Brad Gerstner's market call, where he sees opportunity and what's coming next
BRAD GERSTNER LIVE from the Milken Conference — his bold market call, thoughtful take on Warren Buffett, and why he's backing the Invest in America initiative. Don't miss it!
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Bloomberg
4 hours ago
- Bloomberg
Recession Risk Looms Over a US Stock Market That Wants to Rally
In financial circles, there's an old adage: 'Don't fight the Fed.' That framing makes it seem like the Federal Reserve dictates and the market falls in line. I'd like to change the saying to: 'Don't fight the bull market,' to reflect the current zeitgeist. Sure, investors can de-risk tactically — by changing sector and country allocations, for example. But unless they're Warren Buffett, money managers are going to underperform if they try and fight for too long against a market that simply wants to go up. This is more true of stocks today than of bonds. But there too, it's hard to make the case for a severe bear market even as the US government's debt pile swells.
CNBC
7 hours ago
- CNBC
State AGs led by NY's Letitia James pressure Meta to clean up investment scams on Facebook
A group of 42 state attorneys general are calling on Meta to curb the rise of investment scams on Facebook that fraudulently use the images of Warren Buffett and other famous figures, New York Attorney General Letitia James said Wednesday. James said in a news release criminals are consistently evading Meta's automated and human review systems to post fake ads that leave retail investors saddled with millions of dollars in losses. Her office continues to see the scams months after reporting them to Meta, she added. The ads, touting access to Buffett, Elon Musk or Ark Invest's Cathie Wood, lure Facebook users to join chat groups on Meta-owned messaging platform, WhatsApp, according to the New York AG. There, users are unwittingly involved in alleged pump-and-dump schemes, where criminals boost the price of thinly traded stocks and quickly sell for a profit, leaving small investors with losses. Meta, the parent company of Facebook, Instagram and WhatsApp, is struggling to control the rise of cyber scams on its platforms and is a "cornerstone of the internet fraud economy," the Wall Street Journal reported last month. The problem is global in nature, with one notable lawsuit being brought by an Australian billionaire who alleges that Meta's artificial intelligence-run advertising program created and amplified false ads using his likeness. "Thousands of Facebook users have lost hundreds of millions of dollars to these scams and Meta must do more to stop these fraudulent ads from running on its platforms," James said. "I am leading a bipartisan coalition calling on Meta to step up its review of ads to stop these scams. I also urge all New Yorkers to be extra careful before putting their money in investments they see advertised on social media." The AGs urged Meta to boost its policing of ads, including with more human review, saying that unless they curb the scams, Meta should stop running investment ads altogether. Joining James were AGs from states including California, Connecticut, Georgia, Massachusetts, Michigan, New Jersey and Pennsylvania.
Yahoo
7 hours ago
- Yahoo
These Artificial Intelligence (AI) Stocks Could Appeal to Warren Buffett-Style Investors
Many AI stocks have inflated valuations, making it tough for followers of Warren Buffett's investing style to find good buys. For investors seeking value in the AI sector, three companies that stand out are Micron, Dell, and Google's parent Alphabet. 10 stocks we like better than Alphabet › Stock market guru Warren Buffett is renowned as a value investor who believes that it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Yet applying Buffett's approach to the artificial intelligence (AI) market can prove challenging. Finding reasonably priced AI stocks isn't easy in this hot sector, but good values do exist. Three of them are Micron Technology (NASDAQ: MU), Dell Technologies (NYSE: DELL), and Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). These businesses offer exposure to different areas of the AI sector, and Buffett-minded investors might find this trio particularly appealing. Here's a deeper look into these companies. Founded in 1978, Micron specializes in computer memory and storage solutions. This year, it invented a 1-gamma memory chip, the world's first, according to the company. This memory chip is the smallest available today, and it enables more components, making it faster and more powerful. These desirable traits for AI hardware make the chip's small size ideally suited to support AI on mobile devices. That kind of technological breakthrough makes Micron's products popular for AI. For example, its high-bandwidth memory chips crossed $1 billion in sales for the first time in the company's fiscal second quarter, ended Feb. 27. As a result, the quarter's sales reached $8.1 billion, up nearly 40% from the prior year's $5.8 billion. This strong sales growth led to fiscal second-quarter net income doubling year over year to $1.6 billion. Consequently, diluted earnings per share (EPS) soared to $1.41, up from $0.71 in the prior year. Micron expects continued sales growth, forecasting third-quarter revenue to come in around $8.8 billion, a substantial increase from the previous year's $6.8 billion. The company's AI sales are on a roll, and with its new 1-gamma memory chip, it is poised for ongoing success in the AI era. Dell sells servers, PCs, and other hardware to build AI systems. Its customers include the hot AI company CoreWeave. It operates in a competitive space, but customers are hungry for hardware to power AI, and the company is capturing its share of this growing market. Sales increased 5% year over year to $23.4 billion in its fiscal first quarter, ended May 2. Chief operating officer Jeff Clarke said, "We experienced exceptionally strong demand for AI-optimized servers." Clarke's comments are encouraging given the current macroeconomic volatility, which casts a cloud of uncertainty over customers' information technology expenditures. Recent reports indicating the federal government is cutting tech spending caused Dell's share price to drop. But over the long run, AI demand positions Dell for sales growth. In fact, Q1 customer orders for AI hardware exceeded $12.1 billion. Mr. Clarke stated this result surpassed "the entirety of shipments in all of [fiscal 2025]." And in its 2026 fiscal year, Dell anticipates revenue hitting at least $101 billion, up from the prior year's $95.6 billion. Alphabet built proprietary AI and infused it into many of its products, including its Google search engine and its Google Cloud. The approach is paying off. Adding AI to its search process led to growth in usage, helping Google's first-quarter revenue reach $50.7 billion, up from $46.2 billion in the same quarter in 2024. Google Cloud's first-quarter sales also saw AI-fueled growth, climbing to $12.3 billion from the prior year's $9.6 billion. Alphabet's AI success propelled first-quarter revenue to $90.2 billion, compared to 2024's $80.5 billion, and net income to $34.5 billion versus last year's $23.7 billion. This catapulted diluted earnings per share to $2.81 from $1.89 in 2024. The company's stock was beaten down after losing two key antitrust cases brought by the U.S. government. However, management can appeal the decisions, meaning the legal battle is far from over and could extend for years before reaching a resolution, according to CEO Sundar Pichai. In the meantime, AI is helping Alphabet's business grow, and the company is determined to further advance its achievements in this area. It is aggressively investing in its tech infrastructure with plans for $75 billion in capital expenditures this year, up from 2024's $52.5 billion. Micron, Dell, and Alphabet have grown their businesses over decades, pay dividends, and have thriving AI solutions. These attributes suggest they're Buffett's brand of "wonderful companies" in the AI space. But do their stocks trade for what he would categorize as a "fair price?" Here's a look at all three of their forward price-to-earnings ratios (P/E) contrasted against AI giants Nvidia and Microsoft. Micron, Dell, and Alphabet all have forward P/E multiples significantly lower than Nvidia and Microsoft, suggesting this trio of AI stocks are a great value compared to their AI brethren. Their performance to date shows Micron, Dell, and Alphabet are solid AI companies, and their compelling valuations make them ideal stocks for Buffett-style investors to buy and hold over the long term. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor's total average return is 996% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Robert Izquierdo has positions in Alphabet, Dell Technologies, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. These Artificial Intelligence (AI) Stocks Could Appeal to Warren Buffett-Style Investors was originally published by The Motley Fool
