Betting on AI isn't the only way to beat the market.The big story in the stock market over the past few years has been artificial intelligence (AI). Generative AI, which can create text, images, videos, and audio, looks likely to be a transformative technology. Tech leaders like Microsoft, Alphabet, and Advanced Micro Devices are betting heavily on AI to drive growth.While the stocks of all three of those AI-centric companies have surged over the past year, they have been beaten handily by a stock that has ...

AT&T's financials have been improving, and a dividend hike may be inevitable.Before the pandemic disrupted its operations, AT&T (T 0.58%) was a reliable dividend stock. Not only that, but it was also a dividend-growth stock. For decades, the company increased dividend payments, and in 2019, its streak hit 36 consecutive years of quarterly dividend hikes. When the pandemic hit, the company kept its dividend intact but it did not make any increases to the payout. Then, after it spun off WarnerMedia in 2022 it ...

The king of e-commerce is still a powerhouse to be sure, but that doesn't necessarily make it your best growth investment option at this time.You're, of course, familiar with e-commerce giant Amazon (AMZN 0.58%). It's one of the world's biggest companies (as measured by market cap), while its stock is one of the market's best-performing equities since the company went public back in 1997, up nearly 250,000% from that point. You may even be a shareholder.As the adage goes, though, past performance is no guar ...

When I look at this trio of consumer-oriented stocks, I feel confident that I'll be owning them until it's time to pass them on to my daughter.I hate to say that I'll never be selling a stock, because you never know what life will bring. However, there are some companies that I own that I can comfortably say I hope to hand them off to my daughter someday (hopefully many years from now).Three of these forever-holds include Realty Income (O -0.11%), Procter & Gamble (PG -0.13%), and Hershey (HSY -0.54%). Here ...

Despite improvements in its business, the yield trap has been spring.In this video, Motley Fool contributor Jason Hall breaks down the positives with 3M (MMM 0.38%) as well as the reasons dividend investors should avoid the stock. He also shares a high-yield dividend stock he thinks is a far better buy right now, Brookfield Infrastructure (BIP 0.56%) (BIPC 1.83%).*Stock prices used were from the afternoon of May 17, 2024. The video was published on May 17, 2024. ...

The giant is stumbling while the upstart is surging.In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down the bear thesis for Starbucks (SBUX 3.41%) and make the bull case for Dutch Bros (BROS -2.86%).*Stock prices used were from the afternoon of May 15, 2024. The video was published on May 19, 2024. ...

This company has delivered nearly triple Amazon's stock growth since 2019.All eyes have been on tech companies since a boom in artificial intelligence (AI) kicked off last year.Big Tech companies like Amazon (AMZN 0.58%) have rallied investors, with the stock up 69% in the last 12 months. The retail giant has gained support by delivering solid growth in its e-commerce segment and investing heavily in the budding AI market. Amazon is on a promising growth path that might see it flourish over the long term.Ho ...

These companies aren't expensive, considering their growth so far and long-term prospects.Everyone is talking about artificial intelligence (AI) these days, and for good reason. This hot technology that's driven some stocks to triple-digit gains has the potential to transform everything from our daily lives to how a company operates. AI's powers range from the simple, like helping us save time on a routine task, to the complex, like helping scientists more quickly discover a game-changing drug.Companies are ...

Core Viewpoint - Meta Platforms is significantly increasing its investment in artificial intelligence, raising its full-year capital expenditure outlook to between $35 billion and $40 billion, up from a previous range of $30 billion to $37 billion, following a $6.72 billion expenditure in Q1 [1][2] Group 1: Capital Expenditures and AI Investment - Meta's management has committed to building leading AI models, which has led to a substantial increase in capital expenditures, marking the highest spending on this line item since 2021 [1] - The company spent $6.72 billion in Q1 and plans to double its annual capital expenditures compared to 2021, which has raised concerns among investors [2] Group 2: Share Repurchase Program - In Q1, Meta generated a free cash flow of $12.53 billion and spent $14.64 billion on share repurchases, the highest since Q4 2021 [3] - The board authorized a $50 billion increase to its share repurchase program, with $66.4 billion remaining as of the end of Q1 [3][4] - Management may utilize a significant portion of the share repurchase authorization by year-end, driven by strong free cash flow growth and potential changes in taxation on buybacks [4] Group 3: Financial Performance and Stock Valuation - Meta's average repurchase price was $429.46 per share, and the stock is currently trading around $468, indicating that repurchases have been beneficial in the short term [6][7] - The company's forward price-to-earnings (P/E) ratio is 23.5, above the S&P 500 average of 20.7, but strong cash flow and capital return plans justify a slight premium [7] - Analysts project a 30% increase in earnings per share over the next five years, suggesting a PEG ratio below 1, which supports the case for continued share repurchases at current levels [7]

Core Viewpoint - The analysis suggests that despite Etsy appearing inexpensive, its growth has stagnated for over a year, indicating potential concerns for investors [1] Group 1: Company Performance - Etsy's growth has stalled for more than a year, raising questions about its future performance [1] - The video discusses the potential of moving on from Etsy in favor of other stocks [1] Group 2: Alternative Investment Suggestions - Amazon and Shopify are presented as better investment options compared to Etsy at this time [1]