Core Insights - The stock market experienced a significant rally in 2025, primarily driven by technology stocks, highlighting the volatility and rapid changes within the tech industry [1] Group 1: Market Trends - The tech industry is characterized by rapid changes, where for every successful company, there is often a corresponding failure [1] Group 2: Analyst Background - Gary Alexander has extensive experience in both Wall Street and Silicon Valley, providing insights into current industry themes [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications [1]

Market Reaction - Technology shares led the declines in U.S. stocks, with the State Street Technology Select Sector SPDR ETF (XLK) falling 2.2% and major companies like Nvidia, Meta Platforms, and Alphabet down around 2% [1] - Broader market futures also declined, with Nasdaq 100 futures down 1.8%, S&P 500 futures down 1.5%, and Dow Jones Industrial Average futures down 1.4% [2] Trade Tensions - Markets were affected by President Trump's threats of new tariffs on countries opposing the sale of Greenland, with potential levies starting at 10% in February and rising to 25% by June [3] - The situation has raised concerns about a wider trade escalation between the U.S. and the European Union, particularly with Trump's criticism of European allies [3] Analyst Insights - Despite the current market weakness, analysts view this as an opportunity to invest in technology stocks, particularly as the AI revolution is still in its early stages [5] - A robust fourth-quarter earnings season is anticipated for tech companies, with around $550 billion in capital expenditures expected to fuel the next stage of the AI revolution [5] - Recommended stocks to buy amid the current market conditions include Nvidia, Microsoft, Palantir, CrowdStrike, Nebius, Apple, Palo Alto, Google, and Tesla [6]

Core Viewpoint - Meta Platforms Inc. is experiencing stock decline due to investor skepticism regarding its capital expenditure guidance, particularly related to its AI initiatives [1][2]. Group 1: Stock Performance and Investor Sentiment - Meta's stock has dropped by 4.6% this year amid concerns over potential increases in capital expenditures driven by CEO Mark Zuckerberg's focus on AI [2]. - The recent decline in Meta's stock is viewed as largely "self-inflicted," with a current P/E ratio of 20, suggesting that a reduction in capex could lead to a significant stock recovery [4]. Group 2: Financial Performance and Growth Outlook - Despite the capex concerns, Meta reported a 26% revenue increase in the last quarter, with expectations for similar performance in Q4, attributed to its strategic AI implementation [3]. - Analysts predict a potential 77% surge in Meta's stock value due to its AI-focused initiatives, indicating a bullish outlook for the company's future [6]. Group 3: Market Context - The broader tech sector is facing weakness, with many of the "Magnificent Seven" stocks, including Meta, experiencing declines, while only Alphabet and Amazon have managed to perform positively [5]. - Meta's growth score is reported at 73.19% and its quality rating at 95.45%, indicating strong performance relative to peers [7].

Core Insights - The launch of Get Blue™ aims to enhance access to safe water and sanitation globally by leveraging business leadership, consumer engagement, and capital to support Water.org's solutions [1][3][5] Group 1: Initiative Overview - Get Blue is a long-term platform that encourages companies to treat water as a critical business issue, promoting sustained investment in solutions that provide access to safe water [3][5] - The initiative is backed by major companies including Gap Inc., Amazon, Starbucks, and Ecolab, which are collaborating to address the global water crisis [1][4][11] Group 2: Current Water Crisis Statistics - Approximately 2.1 billion people lack access to safe water, and 3.4 billion lack access to safe sanitation, highlighting the urgent need for initiatives like Get Blue [2][6] Group 3: Corporate Commitment - Gap Inc. emphasizes the importance of addressing the water access gap, stating that the initiative unites influential brands to create a positive impact [4][12] - Amazon has committed to responsible water stewardship, with over 40 water replenishment projects expected to return 18 billion liters of water annually [10][12] Group 4: Water.org's Impact - Water.org has already reached 85 million people with access to safe water and sanitation, aiming to reach 200 million by 2030 through initiatives like Get Blue [6][15] - The organization utilizes solutions such as WaterCredit to provide affordable loans for families to access safe water [6][15] Group 5: Future Plans and Collaborations - The initiative plans to launch consumer and commercial activations later in 2026, showcasing cross-sector collaboration across various industries [8][10] - Water.org invites companies from different sectors to join the Get Blue initiative to collectively tackle the water crisis [13][14]

Core Viewpoint - The article discusses the 10 most undervalued tech stocks to buy in 2026, emphasizing the ongoing health of the AI trade and the significant capital expenditure by major tech companies in infrastructure development [2][3][4]. Industry Insights - Doug Clinton from Intelligent Alpha indicates that the AI trade remains robust, with recent market pullbacks viewed as necessary for the technology sector [2]. - The "Mag 7" tech companies are projected to increase capital expenditures by approximately 35% in 2026, with potential growth reaching 50% [3]. - High valuations in technology stocks are attributed to reinvestment of free cash flow into infrastructure, although there are still undervalued opportunities in the sector [3]. Methodology for Stock Selection - The list of undervalued tech stocks was created using the Finviz Stock Screener, Seeking Alpha, and Insider Monkey's hedge fund database, focusing on stocks with a forward P/E ratio under 15 [6]. - The methodology emphasizes the importance of hedge fund interest, as imitating top hedge fund picks has historically led to market outperformance [7]. Company-Specific Highlights - **NICE Ltd. (NASDAQ:NICE)**: - Forward P/E Ratio: 9.46, with 22 hedge fund holders [8]. - Analysts maintain a positive outlook despite expected lower gross margins due to strategic investments in cloud and AI [9]. - The company anticipates a 200 basis point reduction in margins but expects long-term benefits from its investments [10]. - **TaskUs, Inc. (NASDAQ:TASK)**: - Forward P/E Ratio: 7.33, also with 22 hedge fund holders [11]. - Analysts project over 42% upside potential, but recent challenges have led to a hold rating [12]. - Despite near-term difficulties, the company is expected to return to growth with modest margin improvements by 2027 [13].

Core Viewpoint - The U.S. stock market has experienced an upward trend this year despite concerns regarding the Federal Reserve's independence and increasing tensions in U.S. foreign policy [1] Group 1: Market Trends - Investors are shifting away from Big Tech stocks, leading to a significant rotation in the market [2] - A popular exchange-traded fund focused on Big Tech is on track for its longest monthly losing streak since 2023 [2] - This rotation is enhancing market breadth, with a wider variety of stocks participating in the rally, contributing to record peaks in 2026 [2]

Core Insights - The article compares two small-cap growth ETFs, the Vanguard Small-Cap Growth ETF (VBK) and the iShares S&P Small-Cap 600 Growth ETF (IJT), focusing on their cost, performance, risk, and portfolio construction to assist investors in making informed decisions [1][2] Cost & Size Comparison - IJT has an expense ratio of 0.18%, while VBK has a lower expense ratio of 0.07% [3] - As of January 17, 2026, IJT's one-year return is 8.63%, compared to VBK's 12.47% [3] - IJT offers a dividend yield of 0.91%, higher than VBK's 0.54% [3] - Assets under management (AUM) for IJT is $6 billion, while VBK has significantly higher AUM at $39 billion [3] Performance & Risk Comparison - Over the past five years, IJT experienced a maximum drawdown of -29.23%, while VBK had a deeper drawdown of -38.39% [4] - An investment of $1,000 in IJT would have grown to $1,227 over five years, while the same investment in VBK would have grown to $1,155 [4] Portfolio Composition - VBK holds 552 positions, with 27% allocated to technology, 21% to industrials, and 18% to healthcare, featuring top holdings like Insmed and SoFi Technologies [5] - IJT contains 348 stocks, with a more balanced sector allocation: 20% in technology, 19% in industrials, and 17% in healthcare, including leading positions like Arrowhead Pharmaceuticals [6] Investment Implications - Both ETFs focus on small-cap stocks with growth potential, which may lead to higher total returns over time [7] - VBK is considered slightly higher risk due to its heavier tilt towards technology, indicated by a higher beta of 1.43 compared to IJT's 1.18 [8] - IJT's higher dividend yield may appeal to income-focused investors, despite its higher expense ratio compared to VBK [9] - Investors must weigh their goals, as VBK has shown larger price swings but has outperformed IJT over the last 12 months [10]

Group 1 - The S&P 500 has experienced a significant increase of 78% over the past three years, driven primarily by investor enthusiasm for growth stocks, particularly in the artificial intelligence (AI) sector [1][8] - A lower interest rate environment has positively impacted growth companies and consumer spending, leading to enhanced corporate earnings growth [2] - The S&P 500 bull market has entered its third year, with optimism surrounding AI stocks contributing to the index's gains [8] Group 2 - Concerns about the sustainability of AI stock performance have emerged, particularly due to soaring valuations reminiscent of the dot-com boom in 2000 [5][7] - Despite valuation concerns, demand for AI products and services remains robust, with significant investments in AI infrastructure from major data center companies [7] - Continued strong earnings growth from AI companies like Alphabet and Meta Platforms supports a positive outlook for the AI sector and its potential to drive market performance in 2026 [7]

Core Viewpoint - The FTC is scrutinizing a new practice among large tech companies of acquiring talent from startups without direct acquisitions, which is seen as a way to circumvent antitrust reviews [1] Group 1: Regulatory Actions - The FTC, led by Chairman Andrew Ferguson, will begin reviewing these talent acquisitions to ensure they are not attempts to bypass merger review processes [1] - The Biden administration's strong antitrust enforcement has prompted companies to adopt more talent acquisition strategies [1] Group 2: Examples of Talent Acquisitions - NVIDIA agreed to license chip technology from startup Groq and poached its CEO Jonathan Ross, a former senior employee at Google [1] - Microsoft engaged in a $650 million deal, referred to as a "licensing fee," to attract a top AI executive [1] - Meta spent $15 billion to hire Alexandr Wang, CEO of Scale AI, without acquiring the company [1]

I'm back from CES. I got a lot of notes and we got to talk about the future of Apple products because after spending a week at this giant tech show, there are three things I noticed happening. Number [music] one, there is a big drive to make tech to help cure us from iPhone addiction or get us away from looking at phone screens because of what the tech has done to our brains.Number two, if Siri wants to win the [music] AI assistant wars, it needs more than just Google's help. It's going to need a cute face. ...