Shares of Microsoft and ServiceNow are trading at attractive prices after the steep sell-off in software stocks.The S&P North American Technology Software Index, which tracks 111 software stocks, has fallen 30% from the all-time high it hit in September. The puts the index in bear market territory, and artificial intelligence (AI) is the root cause.Specifically, investors worry AI tools will reduce demand for existing products. The selling started months ago, but accelerated when Anthropic released Cowork i ...

Group 1: Core Insights - ConocoPhillips shares increased by 11.3% in January, driven by rising oil prices due to geopolitical events in Venezuela and Iran [1] - Oil prices rose from approximately $57 to $65 in January, influenced by the U.S. ousting of Venezuelan President Nicolás Maduro [2][6] - The potential regime change in Venezuela raises the possibility of unlocking unexploited oil reserves, despite current low production levels [3][4] Group 2: Company Performance - ConocoPhillips reported adjusted earnings per share of $1.02, which missed analyst estimates by $0.08, but the stock price remained stable due to higher current oil prices [8] - The company is owed $10 billion by Venezuela, a significant amount representing 7.4% of its current market cap, which could be recovered if the political situation improves [5][9] - CEO Ryan Lance indicated that the company would prioritize recovering the owed amount before considering reentering the Venezuelan market [9] Group 3: Market Context - Political instability in Venezuela and Iran has contributed to an upward trend in oil prices, with Iran being the ninth-largest oil producer, accounting for about 4% of global supply [6][10] - The geopolitical turmoil has created a mixed signal for oil prices, as disruptions could affect supply while potential regime changes may lead to increased production [3][4]

Coming off an incredible 2025, Broadcom is poised for a repeat performance.There are currently a dozen companies that are worth $1 trillion or more, but only four are currently members of the elite $3 trillion club: Nvidia at $4.6 trillion, Apple at $4 trillion, Alphabet at $3.9 trillion, and Microsoft at $3 trillion.I am convinced that Broadcom (AVGO +3.46%) has what it takes to join this exclusive fraternity in the years to come. The company plays a pivotal role in the data center space, and the current b ...

Core Viewpoint - Chipotle Mexican Grill's long-term investment case remains intact entering 2026, but the key question is whether recent traffic weakness is cyclical or structural [1] Group 1: Traffic and Performance - The slowdown in 2025 was primarily due to lower visit frequency, with a 0.8% decline in transaction volume despite a 1.1% increase in average check [3] - There is no evidence of customers abandoning the brand, as pricing held up and new stores continued to open [4] - The company made a deliberate choice to protect long-term brand equity rather than pursue short-term volume, which compressed margins but preserved pricing power [6][7] Group 2: Strategic Decisions - Management avoided aggressive discounting and promotions, focusing instead on limited-time menu innovation, loyalty initiatives, and operational improvements [7] - The strategy aims for organic traffic recovery without retraining customers to expect discounts [8] Group 3: Importance of Traffic - Traffic is a more critical indicator than margins, as margins fluctuate but traffic is harder to rebuild [9] - A return to modest positive traffic growth would reframe 2025 as a pause rather than a plateau, while continued softness could cap valuation multiples [10] Group 4: Investor Implications - Chipotle must demonstrate that recent traffic weakness is due to a tough consumer cycle rather than a demand ceiling [11] - For patient investors, traffic trends will be the key signal to watch in 2026, as everything else follows from that [12]

Reaching $1 million in retirement funds in 10 years will take a plan and some high-performing stocks.In the world of investing, numbers in the billions and even trillions of dollars get tossed around frequently, but for individual retail investors, even $1 million is a big deal.If you could build a stock portfolio up to $1 million by the time you retire, in addition to your Social Security benefits and 401(k) or other employer-sponsored plan, you likely would find that to be a comfortable nest egg.The keys ...

In the world of tech, businesses that focus intensely on product innovation will thrive.Looking back at some of the best-performing stocks throughout history is a good way for investors to learn what traits to seek out in businesses they are considering adding to their portfolios. A consistent focus on product innovation, for example, is one powerful characteristic that can lead to robust returns.Over the past 20 years (as of Feb. 5), this "Magnificent Seven" stock is up 10,650%. Including reinvested divide ...

Core Insights - Meta Platforms is experiencing significant revenue growth, with fourth-quarter revenue increasing by 24% year-over-year, driven by an 18% rise in ad impressions and a 6% increase in average ad prices [5][12] - Management is optimistic about future growth opportunities, with plans to invest heavily in the business, particularly in AI-driven initiatives [6][10] Business Performance - The company’s capital expenditures are projected to rise significantly, with guidance for 2026 set between $115 billion and $135 billion, indicating a year-over-year growth of approximately 73% from 2025's $72.2 billion [10] - Despite a 40% increase in costs and expenses year-over-year, Meta managed to achieve an 11% growth in earnings per share during Q4, showcasing strong underlying business momentum [11] Future Outlook - Management's guidance for first-quarter revenue suggests a year-over-year growth of 26% to 34%, with an anticipated four percentage point boost from foreign exchange, indicating robust growth even after adjustments [12] - CEO Mark Zuckerberg highlighted several major business opportunities, particularly in enhancing core products and leveraging AI for ad recommendations, suggesting a focus on both existing and new revenue streams [8][9]

Core Viewpoint - Moderna's stock has seen a significant increase of 39% year-to-date as of February 6, driven by positive developments in its clinical pipeline rather than its financial results, which are yet to be released for Q4 2025 [1][2]. Group 1: Clinical Developments - The rise in Moderna's shares is largely attributed to promising data from its personalized cancer vaccine candidate, mRNA-4157, developed in collaboration with Merck. Recent five-year data from a phase 2 trial showed a significant reduction in disease recurrence or death when mRNA-4157 was combined with Merck's Keytruda compared to Keytruda alone [4][5]. - Moderna's influenza vaccine candidate, mRNA-1010, has been submitted for regulatory approval for adults aged 50 and older. This vaccine performed well in phase 3 studies and aims to address the low efficacy of existing flu vaccines, which typically range from 40% to 60% [6]. Group 2: Financial Outlook - For the full year 2025, Moderna expects revenue between $1.6 billion and $2 billion, a decline from the $3.2 billion reported in 2024, largely due to reduced demand in the coronavirus vaccine market amid regulatory scrutiny [8]. - The upcoming earnings report is not expected to bring significant surprises, with revenue potentially closer to the lower end of guidance if market issues worsen. However, this is not anticipated to affect the company's long-term prospects significantly [9]. Group 3: Pipeline and Growth Potential - After facing inconsistent revenue and net losses, Moderna is making substantial progress in its pipeline, which could lead to a return to consistent top-line growth. The potential approval of mRNA-1010 and mRNA-4157 are seen as important catalysts for the company's future [10]. - Despite a significant decline in stock value over the past five years and potential clinical and regulatory setbacks, Moderna is considered a viable option for investors willing to accept some volatility [11].

Core Insights - Dynatrace reported strong quarterly results, with shares rising over 7% following the announcement [1] - The company’s revenue increased by 18% year-over-year to $515 million in Q3 of fiscal 2026, with annual recurring revenue (ARR) growing 20% to nearly $2 billion [3][4] Financial Performance - Adjusted net income rose by 21% to $134.7 million, translating to $0.44 per share, exceeding Wall Street's expectations of $0.41 per share [6] - The company has lifted its full-year earnings per share forecast to between $1.67 and $1.69, up from a previous range of $1.62 to $1.64 [7] - Free cash flow guidance was also increased to $520 million to $525 million, up from $505 million to $515 million [7] Strategic Positioning - Dynatrace leverages AI-derived insights to enhance application analysis and business automation, integrating with major cloud platforms like Amazon, Microsoft, and Alphabet [4] - The CEO emphasized that observability is critical for managing the reliability and performance of AI workloads as organizations adopt AI more broadly [4] Shareholder Returns - The company announced a new $1 billion share repurchase program, highlighting its strong balance sheet and cash flow generation capabilities [7][8]

Core Insights - The iShares US Consumer Staples ETF (IYK) and the Vanguard Consumer Staples ETF (VDC) target the U.S. consumer staples sector, providing exposure to essential goods companies, but differ in cost, performance, risk, holdings, and structure [1] Cost & Size - VDC has a lower expense ratio of 0.09% compared to IYK's 0.38%, making VDC more appealing for cost-conscious investors [2] - IYK offers a higher dividend yield of 2.57% versus VDC's 2.10%, attracting those seeking income [2] - VDC has an AUM of $9 billion, significantly larger than IYK's $1.2 billion [2] - The beta for VDC is 0.64, while IYK's is lower at 0.52, indicating VDC is slightly more volatile [2] Performance & Risk Comparison - Over five years, VDC experienced a max drawdown of -16.56%, while IYK had a max drawdown of -15.04% [3] - A $1,000 investment in VDC would grow to $1,374 over five years, compared to $1,231 for IYK [3] Portfolio Composition - IYK includes 54 holdings with a mix of 11% healthcare and 2% basic materials, featuring top positions like Procter & Gamble, Coca-Cola, and Philip Morris International, offering more diversification [4] - VDC is primarily invested in consumer defensive companies (98%) with 104 stocks, including Walmart, Costco Wholesale, and Procter & Gamble, making it a more concentrated option [5] Investment Implications - Both ETFs provide stability during economic uncertainty, with VDC being more concentrated in consumer defensive stocks, while IYK offers broader exposure [6] - IYK's diversification into healthcare and basic materials can mitigate risks associated with consumer defensive stocks, but VDC's focus may provide an edge in volatile markets [7][8] - The significant difference in expense ratios suggests that VDC may be preferable for those seeking lower fees or a pure-play on consumer staples, while IYK may suit investors looking for diversification [9]