Core Viewpoint - Small-cap stocks, represented by the Russell 2000 index, have started 2026 strongly, outperforming the S&P 500 by over 8% year to date, suggesting a potential resurgence in this market segment [1][2]. Group 1: Market Performance - The Russell 2000 index has not outperformed the S&P 500 in a full calendar year since 2020, indicating a long-term trend that may be reversing [2]. - The Vanguard Russell 2000 ETF has a price-to-earnings ratio of 17.5, suggesting that there is significant value to be unlocked in small-cap stocks [2]. - The early part of 2026 shows a rotation from tech stocks to cyclicals, benefiting sectors like industrials, energy, and materials, which aligns well with small-cap performance [5][6]. Group 2: Sector Composition - The Vanguard Russell 2000 ETF's top three sector exposures are industrials, healthcare, and financials, with technology being a smaller component at around 12% [6]. - This sector composition allows small-caps to potentially benefit from economic growth without the premium valuations associated with tech stocks [5][6]. Group 3: Investment Risks - Approximately 40% of companies in the Russell 2000 are unprofitable, which poses a risk during market corrections or earnings downturns [7]. - While current economic indicators appear strong, a significant slowdown in the labor market raises concerns about the sustainability of small-cap performance [8].

Core Insights - SoFi Technologies has experienced significant stock growth, increasing over 355% in the past three years, and is preparing to report its Q4 and full-year results for 2025 on January 30 [1][2] Company Overview - SoFi has transitioned from a student loan company to a comprehensive financial management app, aiming to be a one-stop shop for financial services [1] - The company is focused on cross-selling products to enhance customer engagement and drive sales, indicating a long-term growth potential [1] Financial Performance - SoFi has onboarded record new customers for three consecutive quarters, with adjusted net revenue rising 38% year-over-year in Q3 2025 [2] - All business segments, including lending, financial services, and the B2B tech platform, are experiencing double-digit growth, with the financial services segment seeing a remarkable 76% year-over-year sales increase [2] - The company benefits from lower interest rates in lending and operates without physical storefronts, allowing for efficient cost management [2] Market Expectations - Wall Street anticipates SoFi will report $0.11 in EPS for Q4 and $0.36 for the full year, although stock performance may be influenced by whether these expectations are met [4] - SoFi has consistently beaten EPS expectations for the past four quarters, and positive market reactions have followed its product innovation updates [5] Long-term Outlook - Short-term stock movements are deemed less important than long-term prospects, with expectations that SoFi stock will continue to perform well into 2026 [6]

Core Viewpoint - Beyond Meat's stock has experienced significant volatility, currently down 79% from its 52-week high, raising questions about its future potential for recovery [1][3]. Financial Performance - In Q3 of the previous year, Beyond Meat reported revenue of $70.2 million, a year-over-year decrease of 13.3%, with a gross profit of $7.2 million and a gross margin of 10.3% [3]. - The company's gross margin has decreased from 17.7% in the same quarter the previous year, indicating challenges in maintaining profitability [3][4]. - Beyond Meat incurred an operating loss of approximately $112 million on sales of about $70 million in Q3 last year, despite efforts to improve efficiency [4]. Market Position and Valuation - Beyond Meat is currently valued at approximately 1.5 times this year's expected sales, leading to speculation about whether it represents a high-risk investment or a deep-value opportunity [3]. - The company's market capitalization stands at $415 million, with a current share price of $0.92, reflecting a significant decline from its 52-week high of $7.69 [6]. Future Outlook - There is potential for a resurgence in Beyond Meat's stock price, possibly driven by meme-stock trading or acquisition rumors, although these scenarios are considered speculative given the company's structural weaknesses [7].

Core Insights - Understanding Social Security benefits is crucial for maximizing retirement income, with the benefit formula being complex yet manageable for informed decision-making [1] Group 1: Social Security Benefits Overview - The amount paid in Social Security taxes throughout a career directly influences future retirement benefits [2] - Full Retirement Age (FRA) is critical, as it determines when individuals qualify for full benefits based on their work history, varying by birth year [3] Group 2: Impact of Claiming Age - Claiming Social Security benefits early results in reduced monthly checks, with a 30% reduction for those with an FRA of 67 if claimed at age 62 [4] - Delaying benefits beyond FRA increases monthly payments by 2/3 of 1% per month, equating to an 8% annual increase until age 70 [4] Group 3: Strategic Considerations - Knowing one's FRA helps in planning and avoiding mistakes that could lead to reduced benefits, such as claiming too early [6] - Delaying benefits until FRA or age 70 can maximize lifetime benefits, although individual circumstances like life expectancy and financial needs must be considered [7] Group 4: Tools for Decision-Making - Individuals can utilize the my Social Security account and benefit estimator tool to understand how different claiming ages affect their benefits without needing complex calculations [8]

Core Viewpoint - USA Rare Earth is positioned as a potentially better growth opportunity compared to MP Materials, especially with its focus on heavy rare-earth elements [1][2] Company Overview - USA Rare Earth is focused on building a domestic supply of rare-earth metals, aiming to manufacture high-performance magnets [2] - The company controls the Round Top deposit in Texas, which is richer in heavy earths like dysprosium and terbium, filling a critical gap in the rare-earth supply chain [2] Market Performance - As of the latest data, USA Rare Earth has a market cap of approximately $3.7 billion, with a current stock price of $2.06, reflecting a daily change of 9.07% [3] - The stock has a 52-week range of $5.56 to $43.98, indicating significant volatility [4] Development Timeline - The company anticipates completing its first magnet factory by early 2026, with mining operations at Round Top expected to commence in 2028 [6] - As an early-stage development company, USA Rare Earth does not currently generate meaningful revenue and is expected to face challenges as it scales its mining and manufacturing capabilities [4][6] Investment Considerations - Despite being a pre-revenue company, the market cap of around $2.5 billion suggests that if the company successfully builds its mine-to-magnet supply chain, the current valuation may appear small in hindsight [6] - The importance of high-performance magnets in various electronics positions the company for potential dramatic growth if it can commercialize its magnet production [7]

Core Viewpoint - Realty Income is viewed as a long-term investment due to its consistent growth, diversification, and strong financial profile, making it a reliable source of passive income [1][6]. Group 1: Company Growth and Diversification - Realty Income has expanded from a single restaurant property in 1969 to over 15,550 properties across North America and Europe, showcasing significant growth [2]. - The company has diversified its platform by adding new geographies, property types, and investment platforms, which has reduced its risk profile and enhanced growth prospects [2]. Group 2: Financial Strength and Dividend Stability - Realty Income maintains one of the top 10 credit ratings in the REIT sector and has a conservative dividend payout ratio of less than 75% of its adjusted funds from operations [3]. - The company has never reduced its dividend payment in over 30 years as a public company, having increased its dividend 133 times since its public market listing in 1994 [3]. Group 3: Market Data and Investment Opportunities - Realty Income's current market capitalization is $56 billion, with a current stock price of $60.74 and a dividend yield of 5.31% [4][5][7]. - The company estimates its total addressable investment opportunity to be $14 trillion, allowing for flexibility in investing where the best opportunities arise [5].

Core Viewpoint - Kinder Morgan is positioned to benefit from the increasing demand for natural gas, particularly driven by the growth of AI data centers and liquefied natural gas (LNG) terminals, which is expected to enhance its total return potential. Group 1: Natural Gas Demand and Infrastructure - Kinder Morgan's natural gas pipeline segment achieved record performance last year, primarily due to strong demand from LNG terminals, with contracts to transport 8 billion cubic feet per day (Bcf/d) of gas, projected to increase to 12 Bcf/d by 2028 [3] - The company is actively pursuing over 10 Bcf/d of opportunities to meet growing demand from the power generation sector, particularly from AI data centers, with nearly 70% of future power demand in states served by its gas infrastructure [4] Group 2: Growth Capital Projects - Kinder Morgan has secured $10 billion in growth capital projects, with 90% focused on gas infrastructure, expected to be completed by mid-2030, supporting power generation demand [6] - An additional $10 billion of potential projects is under development, with significant demand anticipated from utilities, such as Georgia Power, which projects a need for 53 gigawatts of power by the early 2030s, translating to approximately 10 Bcf/d of gas demand [7] Group 3: Investment Diversification - Investing in Kinder Morgan offers a way to diversify portfolios that may be heavily weighted in technology stocks, providing dividend income with a yield of over 4% while still presenting upside potential linked to the AI megatrend [8]

Core Viewpoint - Chipotle Mexican Grill is currently facing a significant decline in stock price, trading 41% below its record high, attributed to macroeconomic challenges affecting consumer behavior, particularly among lower-income groups [1]. Group 1: Stock Performance - Chipotle shares are trading at approximately $40.87, reflecting a 0.81% increase on the day [2]. - The stock has a market capitalization of $54 billion and has experienced a 52-week price range of $29.75 to $59.57 [3]. Group 2: Financial Outlook - The company anticipates a same-store sales decline in the low single-digit range for the full year of 2025, primarily due to weaker foot traffic in an uncertain economic environment [1]. - The current price-to-earnings ratio of 35.9 is near a five-year low, making the stock valuation more attractive for potential investors [3]. Group 3: Expansion Plans - Chipotle aims to nearly double its footprint to 7,000 locations in the U.S. and Canada, excluding its smaller international presence [4]. - The brand's recognition and scale have contributed to significant profitability, suggesting potential for recovery and growth [4].

Core Insights - The AI boom is expected to continue, with significant investments flowing into AI infrastructure, including data centers and chips [1][2] - Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) are predicted to be the major beneficiaries of the ongoing AI spending [3] Nvidia - Nvidia has established itself as the leading provider of GPU chips for AI, holding a market share of 85% to 90% [5] - The company's revenue has surged by 1,000% over the past five years, driven by its dominance in the AI data center market [5] - Nvidia's next-generation architecture, Rubin, is in full production, and the company has a backlog of $500 billion extending through 2026 [7][8] - The stock's price-to-earnings ratio is currently 45, with analysts projecting a 36% annualized earnings growth over the long term [8] Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is the world's leading foundry with a market share of 72%, significantly ahead of its closest competitor [9][10] - The company is increasing its capital expenditures to $52 billion-$56 billion in 2026, up from $41 billion in 2025, indicating strong growth expectations [12] - Analysts forecast TSMC's earnings to grow nearly 30% annually over the next three to five years [12] - The stock trades at a price-to-earnings ratio of 30, which is considered a compelling valuation given its growth prospects [13]

Core Viewpoint - The retail industry is poised for transformation through advancements in artificial intelligence (AI), robotics, and automation, with Amazon positioned to benefit significantly from these trends [1][6][8]. Group 1: Company Performance - Amazon has a market capitalization of approximately $2.5 trillion, making it the fifth-largest company globally, leading in e-commerce and cloud infrastructure services [1]. - Over the past five years, Amazon's share price has increased by about 44%, underperforming compared to the S&P 500 and Nasdaq Composite, which rose by 79% and 73%, respectively [2]. - Despite being a market laggard, there are expectations for improved performance in the coming years due to potential profit drivers [2]. Group 2: Revenue and Profitability - Amazon Web Services (AWS) is the largest profit generator for the company, with a revenue increase of 20% year over year in Q3, contributing $11.4 billion to the company's non-GAAP adjusted operating income [3]. - The e-commerce segment remains the primary source of sales, but profit margins are lower compared to AWS and advertising due to high operational costs [5]. - There is potential for significant margin improvements in the e-commerce business as AI and automation technologies advance, which could enhance profitability [6][8]. Group 3: Future Outlook - Amazon is expected to become the largest company by revenue within the next few years, currently ranking second behind Walmart [7]. - The ongoing evolution of AI, robotics, and automation is likely to lead to substantial margin gains for Amazon's e-commerce business, potentially resulting in market-beating stock performance [8].