great dividend stock to buy and hold forever.Image source: Getty Images.
A brief history of Altria
Altria, which was once known as Philip Morris, dominates the domestic cigarette market with its flagship Marlboro cigarettes. In 2008, Altria spun off its overseas business as Philip Morris International. At the time, Altria planned to right-size its shrinking domestic business as PMI expanded across higher-growth overseas markets.
Altria might initially seem like a wobbly investment as adult smoking rates in the U.S. sink to multi-decade lows. From 2019 to 2024, its annual shipments of smokeable products (cigarettes and cigars) dropped from 103.45 billion sticks to 70.34 billion sticks, its retail cigarette market share shrank from 49.7% to 45.9%, and Marlboro's share dipped from 43.1% to 41.7%. But during those five years, Altria's revenue (net of excise taxes) still grew at a CAGR of 0.7% as its adjusted EPS increased at a CAGR of 3.9%.
The company achieved that stable growth by raising prices, cutting costs, and buying back more shares to boost its earnings per share (EPS). It also divested some of its non-core assets (including its winemaking division) and expanded its portfolio of smoke-free products -- which includes e-cigarettes and nicotine pouches.
Story Continues
What are Altria's near-term catalysts?
Altria still generated 87% of its revenue (net of excise taxes) from its smokeable products in 2024, but plans to reduce that percentage over the next few years. A major catalyst should be its acquisition of the leading e-cigarette maker Njoy for $2.8 billion in 2023. It expects that acquisition to become accretive to its EPS growth in 2026.
Altria also plans to sell more On nicotine pouches (which are managed separately by its Helix Innovations subsidiary) and new heated tobacco products -- which electrically heat up tobacco sticks instead of burning them -- to curb the company's long-term dependence on traditional cigarettes.
Altria expects to generate $5 billion in smoke-free revenue by 2028. That would be equivalent to nearly a quarter of its $20.4 billion in revenue (net of excise taxes) in 2024. As it expands that nascent business, it will continue to streamline its business with its "Optimize and Accelerate" initiative to achieve at least $600 million in annual cost savings over the next five years. It also initiated a new $1 billion buyback plan (equivalent to about 1% of its market cap) last year.
Why is Altria an undervalued dividend play?
From 2024 to 2027, analysts expect Altria's adjusted EPS to grow at a CAGR of 4% as those tailwinds kick in. At $59, it looks dirt cheap at 11 times next year's adjusted earnings. As for its dividend, the company raised its payout every year after it spun off PMI. It also spent just 75% of its free cash flow (FCF) on those dividends over the past 12 months, which gives it plenty of room for future dividend hikes. It currently pays an hefty forward dividend yield of 7.2% -- which is much higher than the 10-Year Treasury's 4.1% yield.
Altria's low valuation and high dividend yield should limit its downside potential, and it should attract more defensive investors if the broader market cools. So even though this tobacco giant won't outperform the Magnificent Seven anytime soon, it's still a reliable S&P 500 dividend stock to buy and hold forever.
Should you buy stock in Altria Group right now?
Before you buy stock in Altria Group, 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 Altria Group 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 $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
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*Stock Advisor returns as of December 1, 2025
Leo Sun has positions in Altria Group, Amazon, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Philip Morris International and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
1 Magnificent S&P 500 Dividend Stock Down 14% to Buy and Hold Forever was originally published by The Motley Fool
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