Investor expectations for AI’s performance have slid in recent weeks. That’s amid the rise of new AI programs such as China’s DeepSeek, which claims to use fewer resources, and amid a growth scare in the general market. Either way, the AI trend is still on track to grow, irrespective of the price and valuation of many tech stocks. But it’s also a sign that investors should focus on AI-adjacent opportunities right now instead. One such opportunity? Cloud services. AI demand will keep cloud services growing strong, but it’s already a high profit-margin business for many tech firms. ...

Over the past few years, consumers have become more price conscious about many goods, but have continued to spend on services. Experiences such as travel and vacations have continued to thrive, and still look like strong trends. However, consumers may potentially want to start looking for deals there. Companies that can cater to consumers looking for a deal may be able to see continued strength as this trend shifts towards bargain hunting. For vacations, that could be a boon for Airbnb (ABNB). The company’s growth has been strong over the past few years, and new plans to drive innova...

While investors fear the potential impacts of tariffs and a slowing economy, some companies are better positioned than others. There’s some fear in the retail space, from the one-two punch of rising unemployment and higher-priced goods due to tariffs. While that may impact retailers and consumers, chances are the companies with the best industry pricing will feel the pinch the least. They’re the companies that could hold up relatively well amid the current market fears. Retailer Costco (COST) has recently taking a hit, as earnings narrowly missed expectations. But Costco’s business m...

The recent market pullback has come at the tail end of earnings season. Most companies have beaten their earnings expectations, and some have even shown that corporate America remains strong. But rising uncertainty means that even great companies are taking a hit now. That fear is hitting the tech space particularly hard. Technology companies have been leading the market higher over the past two years, and now a more defensive market posture is leading to a big pullback in tech names. That’s even true of companies reporting solid earnings and which still have strong long-term potenti...

Earnings season continues to give investors a snapshot of a company’s performance. It’s also a time when well-run companies can continue a string of earnings beats. The real story, however, is the market reaction, not just to earnings, but to guidance. Companies are getting more cautious in their outlook amid a pullback in government spending, and as inflation remains sticky. While many companies are still performing well, cautious guidance can still send shares reeling in the short term. The latest company reporting great earnings and taking a divide? CrowdStrike Holdings (CRWD). Th...

Consumer spending makes up the vast majority of the economy. Over the past few years, consumers have been spending more on travel and vacations, and less on items like home goods. However, even while spending less overall, increased total consumer spending means that there are still opportunities in the retail sector. One sign is the fact that major retailers continue to report strong earnings, even if current conditions mean they also have to report weak guidance. That disconnect may be creating a buying opportunity in the short-term. Retailer Target (TGT), for instance, recently be...

The stock market has hit a pocket of volatility. That’s normal for this time of year. But added economic uncertainty, such as the implementation of tariffs, are creating some wilder swings. Investors looking for steadier returns may find it with a different asset, gold. The metal has been trending higher so far this year. And its pullbacks have been more mild than high-flying tech stocks. Many see the metal continuing higher, and likely breaking $3,000 per ounce in the months ahead. Investors have several ways to play gold’s trend higher. They can buy the physical metal itself, or an...

As the market reassesses the value of AI and other high-flying tech stocks, a market rotation is underway. It’s going from the digital back to the physical. Defensive stocks such as consumer goods and healthcare companies have been faring well. So too have companies that produce materials for physical infrastructure. That’s in-line with long-term infrastructure spending globally, and a trend that’s likely to continue and benefit companies related to that investment. For instance, Ireland-based materials producer CRH (CRH), recently reported strong growth, albeit with some short-term ...

Investors have increased their defensive bets in recent weeks, as growth plays have stalled out. Some defensive stocks have been heading higher for some time already. It’s likely that defensive stocks will continue to take over the market lead as investors give growth stocks time to adjust to the rapid changes over the past few years. Investors can likely see both reasonable capital gains and income from defensive stocks now. That includes companies like AT&T (T). The telecom giant is up nearly 60% over the past year, trending higher like a growth stock. Earnings and margins have...

Although the stock market just hit all-time highs a week ago, the past few months have seen a slowdown in stocks. Various fears, from an economic slowdown to the impact of tariff, are likely to keep weighing on stocks. That means a sideways market. In this kind of market, income-producing stocks tend to be reasonable plays. And so do companies that are likely worth more than the sum of their parts. Ideally, an investor can find both. One such play may be media giant Comcast (CMCSA). Best known for its cable network, Comcast also owns a variety of entertainment properties, such as ...