The charts show a tech breakout that can continue over the next 6-12 months, says Katie Stockton
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Yahoo
an hour ago
- Yahoo
Think It's Too Late to Buy This Leading Tech Stock? Here's the Biggest Reason Why There's Still Time
Key Points Meta Platforms is likely reaching a saturation point in the social media market. Meta's treasure trove of personal data should give it a competitive advantage in the AI space. These 10 stocks could mint the next wave of millionaires › Investors may think this is one of the worst times to buy Meta Platforms (NASDAQ: META) stock. Although it dominates the social media sphere, the fact that more than 40% of the world's population logs onto a Meta-owned site every day may imply limited growth. Its stock price has increased by more than 650% from its lows in October 2022 and recently traded at an all-time high. Despite these gains, Meta may actually be well-positioned to continue its growth trajectory. Here's why it may not be too late to buy this social media company. The continuing case for Meta Platforms stock Meta Platforms is not at a saturation point. Despite its massive 3.4 billion user base, the number of people on its platforms actually grew 6% over the last year in its most recent reported quarter. These users generate more advertising revenue, which increased 16% year over year in Q1. Admittedly, ads make up nearly all of Meta's current revenue, and with the advertising landscape becoming increasingly saturated, growth is likely to slow over time. However, Meta's role in artificial intelligence (AI) will likely breathe additional life into the stock. That is because Meta's users generate a tremendous amount of personal data that Apple or Alphabet may not have the ability to match. This gives it a competitive advantage in terms of training AI models. Additionally, Meta anticipates spending between $64 billion and $72 billion on capital expenditures in 2025 to capitalize on this opportunity and remain competitive in AI. That's an expense it can afford given its $50 billion in free cash flow generated over the last year and its $70 billion in liquidity. Furthermore, investors can buy into this opportunity at a relatively reasonable price. Its 27 P/E ratio is not only below the S&P 500 average of 30, but it is also the second-lowest earnings multiple in the "Magnificent Seven" (Alphabet is lower). That factor gives investors good reason to buy the stock before its AI business takes off in earnest. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $447,134!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,090!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $652,133!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 14, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms. The Motley Fool has a disclosure policy. Think It's Too Late to Buy This Leading Tech Stock? Here's the Biggest Reason Why There's Still Time was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Better Trump-Connected Meme Stock: Newsmax vs. Trump Media
Key Points Newsmax is dealing with growing pains and unpredictable legal expenses. Trump Media's core business is withering as it tries to launch a crypto ETF. Newsmax has cooled off, but Trump Media still trades at frothy valuations. 10 stocks we like better than Newsmax › Newsmax (NYSE: NMAX) and Trump Media & Technology Group (NASDAQ: DJT) are both closely associated with President Donald Trump. Newsmax, which bills itself as a conservative alternative to mainstream media networks like Fox News, is popular among Trump supporters. Trump Media, which was co-founded by Trump, owns the social network Truth Social and the streaming media platform Truth+. It aims to be an alternative to larger social media platforms. Both stocks, through their association with Trump, became meme stocks shortly after their public debuts, trading on emotion. Newsmax went public via a traditional initial public offering (IPO) on March 31, and it soared from its debut price of $10 to a record closing price of $233 the following day. Trump Media went public by merging with a special purpose acquisition company (SPAC) on March 26, 2024. It started trading at $70.90 -- which marked a 42% gain from its premerger closing price. But today, Newsmax and Trump Media trade at about $14 and $18, respectively. Both stocks crumbled under the weight of their skyrocketing valuations. But which is the better buy? Newsmax faces a lot of near-term challenges Newsmax operates both linear TV and digital streaming channels, and it generates most of its revenue from ads, cable licensing fees, and subscription fees. It claims to reach 40 million Americans through its media channels and print publications. Nielsen data from April found that Newsmax was tied with Fox News among 35- to 64-year-old viewers for "prime engagement." Newsmax's viewership grew significantly during the first Trump administration, but it was also criticized for promoting conspiracy theories regarding the 2020 elections, the Jan. 6 attack on the U.S. Capitol, and the risk of COVID-19 vaccines. Voting system makers Smartmatic and Dominion sued Newsmax over its claims about the 2020 election. It reached a $40 million settlement with Smartmatic last year, but it hasn't settled with Dominion yet. In 2023, Newsmax's revenue stayed flat at $135 million as its net loss more than doubled to $42 million. That slowdown was largely caused by DirecTV temporarily dropping its channels in a carriage fee dispute. Newsmax had wanted to transition from a free-to-air model to a paid one as its popularity grew, but DirecTV rejected those new carriage fees. Newsmax eventually agreed to revert back to its original free model (and earn a split of the carrier's ad revenue) to return to DirecTV. In 2024, Newsmax's revenue rose 27% to $171 million as the U.S. election cycle heated up again and drove more viewers to its linear and digital channels. However, its net loss widened to $72 million as its settlement with Smartmatic and the costs of expanding its infrastructure to handle its growing audience crushed its operating margins. In the first quarter of 2025, Newsmax's revenue rose 12% year over year to $45 million. It narrowed its net loss from $51 million to $17 million, but that was mainly due to its easy year-over-year comparisons to the Smartmatic settlement. Analysts haven't provided any forecasts for the rest of the year, but it could face a lot of pressure as it laps the election, ramps up its spending, and deals with the legal costs in its ongoing dispute with Dominion. Trump Media is still leaving its investors in the dark Trump Media generates most of its revenue from Truth Social, but it doesn't disclose its monthly active users (MAUs) or any other core social media metrics. According to it only served 6.3 million MAUs this January. It recently launched its Truth+ streaming media platform, but the Android version of its app has only been downloaded about 50,000 times. Rumble (NASDAQ: RUM), the conservative-leaning streaming video platform, says it reached 59 million MAUs in its latest quarter. In 2023, Trump Media only generated $4.1 million in revenue as it racked up a net loss of $58.2 million. In 2024, its revenue declined to $3.6 million as its net loss widened to $401 million. That decline was caused by Truth Social's stagnating growth, competition from bigger social media platforms like X and Meta Platforms' Facebook, and a renegotiated ad revenue sharing deal with an "undisclosed" advertising partner. Its massive net loss was caused by its ballooning stock-based compensation expenses, higher legal costs, changes to how its warrants and convertible debt was valued, and soaring interest charges on its debt. In the first quarter of 2025, Trump Media generated just $821,000 in revenue with a net loss of $31.7 million. But in early July, it submitted a filing for a new crypto exchange-traded fund (ETF) that would bundle Bitcoin with several other cryptocurrencies. If approved, that ETF might boost its cash flows while diversifying its business away from its sluggish social networking and streaming media businesses. The better buy: Newsmax With a market cap of $1.85 billion, Newsmax isn't cheap at 11 times last year's sales. But it's more reasonably valued than Trump Media, which is worth $5.13 billion -- or 1,475 times last year's sales. So while Newsmax's future is still murky, it certainly looks like the better buy. If you believe Newsmax will keep gaining more viewers in this politically divisive environment, pull more viewers away from Fox News and other mainstream media networks, and resolve its legal issues, it might be worth nibbling on. But if you don't think it can check all three boxes, it might be too risky to buy. Should you buy stock in Newsmax right now? Before you buy stock in Newsmax, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Newsmax 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% 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 15, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends Bitcoin and Meta Platforms. The Motley Fool has a disclosure policy. Better Trump-Connected Meme Stock: Newsmax vs. Trump Media was originally published by The Motley Fool
Forbes
an hour ago
- Forbes
These 5 S&P 500 Stocks Show New Highs On Declining Relative Strength
S&P 500, Blackrock The S&P 500 on Friday hit another new high – it was brief as sellers showed up and the index closed lower by .01%. July has been a month of new highs. It's also been a month of a declining relative strength indicator. This negative divergence between price and a key indicator might be a problem. The RSI, as it's known to price chart analysts, is a momentum oscillator. Developed by technical analyst J. Welles Wilder, Junior in the 70s, his work on the subject was first published in the book 'New Concepts In Technical Trading Systems.' Forbes in 1980 called him 'the premier technical trader publishing his work today.' The issue is not just with the S&P 500. Big, well-known names within the index are also showing weakening relative strength per Wilder's oscillator. 5 S&P 500 Stocks With Weakening RSI S&P 500: S&P 500 daily price chart, 7 19 25. The red-dotted lines show the negative divergence between the direction of price and the direction of the RSI momentum oscillator. Blackrock: Blackrock daily price chart, 7 19 25. The big asset management firm hit a new high Friday and the relative strength indicator failed to confirm the move by coming in lower than it's earlier July reading. The stock retreated from the higher price high during the session and closed lower by .16%. Blackrock is market capitalized at $170.97 billion. Genius Sports Limited: Genius Sports Limited daily price chart, 7 19 25. The price just hit a new high. The relative strength indicator peaked in November 2024 and did not accompany the stock on to a higher high on Friday. You can see how the 50-day moving average no longer trends upward. Genius Sports Limited has a market cap of $2.89 billion and it's a member of the Russell 2000 small caps ETF. MMM: MMM daily price chart, 7 19 25. The relative strength indicator peaked in January and is now lower even as the stock's price is hitting a new high. Friday's volume is extraordinary. The candlestick is a bearish engulfing: the high is higher than the previous session and the low is lower than the previous session. MMM has a market cap of $82.47 billion. Raytheon Technologies: Raytheon Technologies daily price chart, 7 19 25. The aerospace and defense company with a market cap of $202 billion has a negative divergence on its daily price chart. The stock just hit a new high and, at the same time, the relative strength indicator could not make it above its mid-June reading. Note that July volume levels are subdued compared to earlier months. Charles Schwab: Charles Schwab daily price chart, 7 19 25. The RSI peak came in mid-May and the measure is now lower as the stock itself makes a new high on decent buying volume. Schwab remains in an uptrend as indicated by the direction of the 50-day and the 200-day moving averages. Market cap for the capital markets firm is $174 billion. The RSI is only one indicator of momentum and should be seen in the context of other price indicators. Stats courtesy of Charts courtesy of No artificial intelligence was used in the writing of this post. More analysis and commentary at
