Artificial intelligence has been a significant driver of the stock market over the past three years.Concerns about artificial intelligence (AI) stocks and their monster valuations aren't exactly new, but the market is now being less coy about it. Following a big multiyear run for the sector, it appears that some investors are setting a high bar for AI stocks. No longer are announcements about higher capital expenditures for AI infrastructure build-out purely driving stocks higher, as investors start to ques ...

Core Insights - The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers a high monthly income stream, with a current yield of 11.5% as of November 30 [3][9] - Covered call ETFs, like JEPQ, can provide yields of 10% or higher, appealing to income-focused investors [2] - JEPQ utilizes equity-linked notes (ELNs) instead of traditional stocks, which introduces unique risks but allows for high yields [6][7] Investment Mechanics - JEPQ generates income by writing call options against its holdings, which can lead to significant income from a modest investment [4][12] - A $10,000 investment in JEPQ could potentially yield over $1,000 annually based on historical distributions [12] - Monthly distributions have varied, with a total income of over $6 per share generated in the past year, averaging about $0.50 per share monthly [11][12] Market Context - The ETF's performance is closely tied to the volatility of the Nasdaq-100 index, which tends to be higher, thus supporting its elevated income potential [8] - The fund's structure allows for monthly payouts, making it attractive for investors seeking regular income [8] Considerations - While JEPQ offers high yields, it comes with trade-offs, including capped upside potential and variability in yields based on market conditions [14][15][16] - Investors should be aware of the risks associated with ELNs, particularly counterparty risk, which could affect the value of the investment [7]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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. ...

Core Viewpoint - The article highlights three standout companies in the Dow Jones Industrial Average that are considered great long-term investment opportunities due to their strong dividend yields and solid business fundamentals. Group 1: High-Yield Dividend Stocks - Verizon Communications offers a dividend yield of 6.66%, making it an attractive option for investors seeking passive income, especially if interest rates continue to decline [4][5] - Chevron has a dividend yield of 4.55% and has generated nearly $187 billion in revenue over the past four quarters, supporting its dividend payments [6][7] - Merck provides a dividend yield of 3.23% and has a strong pipeline of drugs, ensuring its dividend remains stable despite potential patent losses in the future [9][10] Group 2: Additional Dividend Stocks - Amgen has a dividend yield of 3% and has consistently increased its annual dividend since 2011, with a payout ratio below 50%, indicating strong financial support for its dividends [12][13] - Coca-Cola, with a dividend yield of 2.92%, is recognized for its brand strength and has a history of 63 consecutive years of annual dividend increases, making it a reliable investment [14][15] Group 3: Investment Recommendations - The article suggests that Chevron, Merck, and Coca-Cola stand out as the best investment choices heading into the new year due to their strong fundamentals and dividend performance [16]

Sanmina is growing, but that comes at a cost.Sanmina (SANM 7.42%) investors awoke to disappointment Tuesday, and the industrial stock is down 7.3% through noon ET despite what appears positive news.Deep in the heart of Texas, Sanmina Corporation plans "a major expansion of its Energy business with a new state-of-the-art factory in Houston." Opening in 2027, the new factory will target the U.S. energy market and be "capable of building a broad range of high-quality energy products, including: medium-voltage ...

Core Insights - Walmart is on track to potentially reach a trillion-dollar market cap by 2026, with its stock currently valued at $930 billion and needing a growth of approximately 7.5% to achieve this milestone [2][17] - The company has seen significant stock performance, with an increase of over 29% year-to-date, outperforming the S&P 500 [1] E-commerce Expansion - Walmart is expanding beyond traditional brick-and-mortar sales, closing the gap with Amazon in e-commerce by leveraging its extensive store network as delivery hubs [4][5] - In the fiscal third quarter, Walmart's U.S. e-commerce revenue grew by 28%, while global e-commerce revenue increased by 27%, both outpacing total revenue growth of 5.8% [6] Advertising Growth - Walmart is enhancing its profit margins through its advertising business, Walmart Connect, which saw global advertising growth of 53% in the fiscal third quarter, with U.S. advertising growing by 33% [9][11] - The advertising sector is high-margin, benefiting from Walmart's large customer base and data for targeted campaigns [11][12] Dividend Consistency - Walmart is recognized as a Dividend King, having increased its dividend for 52 consecutive years, providing reliable income for investors [13][14] - The current quarterly dividend payout is $0.235, yielding around 0.80%, appealing to investors seeking consistent returns [14] Valuation Concerns - Walmart's stock is considered expensive, with a forward price-to-earnings (P/E) ratio of approximately 44.2, higher than many tech companies [15][17] - This high valuation suggests that Walmart is being viewed as a high-growth tech stock rather than a traditional retailer, which may limit room for error in future performance [17]

Core Viewpoint - Eli Lilly's stock is positioned as a strong candidate for a diversified long-term investment portfolio, bolstered by promising results from the Triumph-4 clinical trial for its anti-obesity drug retatrutide [1] Clinical Trial Results - The Triumph-4 trial demonstrated that a 12 mg weekly injection of retatrutide resulted in an average body weight reduction of 28.7% over 68 weeks, alongside a decrease in knee arthritis pain [2] - Retatrutide, a "triple G" medication, outperformed the leading anti-obesity drug tirzepatide, which reported an average weight loss of approximately 20.9% in late-stage trials [4] Market Potential - The global weight-loss medication market is projected to reach $150 billion by 2035, with retatrutide expected to generate annual revenue of around $5 billion by 2030 [8] - Eli Lilly currently holds a 57.9% share of the U.S. market for incretin-mimicking drugs, with its products tirzepatide and Mounjaro demonstrating strong demand [9] Product Pipeline and Future Growth - Eli Lilly anticipates additional phase 3 trial results for retatrutide in obesity and type 2 diabetes by 2026, which could enhance its market segmentation strategy [6] - The company is also seeking FDA approval for orforglipron, a once-daily oral medication for obesity, with expected annual revenue of $8.3 billion by 2030 [10] - Eli Lilly's Alzheimer's medication Kisunla is projected to achieve nearly $5 billion in annual sales at peak, further diversifying its growth engines [11] Financial Performance - Eli Lilly has raised its full-year revenue guidance for 2025 to a range of $63 billion to $63.5 billion, with earnings per share (EPS) estimates adjusted to $21.80 to $22.50 [13] Valuation Considerations - The stock trades at nearly 32 times forward earnings, which may seem high, but is justified by the company's leadership in the obesity treatment market and its robust late-stage research pipeline [14]

Core Insights - Warren Buffett announced his resignation as CEO of Berkshire Hathaway, prompting increased scrutiny from investors regarding the company's portfolio management as Greg Abel prepares to take over in 2026 [1][2] Recent Portfolio Moves - Berkshire's largest purchase in the last quarter was a 16% increase in its stake in Chubb, acquiring 4.3 million shares [4] - The company also made significant investments in the American consumer sector, purchasing shares of Domino's Pizza and Sirius XM, along with smaller investments in Lamar Advertising and Lennar [5] - A notable move was the initiation of a position in Alphabet, acquiring 17.8 million shares valued at $4.3 billion [6] Financial Position - Berkshire's balance sheet reported a record $381.7 billion in cash and short-term investments at the end of Q3, indicating a strategy of stockpiling cash and limited buying activity [10] - The short-term investments primarily consist of U.S. Treasury Bills, reflecting a cautious approach in the current market environment [10] Investment Philosophy - Buffett's investment philosophy emphasizes contrarian strategies, seeking value rather than following market trends, and focusing on long-term growth through reinvestment [11][12] - The company has been prudent in taking gains from core positions and reallocating capital into perceived better value opportunities [13] - Buffett's steadfast approach has consistently outperformed the S&P 500 over decades, showcasing the effectiveness of his investment strategies [14] Strategic Messages - Berkshire's recent moves convey Buffett's enduring messages: take gains when appropriate, identify value, support American resilience, maintain cash reserves, and leverage compound interest [16]

Can Navan ever turn a profit? It's too soon to say.Navan (NAVN 18.69%) stock, which uses artificial intelligence to power software for "business travel, payments, and expense management," and which has been falling basically ever since its late-October IPO, took another tumble after reporting fiscal Q3 2026 earnings last night.As of 10:50 a.m. ET this morning, the stock is down 16.8%. Navan Q3 earningsNavan grew its revenue 29% year-over-year in Q3, to $195 million, with "usage" revenue of $180 million, and ...

The rotation out of technology is here.Technology stocks, particularly those connected to AI in some shape or form, are the ones that have carried the market in 2025 and even the years before that. However, things AI related are hitting a rough patch as investors are taking profits and rebalancing their portfolios as we enter the last portion of the year.In today's video I am going to discuss my thoughts on the current pullback in the stock market and the direction for the S&P 500 (SPY 0.53%) heading to the ...