Core Insights - The healthcare sector underperformed in 2025, but there are still solid investment opportunities in smaller biotech companies [1] - Axsome Therapeutics and Exelixis are highlighted as promising investment options for 2026 and beyond [2] Axsome Therapeutics - Axsome Therapeutics has made steady clinical and regulatory progress, with approved products including Auvelity for depression, Symbravo for migraines, and Sunosi for narcolepsy [3] - The company is close to earning approval for Auvelity in treating Alzheimer's disease agitation, which could address a significant unmet need, as approximately 5 million patients in the U.S. experience this condition [4] - Axsome's revenue for the first nine months of 2025 reached $442.5 million, marking a 65.8% increase year-over-year [7] - The company has several late-stage pipeline candidates, including AXS-12 for narcolepsy and AXS-14 for fibromyalgia, which could further boost revenue [6][8] Exelixis - Exelixis specializes in oncology, primarily generating revenue from Cabometyx, which is approved for various cancers, including liver and kidney cancer [9] - The company reported $1.7 billion in revenue for the first nine months of 2025, a 7.5% increase compared to the same period in 2024 [10] - Exelixis has successfully defended its patent rights, delaying generic competition until the next decade [10] - The company is developing new products, including Zanzalintinib for metastatic colorectal cancer, which has shown strong phase 3 results and could significantly impact sales [12][14] - Exelixis is expected to submit regulatory applications soon, which will help diversify its portfolio beyond Cabometyx [13]

A small cost advantage for one S&P 500 ETF could make a difference over the long term.You might have noticed that the S&P 500 (^GSPC 0.34%) is on a roll. The widely followed index just wrapped up three consecutive years of gains of 16% or more. Such a streak has occurred only five times in the last 98 years. The S&P 500 is off to a good start in the new year as well.Investors seeking to capitalize on the S&P 500's momentum have several exchange-traded funds (ETFs) to choose from. But what's the best S&P 500 ...

Core Viewpoint - Investors are increasingly turning to precious metals like gold and silver as a hedge against economic and political uncertainties, with significant price increases observed in 2025 [1][2]. Economic Context - The U.S. government faced a trillion-dollar budget deficit in 2025, contributing to a national debt of $38.6 trillion, which has raised concerns about the potential devaluation of the U.S. dollar [2][11]. - Rising inflation and unemployment rates, along with political instability, have created a challenging environment for stock market investors [1]. Precious Metals Performance - Gold prices surged by 64% in 2025, while silver outperformed with a remarkable 144% increase, driven by similar economic conditions and a looming global supply shortage [2][3]. - The price of gold is influenced by the increase in money supply, particularly since the U.S. abandoned the gold standard in 1971, leading to a 90% decline in the dollar's purchasing power [6]. Supply and Demand Dynamics - Silver's abundance and industrial demand, particularly from electronics manufacturers, contribute to its price volatility and potential for significant returns [8][10]. - China's recent export restrictions on silver, effective January 1, 2026, aim to protect its electronics industry and may lead to a global supply shortage, further driving up prices [9][10]. Future Outlook - While the bull case for precious metals remains strong, the situation for silver is more complex due to potential shifts in supply and demand dynamics, particularly if China alters its export policies [12]. - Historical data suggests that while silver has delivered a compound annual return of 5.9% over the last 50 years, expecting another triple-digit percentage gain in 2026 may be unrealistic [14].

Quantum computing stocks Rigetti, D-Wave, and IonQ generated monster returns in the last three years, but the bubble could burst in 2026.Artificial intelligence has undoubtedly been the most popular investment theme of the past three years, but quantum computing has been a close second. Consider the returns posted by these pure-play quantum stocks since January 2023:Shares of Rigetti Computing (RGTI 0.67%) have advanced 3,210%.Shares of D-Wave Quantum (QBTS 3.44%) have advanced 1,970%.Shares of IonQ (IONQ 1 ...

Optimism for AI stocks on Wall Street isn't universal.In the mid-1990s, the proliferation of the internet kick-started a chain of events that would positively alter the long-term growth trajectory of corporate America. For three decades, investors have been waiting (often impatiently) for the next technological leap forward to take shape. The rise of artificial intelligence (AI) looks to have answered the call.Providing software and systems with the necessary tools to make split-second decisions without hum ...

Core Viewpoint - Pfizer's stock is facing significant challenges in 2026, with a potential for a rebound but also a likelihood of continued lackluster performance due to various factors affecting revenue and earnings [1][7]. Financial Performance - Pfizer's market capitalization stands at $144 billion, with shares currently priced at $25.28, reflecting a 6% decline over the past year [2]. - The company expects revenue for 2026 to be between $59.5 billion and $62.5 billion, which is below the $62 billion projected for 2025 [7]. - Adjusted earnings per share (EPS) for 2026 are forecasted to decline year-over-year, with the midpoint of the EPS range approximately 5.7% lower than the 2025 guidance [8]. Product Pipeline and Clinical Trials - Pfizer's acquisition of Metsera in November 2025 added promising obesity drug programs to its pipeline, with results from Phase 2b studies for MET-097i expected in early 2026 [3][4]. - Positive clinical results from MET-097i could enhance investor enthusiasm for Pfizer's position in the obesity drug market [4]. Market Conditions and Challenges - The company anticipates a revenue decline of around $1.5 billion from COVID-19 products in 2026 compared to 2025, alongside an additional $1.5 billion negative impact from products losing market exclusivity [9]. - The patent cliff for key products like Eliquis, Ibrance, and Xtandi is expected to worsen, leading to investor caution despite potential positive news from the pipeline [10]. Dividend and Long-term Outlook - Pfizer's forward dividend yield is approximately 6.8%, making it attractive for income investors even if the stock does not see significant appreciation [11]. - The company is generating sufficient free cash flow to maintain its current dividend level, with no imminent cuts expected [12]. - Management believes that new products and late-stage candidates will facilitate a return to growth in the coming years, suggesting a more optimistic long-term outlook [13].

Quantum computing is the icing on the cake for this company.Some technologies reshape the world. We've seen several of them rise to prominence in the last few decades, including the personal computer, the internet, and artificial intelligence (AI).Quantum computing could soon join the list. This technology holds the potential to transform climate modeling, cybersecurity, drug discovery, finance, logistics, and materials science. It could also turbocharge AI advances.It's not surprising, therefore, that many ...

One of these consumer-facing businesses presents a better investment opportunity.Amazon (AMZN +0.27%) has been a wonderful investment. In the past decade, its shares have soared 664%. Nike, on the other hand, is in the midst of a major turnaround effort. The apparel stock trades a gut-wrenching 64% below its peak from November 2021. Between these two consumer-facing businesses, which one will dominate over the next decade? Nike continues to struggleIt could be a while until Nike gets back on stronger footi ...

Investors have a rare opportunity to buy one of America's highest-quality stocks at a steep discount.Netflix (NFLX +0.09%) operates the world's largest streaming platform for movies and television shows, with over 300 million paying members. The company is using its immense scale and soaring profits to outspend its competition when it comes to creating and licensing content, further cementing its dominance.Despite Netflix's continued success, its stock has declined by 32% from its mid-2025 peak. However, it ...

Core Viewpoint - Nebius is positioned for significant growth in the AI data center market, with expectations of substantial revenue increases by 2026 [1][3]. Company Overview - Nebius, previously the parent company of Yandex, has transitioned to focus on AI data center operations after divesting its Russian assets in 2024 [3]. - The company specializes in providing training clusters of GPUs, primarily sourced from Nvidia, to meet high demand in the AI sector [4]. Growth Projections - Nebius plans to contract for 2.5 gigawatts of power by 2026, up from an initial plan of 1 gigawatt, reflecting increased demand for its services [4]. - The company anticipates an annualized revenue run rate of $7 billion to $9 billion by the end of 2026, a significant increase from $551 million as of Q3 [6][9]. Financial Metrics - Nebius currently has a market capitalization of approximately $24 billion and is trading at a price-to-sales ratio of 60 times sales, which is considered high [6][7]. - On a forward price-to-sales basis, the ratio drops to 6.6, indicating potential value as the company grows [7]. - If Nebius achieves its revenue projections and maintains a 35% operating margin, it could generate around $2.8 billion in operating profits, leading to nearly $2 billion in annual profits after accounting for taxes and expenses [9][10]. Investment Outlook - Despite current unprofitability due to heavy investment in growth, Nebius is viewed as a strong long-term investment opportunity, with potential for significant returns for shareholders by 2026 [11].