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]

This leading semiconductor company is seeing robust growth thanks to artificial intelligence (AI), and investors can get it for a song.Since early last year, it's become crystal clear that advancements in artificial intelligence (AI) are causing a paradigm shift in technology. Nowhere is that more evident than in the list of companies that are among the world's most valuable, measured in terms of market cap.Microsoft made headlines over the past year or so with its definitive moves in generative AI and is c ...

Are you looking for the hottest artificial intelligence stocks? Here are two red-hot options.Artificial intelligence (AI) stocks are zooming. Even the private market is going like gangbusters. Right now, more than one-fifth of all venture capital funding is going toward AI start-ups, According to a report from Crunchbase.Want to get involved? Here are two AI stocks that have minted a sizable number of new millionaires in recent months.1. Nvidia: This 1 stock is the king of AINo list of red-hot AI stocks wou ...

China's e-commerce and cloud leader is a potential multibagger at these levels.When Alibaba Group (BABA 2.12%) went public at $68 per share on Sept. 18, 2014, it raised $25 billion and became the largest initial public offering (IPO) in U.S. history. At the time, the bulls were impressed by the Chinese e-commerce and cloud leader's rapid growth rates.On Oct. 27, 2020, Alibaba's stock reached its record high of $312.87. That was a near five-bagger gain for its initial investors, and many analysts were convin ...

Core Viewpoint - Novo Nordisk is positioned as a leading healthcare stock with significant growth potential, despite its current high valuation [1] Group 1: Company Performance - Novo Nordisk's market capitalization is around $600 billion, with a remarkable 450% increase in share prices over the past five years [1] - The company reported a 22% increase in sales to 65.3 billion Danish krone ($9.8 billion) and a 28% rise in profits to 25.4 billion Danish krone ($3.8 billion) in the first quarter of the year [5] - Novo Nordisk has consistently generated profit margins exceeding 20%, with current margins at 38 cents of every dollar of revenue [6] Group 2: Product Pipeline and Growth Opportunities - Novo Nordisk's focus on obesity and diabetes treatments positions it well, as these conditions often lead to additional health issues [2] - The glucagon-like peptide 1 (GLP-1) drugs, such as Wegovy and Ozempic, have shown effectiveness beyond their initial indications, including cardiovascular risk reduction and potential kidney disease benefits [3][4] - The FDA's approval of Wegovy for reducing serious heart problems has increased its coverage potential among Medicare beneficiaries [3] Group 3: Investment Potential - If Novo Nordisk maintains strong revenue growth and high profit margins, it could outperform the S&P 500's long-term average return of 10%, potentially averaging returns of 12% to 13% [7] - An investment of over $47,000 today could grow to more than 21 times its original value in 25 years, while a 30-year investment could yield nearly 40 times the initial amount, reaching $1 million with an investment of approximately $25,600 [8] - Despite its high market cap, Novo Nordisk remains a compelling investment opportunity for long-term returns [8]

Altria has a huge yield and a struggling business. I'd rather own this other consumer staples company despite the troubles it's facing.I like to buy companies with long histories of dividend increases while they are offering historically high dividend yields. On the surface, that would suggest that I might want to buy Altria (MO 0.28%) and its huge 8.7% yield. No, thanks: I'd rather own Hormel Foods (HRL 0.61%) and its much lower 3.1% yield. Here's why.Altria's core business is shrinking fastAltria's bigges ...