Latest news with #ScottishMortgageInvestmentTrust
The National
4 days ago
- Automotive
- The National
Pictures of the week: From Limp Bizkit in Abu Dhabi to a robotic knockout
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575. It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker's market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late. The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood's ARK Innovation ETF. Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month. Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had 'flown a bit too close to the sun', after getting carried away by investing $1.5bn of the company's money in Bitcoin. He also predicted Tesla's sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage. AJ Bell's Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. 'When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.' A Tesla correction was probably baked in after last year's astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price. Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear. Every week, she sends subscribers a commentary listing 'stocks in our strategies that have appreciated or dropped more than 15 per cent in a day' during the week. Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector. By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing. Despite that setback, Ms Wood remains positive, arguing that its 'medicinal chemistry platform offers a powerful and unique view into chemical space'. In her weekly video view, she remains bullish, stating that: 'We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.' Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years. She said these are so 'enormous that some people find them unbelievable', and argues that this scepticism, especially among institutional investors, 'festers' and creates a great opportunity for ARK. Only you can decide whether you are a believer or a festering sceptic. If it's the former, then buckle up.
Yahoo
22-07-2025
- Business
- Yahoo
1 Unstoppable Stock to Buy Before It Soars More Than 1,100% Over the Next 10 Years, According to 1 World-Renowned Analyst
Key Points Nvidia has had a blistering run since the dawn of AI, but there could be much more to come. One legendary investor believes that the chipmaker could soar to heights over the coming decade. Asking if a $50 trillion market cap is far-fetched might be the wrong question. 10 stocks we like better than Nvidia › U.S. investors might not be familiar with the name James Anderson, but his pedigree and investing success are undeniable. The iconic investor was a star stock picker at Scottish investment management firm Baillie Gifford for more than four decades. He headed the premier Scottish Mortgage Investment Trust for more than 20 years, amassing gains of more than 1,700% during his tenure. Anderson established his reputation as a visionary by taking early stakes in trailblazing, explosive-growth companies including Netflix, Amazon, Tesla, and Nvidia (NASDAQ: NVDA), generating substantial gains for investors in the process. Given his history of spotting big winners early on, investors would do well to heed his advice. The age of artificial intelligence (AI) has only just begun, and if adoption continues at the current rate, Nvidia's market cap could catapult to as much as $50 trillion (not a typo) by 2035. While that might seem far-fetched at first glance, Anderson provides a compelling argument to support his assertion. Cornering the market Groundbreaking advances in the field of AI have had a profound impact on Nvidia's fortunes. Since the dawn of generative AI in late 2022, the company's market cap has soared tenfold from $416 billion to $4.16 trillion (as of this writing). Helping drive that increase was Nvidia's graphics processing units (GPUs) becoming the gold standard for processing AI. The chipmaker's financial results have helped fuel its meteoric rise. After generating two consecutive years of triple-digit year-over-year growth, the inevitable slowdown occurred, but the current results are enviable nonetheless. In its fiscal 2026 first quarter (ended April 27), Nvidia generated revenue that grew 69% year over year to a record $44.1 billion, while adjusted earnings per share of $0.81 marked a 31% jump. To give the results context, Nvidia's $44 billion in sales in the most recent quarter far exceeds the $27 billion in revenue the company produced for all of fiscal 2023. As impressive as these results are, there could be much more to come. AI could add as much as $15.7 trillion to the global economy by 2030, according to a report released by "Big Four" accounting firm PricewaterhouseCoopers (PwC). The report goes on to suggest "AI is still at a very early stage." Capturing just a portion of that market opportunity would be a windfall for Nvidia, driving its sales and profits even higher. Anderson calculates that the market for data centers, where the vast majority of AI processing takes place, is growing at a rate of roughly 60% annually. If growth continues at that rate over the coming decade, and Nvidia can maintain its profit margins, that would translate to EPS of $1,350 and free cash flow of roughly $1,000 per share. Given those metrics, the stock would then be worth roughly $20,000 per share, which works out to a market cap of about $49 trillion. Competitive advantages Looking at Anderson's most profitable investments can be illuminating. Amazon stock has surged 227,600% since its IPO, while Netflix and Tesla have soared 105,000% and 20,020%, respectively. However, Anderson points out that this isn't an apples-to-apples comparison, since these big winners "didn't start from highly profitable and dominant positions but had to get there." Nvidia checks those boxes. The company is highly profitable, and despite rising competition, Nvidia is currently the undisputed industry leader in the data center GPU space, with a dominant 92% market share, according to IoT Analytics. Beyond its industry-leading position, Nvidia has other advantages. It's "persistent exponential progress, the competitive advantages in hardware and software, and the culture and leadership are exactly what we look for," he noted. Plenty of things will have to go right To be clear, even if everything else went according to plan, there are plenty of other things that could trip up Nvidia on its journey to $50 trillion. The ongoing adoption of AI appears likely, but it may not materialize. A rival could invent a better solution for handling AI models. Nvidia could fail in its efforts to stay ahead of the competition. A black swan event could confound growth. Tariffs could backfire, driving up inflation and sparking a recession. Not to be a killjoy, but the world is full of uncertainty, and any of these developments -- or many more not listed -- could be a stumbling block for Nvidia on the path to $50 trillion. A better question Anderson was quick to point out that his theoretical benchmark "Isn't a prediction but a possibility if artificial intelligence works for customers and Nvidia's lead is intact." He goes on to suggest that the likelihood of Nvidia reaching those heights is slim, suggesting the potential for this outcome clocks in at between 10% and 15%. Yet it's worth taking a step back and focusing on the big picture. "It is the long duration of the development of [GPU] usage in AI -- and not just AI -- from excitement, through potential pauses, to transformation of industries that is most important to us," Anderson said. On the subject of valuation, Nvidia is currently selling for 29 times next year's expected earnings, which is frankly a bargain, given the magnitude of the opportunity. For me, the question isn't whether Nvidia could ultimately hit a market cap of $50 trillion over the coming decade. The more relevant question is whether the company will continue its long track record of innovation, while finding new ways to implement its technology, and capitalize on these secular tailwinds in the process. Given its track record, I would submit the answer is a resounding "yes." That's why Nvidia stock remains a buy. Should you buy stock in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia 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 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Danny Vena has positions in Amazon, Netflix, Nvidia, and Tesla. The Motley Fool has positions in and recommends Amazon, Netflix, Nvidia, and Tesla. The Motley Fool has a disclosure policy. 1 Unstoppable Stock to Buy Before It Soars More Than 1,100% Over the Next 10 Years, According to 1 World-Renowned Analyst was originally published by The Motley Fool Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
The Guardian
08-04-2025
- Business
- The Guardian
European markets open higher after global sell-off driven by Trump tariffs
European stock markets opened higher on Tuesday in early signs of a rebound from the punishing global sell-off triggered by US trade tariffs. Stock markets in the UK and across the EU were in positive territory in early trading on Tuesday, as some investor optimism returned after heavy falls as a result of Donald Trump's 'liberation day'' tariff announcements last Wednesday. London's FTSE 100 index of blue-chip stocks was 95 points higher in early trading, up 1.2%, at 7799 points. In Frankfurt, Germany's DAX was 1.3% higher while France's CAC jumped by 1.8%. The pan-European Stoxx 600 index. On the FTSE, the technology investor Scottish Mortgage Investment Trust was the top riser, up 4%, followed by miners, oil companies and banks. Investors are hoping that the market could stabilise as reports have emerged that the US Treasury secretary, Scott Bessent, will lead trade talks with Tokyo, in a sign that the Trump administration will be open to negotiate on tariffs. The news drove a modest rebound in Asian markets overnight, led by Japanese stocks. Tokyo's Nikkei index recovered by 5.6%, while Hong Kong's Hang Seng index rose by 1.6% after its steepest drop since the 1997 Asian financial crisis on Monday. outh Korea's Kospi index closed up 0.5%, after it pared back an earlier gain of as much as 2.3%. However, Taiwan's benchmark, the TWII, still ended the session down 5%, after its worst daily fall on record on Monday. The country is heavily dependent on chip exports and was hit with a 32% duty by the US. Despite some of the rebounds, there remains a heightened level of uncertainty among investors in Asia. The Chinese government said it will 'fight to the end' if the US continues to escalate the trade war, after Trump threatened additional 50% tariffs if Beijing did not reverse its own 34% reciprocal tariff. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The Chinese commerce ministry vowed to 'resolutely take countermeasures', adding that China 'will fight to the end if the US side is bent on going down the wrong path'. In Europe, the European Commission said on Monday that it had offered the US a 'zero for zero' tariff deal on cars and industrial goods weeks before Trump launched his trade war. The EU commissioner for trade, Maroš Šefčovič, said the EU remained open for talks, but it would not 'wait endlessly'. Matt Britzman, a senior equity analyst at Hargreaves Lansdown, said: 'Investors are waking up to a positive sight for once, with markets opening higher across a broad range of European indices. 'However, this should hardly be seen as the end of the trouble, especially with President Trump showing no signs of easing his stance on perceived trade imbalances, having doubled down on China.' Britzman said signs of US-Japan trade talks offered a 'glimmer of hope'. 'The sooner deals are reached, the quicker companies and investors can gain some clarity on the lay of the land,' he said. Elsewhere, the investment bank Goldman Sachs forecast that Brent crude oil could fall below $40 (£31) a barrel in late 2026 in an 'extreme scenario' of a global slowdown in GDP and a full unwind of Opec+ production cuts. Oil prices hit a four-year low on Monday to less than $64 a barrel but improved slightly on Tuesday, up about 1%. Despite initial signs of a potential recovery in Europe and Asia, the American S&P 500 index is down by more than 10% since the tariff announcements. This marks the worst three-day performance since March 2020 during the height of the pandemic, according to Deutsche Bank. Government bonds were also sold off heavily on Monday, as the yield on the 30-year US Treasury rose by 21 basis points, its biggest daily spike since March 2020. The yield on the 10-year Treasury bonds rose by as much as six basis points to 4.216% on Tuesday.
Yahoo
08-02-2025
- Business
- Yahoo
£20,000 in savings? Here's how investors can aim for a £4,000 monthly second income
Turning £20,000 into a second income through investing is easier than many think. With the right approach, these savings can grow over time and eventually deliver a potentially life-changing passive income. Dividend stocks, index funds, and growth-oriented investments offer simple ways to build wealth, while reinvesting earnings helps accelerate progress. New investors must remember that market ups and downs are normal, but a long-term mindset makes all the difference. Even small gains can add up, providing extra financial security. Investing isn't just for the wealthy — it's a powerful tool for anyone looking to boost their income. Time's one of the critical components of investing. The longer money stays invested, the greater the potential for compounding returns. Compounding's why reinvesting dividends and allowing profits to grow can turn modest amounts into substantial wealth over time. Starting early and staying invested is key. In fact, time in the market matters more than trying to time the market. £20,000 would be an amazing starting point for any new investor. However, if an investor wants this to grow into something substantial, they should consider making a monthly contribution from their salary. These things really do add up over time. So let's crunch the numbers. Starting with £20,000 and adding £250 a month, an average annual return of 10% over 30 years could grow the investment to an impressive £961,000. And with £961,000, I'd be able to generate around £48k annually — or £4,000 monthly — if I invested my pot in dividend-paying shares with an average yield of 5%. Many social media influencers will recommend investing in global index trackers to obtain maximum diversification while growing wealth. I can't disagree that these vehicles are excellent for diversification and the long-run performance is strong, beating savings accounts by some distance. However, investors may also want to consider a more growth-oriented approach through Scottish Mortgage Investment Trust (LSE:SMT). This FTSE 100 stock's delivered impressive long-term performance, with a 10-year total return of 365.1% compared to the Global AIC sector's 236.6%. The trust focuses on high-growth technology and tech-affiliated stocks, with top holdings including SpaceX (7.5%), Amazon (6.3%), and Meta Platforms (4.6%). Despite its strong track record, investors should be aware of potential risks such as economic slowdowns and trade tariffs, which could disproportionately affect the tech sector. Nonetheless, the trust's diversified approach, with 95 different holdings, helps mitigate some of these risks. Currently trading at a discount to its net asset value, Scottish Mortgage offers investors exposure to both public and private companies in the fast-growing technology sector. This stock could help multiply wealth and help investors actualise their second income goals faster. The post £20,000 in savings? Here's how investors can aim for a £4,000 monthly second income appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, 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. James Fox has positions in Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended Amazon and Meta Platforms. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
