Core Viewpoint - Amazon underperformed the market in 2025, with a stock increase of only 6% compared to the S&P 500's 18% gain, but this underperformance may set the stage for a stronger performance in 2026 [1][2] Group 1: Amazon Web Services (AWS) - AWS is experiencing significant growth, benefiting from the general migration to cloud computing and its role in artificial intelligence, as companies prefer renting computing power rather than building their own data centers [4][6] - In Q3, AWS revenue rose 20% year over year, marking its fastest growth rate in several years, and accounted for 66% of Amazon's operating profits during that quarter [7] Group 2: Advertising Services - Amazon's advertising services generated $17.7 billion in revenue during Q3, contributing significantly to the company's overall profitability, with an estimated operating profit of $5.3 billion based on typical advertising margins [8] - The advertising division posted a 24% year-over-year growth rate, indicating its critical role in enhancing Amazon's commerce operating margins and setting the company up for a strong 2026 [9] Group 3: Valuation and Growth Expectations - Amazon's stock valuation has become more reasonable, now trading at a level comparable to its peers, allowing for potential stock price appreciation aligned with business performance [10][12] - Analysts expect Amazon to grow sales at around 11% in 2026, with operating profit growth anticipated to outpace revenue growth, driven by strong results from AWS and advertising services [13]

A growing backlog in Fluor's largest business segment includes a new rare earth magnet manufacturing plant in Texas.Investors are always seeking opportunities to capitalize on stocks that will benefit from macroeconomic tailwinds. Currently, favorable trends in energy and electricity, as well as artificial intelligence (AI) data centers and general infrastructure, should help boost businesses in these sectors.One company that can benefit from all this investment is American engineering and construction firm ...

Core Insights - Robinhood Markets has experienced a remarkable stock performance, gaining over 1,300% in the past three years, with a 200% increase in 2025 alone, making it one of the top-performing stocks during this period [1] - The company aims to create a comprehensive investing ecosystem for active traders, launching various new services to enhance user engagement and retention [3] Business Expansion - Robinhood has diversified its trading offerings beyond meme stocks to include options and cryptocurrency, which have significantly contributed to its revenue growth [4] - The company is also introducing traditional financial services such as credit cards and bank accounts, which serve multiple purposes including new revenue streams and customer engagement [5] Product Development - Recent product launches include Prediction Markets and Robinhood Social, along with the introduction of futures trading in the U.K., indicating a rapid pace of innovation [6] Financial Performance - In the third quarter, Robinhood's revenue doubled year-over-year to $1.3 billion, with net income increasing by 271% to $556 million, and platform assets rising by 119% to $333 billion [7] - The number of funded customers grew by 10% to 26.8 million, while Gold customers surged by 77% to 3.9 million, highlighting strong user engagement [8] Revenue Sources - The company's expansion into alternative asset trading, particularly cryptocurrency, has been a major driver of growth, with cryptocurrency revenue increasing by 300% year-over-year to $268 million, accounting for over a third of total transaction revenue [9] Growth Potential - Robinhood has significant growth potential, with the ability to expand product offerings and geographic reach, despite the likelihood of a decrease in growth rates over time [12] - If the company achieves a compound annual growth rate (CAGR) of 25% over the next decade, it could reach $39 billion in revenue, potentially increasing its stock price tenfold [13]

Core Viewpoint - The article discusses three distinct AI stocks that investors should consider for long-term investment, highlighting their unique attributes and potential in the AI sector. Group 1: Alphabet (GOOGL) - Alphabet is characterized as a stable investment with a high floor due to its established position in AI and cloud computing, making it a reliable choice for investors [5][8] - The company reported a market capitalization of $3.8 trillion and generated $74.1 billion in revenue from its core digital advertising business in Q3 [7] - Alphabet's ongoing investments in autonomous vehicles and quantum computing further enhance its growth prospects, making it a dependable option for buy-and-hold investors over the next three to five years [8] Group 2: Tesla (TSLA) - Tesla represents a high-risk, high-reward investment, with CEO Elon Musk emphasizing the potential value of its humanoid robot, Tesla Optimus [9][12] - The company has a market cap of $1.5 trillion, but its core vehicle business has faced challenges in recent quarters, which could impact stock performance [10][12] - The humanoid robotics market is projected to grow into a $5 trillion total addressable market by 2050, presenting significant upside potential for Tesla [11] Group 3: International Business Machines (IBM) - IBM is positioned as a rare AI dividend stock, appealing to investors seeking income alongside growth, with a dividend yield of 2.27% [13][15] - The company has a market cap of $277 billion and has raised its dividend for 29 consecutive years, reflecting its long-term growth capabilities [14][15] - IBM is actively expanding its AI ecosystem through mergers and acquisitions, with anticipated earnings growth at a high-single-digit annualized rate over the next three to five years [16]

Core Viewpoint - Paying a fair price for a strong business like Coca-Cola is a sound investment strategy, especially for long-term investors [1][2] Company Overview - Coca-Cola is the world's leading non-alcoholic beverage maker, operating within the consumer staples sector, and is essentially selling affordable luxuries that consumers continue to purchase even during economic downturns [5][6] - The company has a strong brand loyalty, with consumers preferring its products regardless of economic conditions [6] Financial Performance - Coca-Cola has demonstrated resilience in the current market, achieving a 6% increase in organic sales in Q3 2025, outperforming key competitor PepsiCo, which only saw a 1.3% increase [11] - The company's same-store sales rose from the second quarter, contrasting with PepsiCo's decline, indicating Coca-Cola's strong market position despite industry challenges [11] Valuation Metrics - Coca-Cola's current market capitalization is $301 billion, with a price-to-sales ratio in line with its five-year average, while its price-to-earnings and price-to-book ratios are below their five-year averages, suggesting an attractive valuation [12] - The company offers a dividend yield of 2.92%, which is significantly higher than the S&P 500's yield of 1.1% and the average yield of 2.7% for consumer staples stocks, making it appealing for long-term dividend investors [13]

Market Overview - The bull market on Wall Street continued into 2025, with the Dow Jones Industrial Average rising 14%, the S&P 500 increasing by 17%, and the Nasdaq Composite gaining 21% [1] - Despite potential market shifts, there are still opportunities for significant stock gains [2] Stock Recommendations 1. The Trade Desk - The Trade Desk experienced a challenging 2025 due to increased competition and tariff impacts, leading to a 68% decline in stock price [5][8] - Anticipated improvements in 2026 include the fading of tariff shocks and the adoption of its Unified ID 2.0 technology, which could enhance ad performance [6][7] - The current forward P/E ratio of 18 presents a value opportunity for investors [8] 2. Webull - Webull's stock fell from a peak of nearly $80 to under $8, despite a 17% increase in registered users and an 84% rise in customer assets [10][11] - The company is expanding globally, which may enhance its growth prospects compared to competitors like Robinhood [12] - Webull's shift to profitability and strong user engagement metrics suggest potential for significant stock appreciation [13] 3. Sezzle - Sezzle's stock has seen a 64% decline from its all-time high, but key performance indicators show a 59% increase in gross merchandise volume and a 67% rise in net sales [15][16] - An increase in consumer purchase frequency indicates growing user engagement, which could drive future growth [17] - The company's low forward P/E of 15, combined with its growth rate, positions it well for potential gains [18] 4. Fiverr International - Fiverr's shares dropped 38% in 2025, influenced by concerns over AI's impact on the freelance market [21] - The company benefits from a remote work trend and has a superior marketplace take rate of 27.6% [22][23] - Its low valuation, trading at less than 7 times adjusted EPS, presents an attractive investment opportunity [24] 5. B2Gold - B2Gold achieved an 86% gain in 2025, but faced a production forecast reduction at its Goose Mine [27] - Expected improvements in production capacity and ore grades in 2026 could lead to significant growth [28] - The macroeconomic outlook for gold remains positive, with potential for high prices benefiting B2Gold's stock [29][30] 6. Talkspace - Talkspace's shares have fallen 61% since going public, but the company is profitable and growing sales by over 20% annually [33][34] - The focus on partnerships with payers and employers is driving sustainable revenue growth [35] - A debt-free balance sheet and ongoing share buybacks enhance its financial position [36] 7. Zeta Global - Zeta Global's stock has kept pace with the S&P 500, but faces concerns about economic health and potential AI market volatility [39] - The company's AI marketing platform has shown consistent sales growth of at least 20% for five years [41] - Zeta's attractive valuation, with a forward P/E of 21 and a $200 million share-repurchase program, supports its investment appeal [42]

Core Viewpoint - The iShares Expanded Tech Sector ETF has shown strong performance driven by major technology companies, particularly in the AI sector, and is expected to continue outperforming the S&P 500 in 2026 [2][12]. Group 1: ETF Performance - The iShares Expanded Tech Sector ETF achieved a return of 27.5% in 2025, significantly surpassing the S&P 500's 17.5% return [2]. - Since its inception in 2001, the ETF has consistently outperformed the S&P 500, with a compound annual return of 11.6% compared to the S&P 500's 8.5% [12]. - Over the last decade, the ETF's accelerated compound annual return reached 22.9%, while the S&P 500 grew by 13.4% annually [12]. Group 2: Portfolio Composition - The ETF holds 291 stocks, primarily in the technology sector, with nearly 27% of its portfolio invested in semiconductor stocks [4]. - The top 10 holdings of the ETF account for 56% of its total weight, including major companies like Nvidia (8.92%), Microsoft (8.87%), and Apple (8.55%) [5][6]. - Other notable AI-related stocks in the ETF include Palantir Technologies, which saw a 139% stock gain due to high demand for its AI software products [10][11]. Group 3: Market Trends and Future Outlook - Major tech companies are expected to increase spending on AI data centers and infrastructure in 2026, which will likely benefit stocks like Nvidia, Broadcom, AMD, and Micron [13]. - Cloud platforms operated by Alphabet and Microsoft are experiencing accelerating revenue growth, indicating successful investments in AI infrastructure [13]. - The dynamic nature of the tech sector suggests that even if the AI boom slows, other technologies such as robotics and quantum computing could drive growth for the ETF [14].

Core Viewpoint - Altria's high dividend yield of 7.3% may not be as attractive as Target's 4.5% yield due to Altria's significant business struggles, particularly in its core tobacco segment [2][14]. Altria Overview - Altria's primary business is smokable tobacco products, which account for nearly 90% of its revenue, with cigarettes making up 97% of its volume [4]. - Cigarette volumes fell 8.2% year over year in Q3 2025, with Marlboro, which represents 85% of Altria's cigarette volume, experiencing an 11.7% decline [5]. - Altria has faced long-term declines in cigarette sales as smoking becomes less popular and alternatives like vaping gain traction [5]. - The company has struggled to adapt to industry changes, with previous investments in vapes and marijuana resulting in significant losses [7]. - Altria's current dividend yield of 7.21% comes with a high payout ratio of nearly 80%, raising concerns about sustainability [7][15]. Target Overview - Target's current market approach is misaligned with consumer trends, focusing on a premium shopping experience while consumers are tightening budgets [9]. - Same-store sales for Target fell 2.7% in Q3 2025, with overall sales down by 1.5%, reflecting a shift in consumer preferences towards lower-priced options [10]. - Despite these challenges, Target's situation is not seen as an existential threat, as fluctuations in consumer behavior are common in the retail sector [12]. - Target's management is actively working to realign its strategy, including appointing a new CEO and adopting a team-based approach [13]. - Target's dividend yield of 4.5% is supported by a lower payout ratio of approximately 55%, providing more flexibility in adverse conditions [15].

Core Viewpoint - Robinhood Markets experienced significant stock growth in 2025, but its future performance may decline in 2026 due to high valuation and unsustainable revenue growth drivers [1][2][3] Revenue Growth - In Q3 2025, Robinhood's transaction revenue reached $730 million, marking a 129% year-over-year increase, largely driven by a 339% surge in cryptocurrency revenue to $268 million [6][5] - The company's crypto revenue is highly volatile, having previously dropped over 50% in a six-month period from Q4 2024 to Q2 2025 [7][9] New Revenue Streams - Robinhood introduced prediction markets in partnership with Kalshi, allowing clients to bet on various events, which contributed to stock price increases in 2025 [13] - However, the prediction market generated only $115 million in annualized revenue during Q3, representing a mere 2.5% of the estimated total revenue of $4.5 billion for 2025 [14][15] Valuation Concerns - Robinhood's stock is currently trading at a price-to-sales (P/S) ratio of 25.5, significantly higher than its historical average of 11.2 since going public in 2021 [16] - To justify its current valuation, Robinhood would need to generate substantially more revenue, with a potential decline of 55% in stock price required to align with its long-term average P/S ratio [18] Future Outlook - The combination of volatile crypto revenue, the limited impact of the prediction markets, and the high stock valuation could lead to a significant correction in Robinhood's stock price in 2026 [19]

Amazon - Amazon's stock has seen less than 40% growth over the past five years, but it may be a good time to add to positions as it approaches 2026 [3] - The North American segment's adjusted operating income increased by 28% last quarter with only an 11% rise in sales, showcasing strong operating leverage driven by robotics and AI [4] - Amazon operates over 1 million robots in its fulfillment centers, coordinated by its DeepFleet AI model, enhancing its efficiency [5] - The company has become a leading digital marketing firm, with its sponsored ad program growing revenue by 24% in Q3, aided by AI [6] - Amazon Web Services (AWS) is expected to be a significant growth driver, with heavy investments in AI data centers to meet increasing demand [7] - The stock is attractively valued with a forward P/E ratio of less than 30 times 2026 estimates, making it a strong candidate for investment [8] Philip Morris International - Philip Morris stock has increased by around 35% this year but has been stagnant since summer, presenting a potential opportunity for investors [9] - The company does not sell cigarettes in the declining U.S. market, benefiting from stronger international volumes and pricing power [10] - The smokeless product portfolio, particularly the nicotine pouch brand Zyn, has seen shipments soar by 37% in the U.S. and retail sales volumes increase by 39% [12] - The heated tobacco product Iqos has also experienced a 15.5% volume growth in Q3, particularly in Japan and Europe [13] - Philip Morris is awaiting FDA approval for its new Iluma delivery system in the U.S., which could further enhance growth prospects [14] - The stock is valued at a forward P/E ratio of under 19.5 and a PEG ratio of 0.85, indicating it may be undervalued [15]