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2 Cheap AI Stocks You Can Buy Now and Hold Long-Term

2 Cheap AI Stocks You Can Buy Now and Hold Long-Term

Globe and Mail31-07-2025
Artificial intelligence stocks are soaring, making it more challenging to find undervalued stocks in this category.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
*Stock prices used were the afternoon prices of July 28, 2025. The video was published on July 30, 2025.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,075,791!*
Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Parkev Tatevosian, CFA has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and International Business Machines. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
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3 Reasons to Buy Carnival Stock Like There's No Tomorrow
3 Reasons to Buy Carnival Stock Like There's No Tomorrow

Globe and Mail

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  • Globe and Mail

3 Reasons to Buy Carnival Stock Like There's No Tomorrow

Key Points Carnival's revenue continues to reach record levels, with the business benefiting from strong demand for cruise travel. Rising profits have helped the management team reduce the company's debt burden. Even though the stock has rocketed higher, investors will be drawn to the current valuation. 10 stocks we like better than Carnival Corp. › Carnival (NYSE: CCL) continues sailing in the right direction, something its shareholders have become extremely optimistic about. That's not a surprise, given that the cruise line business was decimated by the COVID-19 pandemic. However, the company is on much better footing these days as it serves robust demand from consumers. In the past 12 months, shares have soared 104% (as of Aug. 6), showcasing heightened bullishness. Despite this monster performance, here are three reasons why investors should still consider buying this travel stock like there's no tomorrow. Durable demand Carnival's business has benefited from tremendous momentum. During the fiscal 2025 second quarter (ended May 31), the company reported record revenue of $6.3 billion. This figure was up 9.5% year over year and 164% higher than the same period of fiscal 2022. There's clearly strong demand from travelers. Carnival had a whopping $8.5 billion in customer deposits in Q2, a record. Net yields, a measure of a cruise line's pricing power, came in at a record $200.07, after increasing by 7.2% during the second quarter. This was "driven by close-in strength in ticket prices and continued strong onboard spending," CFO David Bernstein said on the Q2 2025 earnings call. The demand for Carnival has been impressive in the years following the pandemic's disruption. Investors might think that the good times will come to an end soon. While the rapid growth the business has registered won't continue indefinitely, there's still reason to remain optimistic over the long term. The cruise industry faces some favorable tailwinds. For instance, younger travelers are more interested in these vacations. There are also more first-time passengers coming aboard. As it pushes to capture the opportunity ahead, Carnival is investing in building new cruise ships. It just opened a new private destination, called the Celebration Key, in July. What's more, Carnival is upgrading its rewards program, which will launch in 2026. This can boost customer loyalty and drive repeat cruise trips. Financial improvements During the pandemic, Carnival was forced to pause its operations. To survive the revenue hit, management had to take on more debt to fund the business. It's understandable if, at the time, investors were worried that Carnival would never get out of its predicament. With each passing quarter these days, the company is making substantial progress when it comes to its financial situation. During Q2, Carnival's operating income increased 66.8% year over year to $934 million. This was another record. To its credit, the business is starting to benefit from being able to better leverage its costs as revenue rises. Cruise and tour operating expenses were up just 2.3% year over year during the second quarter. With profitability showing major improvements, Carnival has been able to clean up its balance sheet as well. It ended Q2 with $27.3 billion of long-term debt, a balance that has been reduced by 20% in the past three years. The company's credit rating was also upgraded by two major agencies, which is a vote of confidence. Carnival's upside Carnival's stock has been a huge winner. However, the valuation is still compelling for new investors, even though the company is operating at a very high level these days. The price-to-earnings (P/E) ratio of 15.8 is no doubt cheap, representing a 36% discount to the overall S&P 500 index. Should the P/E multiple get closer to the benchmark's level, there is sizable upside for patient investors. Carnival's strong demand, improving financials, and attractive valuation are three reasons to buy the stock like there's no tomorrow. Should you invest $1,000 in Carnival Corp. right now? Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Carnival Corp. 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025

The Great Flattening is a quiet evolution as middle managers decline
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Globe and Mail

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  • Globe and Mail

The Great Flattening is a quiet evolution as middle managers decline

This is the weekly Work Life newsletter. If you are interested in more careers-related content, sign up to receive it in your inbox. Have you noticed fewer rungs on the corporate ladder lately? For the last few years, as companies invest more capital into artificial intelligence, Big Tech has been cutting layers of management in what's become known as the 'Great Flattening.' Now, new data from Gusto, which provides payroll and HR solutions, shows small and mid-sized businesses (SMBs) are following suit and it's reshaping the way teams are structured, developed and led. From 2022 to 2024, the number of individual contributors per people manager at SMBs has doubled. Back in 2019, managers typically oversaw about three direct reports. Now, that number is about six. Nich Tremper, senior economist at Gusto, says this isn't simply a result of sweeping layoffs, but rather a quiet evolution. 'What seems to be happening is that as folks move on – older folks retire or others shift to new roles – businesses simply aren't backfilling those managerial positions,' he says. The change is largely driven by cost pressures. 'We've seen the average labour cost increase nearly 20 per cent over the last couple of years,' Mr. Tremper says. 'Small businesses don't have a lot of leeway in their budgets, so they're thinking through how best to maximize the productivity of the folks they have on staff. Part of that has come down to reducing management layers.' But the consequences of a leaner org chart extend beyond budgets. What we lose when we flatten While some businesses may appreciate the savings and agility that come with fewer layers of hierarchy, Mr. Tremper cautions against seeing it as a purely positive shift. 'These middle managers are really important for organizations,' he says. 'You have strategic decisions and guidance coming from the highest level of management, but it's individual managers who are turning those directions into actionable steps.' In other words, fewer managers may mean faster decision-making in the short term, but also the risk of teams lacking mentorship, development and day-to-day leadership. 'Highly productive sectors tend to maintain more managers with smaller teams,' Mr. Tremper says. 'It suggests that first-line managers play a critical role in scaling their expertise, developing their teams and ultimately boosting productivity.' Even in lower-productivity industries, measured by total output per hour worked, Gusto found that businesses with a higher share of managers tend to outperform their peers. Managers are opting out, too Not only are businesses hiring fewer managers but existing ones are leaving. In late 2024, Gusto found that the quit rate among managers was about 10 per cent higher than it was in January 2022, when it was more of an employee-driven labour market. 'Quit rates are often viewed as a sign of labour market confidence,' says Mr. Tremper. 'If managers are leaving, it could mean they believe they can find more meaningful work elsewhere. They might be looking to lead teams at other companies or return to being high-performing individual contributors.' Some may even be taking the opportunity to pivot entirely. 'For folks who are maybe no longer managers, this could be a chance to ask: What path do I really want? Do I want to be an individual expert? Or maybe this is the time to start my own business or consulting practice.' Flattening with intention The Great Flattening may seem like a cost-saving trend but it comes with trade-offs. While it can boost short-term agility, businesses that cut too deeply may sacrifice long-term development and stability. 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Globe and Mail

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