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Yahoo
16 hours ago
- Business
- Yahoo
Prediction: These 5 First-Half AI Stock Losers Will Be Second-Half Winners
Key Points Alphabet and GitLab are misunderstood stocks that are poised to be AI winners. Salesforce and ServiceNow are software companies with big AI opportunities in front of them. SentinelOne has a big potential catalyst in the second half as its deal with Lenovo rolls out. 10 stocks we like better than GitLab › The first half of 2025 wasn't kind to a number of promising artificial intelligence (AI) stocks, particularly in the software space. However, the second half could be very different. Let's look at five stocks that were AI losers in the first half of 2025 that look poised to rebound in the second half. Alphabet Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) continues to be one of the most misunderstood stocks in the market. Investors keep worrying about AI disrupting its core search business, but that misses the bigger picture. Google isn't a search company -- it's a content discovery platform with a huge distribution advantage and decades of behavioral data behind it. Alphabet's browser and mobile operating system give it an enormous edge. Chrome commands more than 65% of global browser share, while Android runs on over 70% of smartphones. Meanwhile, Google has revenue-sharing deals to be the default search engine across Apple devices and other browsers. As search and AI evolve, that distribution becomes increasingly important. At the same time, Google has stepped up its game with its new AI-powered Search Mode. In a recent Oppenheimer survey, 82% of users found it more helpful than traditional search, and 75% preferred it to ChatGPT. Importantly, Google doesn't need to change user behavior and have people switch over to its apps. Its billions of users just need to click AI Mode to get this experience. Its cloud computing business is also gaining traction. Google Cloud revenue rose 28% last quarter, and the company is investing heavily to build capacity to keep up with demand. Add in under-appreciated assets like its Waymo robotaxi business and its Willow quantum chip, and Alphabet looks ready to rebound in the back half. GitLab Another company that is misunderstood is GitLab (NASDAQ: GTLB). Investors are worried that with AI, organizations are going to need fewer coders. However, thus far AI has led to more software development, while GitLab has quietly been transforming itself into a software development lifecycle platform. The company took a big step forward in this direction with the release of GitLab 18. It added over 30 new features, including its Duo Agent Platform, which allows users to deploy AI agents across the entire development cycle from code generation to testing to compliance. This is important, as according to William Blair, developers only spend about 20% of their time actually writing code. The company has already been growing revenue at a strong clip, including 27% last quarter. The growth is being driven by new customers as well as existing customers buying more seats and upgrading tiers. GitLab has also been expanding key partnerships, including with Amazon. As a company that is helping drive end-to-end development workflow efficiency, GitLab has a strong future ahead and looks like a solid rebound candidate. Salesforce Salesforce (NYSE: CRM) has spent the last year refocusing its platform around AI. Its new Agentforce platform has over 4,000 paying customers already, and it's at the center of what could become a much bigger digital labor platform. The company's strategy is to unify apps, data, automation, and metadata to a single framework called ADAM. It will then use this as a foundation to build and scale AI agents, helping create a digital workforce. It also recently rolled out a more flexible pricing model tied to outcomes to help increase adoption. Salesforce is already the leader in customer relationship management (CRM) software, and its push into AI agents could be a huge growth driver. With the stock lagging in the first half, it could rebound if Agentforce starts to gain more traction. ServiceNow ServiceNow (NYSE: NOW) may not be an obvious AI name, but it's also using AI to help transform its business. The company's roots are in IT management, but it has since expanded into human resources, finance, and customer service. The company's strength has always been connecting siloed departments and helping organizations streamline their operations. It has embedded AI into its Now Platform, helping take these efforts to the next level. It's been seeing strong traction, with AI-driven Pro Plus deals quadrupling year over year last quarter. As organizations increasingly focus on efficiency and automation to help reduce costs, ServiceNow is well-positioned. While some investors worry about enterprise software budgets, ServiceNow is a cost-saving platform that should continue to perform well in the current environment. That should help set the stock up to rebound later this year. SentinelOne SentinelOne's (NYSE: S) stock was under pressure in the first half of the year, but there's a good reason to believe that it will perform much better in the second half. The big reason is that its new partnership with Lenovo is about to ramp up. Lenovo is the world's largest enterprise PC vendor, and starting in the second half, it will pre-install SentinelOne's Singularity Platform on all new computers it sells. Existing Lenovo users will also be able to upgrade to SentinelOne's AI-powered security platform. That's a huge opportunity for the cybersecurity company. SentinelOne has already been seeing solid revenue growth, including 23% last quarter. While it's not the leader in the endpoint security space -- that would be CrowdStrike -- its platform receives high marks from Gartner. Meanwhile, its Purple AI solution, which helps analysts hunt complex security threats through the use of natural language prompts, has been the fastest-growing solution in its history. All in all, SentinelOne is a solid company whose stock trades at a big discount to some of its bigger peers. Meanwhile, the Lenovo deal should be a catalyst in the second half. Should you buy stock in GitLab right now? Before you buy stock in GitLab, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and GitLab wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet, GitLab, Salesforce, and SentinelOne. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, CrowdStrike, GitLab, Salesforce, SentinelOne, and ServiceNow. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy. Prediction: These 5 First-Half AI Stock Losers Will Be Second-Half Winners was originally published by The Motley Fool 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
a day ago
- Automotive
- Yahoo
Taylor Gray 'super proud' to win third pole of 2025 at Dover
No. 54 Joe Gibbs Racing driver shares how his team rebounded after practice to top the charts in qualifying and lead the field to green.
CBC
2 days ago
- Business
- CBC
Jasper businesses face slower peak tourism season 1 year after wildfire
Social Sharing Tourism is rebounding at Jasper National Park, but the influx of visitors to the mountain park isn't quite what it was before the wildfire of 2024, business owners say. "I do feel like it's slower than normal," Robert Logan, co-owner of Jasper Motorcycle Tours, said in an interview last week. He is one of several business owners who lost their brick-and-mortar spaces and are now working out of a pop-up village in a parking lot off Connaught Drive. "I kind of judge the streets of Jasper by parking spots and if people are carrying bags from shops where they buy gifts and stuff. And I could tell there's a bit of a drop in those numbers." Logan said he expects more tourists in Jasper soon, now that the Calgary Stampede has ended, including some who will want to see the aftermath of the wildfire. "People are just curious, you know — disaster tourism," he said. But Jasper is lacking places for people to stay overnight. Tourism Jasper estimates there are about 20 per cent fewer accommodations this season: hotel rooms, inns, short-term lodgings and campsites. Two motels in the townsite, Mount Robson Inn and the Maligne Lodge, were destroyed in the fire. Tekarra Lodge and Jasper House Bungalows off Highway 93A were also destroyed. Alpine Village lost some of its cabins and is now rebuilding. Only 30 per cent of the Wapiti Campground sites are available this year. Mike Day, a board member with Tourism Jasper and the owner of Evil Dave's Grill, said the decrease in accommodations helps explain the dip in visitors. "Twenty per cent for us, based on last year's evacuation, that could be … 4,000 people," Day told CBC News last week. "That's a lot of seats in restaurants and that's a lot of heads and beds that we just don't have." Annaja Davis, a guide with Jasper's Whitewater Rafting Company, said it's been pretty quiet compared to previous years. "Usually when you come down here, the streets are packed shoulder to shoulder," she said from the shop on Connaught Drive. "It's like, maybe 100 people are on the street. Not like 1,000. So much much slower." Day said the hospitality industry in general has hired fewer workers this year, because it's harder to secure housing for out-of-town workers since the town lost 800 residences in the fire. Visitor support On a sunny day in July, the sidewalks along Connaught Drive may not have been full, but some tourists were there to show support for the town. Christine Kilb, a returning visitor from B.C., was camping at Wabasso Campground last July when the fire started. She was among the 25,000 people evacuated from the national park. "I'm just proud to be able to come here and camp and enjoy the town," Kilb told CBC News last week. "It's beautiful. Even with the forests burnt, it's still beautiful." Sandra Beresh, a visitor from Hamilton, was in Jasper for the first time. She didn't know what to expect, but also didn't hesitate to make the trip. "My husband and I both wanted to support Jasper and we're happy we did. It's gorgeous." It was also an eye-opener, Beresh said in an interview last week. "When I was driving and I saw the devastation of the fires, it broke my heart. It was really so sad — people lost their homes, the wildlife and everything." Future of tourism Tourism Jasper is appealing to residents in Edmonton and Calgary to visit in the off-season. They've calculated that every year about 800,000 people from Edmonton and Calgary don't visit the national parks in Alberta. "So we're trying to get far more creative on how we're going to attract people this winter," Day said. "[With] a little plea for help from our friends in Edmonton." Logan, rebuilding his shop that used to be on Patricia Drive, is optimistic that things are on the right track.
Bloomberg
2 days ago
- Business
- Bloomberg
China's Inaction Deepens Peril for Struggling Property Stocks
Investors are growing skeptical that Chinese developer stocks will stage a rebound this year, as Beijing's reluctance to unleash sweeping stimulus deepens pessimism about the sector. A gauge of developers' shares notched its biggest weekly drop in four months after a key meeting on Tuesday failed to yield any concrete measures to revive the industry. Property sales are likely to remain weak in the third quarter, with better-than-expected economic growth data undermining the case for stimulus in the near term, according to Morgan Stanley.
Reuters
3 days ago
- Business
- Reuters
Dollar gains broadly; yen dips before election Japan election
NEW YORK, July 17 (Reuters) - The dollar rebounded broadly on Thursday following a turbulent session on Wednesday when U.S. President Donald Trump denied reports that he was planning to fire Federal Reserve Chair Jerome Powell. The dollar has rallied this month in what analysts say is largely consolidation following a sharp selloff for most of this year. The dollar index remains down 9% year-to-date. Rising Treasury yields this month are supporting the dollar's rebound. 'After having a historic sell-off in the first half, the dollar has begun the second half on firmer footing. It looks like mostly short covering backed by these firmer U.S. interest rates,' said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. The dollar extended gains on Thursday after data showed U.S. retail sales rebounded more than expected in June, while the number of Americans filing new applications for jobless benefits fell last week. However, the greenback quickly fell back to trade close to where it was before the data, which Chandler said shows 'the lack of near-term conviction.' Investors are weighing multiple factors that could influence market direction, including the economic impact of Trump's tariff policies, the U.S. fiscal and debt outlook, and the Fed's independence. The dollar tumbled on Wednesday on reports that Trump was planning to fire Powell soon, before paring losses when Trump denied the news. Trump has said repeatedly that interest rates should be at 1% or lower. Former Fed Governor Kevin Warsh, seen as a potential successor to Powell, said on Thursday there needs to be a new accord between the Treasury Department and the U.S. central bank, referencing a 1951 pact that separated federal debt management from monetary policy. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was last up 0.41% on the day at 98.75, with the euro down 0.45% at $1.1582. The single currency earlier reached $1.1555, the lowest level since June 23. In other currencies, sterling weakened after data showed British pay growth slowing in May and employee numbers dropping further last month. The British pound was last down 0.1% at $1.3405. Concerns also mounted over a pivotal election in Japan and a still elusive trade deal with the U.S. to avoid a punishing rise in tariffs. Polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house. Japan's top trade negotiator, Ryosei Akazawa, held talks with U.S. Commerce Secretary Howard Lutnick on tariffs on Thursday, as Tokyo races to avert a 25% levy that will be imposed unless a deal is clinched by an August 1 deadline. The yen weakened 0.58% against the greenback to 148.73 per dollar after touching its weakest level since April 3 in the previous session . The Australian dollar slid after jobs data badly missed forecasts and unemployment hit highs not seen since late 2021. The Aussie was last down 0.64% versus the greenback at $0.6484. In cryptocurrencies, bitcoin fell 0.22% to $119,676.
