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President Donald Trump Delivers Huge News for Stock Market Investors

President Donald Trump Delivers Huge News for Stock Market Investors

Globe and Mail3 days ago
The president announced tariffs on a larger group of trading partners, reigniting a trade war that looked to be on pause for several months.
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 8, 2025. The video was published on July 10, 2025.
Should you invest $1,000 in Invesco QQQ Trust right now?
Before you buy stock in Invesco QQQ Trust, 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 Invesco QQQ Trust 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 $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!*
Now, it's worth noting Stock Advisor 's total average return is1,049% — a market-crushing outperformance compared to180%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 7, 2025
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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 Scorching-Hot Artificial Intelligence (AI) Stocks That Can Plunge Up to 72%, According to Select Wall Street Analysts
3 Scorching-Hot Artificial Intelligence (AI) Stocks That Can Plunge Up to 72%, According to Select Wall Street Analysts

Globe and Mail

time28 minutes ago

  • Globe and Mail

3 Scorching-Hot Artificial Intelligence (AI) Stocks That Can Plunge Up to 72%, According to Select Wall Street Analysts

Key Points Artificial intelligence (AI) is a potential $15.7 trillion addressable market by the turn of the decade. Though Wall Street analysts are, collectively, optimistic about AI stocks, not all AI stocks are necessarily worth buying. Three red-hot AI stocks aren't as bulletproof as investors think, with select analysts forecasting downside ranging from 31% to 72% over the next year. 10 stocks we like better than Palantir Technologies › In the mid-1990s, the advent and proliferation of the internet revolutionized corporate America by opening new sales channels and creating connections that hadn't previously existed. Since the internet, investors have been patiently waiting for the next-big-thing technology to provide a true leap forward for corporate America. The arrival of artificial intelligence (AI) looks to be the answer. AI provides a way for empowered software and systems to make split-second decisions without the need for human oversight or intervention. In Sizing the Prize, the analysts at PwC pegged this global game-changing opportunity at $15.7 trillion (with a "t") by 2030. While sentiment on Wall Street and among analysts has been mostly bullish -- as you'd expect with a $15.7 trillion addressable market -- not every AI stock is necessarily worth buying. According to select Wall Street analysts, three of the market's scorching-hot AI stocks could plunge by as much as 72% over the next year. Palantir Technologies: Implied downside of 72% Though graphics processing unit (GPU) titan Nvidia is the face of the AI movement, arguably no company has come closer to dethroning it than AI and machine learning-driven data-mining specialist Palantir Technologies (NASDAQ: PLTR). Shares of Palantir have soared more than 2,100% since 2023 began, equating to an increase in market value of around $320 billion. The primary reason investors have gravitated to Palantir is its sustainable moat. Its Gotham platform, which secures multiyear contracts from the U.S. government and its immediate allies to collect/analyze data and assist with military mission planning and execution, is irreplaceable. Meanwhile, its Foundry platform, which is designed to help businesses make sense of their data in order to streamline their operations, has no large-scale one-for-one replacement. However, this sustainable moat isn't enough to impress longtime bear Rishi Jaluria at RBC Capital Markets. Although Jaluria nearly quadrupled his price target on the company from $11 to $40 earlier this year, a $40 bullseye would represent 72% downside from the $142.10 per share Palantir stock closed at on July 11. Jaluria's main issue with Palantir stock is something I've harped on repeatedly in recent weeks: its valuation. Prior to the dot-com bubble, many of Wall Street's cutting-edge companies topped out at price-to-sales (P/S) ratios of 31 to 43. Palantir ended the previous week at a P/S ratio of almost 114! No megacap stock in history, to my knowledge, has been able to sustain a valuation this aggressive -- even those with well-defined competitive advantages. Even the slightest operating slip-up or negative news from the U.S. government could clobber Palantir stock. Jaluria also cautioned that Foundry takes too tailored of an approach with its clients, which will hamper its ability to scale. The same can also be said for Gotham, which is only available to the U.S. and its immediate allies. In other words, Palantir stock is on shakier ground than its skyrocketing share price implies. Super Micro Computer: Implied downside of 51% Another red-hot AI stock that has the potential to be pummeled over the next 12 months is customizable rack server and storage solutions specialist Super Micro Computer (NASDAQ: SMCI). Shares of Supermicro are up 62% year-to-date (through July 11) and more than 1,100% on a trailing-three-year basis. The reason it's been a magnet for AI bulls is its role as a provider of customizable rack servers for AI-accelerated data centers. Businesses are aggressively spending on data center infrastructure to gain a competitive edge, and Supermicro's reliance on Nvidia's highly popular AI-GPUs in its rack servers has allowed its servers to sell like hotcakes. Following sales growth of 110% in fiscal 2024 (its fiscal year ends on June 30), Wall Street is forecasting 48% sales growth for fiscal 2025 and another 34% the following year. None of these figures have been enough to dazzle analyst Michael Ng of Goldman Sachs, who rates Super Micro Computer a sell and expects its shares will fall to $24, equating to 51% downside from where they ended the previous week. Ng's skepticism derives from a belief that the AI server market is becoming highly competitive, which is leading less differentiation and, ultimately, weaker pricing power. Ng anticipates Supermicro's gross profit margin will decline throughout the decade, even as sales potentially climb. Though not specifically mentioned by Ng, Super Micro Computer must also overcome a loss of trust with the investing community following allegations of wrongdoing last summer. While an independent committee absolved insiders of any wrongdoing and didn't result in any changes to the company's reported financial statements, it challenged investors' trust in the management team and squashed any chance of Supermicro commanding much of a valuation premium. Even though Supermicro's stock may appear cheap at just 17 times forward-year earnings, there are reasons investors are leery about giving its shares too much of a premium. SoundHound AI: Implied downside of 31% Lastly, AI voice recognition and conversational technologies stock SoundHound AI (NASDAQ: SOUN) can plunge over the coming year, based on the prognostication of one Wall Street analyst. Growth has not been an issue for this up-and-coming AI applications company. Sales for the March-ended quarter jumped 151% to $29.1 million from the prior-year period. This speaks to the company's ability to win new clients in the restaurant, automotive, travel and hospitality, and financial service industries, as well as tie these ecosystems together. Despite SoundHound AI decisively pointing its revenue needle in the right direction, Northland Securities analyst Michael Latimore foresees its stock plummeting to $8 over the next 12 months, which works out to a decline of 31%. Whereas the prior two analysts are decisively negative on Palantir and Supermicro, this isn't the case with Latimore and SoundHound AI. Latimore has a hold rating on the company and is excited about the agentic AI opportunities that lie ahead. The reason price targets should be kept in check is that SoundHound AI has a long way to go before it demonstrates to Wall Street that its operating model can generate profits. Excluding adjustments to contingent acquisition liabilities during the March-ended quarter, its adjusted loss actually widened from $20.2 million to $22.3 million, in spite of 151% growth in net sales from the prior-year quarter. SoundHound AI also burned through close to $19.1 million in cash from its operating activities. The company isn't expected to push into the recurring profit column until 2027, at the earliest. SoundHound AI would also be heavily exposed if an AI bubble formed and burst. Every next-big-thing technology for more than three decades has navigated its way through an early stage bubble, and nothing suggests artificial intelligence is going to be the exception to this unwritten rule. If demand for AI applications even remotely slows, SoundHound AI stock, which is valued at 23 times forward-year sales estimates, will feel the pain. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, 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 Palantir Technologies 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 $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%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 14, 2025

3 Absurdly Cheap Growth Stocks to Load Up On Right Now
3 Absurdly Cheap Growth Stocks to Load Up On Right Now

Globe and Mail

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  • Globe and Mail

3 Absurdly Cheap Growth Stocks to Load Up On Right Now

Key Points Novo Nordisk, PayPal, and Dell Technologies are modestly priced growth stocks with a lot of potential to rise higher. They all trade at forward price-to-earnings multiples of 17 or less. 10 stocks we like better than Novo Nordisk › Buying stocks that are trading at cheap valuations can set you up for some big gains later on. And it can minimize the risk of a decline if the market starts to struggle. Although many stocks look expensive today, there are three growth stocks which still seem absurdly cheap right now: Novo Nordisk (NYSE: NVO), PayPal (NASDAQ: PYPL), and Dell Technologies (NYSE: DELL). By investing in these companies, you can gain exposure to some top businesses, while also diversifying your portfolio. Here's a closer look at why each of these stocks can be a good long-term investment. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Novo Nordisk Drugmaker Novo Nordisk is a terrific healthcare company to consider investing in. The market has been bearish on it over the past year, as recent results from clinical trials haven't met expectations; there are also new concerns that tariffs on pharmaceuticals may weigh down Novo Nordisk and similar stocks. But as concerning as these developments may be, they're also short-term in nature. Novo Nordisk has been a growth-focused business for decades, and some solid products in its portfolio, including Wegovy and Ozempic, have enabled it to generate strong results in recent quarters and put it on track for even more growth in the future. Through the first three months of the year, the company grew its sales by 19% and its operating profit by 22%. The company is a big-name player in the market for GLP-1 medications. And if you invest in it today, you can get it for a modest forward price-to-earnings (P/E) multiple of 17. That's based on analyst estimates, but it gives you a good idea of how cheap the stock is -- the average stock in the S&P 500 trades at a forward P/E of 24. With its encouraging growth prospects, Novo Nordisk could be a no-brainer buy at its current valuation. PayPal A fintech company that doesn't seem to get enough love these days is PayPal. There are certainly concerns that growing competition will chip away at its growth, but its payment platform remains a top choice for customers and vendors to rely on. Its share of the global payments market remains at 45%, making it the top option, despite a flurry of other ways to pay. The company also has its own stablecoin, PayPal USD, so it can potentially leverage opportunities in the crypto space. Growth has been underwhelming of late, as sales through the first three months of the year totaled $7.8 billion, an increase of just 1% year over year. However, the economy is contending with rising costs and tariffs, so consumers scaling back on spending may have more to do with that slowdown than anything PayPal is doing. It's far too early to count PayPal out as a top growth stock: There's still a lot of room for it to grow, especially with PayPal USD in the mix, and its Venmo app is rising in popularity as well. At a forward P/E of only 15, this is an even cheaper stock to own than Novo Nordisk. Dell Technologies Computer maker Dell Technologies isn't doing well with the consumer market this year, but sales of servers have been strong, especially as companies invest heavily in artificial intelligence (AI). For its current fiscal year (which ends in January), Dell projects that its AI server sales will top $15 billion, an increase from the $10 billion total in the previous year. Dell is well positioned to take advantage of AI trends both in the business market and in the consumer market, through the sales of AI computers and servers. While sales of AI computers aren't taking off just yet, it may only be a matter of time before an upgrade cycle takes place, especially as consumers look to take advantage of next-gen computing capabilities. In its most recent quarter, which ended on May 2, Dell's revenue rose by a modest 5% to $23.4 billion. But if not for a 19% decline in its consumer segment, those numbers would have been much better. Dell is a trusted computer manufacturer and it's doing well, even if its operations aren't firing on all cylinders. At a forward P/E of less than 14, this is the cheapest stock on this list. With loads of potential in AI and other computing, Dell may be one of the better growth stocks to buy right now. Should you invest $1,000 in Novo Nordisk right now? Before you buy stock in Novo Nordisk, 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 Novo Nordisk 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 $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%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 14, 2025 David Jagielski has positions in Novo Nordisk. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends Novo Nordisk and recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy.

1 Unstoppable Growth Stock to Buy With $3,000
1 Unstoppable Growth Stock to Buy With $3,000

Globe and Mail

time43 minutes ago

  • Globe and Mail

1 Unstoppable Growth Stock to Buy With $3,000

Key Points MercadoLibre is the leading e-commerce player in Latin America. The company delivers excellent results and has strong growth prospects. Despite some potential challenges, the stock should produce above-average returns. 10 stocks we like better than MercadoLibre › MercadoLibre (NASDAQ: MELI), an e-commerce specialist based in Latin America, has been on fire this year, with the company's shares up by 35% since early January. That's despite the significant uncertainty and volatility stocks have experienced, which suggests that the market is impressed with MercadoLibre's financial results or prospects (or both). The market is right. MercadoLibre is firing on all cylinders and still boasts an excellent long-term outlook. The stock is not cheap -- shares are changing hands for just under $2,477 apiece. But for those who have that kind of money to invest, here is why putting it to work with MercadoLibre would be a brilliant move. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Firing on all cylinders Several companies tried to dominate the e-commerce market in South America, including Amazon. However, MercadoLibre reigns supreme. The company's position in this region grants it a significant advantage. MercadoLibre has a deep footprint across South America, allowing it to service consumers across borders. That sounds like a logistical nightmare, but MercadoLibre has figured it out. Eating into the company's market share won't be easy for newcomers. Furthermore, although it is known as an e-commerce leader, MercadoLibre also operates a business that enables merchants to establish online storefronts and a fintech unit. This suite of complementary products grants MercadoLibre a strong moat via the network effect and switching costs. Recent financial results have been strong, but it's worth pointing out that MercadoLibre has been delivering excellent revenue growth for years and is now consistently profitable. MELI Revenue (Annual) data by YCharts Perhaps one more thing attracting investors to MercadoLibre these days is that, since the company operates in South America, it won't be directly impacted by President Trump's tariffs, unlike several U.S.-based e-commerce giants. MercadoLibre could still be affected by macroeconomic factors, such as price increases or a downturn, but it is better positioned than many of its peers to handle Trump's aggressive trade policies. That's worth quite a bit in today's market. The future looks incredibly bright What do MercadoLibre's long-term prospects look like? In my view, much like its past. The company's leadership in Latin America positions it ideally to profit as e-commerce continues to gain momentum. That could last a long time: Retail sales are projected to continue moving online, given the convenience they offer. According to Grand View Research, the e-commerce market in South America will expand at a compound annual growth rate of 16.7% through 2030. Another thing that would be a tailwind for MercadoLibre, even without its industry expanding as rapidly, is the growing middle class in Latin America. That means more discretionary income and spending on retail transactions of all types, including e-commerce. Of course, more online transactions will also help fuel MercadoLibre's other segments, including its fintech unit. All of that points to massive long-term opportunities for MercadoLibre. The company won't be without its risks. Though it has managed to fend off competition so far, it will likely only intensify over the long run. Shopee, an e-commerce platform owned by Sea Limited, a successful, Singapore-based tech company, has been making headway in Latin America. It helps to have that kind of backing when looking to challenge a giant like MercadoLibre. Further, shares of the Latin America e-commerce king don't look cheap. The company's forward price-to-earnings of 46.5 is well above the average for the consumer discretionary sector of 28. Even with these caveats in mind, MercadoLibre's prospects look attractive. The company's valuation might make it volatile in the short run, but it won't matter a whole lot to investors looking to hold on to its shares for five years or more -- a period in which, in my view, the stock will outperform the market. Even with mounting competition, MercadoLibre will likely remain a leader thanks to its competitive edge. Amazon eventually dealt with stiff competition but remained massively successful while delivering life-changing returns to loyal investors over the long run. MercadoLibre can do the same. The stock is well worth buying today, despite its significant gains this year. Should you invest $1,000 in MercadoLibre right now? Before you buy stock in MercadoLibre, 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 MercadoLibre 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 $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%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 14, 2025

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