Core Viewpoint - Alphabet's stock significantly outperformed Microsoft in 2025, with a 65% increase compared to Microsoft's 16% gain, raising questions about which company will lead in 2026 [1] Microsoft Overview - Microsoft experienced strong performance in 2025, with total revenue growth of 18% year over year and adjusted earnings per share (EPS) growth of 23% [2] - The growth was primarily driven by its cloud computing unit, Azure, which saw a 40% revenue surge, marking the ninth consecutive quarter of over 30% growth [3] - Microsoft is facing capacity constraints in Azure, prompting an increase in capital expenditures (capex) for fiscal 2026 [3] - Microsoft maintains a 27% stake in OpenAI and has exclusive rights to its large language models (LLMs), which is expected to support future growth [4] - The integration of OpenAI's technology into Microsoft products, along with a planned price hike for Microsoft 365 enterprise users, is anticipated to boost revenue [5] Alphabet Overview - Alphabet's growth is also led by its cloud computing unit, Google Cloud, which reported a 34% revenue increase and an 84% surge in segment operating income [6] - Alphabet's competitive advantage lies in its custom AI chips, Tensor Processing Units (TPUs), which provide a structural cost advantage over Microsoft's reliance on Nvidia's GPUs [7] - Alphabet has developed Gemini, a leading LLM, which offers flexibility and additional revenue streams compared to Microsoft's dependence on OpenAI [8] Valuation and Outlook - Both Alphabet and Microsoft have similar valuations, with Alphabet trading at a forward price-to-earnings (P/E) ratio of 28 and Microsoft at 30 for fiscal 2026 [10] - Alphabet is expected to outperform in 2026 due to its comprehensive AI technology stack and potential revenue growth from AI initiatives, particularly if it begins renting out its TPUs [11]

Core Viewpoint - Meta Platforms is positioned as a promising dividend stock with significant long-term potential despite its current low dividend yield of 0.3% [3][10]. Dividend and Payout Ratio - Meta's quarterly dividend is $0.525 per share, leading to an annualized payout of $2.10, which results in a low payout ratio of 9%, indicating ample room for future dividend increases [3][5]. - The company has initiated dividend payments only recently, starting last year, and is expected to continue growing its dividend in the future [2][6]. Share Repurchases - In Q3, Meta returned approximately $1.3 billion in dividends and spent nearly $3.2 billion on share repurchases, with Q2 seeing almost $10 billion allocated for buybacks [7]. - The total shareholder yield, when factoring in share repurchases, is significant, even though the dividend yield remains low [7]. Business Growth - Meta's revenue for Q3 increased by 26% year-over-year to about $51.2 billion, showing an acceleration from the previous quarter's growth rate of 22% [8]. - The growth was driven by a 14% increase in ad impressions and a 10% rise in average price per ad [8]. Free Cash Flow - The company reported approximately $10.6 billion in free cash flow for Q3, which is crucial for supporting dividends and share repurchases [9]. Capital Expenditures and Future Outlook - Meta plans to invest $70 to $72 billion in capital expenditures in 2025, primarily for AI computing infrastructure, which may impact the pace of dividend growth in the near term [6][11]. - Management anticipates that capital expenditures will increase significantly in 2026 compared to 2025, indicating a focus on long-term growth strategies [11]. Valuation - Meta's shares are trading at a price-to-earnings ratio of 29, suggesting that while the stock is not overly expensive, it is also not cheap, necessitating continued rapid growth and successful investments in AI [12].

Tax refunds could be so big next year, they'll be like pandemic stimulus checks -- and that isn't necessarily a good thing.As most people remember, the COVID-19 pandemic brought with it an unprecedented lockdown and a substantial amount of government support to help people survive it. During the pandemic, a total of three separate stimulus checks were paid out, which helped boost many people's savings rates and may have arguably contributed to the massive inflation that has been occurring more recently.Now, ...

Core Viewpoint - The Vanguard International High Dividend Yield Index Fund ETF (VYMI) offers geographic diversification and a higher dividend yield of 3.72% compared to the S&P 500's 1.15% [1][9]. Dividend Yield and Safety - While there are international ETFs with higher yields, yield alone is not a sufficient reason to invest in an ETF [2]. - The ETF focuses on dividend durability and diversification, making it a reliable option for buy-and-hold investors [4]. - The fund avoids yield traps by filtering out companies that may struggle to maintain their dividends, absorbing only half of the dividend payers in its selection universe [5][6]. Market Exposure and Growth Potential - The ETF's methodology does not weight components by dividend yield but by market capitalization, enhancing safety by prioritizing larger companies capable of sustaining and growing dividends [6]. - European dividends have shown consistent growth, and this trend is expected to continue, while Japan is emerging as a strong market for dividend growth, with many companies projected to double their payouts in 2025 [7][9]. Diversification Benefits - The ETF includes 1,534 stocks, with no single stock exceeding 1.65% of the total, thereby limiting single-stock risk [12]. - The fund has a reasonable annual fee of 0.17%, equating to $17 on a $10,000 investment [12]. - The shift in market dynamics at the start of 2025 highlights the importance of international diversification, rewarding those who were prepared [10][11].

Core Insights - Nvidia is making a significant $20 billion acquisition of inferencing technology from start-up Groq to strengthen its leadership in the AI sector [10] - The company has maintained its dominance in the AI market through continuous innovation and the development of high-demand GPUs [5][6] - The AI inferencing market is projected to grow from $103 billion today to $255 billion by 2032, highlighting the importance of this area for future growth [8][9] Company Overview - Nvidia has evolved from a gaming-focused company to a leader in AI technology over the past 30 years, developing a comprehensive range of products including AI chips and enterprise software [4] - The company reported over $130 billion in revenue in the most recent fiscal year, showcasing explosive earnings growth [5] Competitive Landscape - Nvidia faces competition from major players like Advanced Micro Devices and some of its own customers, such as Amazon, who are developing their own AI chips [6] - The most significant threat may come from smaller start-ups specializing in AI inferencing technology [6] Strategic Move - The acquisition of Groq is Nvidia's largest deal to date and is aimed at enhancing its capabilities in AI inferencing, which is seen as the next major growth area in AI [10][12] - Nvidia plans to integrate Groq's low-latency processors into its AI factory architecture, expanding its platform for a wider range of AI inference and real-time workloads [10] Financial Position - Nvidia has a strong financial position with $60 billion in cash, enabling it to pursue significant acquisitions and investments in technology [11] - The addition of Groq's executives to Nvidia's team is expected to facilitate the integration of new technology and enhance growth potential [12]

Core Viewpoint - Enterprise Products Partners offers a high dividend yield of 6.8%, making it an attractive option for conservative investors seeking reliable income [1][7]. Group 1: Business Model - Enterprise operates as a master limited partnership (MLP) in the midstream segment of the energy sector, designed to pass income to unitholders in a tax-advantaged manner [2]. - The midstream segment connects upstream oil and gas production to downstream processing, playing a crucial role in the energy supply chain [4]. - The financial results of midstream businesses are primarily driven by the volume of materials flowing through their infrastructure, such as pipelines and storage facilities, rather than the price of oil [5]. Group 2: Financial Performance - The distribution yield of Enterprise is significantly higher than the S&P 500's yield of 1.1% and more than double the average energy stock's yield of 3.2% [7]. - Enterprise has a strong track record, having increased its distribution annually for 27 consecutive years, indicating a focus on reliable income [8]. - The company's balance sheet is investment-grade rated, and its distributable cash flow covers the distribution by a solid 1.7 times, providing a strong foundation for sustaining dividends [9]. Group 3: Competitive Position - Unlike peers such as Kinder Morgan and Energy Transfer, which cut their distributions in 2016 and 2020, Enterprise maintained and even increased its distribution during those periods, demonstrating financial resilience [10]. - The company is positioned as a reliable income investment, with a strong business model and financial strength to support its distribution even in challenging times [12]. Group 4: Growth Prospects - While Enterprise is a solid choice for dividend investors, it is characterized by modest growth prospects, with the yield likely contributing the majority of returns over time [13].

Group 1 - Digital Bridge Group's share price surged nearly 10% following news of a buyout by SoftBank Group, indicating strong market interest [1][2] - The acquisition deal has an enterprise value of approximately $4 billion, with SoftBank agreeing to pay $16 per share in cash for DigitalBridge [2][6] - DigitalBridge operates in the digital infrastructure sector, which is experiencing high demand due to the needs of artificial intelligence, making it a strategic investment opportunity [4][5] Group 2 - SoftBank's CEO Masayoshi Son emphasized that the acquisition aims to strengthen the foundation for next-generation AI data centers and advance their vision of becoming a leading Artificial Super Intelligence platform provider [5] - DigitalBridge's current market cap is $2.5 billion, with its stock closing at $15.26, below the acquisition price, reflecting some skepticism among investors regarding the deal's completion [6][8] - The deal is considered smaller in scale compared to SoftBank's previous investments, such as WeWork, and is viewed positively due to DigitalBridge's reliable profitability and strong market position [7][8]

Core Insights - Praxis Precision Medicines received Breakthrough Therapy Designation (BTD) from the FDA for its experimental tremor treatment, ulixacaltamide, leading to a 13.25% increase in stock price [1][5] Company Overview - Praxis specializes in developing therapies for neurological disorders using genetic insights [3] - The company plans to submit a New Drug Application for ulixacaltamide in early 2026 [4] Clinical Development - The BTD was granted based on positive results from two recent phase 3 studies, which aim to accelerate the regulatory review process [4] - The CEO of Praxis highlighted the importance of the BTD in advancing the treatment to patients more quickly [4][7] Market Context - There is a significant unmet need for treatments for essential tremor, affecting approximately 7 million people in the U.S. [6] - Current treatment options for essential tremor are often ineffective and poorly tolerated [6]

Core Insights - Medtronic is being evaluated as a potential significant opportunity within the medical device sector, highlighting its strengths, challenges, and future potential [1] Group 1: Company Overview - Medtronic is featured in a discussion that aims to provide insights into its market trends and investment opportunities [1] Group 2: Analyst Perspectives - The analysis includes contributions from expert analysts who break down the company's performance and outlook [1]

Core Insights - MARA Holdings has reported significant financial growth, with a 92% year-over-year revenue increase to $252.4 million and a net income of $123.1 million in Q3 2025, compared to a net loss of $124.8 million in Q3 2024 [1][2]. Financial Performance - The revenue increase was primarily driven by an 88% rise in the average Bitcoin price, contributing $113.3 million to the revenue [4]. - MARA holds 53,250 BTC, valued at approximately $4.7 billion as of December 25 [4]. - Despite the positive financial results, MARA's share price has decreased by 49% over the last year, while Bitcoin has lost 12% [6]. Business Model and Strategy - MARA is heavily reliant on Bitcoin mining, which is a competitive and volatile industry, making it challenging to maintain profits [4]. - To diversify its revenue streams, MARA plans to leverage its data center infrastructure for potential sales to AI companies, although no deals have been secured yet [5].