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Yahoo
a day ago
- Entertainment
- Yahoo
Google Just Kicked In Hollywood's Trailer Door
What a difference a year makes… Not long ago, AI's best attempt at video generation resulted in that cursed clip of Will Smith shoveling spaghetti into his mouth with his four-fingered hands. But now the world has Google's Veo 3 at its fingertips – the tech titan's latest AI video generation tool. And the results we're seeing are nothing short of astonishing. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This shiny new model can generate ultra-realistic, 1080p, synchronized audio-visual content based on a simple text prompt… 'A woman, classical violinist with intense focus, plays a complex, rapid passage from a Vivaldi concerto in an ornate, sunlit baroque hall during a rehearsal. Her bow dances across the strings with virtuosic speed and precision. Audio: Bright, virtuosic violin playing, resonant acoustics of the hall, distant footsteps of crew, conductor's occasional soft count-in (muffled), rustling sheet music.' And within seconds, there she is, in video so realistic, you can even see individual hairs on her head highlighted by the sun. She's almost tangible. The music is swelling. And no human lifted a single camera. What we're witnessing with the launch of Google DeepMind's Veo 3 isn't some gimmicky tech demo or mere novelty for nerds on X. This seems more like the starting pistol for the next great creative-industrial upheaval – and if you're in the business of making or investing in content, it's time to get serious. Yes, Veo 3 may be limited to eight seconds today. But that's not a wall; it's a runway. And if you've been paying any attention to the exponential trajectory of AI development, you know where this might go next. Longer clips, then full scenes, entire episodes… and eventually, complete seasons. Perhaps one day, personalized stories crafted in real-time based on what you like to watch. It's coming – . This could be the beginning of the end of Hollywood as we know it… And the start of a new era of AI stock dominance in the content world. Obviously, this isn't the industry's first attempt at AI-generated video. Runway's Gen-2 was a cool prototype. OpenAI's Sora looked great in a lab. But Veo 3 is different. It's the first model with: 4K visual quality fully integrated audio cinematic camera movement deep prompt adherence and, crucially, a launch partner with billions of users and a roadmap to global rollout In our view, Google has aimed a shotgun full of GPU clusters directly at Hollywood's business model. And Veo 3 is just the tip of the spear. Behind it are entire pipelines – Gemini-powered plot generators, scriptwriting agents, motion planners, and real-time editors. Google is compressing the entire TV and film production supply chain into a single generative stack. Do you know what happens when you take a years-long, $100-million content pipeline and squeeze it down into a GPU-powered prompt that costs pennies? You break the game… If you work in video production – or the hundreds of satellite roles orbiting it – AI just kicked in your trailer door with Veo 3. Think about it. With this quantum leap in AI's video generation capabilities, actors could soon be replaced by photorealistic avatars and voice clones. No need for makeup artists; glam will be digitally rendered in post. Goodbye, set designers; hello, infinite virtual stages. Cinematographers? AI models now handle camera movement with humanlike precision. Now, writers, you're still needed… but you'd better learn to prompt. This might feel like sci-fi, but it's more so basic economics. Studios are always hunting for ways to reduce cost and time. And AI doesn't sleep, unionize, forget lines, or demand a four-figure payday. That's why we expect that over the next five to 10 years, AI will eat the technical backend of filmmaking the way Amazon ate retail – and with the same ruthless cost-efficiency. The same kinds of players always win when the tech curve steepens: Those who ride the exponential wave instead of trying to fight it. Take Netflix (NFLX) – Blockbuster killer; once DVD-dealer, now data king in entertainment. It knows what you watch, when you watch it, what you love, and what you hate. Imagine what an AI script engine could do with all that data. You're a fan of fictional period romance stories? Netflix's AI could create 10 different versions of the next Bridgerton, testing which hooks you harder – then instantly generate the winner in full. Or how about Alphabet (GOOGL)? It runs YouTube and Veo 3 – the delivery pipelines and creative infrastructure. Combine Veo with Gemini and YouTube Studio, and you've got a vertically integrated AI content machine with billions of monetizable eyeballs. And then there's Meta (META). It's got LLaMA, Emu, and a raging addiction to immersive content. Just picture Veo-level video generation tailored to your social graph, optimized for infinite scroll, and seamlessly injected into Instagram, Threads, and the Metaverse. Engagement meets hallucination. And the rest of Hollywood? Well… Legacy studios, crew-heavy productions, anyone betting their future on union-only sets and hundred-million-dollar shoots… it seems you are on notice. The economics just changed – permanently. When it comes to AI-native studios that can churn out hyper-targeted content at 1/100th the cost and 100x the speed, there's no competition. And it's not likely that audiences will resist. Pundits said the same thing about CGI, YouTube, reality TV, TikTok. People don't care how it's made. They care how it feels. And if AI gives them a hit of dopamine, they'll hit 'Next Episode' without a second thought. This latest AI breakthrough feels a lot like the early 2000s, when Amazon used the internet to undercut brick-and-mortar retail. Lower costs, faster delivery, wider selection. Incumbents laughed… until they went bankrupt. Remember Sears, JCPenney, K-Mart? Same script, different industry. AI is the internet. Veo 3 is Netflix is Jeff Bezos, sitting atop its throne with a popcorn bucket in hand. And once one company starts passing cost savings to consumers with cheaper subscriptions, faster content cycles, and more personalization, others have to follow. That's how you get a full-blown economic reset. Currently, Veo 3 is available to select creators via waitlist — but given Google's track record with rapid deployment, widespread rollout to YouTube creators and enterprise partners could come quickly. Here's what we think could be next: Custom AI-generated series and movies tailored to individual users Interactive stories where the plot evolves based on viewer engagement Fan-generated shows that rival studio hits Ad-supported, AI-produced content that costs nothing to stream Veo 3's launch proved that the AI Content Economy is just around the corner. We are years – not decades – away from this becoming a widespread reality. So, if you're an investor, go long AI. This breakthrough tech is eating the whole global economy. Hollywood is just one entree in a seven-course meal. Buy the platforms, AI chipmakers, infrastructure enablers, and appliers – Alphabet, Meta, Nvidia (NVDA) – and yes, Netflix. These are the architects of the new media world. Learn to prompt like a boss; curate, direct, and remix. AI is the orchestra, but someone still has to conduct. And if you're in denial, you might want to check the mirror – and ask Blockbuster how things shook out after ignoring the curve. AI's industrialization of content creation isn't a theory anymore: it's a living, accelerating disruption. Veo 3 marks the moment when generating Hollywood-quality video no longer requires Hollywood-scale budgets. And we're just at the starting gate. Just as streaming upended cable and smartphones reshaped the internet, generative video is about to redefine content itself – who created it, how fast it's made, and who profits. The big studios? Maybe. But more likely, it'll be the AI-native platforms, the chipmakers, and the investors who saw it coming. And yet, Veo 3 is just one front in a much broader AI revolution. While the world watches digital actors take center stage… Another trillion-dollar transformation is forming in the wings. Humanoid robots – what we're calling '' According to Morgan Stanley (MS), this market could be worth as much as $30 trillion in the coming decades. That's bigger than today's global e-commerce and cloud computing markets combined. Why? Because humanoid robots won't just generate videos or write code. They'll do the jobs. Real, physical tasks in factories, on farms; in homes, hospitals, and warehouses. Every job the global economy depends on could be automated, accelerated, and made profitable at scale. And it's all happening faster than most expect. . The post Google Just Kicked In Hollywoodâs Trailer Door appeared first on InvestorPlace.
Yahoo
02-06-2025
- Business
- Yahoo
AI Winners vs. AI Victims – Get on the Right Side of This Trade
In the early 1900s, Eric Fry's grandfather lost his job on an Illinois farm – not to a person, but to Henry Ford's tractor. Displaced by a machine, he packed up and headed west to work as a cowboy in Montana. That story has become a warning for our times. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, AI is rapidly displacing workers in nearly every industry – creating a massive divide between what Eric calls the 'AI Appliers' and the 'AI Victims.' According to Eric, the impact of AI today is as disruptive as the tractor was to American farming. And the pace is accelerating as the world approaches artificial general intelligence (AGI). In today's Digest, Eric tells us about two stocks that have taken dramatically different routes as AI continues to split our stock market. The first is rapidly generating wealth; the second is destroying it. This divergence is why Eric is sounding the alarm in an important new presentation called He'll tell you more today. Bottom line: AI isn't just coming – it's here. And Eric believes investors have only a short window to prepare. I'll let him take it from here. Have a good weekend, Jeff Remsburg ********************** I once asked my dad why his father migrated from the Illinois farm country to Montana cattle country in the early 1900s. 'Henry Ford destroyed all the farm jobs,' he told me. 'My dad couldn't get work on the farms anymore, so he moved up to Boseman to work as a cowboy.' Now, Henry Ford did not destroy farm jobs personally, of course… but his innovative tractor did. His 'Fordson Model F' tractor went into production in 1917 and became an instant hit with farmers in the Midwest. As the first mass-produced, inexpensive tractor, the Fordsons captured an overwhelming 70% share of the market by 1922, and their popularity grew rapidly. By 1928, 700,000 of them were rolling off the production line each year. Artificial intelligence is not unlike Henry Ford's novel tractor. It is a new technology that will produce widespread efficiency gains, while also reducing or eliminating entire categories of employment. Changes of that magnitude are difficult to imagine and, therefore, difficult to embrace seamlessly and profitably. That is why we must 'future-proof' our lives to the furthest extent possible. It is also why we must remain focused on the once-in-a-generation investment opportunities AI is producing. In effect, artificial intelligence is slashing the world of commerce into two distinct groups: the AI appliers and the AI victims. The companies that hope to survive and thrive must adopt and integrate AI technologies as quickly as possible. Those that fail to do so will perish… and time is of the essence, especially as we get closer and closer to achieving artificial general intelligence (AGI). I first sounded the alarm about the approach of AGI last August. At that time, I shared several companies that I believed to be both AI winners and losers to my subscribers at my elite trading service, And it turns out, my calls were right on the money, literally. So today, let's take a deep dive on one AI success story to examine the traits that powered its market-beating results… and one a company in the crosshairs of AI that everyone should avoid. Let's take a look… Since I profiled this AI winner last August, its stock has soared 80%. This Boston-based firm provides AI-enabled solutions for virtually every facet of the restaurant biz – from online ordering fulfillment to reservations management to supply-chain control. I'm talking about Toast Inc. (TOST). Since 2011, Toast has been perfecting a platform that can come in and handle all of the tech that restaurants need, integrating online ordering, contactless payments, delivery services… and even bookkeeping. The result is a software platform that almost all of us – or at least nearly everyone who orders takeout or delivery online (myself included) – have used at some point. This technology has helped Toast achieve a remarkable 119% net revenue retention rate since 2015. This software-as-a-service (SaaS) metric calculates the percentage of revenue retained from an existing customer over a specific period of time. In essence, Toast has become a database software company. The firm has one of the largest and most valuable datasets in the entire restaurant industry, enabling it to develop and perfect leading-edge AI tools for the industry. Toast's database software can help restaurants calculate their costs in real-time and understand when to offer specific food items and at what price. These real-time insights can mean the difference between success or failure in the cutthroat restaurant business. The more data Toast gathers from its growing roster of clients, the better its AI becomes. Toast's operating margins have achieved a pivotal inflexion point, from negative to positive. After running double-digit negative margins for several years, that metric inched into positive territory nine months ago and has continued moving higher. As a result, Toast's gross profit (EBITDA) is also positive and moving higher. Last week, the company reported record revenue and EBITDA for the first quarter, both of which topped analyst estimates by a wide margin. The stock celebrated the good news by jumping 10% on the day of the earnings release. Toast is integrating AI technology into its market-leading platform as rapidly and comprehensively as possible, which is one big reason why I expect the company to thrive. It's the kind of company you may want to investigate further, as it should produce growing revenues and earnings over the coming years. As AI technologies stretch the tentacles into every facet of our existence, the roster of successful 'AI appliers' will grow by the day. But the roster of 'AI victims' will grow even larger. Here is one such stock to avoid… The companies that fail to adopt AI technologies either lack the expertise to do so or have business models that are fundamentally incompatible with AI. Either way, we do not want to be holding stocks that AI is threatening. That's why I continue to highlight at-risk companies from time to time, like I did last August when I identified Shutterstock Inc. (SSTK) as a company 'sitting in the crosshairs of AI.' As I explained at the time… Once upon a time, Shutterstock was a cutting-edge graphics company with a massive, and valuable, library of proprietary images. Today, that library looks more like an anvil than a pair of wings. Since issuing that warning, Shutterstock's financial results have continued to deteriorate. The company posted EPS of just $1.01 last year, not the $1.90 analysts expected, while the consensus earnings estimate for this year has tumbled from $3 to $2.10. Not surprisingly, the stock is down more than 40% since my skeptical analysis. Shutterstock is not an outlier. Therefore, we must examine every prospective investment through the lens of AI and be alert to both the opportunities and the hazards it will create. That's why I've just put the finishing touches on four new research reports focused on investing in AI before artificial general intelligence takes hold. Three of the reports highlight a stock to buy, while the fourth one warns about three stocks to sell. . Like last August, I am once again hosting an event on AGI's dangers – and opportunities. The time to get ready before AGI appears is running out, which is why I am now issuing my During that event, , I put forward a three-part blueprint, featuring… My thoughts on why precious metals, energy, real estate, and biotech sectors are where everyone should be looking right now… My No. 1 AGI-related stock pick that's already showed a 46% gain while the S&P 500 index dropped 5%… And details on critical stocks to avoid or sell immediately before they collapse. . Regards, Eric Fry The post AI Winners vs. AI Victims â Get on the Right Side of This Trade appeared first on InvestorPlace. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Don't Miss Out: AI Agents Are Becoming Tech's Next Battleground
Hello, Reader. We've all been there – stuck on the phone in customer service purgatory. That moment when you're yelling 'agent!' into the phone… jabbing zero over and over… and still getting nowhere fast. InvestorPlace - Stock Market News, Stock Advice & Trading Tips You just want a real human. Ironically 'agents' are exactly what Big Tech is racing to create — not helpful humans, but autonomous AI systems designed to replace them entirely. Now, we're used to 'generative' artificial intelligence. These are AI models that use pattern recognition to generate content, like text, images, and videos. Think chatbots like ChatGPT, Google's Gemini, or Claude. 'Agentic' AI, on the other hand, refers to systems that can autonomously make decisions and take action. AI agents are able to handle the sort of tasks performed by personal assistants or customer service agents… and they can do so without the constant help of human hands. Now, let me tell you: Agentic AI is here, and it's moving fast. About a month ago, Inc. (AMZN) jumped into the AI agent race with Nova Act, an AI model specifically designed to perform tasks within web browsers, essentially doing the work for you. Unlike the chatbots we're used to that only respond to our commands, Nova Act takes action all on its own. Following the announcement, Amazon released a 'research preview' version of Nova Act. It's not yet open to the public, but it allows invited developers to try their hand at building AI agents to handle everyday tasks like submitting time-off requests, blocking calendar time, or setting up automated email responses. Amazon claims Nova Act has over 90% accuracy, even with tasks that normally confuse other AI agent models – like picking dates or handling those annoying pop-up windows. 'Our dream is for agents to perform wide-ranging, complex, multi-step tasks,' an Amazon spokesperson said. They are picturing a future where an AI agent can help plan your wedding or summer vacation, or even help businesses perform complicated IT tasks without someone constantly watching over it. In fact, Nova Act is already working in Alexa+ to browse websites and complete tasks when direct software integrations aren't available. Additionally, Bloombergrecentlyreported that Apple Inc. (AAPL) is working on its own agent – an 'AI doctor service' codenamed 'Project Mulberry' (or 'Health+'). Apple's AI agent would play doctor by collecting health data from your iPhone and Apple Watch. It would then analyze that information and provide personalized recommendations to improve your health. The company is also organizing a team of health professionals across various specialties… doctors who would create videos the AI agent can reference as it assesses concerning trends in your data. Apple is even on the lookout for a well-known 'major doctor personality' to be the face of this service. According to Bloomberg, this project is a top priority for Apple's Healthcare division, with a release as early as spring or summer 2026. Beyond consumer applications, AI agents are also transforming how businesses operate, with major tech partnerships forming rapidly. Including one you can get in on… Last week, International Business Machines Corp. (IBM) announced a partnership with one of my recommendations to advance IBM's own AI platform, Watsonx. Through this collaboration, IBM will expand its AI agent, called Watsonx Orchestrate, to support multi-agent workflows. This setup allows customers to build and manage AI agents across business processes. Watsonx Orchestrate will first be implemented in human resources, with its agents performing AI inferencing where customer data is stored. It is expected to be available on a major cloud platform this July. As I mentioned, IBM's partner in this endeavor is a company I've been watching closely – as it is actively integrating AI agents across its platforms, making it a leader in the agentic AI space. And this collaboration is just one of many strategic moves it's making… I've put all the details about this promising AI agent player inside my special report . You can learn how to access this report through my latest free special broadcast. The fast-paced AI race is reshaping our world minute by minute. So, the right investments now could make all the difference to your portfolio tomorrow. Click here to learn more. Now, let's look at what we covered here at this past week… Wednesday, May 7, 2025 The companies that are building AI data centers need to find the right 'sound' to fulfill their energy needs. And when it comes to powering the data centers that support AI, one 'sound' – nuclear energy – has no equal. And there's one specific way you can capitalize on its future. Thursday, May 8, 2025 The Federal Reserve concluded its latest policy meeting last week. My colleague Louis Navellier sat down with InvestorPlace Editor-in-Chief Luis Hernandez to talk about the Fed's decision. Louis shares a tip on how investors can profit regardless of what's happening in the market. Saturday, May 10, 2025 Everyone knows that 1) high growth, 2) high-profit companies bought at 3) low prices are the key to success. But it's hard to find 'triple threats' that combine these three things into a single package. That's why finding these type of firms is one of the greatest joys in investing. My colleague Tom Yeung digs up one place you can find winning triple-threat plays. Sunday, May 11, 2025 Stocks just endured one of the fastest and most violent crashes in modern history. But then came the biggest comeback rally in the past 100 years. And InvestorPlace's Luke Lango believes that momentum is building. So, he shares more about the summer rally that is fast approaching… and an easy-to-use quant tool that you can use to profit. Agentic AI isn't the same as artificial general intelligence, or AGI. When we reach that stage, that's when AI will achieve human-like cognitive abilities. However, agentic AI is an important precursor to the Road to AGI. The advent of AGI is something that I've been keeping an eye on. And with each new AI milestone, we're getting ever closer. Investors who are unprepared will miss the transformative opportunities that AGI will bring. But those who position themselves correctly could witness the greatest moneymaking opportunity in human history – with the possibility to surpass even the Internet Revolution. In fact, I'm issuing my 'final warning' on AGI in a new free broadcast event later this week. I first started talking about AGI last August, when I warned that we are closer to AGI than most people think. And that many are unable to even fathom the kinds of changes this quantum leap in technology will usher in. Back then, hardly anyone had heard of AGI. But now, with a new administration in the White House, the acceleration toward the inevitable is gaining steam. The $500 billion Project Stargate, announced on President Trump's first day in office, is proof of that. If you missed my message last year, you are getting a second chance to take action at later this week. I've identified several companies that are strategically positioned to capitalize on this coming wave of this current 'pre-AGI' market. I'll have everything you need to know about those companies and my final AGI warning later this week. Watch your inbox for an invitation. Regards, Eric Fry The post Donât Miss Out: AI Agents Are Becoming Techâs Next Battleground appeared first on InvestorPlace. Sign in to access your portfolio
Business Insider
04-05-2025
- Business
- Business Insider
4 Stocks to Buy for a Potential 'Summer Panic'
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tom Yeung here with your Sunday Digest. Last month, I wrote about five stocks to 'buy the dip.' Our quantitative systems signaled April's selloff had gone too far and that low prices would be enough to trigger a market rally. Since then, these five firms have performed splendidly, largely outperforming the S&P 500's 8% rise. InvestorPlace Senior Analyst Luke Lango believes this is just the start. He predicts a major event on May 7 will trigger a flood of cash – as much as $7 trillion – to rush back into U.S. stocks. It's a catalyst that could change the entire market dynamic and create a new summer 'panic' of the sort not seen since 1997. This is why he held a special 2025 Summer Panic Summit on Thursday. At this event, Luke explained why he believes this catalyst on May 7 will be a game-changer. Plus, he revealed a new set of stocks that he believes are primed to lead the next wave of growth. (You can watch a replay of the event here.) Now, I can't tell you what this catalyst is. You'll have to see it for yourself in Luke's special presentation. But if this panic buying he describes does take off, several of my top long-term picks are certain to benefit. Let's revisit two of them today – and a new one as well… The Leveraged Play The first is Sabre Corp. (SABR), one of the three firms that run the world's Global Distribution System (GDS) for hotels and flights. Virtually all travel agents and online booking systems use GDS to book flights since it's the only platform with real-time data on available seats, rooms, and prices. That means industry profits are generally stable and very high. (Even Alphabet Inc. [GOOGL] failed to create a rival system and now uses Sabre to power Google Flights.) That's why private equity decided to take Sabre off the public markets in 2007. They saw a cash cow that could be loaded with debt to make large profits even bigger. And it worked, at least in the short run. Sabre returned to public markets in 2014 with 50% higher net income, and the stock surged another 70% the following year as profits continued to climb. Then, two things happened. Covid-19. The once-in-a-century pandemic brought air travel to a near standstill, slashing Sabre's revenues and making debts impossible to service. Rising rates. The following year, the U.S. Federal Reserve began hiking interest rates to stave off inflation, making it harder for Sabre to pay off existing debts and roll them into new deals. That crushed Sabre's share price, which has fallen 90% since early 2020. Its debts are now worth almost six times more than its equity… a situation usually associated with near-bankrupt companies. But if Luke's calculations are right, things could soon turn around for this equity 'stub.' In fact, since the company is so financially leveraged, a 10% increase in enterprise value will translate into a 58% increase in share price. That makes Sabre an incredible 'option-like' play. In the worst case, the stock goes to zero… but in the best case, SABR shares could rise 2X… 5X… or even 10X. The Real Estate Kings The May 7 catalyst will also be felt among real estate companies that rely on more traditional debt financing. My two favorites are on opposite ends of the risk spectrum. I would recommend both as complements. Realty Income Corp. (O). This real estate investment trust (REIT) is arguably the most conservative of its kind. Leases are made on a 'triple net' basis, meaning tenants are responsible for almost all costs, and the company attracts blue-chip tenants by offering minimal rent increases. Its dividend is paid monthly and sits at a stunningly high 5.6%. Digital Realty Trust Inc. (DLR). Meanwhile, DLR is one of the most aggressive REITs thanks to its single-minded pursuit of growth in AI data centers. Gross income more than doubled to $2.9 billion in 2024, and analysts expect another 50% surge to $4.5 billion by 2027. Cloud computing firms like Microsoft Corp. (MSFT) are still starved for computing power, and Digital Realty has grown as quickly as possible to service that need. Dividends are lower at 3% to reflect this potential. These two firms are well run. Realty Income has played the long game by focusing on grocery stores (10% of its portfolio), convenience stores (9%), non-retail stores (i.e., industrial and services) (21%), and other businesses resistant to e-commerce competition. On its part, Digital Realty realized early on that cloud computing customers would need dense colocation data centers (where powered, connected warehouse space is rented out to firms that bring their own servers) and quickly moved to offer that service. That means both firms should see a surge in buying interest on a May 7 catalyst. Despite their differences, these REITs are economically sensitive firms. And if Luke is right, a summer panic could send these types of companies soaring. The Healthcare Acquirer Finally, I'm adding a new pick to my top list: Biogen Inc. (BIIB). This high-quality biotech firm was created in 2003 in a mega-merger of Biogen and automation company Idec. Shares rose as much as 1,200% through the biotech boom of the mid-2010s as blockbusters like cancer drug Rituxan and MS therapy Avonex came onto the market. Biogen also proved reasonably adept at acquiring and partnering with other biotech firms, though a 2019 acquisition of Nightstar did end with two clinical failures. Challenges began to mount after 2023 on rising research costs and high interest rates. Suddenly, new therapies became far more expensive to finance. A lackluster launch of Alzheimer's drug Leqembi also spooked investors. So did recent staffing cuts at the U.S. Food and Drug Administration (FDA), which will increase the time and barriers for new drug approvals. Biogen's stock has dropped 60% over the past two years and trades at 8X forward earnings, compared to a long-term average of 13.3X. The May 7 catalyst could change part of that equation. This summer, we could see investors return to this beat-up stock whose forward price-earnings ratio now looks more like an automaker's than a top-tier biotech's. Biogen's pipeline and several new launches look reasonably strong. Recently approved drugs like Skyclarys, used in neurology, and Zurzuvae, for postpartum depression, should reduce the impact of expiring drugs and Leqembi's slower-than-expected success. It's also worth noting that large biotechs like Biogen have significant marketing and production scale that make them attractive partners, allowing them to snap up promising smaller firms at a discount. Of course, many of Biogen's challenges will remain. Biotech is an industry that generates enormous paydays and equally significant flops. I'm also not expecting a quick return to 'normal' at the FDA. Still, if you had told me two years ago that Biogen would be on sale at 8X forward earnings, I wouldn't have believed you. And now, it's something worth taking advantage of. The Summer Panic of 1997 In May 1997, the Asian Financial Crisis was getting started. Currency speculators were dumping the Thai baht, forcing that country's central bank to defend their currency exchange rate with a dwindling supply of foreign reserves. By July, these reserves had run out, triggering a devaluation and market mayhem. It only took several months for the crisis to spread to South Korea, Hong Kong, and beyond. Asian stock markets collapsed. Yet, none of this affected the dot-com boom. Over the same period, the tech-heavy Nasdaq Composite surged 20% to a new record as American investors began recognizing the promises of the internet. Retail investors were more panicked about missing out than with some faraway financial crisis. Luke Lango believes we're approaching a new version of this two-sided 'panic.' Today, bearish institutional investors are dumping tariff-impacted companies as global macro fears kick in. Shares of Norwegian Cruise Line Holdings Ltd. (NCLH) have dropped 38%, while those of shoe retailer Deckers Outdoor Corp. (DECK) have sunk 45%. Meanwhile, retail investors are aggressively buying the dip every chance they get. On April 3, individual investors bought $4.7 billion of equities following President Donald Trump's 'Liberation Day' selloff. And on Wednesday, a negative U.S. GDP report was quickly buried as these same mom-and-pop investors snapped up shares. That's because there's a lot of money sitting on the sidelines. And there are a lot of bullish investors waiting to buy up stock. This could come to a head on May 7, when Luke predicts an event will trigger a new cascade of retail buying. Understandably, everyone is focused on short-term moves in the midst of a fast-paced market. But there's something bigger happening behind the scenes… For the full breakdown of this catalyst – and Luke's blueprint for the summer – click here to check out his 2025 Summer Panic Summit. Until next week, Tom Yeung
