Latest news with #techstocks
Yahoo
20 hours ago
- Business
- Yahoo
Are investors reentering the AI trade after recent 'exodus'?
While Nvidia shares (NVDA) continue to see post-earnings gains after topping first quarter revenue estimates, Spear Invest Founder and CIO Ivana Delevska speaks with host Brad Smith about investor exits from the AI trade and their reentry into the play as they chase the new highs from chip stocks and tech leaders. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Stocks higher after a US court struck down President Trump's tariffs, declaring them illegal. The Nasdaq also getting a boost after Nvidia topped first quarter results, revenue soaring 69% in the most recent quarter. Joining me now, we've got Ivana Delevska, who is the Spear Invest founder and CIO. You say that investors have abandoned the AI trade, and we'll have to come back and chase the high-quality stocks and AI stocks like Nvidia. Why is that? So that's right, Brett. Thank you for having me. Basically, as tariffs started getting announced, and the economy became a little more uncertain, investors sold what they own, and they were really overweight the AI trade. Specifically people that didn't quite understand what they were getting themselves into, so it was a real exodus coming out of names like Nvidia, but even more so in some of the smaller caps. And right now as we approach second half, we're seeing the Blackwell ramping really well. And that's going to drive the entire value chain up, so we are very positive on the second half. So we think as we get closer to that, investors will have to come back and and chase it. What type of flows back into Nvidia do we see, even leading up into this earnings print from what you were able to assess? Well, for Nvidia specifically, it was really people coming back to it given the cancellation of the diffusion rule and few other positive catalysts. Like people thought that deep seek was going to be a headwind. It's actually turning out to be a tailwind. So there's been several positives for Nvidia specifically. For some of the smaller caps, there's also been a lot of short covering that we've been seeing. So the first leg up, I would say, from the bottom was mostly short covering. I think institutions and hedge funds are still quite underweight. And as they come to the market, I think that's when you're going to see the next leg up for these stocks. What's the most underappreciated portion or sector of the AI trade if you will? Well, there's several sectors that are underappreciated. One example is power generation. This space basically came under a lot of pressure, but it's actually not even going to be negatively impacted by tariffs, right? So as you have more onshoring, there's going to be more build out in the US, and there's going to be more power demand. So I would say that one sector is pretty misunderstood. Another area is networking. You're seeing a lot of the networking names sell off today, like Arista Networks, like Marvell, and those stocks basically are positively impacted by the AI trade. Some of the comments that Jensen made regarding their entrance into networking is making people nervous about the rest of the networking space and they're thinking that maybe Nvidia will gain market share. But even if they do, the market is growing at such an exponential rate that there is some piece of the pie for everybody here.
Yahoo
a day ago
- Business
- Yahoo
Here's Why Dottikon ES Holding (VTX:DESN) Has Caught The Eye Of Investors
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Dottikon ES Holding (VTX:DESN). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Dottikon ES Holding with the means to add long-term value to shareholders. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Impressively, Dottikon ES Holding has grown EPS by 21% per year, compound, in the last three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The good news is that Dottikon ES Holding is growing revenues, and EBIT margins improved by 2.6 percentage points to 30%, over the last year. Both of which are great metrics to check off for potential growth. You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image. See our latest analysis for Dottikon ES Holding While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Dottikon ES Holding's balance sheet strength, before getting too excited. It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Dottikon ES Holding followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. Notably, they have an enviable stake in the company, worth CHF813m. This totals to 21% of shares in the company. Enough to lead management's decision making process down a path that brings the most benefit to shareholders. Very encouraging. It's good to see that insiders are invested in the company, but are remuneration levels reasonable? Well, based on the CEO pay, you'd argue that they are indeed. For companies with market capitalisations between CHF1.6b and CHF5.3b, like Dottikon ES Holding, the median CEO pay is around CHF1.4m. The Dottikon ES Holding CEO received CHF767k in compensation for the year ending March 2024. That comes in below the average for similar sized companies and seems pretty reasonable. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense. For growth investors, Dottikon ES Holding's raw rate of earnings growth is a beacon in the night. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. This may only be a fast rundown, but the key takeaway is that Dottikon ES Holding is worth keeping an eye on. You should always think about risks though. Case in point, we've spotted 1 warning sign for Dottikon ES Holding you should be aware of. Although Dottikon ES Holding certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Swiss companies that not only boast of strong growth but have strong insider backing. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
Globe and Mail
a day ago
- Business
- Globe and Mail
Why HP Stock Sagged by 11% This Week
The combination of an earnings miss and disappointing guidance put the hurt on veteran tech stock HP (NYSE: HPQ) this week. Over the past five trading days the company's share price withered by 11%, according to data compiled by S&P Global Market Intelligence. Revenue and profitability went in opposite directions Just after market close on Wednesday, HP published figures from its fiscal second quarter of 2025, revealing that its net revenue was $13.2 billion. That was 3% higher than in the same period of fiscal 2024. The dynamic was markedly different on the bottom line, as non-GAAP (adjusted) net income sank to $678 million ($0.71 per share) from the year-ago profit of $812 million. Analysts weren't expecting such a steep drop in profitability; on average, they were modeling adjusted net income of $0.79 per share. On the plus side, the company beat the pundit consensus of under $13.1 billion for net revenue. In the earnings release, HP quoted CEO Enrique Lores as saying that during the quarter, the company had "delivered solid revenue growth, led by strong commercial performance in personal systems and continued momentum behind our future-of-work strategy." Earnings guidance trimmed HP is bracing for impact on tariffs, which affect its operations because many of its components are sourced abroad. It lowered its guidance for the entirety of the fiscal year, setting the forecast for adjusted per-share earnings at $3.00 to $3.30. That's down considerably from its previous estimate of $3.45 to $3.75. Free cash flow should come in at $2.6 billion to $3 billion, meanwhile. The PC market hasn't been lively for years, and given the enduring popularity of mobile devices, I don't expect this to change. That market will also be affected by the tariff war if it drags on. None of this makes me confident about HP stock. Should you invest $1,000 in HP right now? Before you buy stock in HP, 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 HP 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%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 May 19, 2025
Globe and Mail
2 days ago
- Business
- Globe and Mail
2 Cheap Tech Stocks to Buy Right Now
The list of what I'd consider "cheap" tech stocks has shrunk as the market has recovered over the past few weeks, but there are still some out there that could certainly have that label applied. Two that I think deserve the moniker are Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) and Adobe (NASDAQ: ADBE). Both of these companies are dominant in their respective industries. Yet investors have already assumed that artificial intelligence will permanently disrupt them, even though they're rolling out their own AI solutions. I think the market has gotten these two stocks wrong, and their current cheap stock prices look like a serious buying opportunity. How cheap are these two? Both companies are mature and producing profits, so we'll use the forward price-to-earnings (P/E) ratio to assess their affordability. Using this measure, both Alphabet and Adobe trade for around or under 20 times forward earnings: GOOGL PE Ratio (Forward) data by YCharts. This is significant because the broader market, as measured by the S&P 500 (SNPINDEX: ^GSPC), trades for 22.1 times forward earnings. This well-established benchmark gives me confidence in labeling these two companies as cheap, as they're still growing at a solid rate despite their price tags. Alphabet Alphabet's primary business is the Google search engine, although it has other successful brands under its umbrella like Google Cloud, YouTube, and the Android operating system. However, investors are most worried about the search business being disrupted. Their assumption is that an AI-powered search alternative will replace Google. Alphabet's executives aren't blind to this notion and have already integrated AI search overviews into Google results; they've become a popular feature. This may be enough to bridge the gap between traditional search and a full-on AI experience, but Wall Street assumes this won't be enough. Last quarter, Google Search revenue rose 10% year over year, so it hasn't lost its edge quite yet. Investors are also focusing on Alphabet's trouble with the federal government for operating two illegal monopolies (one in search and one on its advertising platform). This threat is real, as the Department of Justice has already considered forcing Alphabet to sell certain parts of its business. However, we're a long way away from learning the outcome of this case, as there are multiple appeals processes to go through. With that in mind, I'll set this threat aside, because there's nothing investors can currently do about it. I'd forgive anyone who doesn't want to invest in Alphabet because of the impending government action. However, there's still plenty of growth left in its search business (as demonstrated over the past few years). And despite the market's worst fears, AI hasn't come for Alphabet yet. Adobe Adobe is in a situation similar to Alphabet's, minus the potential for government intervention. Adobe's creative design suite of products is the industry standard in graphics design, and is widely taught at all levels of education. There's a fear that generative AI-created content could replace what Adobe's primary users create. However, this is a far stretch, as AI-generated content can be impressive, but lacks the exact control that a program like Photoshop can provide. Furthermore, Adobe has its own generative AI offerings that allow users to create or modify existing images rapidly. Time will tell if Firefly is enough to fend off some free generative AI alternatives. Still, eventually those free alternatives will need to start charging fees for the resources it takes to run them to create an image. I think Adobe can outlast this initial AI wave and will emerge stronger than ever on the other side of it. In the meantime, Adobe is putting off solid growth for a mature company, with revenue rising 10% year over year in the first quarter. Earnings per share also rose 16% because a one-time acquisition termination fee dampened last year's results. Adobe is still a solid business that delivers excellent results, but the fear that it will be toppled by AI is causing its stock to be beaten down. This is a mistake, as the company is still a dominant player in its industry. 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%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 May 19, 2025
Yahoo
2 days ago
- Business
- Yahoo
Chinese tech stocks take a hit amid trade deal uncertainty
-- Chinese tech shares listed in Hong Kong fell on Friday, with major companies like Alibaba (HK:9988), BYD (HK:1211), and Baidu (HK:9888) leading the downturn. Friday's drop fall in tech stocks comes amid renewed uncertainty about the prospects of a trade deal between Beijing and Washington. Alibaba shares dropped by 4.2%, while BYD and Baidu saw their shares fall by 3.8% and 3.9% respectively. The {{1164092|Hang Seng TECH}, similar to the Nasdaq, dropped as much as 2.7%. Investor concerns are on the rise amid a recent U.S. trade court ruling that blocked the tariffs imposed by former President Trump, which was quickly appealed. This ruling has introduced a new level of uncertainty into the market. Scott Bessent, the U.S. Treasury Secretary, described the U.S-China talks as "a bit stalled", which could be impacting hopes of progress toward a bilateral deal. In an interview with Fox News on Thursday, Bessent stated that there might be a call between the U.S. President and the Chinese party chair Xi Jinping, due to the magnitude of the talks requiring both leaders to consult with each other. Bessent also noted that the court ruling had no impact on the ongoing negotiations with trading partners. ING's chief China economist, Lynn Song, commented on the situation, stating that it was "unfortunate but unsurprising" to hear that U.S.-China talks had stalled. She added that both sides are still far apart on various issues and there is little mutual trust between them, which is fueling investor concerns. Related articles Chinese tech stocks take a hit amid trade deal uncertainty Sanofi, Regeneron shares nosedive after mixed Itepekimab results Federal court pauses ruling blocking Trump's global tariffs Sign in to access your portfolio
