Popular onchain analyst Willy Woo has predicted a potential bitcoin price surge to $650,000 at the bull market’s peak. His prediction hinges on spot bitcoin exchange-traded fund (ETF) investors fully deploying their assets based on recommendations from asset managers. “These are very conservative numbers. Bitcoin will beat gold cap when ETFs have completed their role,” […]
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Oil prices probably won’t spike, but buy the yen if they do.
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Corporate insiders are selling far more of their shares than buying.
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Great investing minds appear to be thinking alike about two top AI stocks.
It’s no secret that artificial intelligence (AI) is the hottest game in town for investors. Much of the big gains for the stock market in 2023 and 2024 have been driven by surging interest in everything AI.
No company has been more at the forefront of the AI boom than Nvidia (NVDA -2.68%). The chipmaker’s share price skyrocketed 239% last year and is up close to 75% this year. But is the enthusiasm about Nvidia beginning to fade? Maybe so. Two billionaire investors are selling Nvidia and buying another AI stock instead.
David Tepper is known to many as the owner of the Carolina Panthers. However, he amassed enough money to buy the NFL franchise by achieving tremendous success with the hedge fund he founded in 1993, Appaloosa Management. Today, Tepper’s net worth stands at $20.6 billion.
Tepper is bullish about AI. Eight of the top 10 holdings in Appaloosa’s portfolio are AI stocks. Nvidia ranks as the hedge fund’s fourth-largest position, but Tepper seems to think the stock’s tremendous momentum could be near an end. In the fourth quarter of 2023, he sold almost 23% of Appaloosa’s stake in the graphics processing unit (GPU) maker.
He isn’t the only billionaire investor now noticeably less excited about Nvidia. Chase Coleman first made his mark in the investment world by working with legendary hedge fund manager Julian Robertson. Coleman next ran his own hedge fund, Tiger Global Management, which later expanded into venture capital. He’s now worth $5.7 billion.
Tiger Global Management reduced its position in Nvidia in Q4 by nearly 13%. Nvidia still claims the No. 10 spot in the hedge fund’s portfolio with a stake valued at roughly $480 million at the end of 2023. However, Coleman is taking some of his profits off the table with the stock after making big gains.
Both Tepper and Coleman saw Amazon (AMZN -1.54%) as a better AI stock to buy in Q4. Tepper’s Appaloosa fund increased its position in the e-commerce and cloud-services giant by more than 5%. Coleman’s Tiger Global Management upped its stake in Amazon by 24%.
Why are these two billionaire investors more bullish about Amazon than Nvidia? I suspect Tepper and Coleman might think Nvidia’s valuation is now at a level where any sign of trouble could cause a steep sell-off. At the same time, Amazon appears to be building sustainable momentum.
AI is definitely a key growth driver for Amazon. The company’s cloud platform, Amazon Web Services (AWS), is the top cloud-services provider based on market share. AWS is especially investing heavily in supporting generative AI development.
Amazon is using generative AI internally as well. CEO Andy Jassy said in the company’s Q4 earnings conference call, “[W]e believe it [generative AI] will ultimately drive tens of billions of dollars of revenue for Amazon over the next several years.”
Of course, Amazon isn’t just an AI stock. The company’s efforts to increase profitability in its e-commerce business continue to pay off. Amazon has delivered seven consecutive quarters of improving operating margins in its North America business segment.
It has also become a key player in the digital-advertising market. Amazon’s advertising revenue soared 26% year over year in Q4. And that growth came before the company launched its ads on Prime Video.
Buying more shares of Amazon has already paid off for Tepper and Coleman. The stock is up over 20% year to date.
Investors shouldn’t sell Nvidia and buy Amazon only because two hedge fund billionaires have. However, it’s not a bad idea to examine the potential reasons behind Tepper and Coleman’s moves.
I think the reasons Tepper and Coleman added more shares of Amazon in Q4 are still applicable now. The company’s profits will likely continue to rise. AI and advertising remain strong growth drivers. Amazon is still an excellent long-term pick, in my view.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.
Trader and market analyst Peter Brandt has provided valuable perspectives on the recent price movement of Solana (SOL), suggesting the completion of a notable chart pattern.
In particular, Brandt has noted a descending triangle pattern forming on Solana’s 4-hour price chart.
The descending triangle pattern identified by lower highs and a horizontal support line is often interpreted in technical analysis as a signal of a potential downtrend continuation. Brandt’s recent post highlighted the completion of this pattern, drawing attention to a crucial development for SOL traders.
Brandt’s analysis extends beyond the mere identification of the pattern. He underscores the significance of pattern validation over its completion.
According to Brandt, a pattern’s failure to fulfill its expected role carries more weight than its mere completion.
With the descending triangle pattern now confirmed for SOL, market participants’ anticipation is palpable as they await potential price movements, whether to the upside or downside.
A descending triangle has been completed in $SOL
I am only the messenger, not the message
Remember, a pattern failure (to do what it is supposed to do under classical rules) is more important than a pattern completion pic.twitter.com/ezershgA5A— Peter Brandt (@PeterLBrandt) April 10, 2024
While Solana’s price performance has fluctuated over the past week, recent network challenges have added another layer of complexity to the asset’s situation. Despite a 12.7% decline in SOL’s value over the past week, there has been a slight uptick of 4% in the last 24 hours.
However, ongoing network congestion has presented obstacles. Solana developers are actively addressing these issues, with efforts underway to resolve network congestion experienced on April 15.
Mert Mumtaz, CEO of Helius Labs, a key contributor to Solana’s maintenance and enhancement, clarified that the current network challenges stem from implementing a specific protocol rather than an inherent design flaw in Solana.
solana’s current issue is not a design flaw, it’s an implementation bug
it is now hitting me that some folks might not understand what we’ve been trying to say by this for the past week
I’ll simplify it (intended for non-technical people)
it is important to make this… pic.twitter.com/fNZzu9f90S
— mert | helius.dev (@0xMert_) April 8, 2024
Meanwhile, Solana’s open interest in the futures sector, a metric used in derivatives markets referring to the total number of outstanding contracts, has experienced fluctuations in recent times.
While it saw steady growth from January to April, reaching an all-time high of $2.86 billion on April 1, recent network issues have led to a decline. Coinglass data indicates that Solana’s open interest has fallen to $2.4 billion since April 11, reflecting a 5% decline in just over a week.
Featured image from Unsplash, Chart from TradingView
Dell Technologies is a much larger company than Super Micro Computer, but that doesn’t automatically make it a better investment.
Fool.com contributor Parkev Tatevosian compares Dell Technologies (DELL -0.29%) and Super Micro Computer (SMCI 0.48%) to answer which is the better buy for investors looking to capitalize on the artificial intelligence (AI) trend.
*Stock prices used were the afternoon prices of April 8, 2024. The video was published on April 10, 2024.
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.
Apple stock is down about 12% this year but could still see stellar gains in 2024, according to Wedbush.
The iPhone maker has 48% upside, the firm said, outlining five bullish tailwinds for the stock.
Apple stock has had a disappointing year so far, but there are still reasons for investors to stay bullish on the iPhone maker, according to Wedbush.
The firm pointed to a “black cloud” hanging over the company, with Apple shares sliding 10% for a loss of over $200 billion in market value so far in 2024. That loss comes amid demand concerns in China, where Apple is battling a government crackdown on iPhones and fierce competition from China-based rivals, like Huawei.
“It’s clear that Apple is navigating one of the more difficult China demand environments we have seen the last 5 years as a combination of factors has created a perfect storm for Cupertino in this key market,” analysts said in a note on Tuesday, estimating that iPhone sales in China would likely fall “moderately” below estimates in March.
But Apple stock still has the potential to deliver big gains this year, analysts said, maintaining their “outperform” rating and $250 price target on the stock, the highest estimate on Wall Street.
A rise to that level implies 48% upside for Apple, which Wedbush said could stem from five bullish factors:
iPhone sales could be strong overall this year. 2024 estimates are “hittable” despite some conservative 2025 estimates for iPhone sales, analysts noted.
There could be pent-up demand for iPhones, given how many users are due for an upgrade. Wedbush estimated there were around 270 million iPhones that could be swapped for a newer version, especially as Apple is set to roll out its iPhone 16 this year.
Services revenue for the company remains “rock solid,” Wedbush analysts said. Apple pulled record-high revenue from the services side of its business over the first quarter, according to its latest earnings report.
The company is integrating AI into its devices. Apple is set to make an announcement on its progress with generative artificial intelligence at its Worldwide Developers Conference in June, Wedbush predicted.
Apple still dominates the smartphone market, with 2.2 billion of its devices being used around the world. That’s the “strongest installed base of any company,” analysts noted.
Over the medium term, investors are eyeing Apple’s next quarterly earnings report, which is set to roll out on May 2.
“The Street is bracing for a brutal March quarter and soft June guidance which we believe could be the last few quarters of this growth storm as Apple starts to see a renaissance of growth heading into the September quarter and FY25,” Wedbush said. “While some patience is required to navigate this China weakness, we believe the seeds for an Apple growth turnaround are being planted in the field.”
Most analysts on Wall Street have maintained a “strong-buy” rating for the stock, according to data from the Nasdaq Exchange. The average price target for Apple stood at $202 a share, implying a 20% upside for the stock.
Read the original article on Business Insider
Don’t fear: There’s an ETF that will ensure you don’t miss out on any high-flying stocks.
Many people are afraid of heights. Some have a fear of spiders. Others are scared of snakes. But there’s a very different kind of phobia that affects quite a few investors — the fear of missing out, also known by the acronym FOMO.
These individuals absolutely dread the idea of not buying a stock that’s skyrocketing or about to soar. If you’re in that group, fear not. Here’s the perfect Vanguard exchange-traded fund (ETF) for investors with a fear of missing out on the market’s biggest winners.
What if you could own nearly every stock that’s performing well in one fell swoop? That’s exactly what you can do with the Vanguard U.S. Momentum Factor ETF (VFMO 1.52%).
This ETF employs a rules-based quantitative model to analyze U.S. stocks. It invests in all stocks with strong momentum (called “mo-mo” by some investors). The fund’s managers don’t care if the stocks are large caps, mid caps, or small caps. They don’t focus on specific sectors or industries. If a stock is taking off, the Vanguard U.S. Momentum Factor ETF buys it.
As you might expect, this Vanguard ETF has itself taken off over the last 12 months, jumping over 30%. Since its inception in February 2018, the fund has delivered an average annualized gain of nearly 13.3%. At that rate, your money would double every five and half years.
Vanguard is known for its low-cost funds. The Vanguard U.S. Momentum Factor ETF is no exception with an annual expense ratio of 0.13%. The ETF’s dividend yield (currently 0.46%) more than covers those expenses.
The Vanguard U.S. Momentum Factor ETF is loaded with huge winners. It currently holds positions in 574 stocks. Their average earnings growth rate is a hefty 19.2%.
A quick glance at the ETF’s top holdings gives a pretty good picture of what you get with this fund. Its largest largest position is in Meta Platforms, which makes up 1.64% of the ETF’s total portfolio. Shares of the social media giant have soared more than 130% over the last 12 months.
Nvidia comes in a close second to Meta at 1.52% of the fund’s portfolio. The chip stock has vaulted more than 220% higher over the last 12 months thanks to surging demand for its GPUs.
Another artificial intelligence (AI) chipmaker, Broadcom, is the Vanguard U.S. Momentum Factor ETF’s third-largest position. Its shares have more than doubled over the last 12 months.
Don’t think the fund is overly weighted with tech stocks, though. Nearly 70% of the Vanguard ETF’s holdings are in other sectors. For example, healthcare giant Eli Lilly is its fifth-largest position, making up 1.24% of its portfolio. Lilly’s shares have jumped more than 120% over the last 12 months with strong sales growth from its type 2 diabetes drug Mounjaro and new weight loss drug Zepbound.
FOMO shouldn’t be an issue if you buy the Vanguard U.S. Momentum Factor ETF. You’ll be virtually guaranteed to own any stock that becomes the next big thing. There is one legitimate fear with the ETF, though.
The main downside to investing in stocks with tremendous momentum is that they can be priced for perfection. The average price-to-earnings ratio of the stocks owned by this Vanguard ETF is a lofty 21.3. It’s possible that this high valuation could limit how much the ETF grows. And if the overall market declines, the fund could fall especially hard.
However, the Vanguard U.S. Momentum Factor ETF model is designed to replace underperforming stocks with others that demonstrate stronger momentum. The turnover rate for the fund (as of the end of its last fiscal year on Nov. 30, 2023) was 73.4%. Just as you don’t have to be afraid of missing out on a big winner with this ETF, you don’t have to be scared of being stuck too long with a big loser either.
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. Keith Speights has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
As the Federal Reserve maintains a cautious stance on interest rate cuts, Bitcoin’s emergence as a ‘digital gold’ has garnered increased investor attention, setting the stage for heightened adoption expectations, Coinbase said in its latest market research on April 5.
Institutional Research Analyst David Han believes Bitcoin’s growing status as digital gold will attract new investors looking for a hedge against macroeconomic uncertainty.
According to the report, this perspective has gained further prominence over the past day against the backdrop of the Fed’s recent communications, which have led to a broader market recalibration, affecting digital and traditional assets alike.
The Federal Reserve’s recent communications suggest a measured approach to future interest rate adjustments, a stance that has coincidentally seen gold outshine other asset classes. This development, Coinbase asserts, may cast Bitcoin in a favorable light among investors seeking alternatives amid inflationary concerns and interest rate uncertainties.
Han said the market’s hawkish reaction to the Fed’s recent commentary highlights a significant shift from the optimism at the start of the year, reflecting deeper uncertainties across financial landscapes.
Within this framework, Bitcoin’s resilience and potential for adoption come into sharper focus, suggesting a pathway through macroeconomic turbulence.
According to Han, the introduction of spot bitcoin ETFs in the US market represents a pivotal development, enhancing the flagship crypto’s appeal by broadening access and potentially stabilizing price volatility through increased institutional participation.
This milestone, coupled with Bitcoin’s comparison to gold in times of economic uncertainty, positions it uniquely as a safe haven for investors navigating the current climate of inflation concerns and geopolitical risks.
Han highlights the strategic significance of Bitcoin’s growing acceptance and the implications for market volatility and investment strategies.
The enhanced liquidity and investor base attributed to the Bitcoin ETFs marks a transformative shift in the crypto market’s structure, contrasting with previous cycles and suggesting a more mature phase of market evolution.
The broader crypto and DeFi sectors also reflect these complex trends, with developments like Maker’s Endgame initiative signaling rapid innovation yet inviting scrutiny over governance and risk. The ongoing dialogue within the DeFi community, especially concerning decentralized stablecoins, highlights the intricate balance between innovation, market stability, and regulatory engagement.
As Bitcoin navigates the implications of the Fed’s policies, its role and acceptance in the financial ecosystem are poised for significant scrutiny and potential expansion. The intricate balance of macroeconomic factors, investor sentiment, and technological advancements will continue to shape the landscape for Bitcoin and the wider crypto market.
Economist and gold bug Peter Schiff has warned that something big is happening that very few investors are prepared for. “More importantly, governments and central banks are not prepared for it either,” he stressed. Schiff explained that Fed rate cuts will make the inflation problem worse. Peter Schiff’s Warnings Economist and gold bug Peter Schiff […]
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