Earlier today Meta rumors which probably are credible indicated that Meta would be entering into the neo-cloud space. The rumors carried by lots of different sources was good for Meta shares which rose by 9.4% today. It led to a significant implosion amongst AI infrastructure stocks which have a heavy weight in the high growth…
Derick Hudson/iStock Editorial via Getty Images Meta’s AI: How the company is using AI to forge the leading platform in digital advertising The AI trade is dead. A couple of weeks ago it was all the thing, and now investors are selling AI related equities indiscriminately. This has not been an easy year in which…
Shares of Dell continued to spike this morning. The spike is in anticipation of the upcoming earnings release. In perhaps an excess of caution, I decided to make a final trim of the Dell position before the earnings release. The Income/Stability portfolio sold 150 shares of Dell at $308.19. Dell shares have appreciated by more than 42%…
Meta shares fell by around 10% this morning. Investors were apparently concerned about the company’s rising capex. The actual numbers and guidance were reasonably strong with revenues beating and EPS beating substantially, partially due to a substantial tax refund. The revenue forecast, calling for growth of 30% was slightly above the prior consensus The EPS forecast…
We made a change in the Income/Stability portfolio. Shares of Meta spiked in the wake of a particularly strong quarter. The shares rose by 10% on a simply horrible day for enterprise software stocks and almost anything related to software. That took the shares to a relatively strong valuation-of course that depends on whether last quarter’s growth…
Most subscribers are probably more than a bit aware that the last 5 days in the market have been abysmal, and most abysmal for any kind of growth stock. The mood reversal is significant-fear gauges such as the VIX have risen by 40% in just since February 14th. While the SPY has fallen 3.8% since…
As I write this, some traders and even investors are melting down about the recent release of the R1 model from a Chinese start-up called Deep Seek. This model, which has been reported to have been developed for just more than $5 million, reportedly is the equal or better in terms of performance than from…
I realize that most subscribers do not follow the Income/Stability portfolio that we publish. I have some long time investment advisory clients who want dividend paying stocks-although getting much of a yield from decent information technology companies is not anything that can be reasonably achieved. I do keep up with the companies in this portfolio…
Summary The best strategy to invest in the AI revolution is to focus on the pick and shovel vendors in the space. These companies serve as toll takers on the road to the deployment of AI based applications. AI needs lots of storage and thus we recommend shares of Pure. AI needs unified storage/compute and…
This has been a gut wrenching time for holders-including this writer-for holders of high growth IT shares. Investing is supposed to be somewhat logical: the results of the past week or so have defied logic. Ticker Target portfolios had some significant winners but overall most high growth IT shares have fallen victim to the risk-off…