These two dividend growth stocks are attractive buys.Dividend growth stocks have a proven track record as value creators. Several factors contribute to this trend. First, Wall Street views a rapidly growing dividend as a positive sign for the underlying business's health. Academic studies support this notion, revealing that companies with increasing dividends tend to have stronger earnings power.Additionally, investing in stocks with growing distributions and reinvesting those cash or stock payouts can lead ...

If history is any indication, Alphabet is poised to keep winning.In 2022, the market had a terrible year, which was likely because of the aggressive rate hikes instituted by the Federal Reserve. But investor optimism has improved since then.From the start of 2023 to May 23 this year, the S&P 500 has soared 38%. The ongoing artificial intelligence (AI) boom is propelling some businesses more than others, lifting this broad index to record highs.Investors likely are thinking of ways to put money to work. Here ...

Each Nvidia share soon will be worth a lot less, due to the stock split.Nvidia (NVDA 0.81%) dominates the artificial intelligence (AI) chip market, and this has helped earnings to climb in the triple digits in recent years. AI may be the hottest investment theme right now, and this could continue. After all, analysts say the AI market could be worth more than $1 trillion by the end of the decade. So it's no surprise that Nvidia shares have skyrocketed, advancing 600% over the past three years.This momentum ...

Core Viewpoint - Ginkgo Bioworks has experienced a significant decline in share price, dropping 50% in the last three months, which may present a buying opportunity for investors if future recovery is anticipated [1][2] Financial Performance - In Q1, Ginkgo reported a revenue of $28 million from its biofoundry segment, an 18% decrease year-over-year, indicating ongoing unprofitability despite adding 17 new cell engineering programs [3] - Management has initiated a cost-cutting program aimed at reducing expenses by $200 million annually, with a target completion before mid-next year [4] Cost Management and Profitability Outlook - The cost-cutting plan includes a 25% reduction in labor costs, likely resulting in layoffs, particularly in R&D, and a potential 60% reduction in foundry lab space [4] - If cost reductions are successful, adjusted EBITDA is expected to reach breakeven by the end of 2026, although a positive net profit margin under GAAP is not anticipated at that time [6] Revenue Projections - For 2024, Ginkgo anticipates revenue from cell engineering services to be up to $140 million, impacted by slower revenue growth from existing programs and cost-cutting measures [7] - The company has shifted its focus away from the number of new programs onboarded as a key metric, which may indicate a slowdown in growth [8] Cash Position and Financial Risks - As of the end of Q1, Ginkgo held $840 million in cash and equivalents, with trailing-12-month operating expenses of $898.3 million, suggesting potential cash flow challenges despite cost-cutting efforts [10] - The company has no long-term debt but does have $221.8 million in long-term capital lease obligations, indicating possible avenues for raising cash through borrowing or stock issuance [11] Future Potential - There is a scenario where Ginkgo could become a profitable provider of biotech services, but a clear trajectory toward this goal is necessary for the stock to be attractive to investors [13]

Core Insights - Atlassian has entered the AI era, enhancing its collaboration software with AI tools that are rapidly adopted by users [1][2] - The company reported a significant acceleration in revenue growth for Q3 fiscal 2024, achieving a total revenue of $1.19 billion, a 30% year-over-year increase [5][6] - Analysts are bullish on Atlassian stock, with no recommendations for selling, indicating strong market confidence [7][8] AI Integration - Atlassian's flagship products, Jira and Confluence, are being enhanced with AI tools, including an AI-powered search function and virtual agents for customer queries [2][3] - Atlassian Intelligence, launched in December, has already been adopted by 30,000 of its 300,000 customers, with 77% reporting time savings [4] Financial Performance - Q3 revenue growth was driven by cloud revenue of $703 million (up 31%) and data center revenue of $364 million (up 64%) [5][6] - Operating expenses increased only 5.4%, leading to a net income of $12.7 million, a significant improvement from a $209 million net loss in the previous year [6] Market Outlook - Atlassian is projected to generate over $4 billion in total revenue for fiscal 2024, with ambitions to double that to $10 billion in the next five years [7] - The company's stock is currently trading 63% below its all-time high, presenting a potential long-term buying opportunity [7][8]

The technology giant is pushing out dozens of new updates to customers.The tech arena is in the midst of a full-blown artificial intelligence (AI) boom. It seems like every company is doing something to take advantage of new AI advances, with leading computer chip provider Nvidia up hundreds of percentage points to a market cap of $2.5 trillion as of this writing. That is a lot of computing power.No company is better poised to take advantage of the AI boom than Alphabet (GOOG -0.35%), the parent company of ...

Initiatives like the CHIPS Act are already having a tremendous impact.For the first time in a long while, the United States is serious about increasing domestic semiconductor ("chip") manufacturing. For years, the U.S. has been hyper-reliant on Taiwan for chip production; however, the threat that China will seek to reunify with the island, potentially by force, makes this a massive economic risk.Because of this, the U.S. introduced the CHIPS and Science Act, which provides monetary incentives to companies t ...

Parkev Tatevosian, CFA has positions in Chipotle Mexican Grill. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

The past few years have been the exception to the norm rather than the norm. A shakeup could be brewing.Even investors who only keep casual tabs on the stock market probably know most of its recent gains have been driven by Nasdaq-listed stocks such as Microsoft and Nvidia. Indeed, all seven of the so-called "Magnificent Seven" stocks leading the charge throughout the past few years are Nasdaq names. This dynamic makes an exchange-traded fund (ETF) like the Invesco QQQ Trust (QQQ -0.70%) a compelling prospe ...

Vertex might not present a clear and present danger to Abbott and DexCom but could present a clear future threat.Successful investors think about the future by focusing on what the new opportunities might be. They also pay attention to threats that could emerge that might impact the stocks they own. Sometimes, those threats come out of the blue, but other times, they're identifiable well in advance.If you own shares of Abbott (ABT -1.20%) or DexCom (DXCM 0.20%), there's a looming threat to know about. It's ...