The economy is growing…so where are all the jobs?

Last Wednesday’s jobs report didn’t offer an answer, but it did appear to bring some encouraging news…

Employers added 130,000 jobs in January, beating expectations. That helped push the unemployment rate down to 4.3%.

This was a welcome counter to the troubling revisions to last year’s job growth.

As I highlighted here in the Digest, the Bureau of Labor Statistics’ (BLS) updated numbers revealed the U.S. had nearly 900,000 fewer jobs than previously reported during its 12-month “benchmark” window in 2025. Separately, the BLS updated its numbers for the full calendar year 2025. What initially looked like 584,000 jobs created turned out to be just 181,000.

In practical terms, that’s barely a heartbeat for an economy the size of the U.S.

Meanwhile, according to outplacement firm Challenger, Gray & Christmas, January’s corporate job-cut announcements totaled 108,435 – up 118% from a year ago and the highest January total since 2009.

And hiring plans? They fell to their lowest January level on record.

So, yes, January’s jobs numbers showed improvement. But 2025’s hiring was anemic, and companies remain cautious about expanding headcount.

Which brings us back to our question…

If businesses didn’t hire as many people last year as we thought, how did the economy still grow? And what’s behind robust forecasts for GDP in 2026?

The economy is expanding – but the source of that growth is shifting

The Atlanta Fed’s GDPNow model currently estimates Q4 2025 growth at 3.7%. That’s solid performance for a mature economy.

Better still, legendary investor Louis Navellier believes this number underestimates what’s coming. In his February Breakthrough Stocks issue, Louis projects the U.S. could hit 6% GDP growth in 2026, driven by three powerful tailwinds.

Here’s Louis:

First, the U.S. is experiencing productivity enhancements from AI.

Second, the data center boom and the AI Revolution both persist.

And third, there is an estimated $20 trillion of onshoring from the data center, semiconductor, pharmaceutical and automotive industries.

All of which should continue to boost economic growth.

Now, while 6% GDP would be fantastic, it would represent a disconnect that we must address…

There’s a massive gap between U.S. GDP at 6% and Wednesday’s jobs report showing 130,000 new jobs – not to mention last year’s anemic 181,000 total job growth.

To understand the scale of this inconsistency, Goldman Sachs Research and its Chief Economist, Jan Hatzius, analyzed what job growth we’d typically expect from a 6% GDP expansion.

Using Okun’s Law – which measures the relationship between GDP growth and the unemployment rate – they found that a U.S. economy growing at a 6% annual clip would historically generate approximately 460,000 jobs per month.

That’s two-and-a-half times the number we got last week.

And again, last week’s number was magnitudes better than the revised monthly figures from 2025.

So, today’s job growth numbers are nowhere in the same galaxy as what 6% GDP would traditionally produce.

How do we reconcile this?

Simple. Something fundamental has changed in how growth is being generated.

Economic output is rising without corresponding increases in labor demand. Companies are achieving productivity gains not by hiring more workers, but by deploying more sophisticated technology.

I’ve been writing about this dynamic frequently in recent Digests because it represents one of the most impactful storylines that will affect your wealth, and potentially your job, in the next three to five years.

Our technology expert Luke Lango has been tracking it too, and he’s developed a framework for understanding what’s happening – and more importantly, what it means for investors.

“The greatest deflationary force in human history”

Luke describes the current moment as the collision of two powerful economic forces.

On one side, AI represents what he calls “the ultimate cost-cutter”:

When a company can replace a $120,000-a-year mid-level manager with a $20-a-month subscription to an AI Agent, they don’t think about it. They just do it. It’s their fiduciary duty.

This collapses wages and labor demand through “Technological Deflation.”

Recent data support Luke’s thesis.

A December 2025 research report from Microsoft titled “AI Exposure of Occupations” analyzed the vulnerability of various job categories to AI automation. It found that roughly 5 million white-collar positions face high AI exposure, including management analysts, customer service representatives, and sales engineers. These aren’t entry-level roles. They represent core middle-class employment.

Meanwhile, Goldman Sachs research found that generative AI could automate tasks equivalent to 300 million full-time jobs globally. In the U.S. alone, roughly two-thirds of current occupations are exposed to some degree of AI automation, with up to one-quarter of all work potentially being fully automated.

These numbers suggest a broad restructuring is on the way – but not one without historical parallels…

Luke compares the current climate to an era during Britain’s Industrial Revolution that economists call the “Engels’ Pause,” named after Friedrich Engels, who documented it:

Between 1790 and 1840, Great Britain’s GDP growth rate exploded from 0.2% to 3.2% annually…

Corporate profits doubled, increasing by over 20% from the late 18th to the mid-19th century.

But here’s what Engels noted: while the Industrial Revolution was making Britain incredibly rich, most Brits saw their lives get much worse, not better.

For the average worker, real wages remained flat or fell for 50 years. Workers’ share of the national income dropped from 50% to 45%, even as total wealth soared…

The wealth did eventually trickle down… and the Industrial Revolution did eventually lead to more jobs… half a century later.

Luke believes we’re entering a compressed, AI-driven version of this phenomenon:

The steam engine took a century to deploy. ChatGPT hit 100 million users in two months.

We’re compressing 50 years of displacement into a single decade.

This compression creates a paradox. The economy can grow robustly – driven by AI-enhanced productivity – while a growing number of workers experience financial strain.

Which brings us to a CNBC article last Friday…

The data showing who’s benefiting from growth – and who isn’t

On Friday, CNBC reported on something striking about the current expansion…

According to the Bank of America Institute, while spending growth among higher-income Americans remained steady between January 2025 and January 2026, it slowed substantially for lower- and middle-income households during the same period.

This is the K-shaped economy my fellow Digest writer Luis Hernandez and I have been writing about frequently – where the upper spoke (those with assets) sees their wealth rise while the lower spoke (those relying on wages) struggles with stagnant or declining purchasing power.

David Tinsley, senior economist at the Bank of America Institute, said that this “K” divergence is “beginning to look more like the jaws of a crocodile.”

The article goes on to highlight a projection from the National Foundation for Credit Counseling that financial stress will reach an all-time high in Q1 2026.

Worse, their data reveals something particularly noteworthy: the stress is “creeping up the income and age ranks,” now affecting middle-income consumers in their mid-40s-to-60s who historically maintained financial stability.

So, this brings us back to the central paradox: GDP growth projections of 5% to 6%…alongside record consumer financial stress.

This isn’t a temporary imbalance that will self-correct. It reflects a structural feature of how wealth is created and distributed in an AI-enhanced economy.

Cue the political responses…

Policy changes are coming – but they won’t alter the investment calculus

Washington is beginning to grapple with these dynamics.

In recent Digests, I’ve been tracking state-level legislative proposals targeting investment wealth and high-income earnings. But now, a different approach is gaining traction…

Taxing the companies doing the automating.

Senate Democrats recently published a report projecting that AI and automation could displace nearly 100 million U.S. jobs over the next decade. Their proposed solution is a “robot tax” that would fine companies for replacing workers with AI, using the revenue to assist displaced workers.

The intention is understandable. But as Reason.com analyzed, the approach faces serious challenges.

First, all countries face a “prisoner’s dilemma” situation wherein if they fail to pursue AI aggressively, they risk falling behind the countries that do. So, plenty of international competitors are unlikely to adopt similar taxes. Rather, they’ll deploy AI aggressively, gaining cost advantages.

American firms facing automation penalties may lose market share – and then be forced to cut jobs anyway due to competitive pressure rather than technological choice. Politicians will only tolerate so much of that dynamic before they’re forced to reconsider.

But more fundamentally, even if robot taxes are enacted, they won’t alter the economic/investment reality: AI-driven productivity gains will still accrue to the owner/investor class – even if they’re taxed.

And this raises a critical question for anyone building long-term wealth…

In an economy where growth comes from technology rather than labor expansion, how do you position your portfolio?

As I’ve been highlighting here in the Digest, AI enables companies to expand output without proportionally expanding headcount.

Productivity rises, costs decline, margins improve – often with flat or declining workforce levels.

Now, from a societal perspective, this creates legitimate questions about income distribution and long-term demand. After all, if fewer workers participate in productivity gains (and thereby have disposable income), who ultimately buys the products?

But from a portfolio perspective, the implications are more straightforward…

If productivity gains accrue to owners/investors rather than to labor, then wealth accumulation requires a position on the capital side of that equation.

Here’s Luke making this exact point:

The only way to win is to join the capital class.

This requires a fundamental shift in how you think about money. You cannot save your way out of a currency devaluation spiral. You must think about “owning the machine.”

If AI is stealing jobs, you must own AI companies.

If tech giants are capturing GDP, you must own their equity.

And if the grid powers everything, you must own the infrastructure.

Luke identifies three tiers of opportunity.

First, infrastructure…

AI requires massive computing power, advanced semiconductors, and unprecedented energy resources. Companies like Nvidia (NVDA), AMD (AMD), and Taiwan Semiconductor (TSM) aren’t optional components. They’re essential infrastructure for the entire AI buildout.

Second, Luke flags what he calls “the sovereigns”…

Think Microsoft (MSFT), Alphabet (GOOGL), Meta (META), and Amazon (AMZN). These companies operate with R&D budgets exceeding NASA’s. They control platforms, data, and customer relationships at scale. In an AI-driven economy, they’re positioned to capture value from virtually every digital interaction.

Third, there are the “agents”…

These are companies building AI software that directly replaces high-value professional work. This carries a higher risk but offers potential for asymmetric returns as certain categories of work get fundamentally restructured.

Luke has been working with his research team on identifying companies positioned to benefit as government capital flows into strategic AI infrastructure – what he calls the “President’s 蜜桃传媒” dynamic, where President Trump’s policy priorities are creating investment tailwinds.

You can check out Luke’s research on these AI investment opportunities right here.

As we wrap up, let me add some perspective

None of this implies we face an imminent crisis or labor market collapse.

But let’s be candid – we’re in the early stages of a structural economic shift where productivity increasingly originates from technology rather than expanded human employment.

While bumpy societally, this shift will create enormous investment opportunities. After all, the wealth generated by AI productivity will flow somewhere – to the owner/investor class of the companies behind this AI revolution.

We’re beginning that transition today. Recognizing this – and positioning accordingly – will have a massive impact on your long-term wealth creation.

We’ll continue tracking both the economic dynamics and investment implications here in the Digest.

Have a good evening,

Jeff Remsburg

The post The Danger Lurking Behind a Strong GDP Number appeared first on InvestorPlace.

But as I write this, the market is re-evaluating those fears and teetering back into the green.

In addition, gold prices are down significantly due to the perception that negotiations between the U.S. and Iran are going well.

But I wouldn’t get distracted too much by the noise.

Because what ultimately drives stock prices isn’t headlines – it’s earnings and guidance.

We find out which companies are actually growing sales, which are expanding margins and which are giving strong forward-looking guidance for the company’s future.

That’s what moves stocks higher.

So, in a special episode of Navellier 蜜桃传媒 Buzz, I previewed a handful of earnings from big companies expected to announce this week, including gold miners, cybersecurity, retail and much more. These reports will tell us what’s really going on with AI, gold and the economy.

Click the image below to watch now.

To see more of my videos, click here to subscribe to my YouTube channel.

Plus, the grades in Stock Grader (subscription required) have been updated this week! Click here to plug in your own stocks and see how they rate.

A Smarter Way to Measure Stocks

As we discussed in the video, once companies report earnings, the market quickly separates the strong from the weak.

That’s why I don’t rely on headlines or hype. I rely on a disciplined system.

For decades, I’ve used Stock Grader, a simple ABC-style grading approach that ranks stocks based on their fundamentals and momentum. It helps me focus on companies that are delivering and avoid those that aren’t.

In fact, the strategy is so straightforward that I taught it to my 25-year-old daughter, Crystal – an art student with no finance background – and she used it to outperform the broader market by 2-to-1 in 2025.

I believe that kind of discipline is especially important today, when so many investors rely on broad index funds that are heavily concentrated in just a handful of mega-cap stocks.

If even just a few of those mega-cap names in those index funds fall, those portfolios can feel it quickly.

My system is built to give you that control and discipline – by helping you focus on fundamentally superior stocks that will dropkick and drive your portfolio higher.

In my latest briefing, I walked through how my system works and how easy it is to use. Plus, I gave away the ticker symbol for a stock that I believe has as much explosive growth potential as NVIDIA Corporation (NVDA).

Click here to check it out now.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post What This Earnings Season Is REALLY Saying About AI, Gold & the Economy appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Strong to Very Strong

Downgraded: Very Strong to Strong

Upgraded: Neutral to Strong

Downgraded: Strong to Neutral

Upgraded: Weak to Neutral

Downgraded: Neutral to Weak

Upgraded: Very Weak to Weak

Downgraded: Weak to Very Weak

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services.

To learn more about my premium service, Growth Investor, and get my latest picks, go here. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The post Toll Brothers Upgraded, Super Micro Computer Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.

Wall Street has a funny habit. It seems to only discover megatrends after they’ve already been happening for years; and then acts shocked when those stocks move…

Which is why the setup for space AI stocks in 2026 is starting to look less like a speculative fever dream and more like a classic convergence trade: where policy tailwinds + new infrastructure narrative + a generational capital-markets catalyst combine to send space stocks into orbit.

And there are three catalysts that matter most:

Put those together, and you get a rare and bullish setup: a theme that has government urgency, private capital ambition, and public-market oxygen all at the same time.

Let’s break it down.

Catalyst 1: The ‘Space Superiority’ Executive Order and the Shift to Commercial-First Contracting

The new White House EO signed in mid-December, titled “Ensuring American Space Superiority,” is straightforward with its goals:

• Crewed U.S. Moon landing by 2028
• Progress toward a more sustained lunar presence (with outpost elements around 2030)
• Commercial pathway to replace the ISS by 2030
• Faster procurement and a harder push toward “commercial-first” contracting
• A stronger “space security” posture and missile-defense demonstrations
• A long-term signal: space-based nuclear power 

And the most investable part of the EO is the mechanisms it’s setting forth, basically telling agencies: “Buy faster. Buy commercial. Stop overpaying for slowness.”

This is important because the fastest way to create winners is to change how contracts are awarded. When Washington shifts from cost-plus, bespoke contracting to commercial-first, fixed-price models, a different set of companies starts to win – and the public-market space sector becomes far more investable. 

The timeline is also set (and markets love deadlines).

With the EO signed December 18, 2025, the countdown has already begun:

• ~60 days: nuclear initiative guidance
• ~90 days: integrated plan package to the president (including program ‘health checks’)
• ~120 days: transportation policy revisions and spectrum actions
• ~180 days: implementation of acquisition reforms and national security space strategy/architecture plan 

Throughout early-to-mid 2026, we can expect recurring progress updates that act as stock catalysts: policy memos, implementation plans, procurement tweaks, pilot programs, and (importantly) contract momentum.

This is how the stocks start moving before the fundamentals show up in quarterly revenue.

Catalyst 2: Space AI and ‘Orbital Data Centers’ – The Next Frontier for AI Infrastructure

Let’s address the elephant in the room: data centers in space sound absurd. And they are – until the first demos show up. Then markets do what they do – sprint 18 months ahead of reality and price in a world that doesn’t yet exist.

We are witnessing the birth of Space AI, the next multi-trillion dollar hardware supercycle. The ‘AI Power Wall’ on Earth is forcing hyperscalers to look toward orbital data centers for inference and radiation-hardened edge computing.

• Nvidia (NVDA) has publicly profiled startups pursuing space-based data centers, explicitly framing the pitch as lower energy constraints relative to Earth-based infrastructure and highlighting the engineering effort around thermal/power systems. 
• Starcloud‘s own materials describe an in-space GPU cluster concept and a first commercial satellite (Starcloud-2), aiming for operational status in 2026. 
• Elon Musk has talked about using his SpaceX company to provide data centers in space for his AI company, xAI, and has loudly proclaimed that orbital computing is the future. In fact, SpaceX has now confirmed a deal to acquire xAI.
• Alphabet (GOOGL) is teaming up with Planet Labs (PL) in what they call “Project Suncatcher,” which involves launching space-based Google AI data centers by 2027.

Now, will orbital compute replace terrestrial hyperscale in 2026? Of course not. But if ‘compute in orbit’ becomes a credible narrative, the market immediately starts bidding up the enabling stack: launch networks, space-grade power and thermal management, radiation-tolerant electronics and resilient systems, optical links/laser comms, in-orbit servicing and in-space manufacturing.

The recent EO also addresses exactly the areas that become relevant as space becomes more commercial and more crowded – space traffic management, orbital debris, cislunar operations, spectrum leadership, and commercial “as-a-service” approaches. 

Orbital compute doesn’t need to work at scale to move stocks in 2026. It simply needs to be credible enough to ignite investment, partnerships, prototypes, and pilot program procurement.

Because Wall Street buys optionality – and overpays for it.

Catalyst 3: The 2026 SpaceX IPO and the Vertical Integration of Space + AI

Now, here’s the big one.

If SpaceX goes public in 2026 (via traditional IPO or a creative structure), it would likely become the benchmark asset for the entire space category. In terms of mindshare, it’s the Tesla of space; and markets love a narrative anchor.

SpaceX is discussing a 2026 IPO that could raise $25 billion-plus and value the company above $1 trillion, with timing discussed around mid-year. For investors, the primary goal of this event is identifying the “SpaceX adjacency” stocks – companies like Rocket Lab (RKLB) and Redwire (RDW) that will benefit most from this massive valuation re-rating.

A SpaceX IPO doesn’t just create a new stock. It:

Now, here’s what makes this potential IPO different from prior “space hype” cycles.

SpaceX is no longer just a launch company. With its acquisition of xAI, it now controls both the transportation layer and a frontier AI model stack. That vertical integration gives SpaceX a direct economic incentive to think beyond rockets – and toward where AI infrastructure itself lives.

And behind the scenes, the groundwork is already being laid. Regulatory filings and hiring activity tied to space-based compute infrastructure suggest that orbital data systems have moved beyond speculation – they’re being engineered.

If orbital compute becomes part of the IPO narrative – even as a long-term strategic pillar – the valuation conversation changes overnight. Suddenly, SpaceX isn’t just the Tesla of launch. It’s positioning itself as AI infrastructure with a launch pad.

And when that framing hits an S-1, the entire “SpaceX adjacency” ecosystem will reprice before fundamentals ever catch up.

Why 2026 Could Be the Space Stocks Re-Rating Year

Individually, each catalyst is meaningful. Together, they’re combustible.

The EO generates government urgency, contract velocity, and a national narrative. Orbital compute creates the next ‘AI infrastructure’ storyline, with a fresh frontier. The potential SpaceX IPO inspires liquidity, benchmarking, attention, and multiple expansion.

This is the same recipe that has driven so many prior theme cycles:

Then everything in the ecosystem trades like it’s a pure-play winner.

Of course, sometimes that ends badly – like in 2021, when Virgin Galactic (SPCE) crashed from $1,100 to $267 as reality replaced hype. But in 2026, we’ve got one additional ingredient that matters: the AI boom is still the dominant macro narrative, and orbital compute is basically AI infrastructure with a spacesuit. 

If you’re looking for a way to keep playing AI upside while everyone fights over the same data center trades… space is a natural new hunting ground.

Who Might Benefit: The Top 2026 Space Stock Plays

We’ve compiled a watchlist for where capital and contracts could flow as the three catalysts converge:

If orbital compute and lunar goals both accelerate, launch cadence becomes the bottleneck – and bottlenecks become profit pools.

Rocket Lab just landed an $805 million contract in December 2025 to deliver 18 missile warning and tracking satellites for the Space Development Agency – the company’s largest deal yet, nearly 50% larger than its entire 2024 revenue. The company has also been selected for the U.S. Air Force’s $46 billion EWAAC contract and the U.K.’s £1 billion hypersonic development framework, both running through 2031. Rocket Lab’s space systems business has grown from 6% of revenue in 2020 to nearly 75% today, with third-quarter 2025 space systems revenue alone hitting $114 million. The company’s evolution from pure launch provider to end-to-end space systems integrator positions it squarely in the “commercial-first” procurement wave the EO is pushing.

The EO explicitly leans into security strategy, architecture, and deterrence language – and that typically means primes/integrators get steady demand even when commercial cycles wobble.

Lockheed Martin (LMT), Northrop Grumman (NOC), RTX (RTX), L3Harris (LHX), and Leidos (LDOS) remain the core defense space plays. These companies build the satellites, sensors, and integration layers that the “space security” and missile-defense portions of the EO will require. While less volatile than pure-play space stocks, they offer exposure to multi-decade government spending cycles with lower execution risk.

A commercial pathway to replace the ISS by 2030 is a headline goal – and an early pipeline of contracts, partnerships, and prototypes can show up well before then.

Redwire was awarded a contract in September 2025 to provide roll-out solar arrays (ROSA) for Axiom Station’s first commercial space station module. Redwire has delivered eight IROSA wings for the ISS (six currently deployed), with each providing 20-plus kW of power for over 10 years. The company also secured a $25 million NASA IDIQ contract in August 2025 for biotechnology facilities and on-orbit operations, plus additional NASA contracts for pharmaceutical drug development in space using its PIL-BOX platform. Redwire’s positioning across power systems, in-space manufacturing, and microgravity research makes it a core infrastructure play for the post-ISS era.

EO language favoring fixed-price, as-a-service models is a tailwind for companies selling data products rather than bespoke hardware builds.

Planet Labs secured a $260M contract from Germany in July 2025 – one of its largest ever – for satellite services supporting European defense and security. The company also won a $7.5 million contract renewal with the U.S. Navy in October 2025 for vessel detection over the Pacific, plus a $12.8 million NGA contract for AI-enabled maritime domain awareness. Planet Labs’ contract backlog surged 245% year-over-year, driven by major defense and intelligence wins. The stock has responded accordingly, up over 267% year-to-date through Q4 2025.

BlackSky (BKSY) won a $100-plus million seven-year contract in January 2025 from an international defense partner for real-time monitoring capabilities, and added a $30-plus million multi-year international defense contract in Q3 for Gen-3 tactical ISR services. The company’s backlog stands at $322.7 million, with 91% from international contracts. BlackSky’s bet on high-cadence, AI-enabled analytics is paying off as governments prioritize real-time intelligence, though the company faces near-term headwinds from U.S. budget uncertainty.

Spire (SPIR) rounds out the Earth observation trio with its focus on weather data and maritime tracking, though it operates at a smaller scale and with less recent contract momentum compared to Planet Labs and BlackSky.

This is the speculative bucket. If ‘compute in orbit’ becomes investable, the first winners will be providers of enabling hardware – especially around power/thermal, radiation-hardened systems, and optical communications.

This is also where you’ll want to watch for ‘surprise’ beneficiaries as partnerships are announced. Companies providing space-grade components, cooling systems, and laser communication links could see sudden revaluations if orbital compute moves from concept to funded programs. The EO’s emphasis on space-based nuclear power is particularly relevant here – if that pathway opens up, it changes the economics of power-hungry orbital infrastructure entirely.

The Risks Space Investors Need to Watch

We’ve got to be honest about the hazards here:

• Execution risk and budget politics are real. Even Reuters coverage notes that NASA has been dealing with workforce reductions and budget pressure in the broader policy environment, and timelines can slip.
• Orbital compute faces serious challenges – radiation, cooling, latency, launch economics. The story can run ahead of the engineering.
• Space stocks are volatile by nature. They’re small-cap heavy, sentiment-driven, and allergic to risk-off macro tape.

These risks don’t necessarily prevent a 2026 rally. They just mean you should expect a trade that looks like this: rip higher on narrative, contracts, and valuation re-rating → correct violently when reality shines through.

The 2026 Playbook: What to Track

If you want to track whether this theme is viable in 2026, don’t just watch stock prices. Watch the signposts:

• Q1-Q2 2026: EO implementation documents (especially procurement reforms and security architecture plans)
• Throughout 2026: Orbital compute demos/partnerships (GPU-in-space, optical comms announcements, payload customers) 
• Mid-2026: SpaceX IPO newsflow (bank selection, timing, structure rumors, Starlink narrative, and whether orbital compute is part of the pitch) 
• Ongoing: Defense and civil space contract velocity (who’s winning, and whether “commercial-first” shifts the usual winners)

When those signals align, investors start reassessing their positioning.

The Bottom Line On Space Stocks In 2026

The ‘Space AI’ story is moving fast.

The White House just signed the most aggressive Space Executive Order in decades – but it’s not stopping there.

Behind the scenes, Washington is quietly assembling what amounts to a government-backed portfolio of strategic technologies.

We’ve seen it before: When federal money flows, the market front-runs it. And the companies closest to that flow tend to outperform everything else on the board.

That’s the foundation of what I call the President’s 蜜桃传媒 – a playbook built around tracking where policy urgency and federal dollars intersect.

Space may be one of the first visible waves.

It won’t be the last.

In a new briefing, I break down:

• How to spot these capital-flow pivots early
• Which industries are next in line
• And the specific stocks I believe are positioned to benefit most

Because in 2026, the real edge isn’t just picking good companies.

It’s aligning with the spending power of the United States government.

The post Orbital Compute and Space AI Stocks: The 2026 Breakout Setup appeared first on InvestorPlace.

In last Friday’s Digest takeover, we reintroduced you to Wall Street veteran Marc Chaikin. Today, we’re back with another perspective from Marc that can help your portfolio.

Some technological breakthroughs feel abstract…until you see how they change a real person’s life.

In today’s guest essay, Marc shares a remarkable story from the height of COVID: a life-saving robotic surgery performed in London with guidance from a specialist sitting 4,700 miles away in Seattle. It worked because of something most of us barely think about anymore – high-speed internet.

But Marc’s point isn’t just about medicine. It’s about markets. When a technology quietly becomes essential infrastructure, it reshapes entire industries – and the biggest investment opportunities often form before most investors realize what’s happening.

That’s exactly what Marc plans to break down in his free live market briefing tomorrow at 10 a.m. Eastern. You can reserve your seat right here.

If you’re trying to separate durable trends from passing hype, Marc’s essay below is a must-read.

I’ll let him take it from here.

Have a good evening,

Jeff Remsburg

Mo Tajer needed a lifesaving surgery at one of the worst times in history…

The 31-year-old Englishman had testicular cancer. And he had undergone four rounds of chemotherapy.

But unfortunately, the cancer spread to his abdomen…

Doctors found a roughly two-inch tumor wrapped around his aorta and inferior vena cava.

The aorta is the body’s most important blood vessel. It carries blood from the heart to the rest of the body. And the inferior vena cava moves blood back to the heart.

Doctors knew the tumor could rupture either of these major blood vessels at any moment. If that happened, Tajer could die from internal bleeding.

Tajer had to get the tumor removed as soon as possible.

But doctors faced a big problem…

A Life-or-Death Problem With No Obvious Solution

Tajer needed his surgery in the thick of the COVID-19 pandemic.

Most major cities were locked down. And many countries had restricted travel.

In hospitals all over the world, doctors and nurses dealt with a surging number of patients as best they could. A lot of those patients fought for their lives in COVID-19 wards.

Many hospitals couldn’t keep up with the demand for beds. So they postponed most surgeries.

Tajer couldn’t afford to delay his surgery, though. He needed help immediately.

A traditional open surgery was out of the question. Tajer would’ve needed a two-week recovery in intensive care. And with so many COVID-19 patients, there wasn’t any room.

That’s when his attending physician, Dr. Archie Fernando, had an idea…

She could use a robot to remove the tumor in a less invasive way.

You see, Tajer’s treatment took place at Guy’s Hospital in London. And the hospital owned a Da Vinci Xi robotic surgical system from Intuitive Surgical Inc. (ISRG)…

As you can see, this roughly $2 million system has four robotic arms.

The technology helps doctors perform minimally invasive surgeries – like removing tumors. It’s much safer than traditional open surgery. And it doesn’t require a long recovery.

Globally, more than 6,700 hospitals use one of these robotic-assisted surgical systems.

But there was another problem…

Fernando had never performed that kind of surgery.

So she had to get creative again. Specifically, she turned to Dr. Jim Porter for help.

Porter is the medical director for robotic surgery at the Swedish Medical Center in Seattle. He has conducted thousands of surgeries using the Da Vinci Xi robotic surgical system.

Hospital officials got Tajer to an operating room. Then, Fernando and Porter worked together for five hours to remove the tumor.

Tajer made a quick recovery. And he went on to live his life without any lingering pain.

This story gets even more amazing…

The Critical Technology Most People Take for Granted

Porter helped Fernando while wearing his pajamas at his home in Seattle.

That’s right…

Due to the COVID-19 pandemic, Porter couldn’t travel to London.

But thanks to modern technology, he saw everything in real time. And he guided Fernando step by step through the procedure.

He didn’t just talk her through it, either.

With a special program, Porter used his laptop to show Fernando what to do. He pinpointed exactly where she needed to cut Tajer.

Fernando and Porter worked together to save Tajer’s life. But without another critical tool in today’s tech-heavy world, the procedure wouldn’t have been possible.

We’re talking about high-speed internet.

Think about it…

Porter was 4,700 miles away from the operating room. And yet, it felt like he was standing right next to Fernando as she made the needed cuts to remove Tajer’s tumor.

If it weren’t for high-speed internet, Tajer likely wouldn’t be alive today.

We use high-speed internet for all sorts of things these days. And that dependence is only growing…

Take artificial intelligence AI, for example.

This powerful technology simply doesn’t work without a massive amount of data. And it’s critical for that data to move as quickly as possible from one point to another.

Self-driving cars require the collection and processing of a constant stream of data as well. Otherwise, they couldn’t safely navigate the roads.

Factory automation is intensifying all over the world, too.

Folks, there’s no denying that AI was the hottest investing topic of 2025. And it could grow even further in 2026.

Put simply, humanity keeps finding new and exciting ways to use the incredible tool of the internet. The massive data boom isn’t going away anytime soon.

And this is exactly the kind of shift investors need to be paying attention to right now.

When transformative technologies like high-speed internet or AI quietly become essential infrastructure, the biggest opportunities don’t always show up where people expect them. And the risks aren’t always obvious either.

That’s why I’m stepping forward next week with a free live market briefing to explain what’s changing beneath the surface of today’s market — and how investors can position themselves as innovation accelerates in 2026 and beyond.

On Tuesday, February 17, at 10 a.m. Eastern, I’ll walk through what I’m seeing right now… why some stocks are built to thrive in this environment while others are far more fragile than they appear… and how to identify the small group of companies with the strongest potential ahead.

I’ll also share a brand-new analytical tool you’ll be able to try for yourself, along with two free stock recommendations during the broadcast.

Click here to reserve your seat for this free live event — and I’ll see you there.

Good investing,

Marc Chaikin

蜜桃传媒 Expert and Founder, Chaikin Analytics

The post The Next Tech Boom Is Already Underway, and Here’s What’s Driving It appeared first on InvestorPlace.

Marc is best known as the creator of the widely used Chaikin Money Flow indicator and the Power Gauge stock-rating system. Now, as a partner within our corporate family, he’s bringing that disciplined, risk-aware approach to a broader audience.

In this piece, Marc revisits one of the most dramatic hedge-fund collapses in modern history — and explains why even brilliant traders can fail without the proper guardrails.

With volatility rising and positioning getting crowded, Marc is hosting a free live briefing on Tuesday, February 17, at 10 a.m. Eastern to share what he sees ahead — and how investors can better protect and position their portfolios. You can reserve your seat for Marc’s free broadcast here.

Brian Hunter made more money in a single month than most folks make in their lifetimes…

But he also caused one of the biggest hedge-fund blowups in history.

You see, Hunter was a commodities trader. But he wasn’t like the typical, brash Wall Street types.

He grew up in farm country near Calgary in Canada. He was quiet and kept to himself.

But Hunter loved crunching numbers. And he was good at it.

In college, Hunter majored in physics. Then he got a master’s degree in mathematics.

That gave him a major advantage over his future colleagues in the financial markets.

Soon after he graduated, he put his educational background to work. He joined the natural gas futures trading desk at a Calgary-based company called TransCanada (now called TC Energy) in the late 1990s.

TransCanada was an emerging player in the energy transmission business. It focused on transporting natural gas across North America.

Hunter quickly learned the fundamentals of the natural gas market. His experience at TransCanada prepared him to become one of the most profitable energy traders in the world.

In 2001, Hunter joined the natural gas trading desk at financial-services giant Deutsche Bank (DB). And he took off…

During his first year, he made the bank $17 million. The next year, he tripled that figure to bring in $52 million. By 2003, he headed Deutsche’s natural gas trading desk.

His division was poised to have another big year, but disaster struck…

The First Warning Sign

In December 2003, natural gas prices went in the opposite direction of where he bet. They went higher instead of lower.

It cost his desk – and the bank – more than $51 million in losses in a single week.

Hunter blamed the losses on Deutsche Bank’s electronic-trade-monitoring and risk-management software. He said it stopped him from exiting bad trades early, which could have mitigated the losses.

The next year, Hunter left Deutsche Bank. It didn’t take him long to find a new job.

But at his new firm, poor risk management and bad speculating eventually led to a colossal blowup…

A former natural gas trader at Goldman Sachs Group Inc. (GS) hired Hunter to work at the energy desk at a Connecticut-based hedge fund called Amaranth Advisors.

At first, Amaranth kept Hunter on a tight leash. The firm knew about his big swings at Deutsche Bank.

But Hunter was a pro. He and his group steadily brought in 20% to 40% annual returns. So Amaranth gave him more leeway to make trading decisions.

In 2005, Hunter saw an opportunity in his main market – natural gas…

Oversupply had driven natural gas prices down, which he thought was unsustainable. And he expected prices to rise. So he bought millions of dollars’ worth of options at bargain prices.

Then, Hurricane Katrina slammed into the Gulf Coast. Hurricane Rita followed not long after.

The two storms devastated America’s oil and gas production and transportation in the Gulf region. And natural gas prices soared.

Hunter’s bets on natural gas paid off massively. He made $1 billion for Amaranth that year. That earned him a nine-figure bonus.

Hunter’s hot streak continued into 2006. By April of that year, he helped Amaranth amass a roughly $2 billion profit.

He was so “bullish” on natural gas prices for the winter that he made huge leveraged bets. And he managed to get around Amaranth’s position-size limits. He used swaps and derivatives to hide the true size of his positions.

Because Hunter had brought in so much money for Amaranth, the firm didn’t closely watch him. Amaranth also allowed him to move closer to home to his own office in Canada.

Then, things unraveled…

Risky Bets Pay Off… Until They Don’t

An unexpectedly warmer winter sent natural gas prices plummeting.

Hunter was sitting on billions of dollars’ worth of options and derivatives on natural gas. And these were bleeding millions every time natural gas prices fell by even a single cent. He made such big bets that they were too large to get out of if the market turned.

Eventually, Amaranth was in the hole for $6.6 billion – all thanks to Hunter. The firm imploded.

Hunter single-handedly caused the collapse of one of the world’s largest and most successful hedge funds. Put simply, it was because of his overleveraged, one-way bet on natural gas in 2006.

Spectacular busts like Amaranth aren’t a regular thing on Wall Street. But they teach us a valuable lesson…

Losses like this can happen if money managers don’t have the tools they need to manage risk and exposure in the markets. That’s true for individual investors, too.

So make sure you have the proper tools – and a plan – to manage risk.

My Power Gauge tool makes it clear when a trade has turned against us. And that means, unlike Hunter, we won’t be riding our portfolios to zero.

And that’s especially important right now.

Because when markets shift — whether in commodities like natural gas, tech like AI, or the broader stock market — the biggest damage rarely comes from being wrong. It comes from staying wrong too long.

Tomorrow, I’ll be stepping forward with a free live market briefing to explain why I believe we’re approaching a potentially volatile stretch for stocks… why not all companies will be affected equally… and how to identify both opportunity and hidden risk before it’s too late.

On Tuesday, February 17 at 10 a.m. Eastern, I’ll walk through what I’m seeing beneath the surface of today’s market — and share a powerful new tool designed to help investors manage risk and exposure far more effectively. (You’ll even be able to try that tool out for free.)

My partner and I will also share two free stock recommendations during the broadcast.

Click here to reserve your seat for this free live event — and I’ll see you there.

Good investing,

Marc Chaikin

蜜桃传媒 Expert and Founder, Chaikin Analytics

P.S. Marc’s story is a powerful reminder that risk management matters just as much as upside potential. If you want to hear what he sees coming next — and how he’s positioning for it — be sure to sign up for Marc’s free live briefing on February 17 at 10 a.m. Eastern.

The post What a ‘Winning’ Strategy Without Risk Management Looks Like appeared first on InvestorPlace.

Earlier this month, I made a decision. I wanted to know my members better.

Every day I show up, talk to you, and answer questions in our Masters in Trading Discord community. I watch familiar usernames scroll by.

These are people I’ve come to know. I see how they think. I see how they approach risk. I watch how they’re progressing with the trades, the tools, and the materials.

And I’ll tell you — there’s nothing better than watching the lightbulbs turn on in real time.

But the truth is, most of our interaction still happens through screens.

Digital communities are powerful. They allow us to learn together, move together, improve together.

But they also create distance. You don’t always get the chance to sit across from someone, slow the conversation down, and hear how the journey actually felt from their side.

So, I decided it was time to start shining some well-deserved light on the people who make this community what it is.

So I reached out to a member of the Masters in Trading community some of you might recognize – Jon.

If you’re inside the Discord, you know exactly who I’m talking about. He’s one of the steady voices in the room. Helpful. Thoughtful. Always working to understand the why behind what we’re doing.

We’ve worked together for about eight months, but this was the first time we’d actually spoken face to face.

And as he started describing how things have changed for him over the last year, something became very clear to me.

I already knew Jon was doing well.

What I didn’t fully appreciate — until I heard him say it out loud — was how profound the transformation had been.

In fact, his story explains what makes Masters in Trading different much better than I ever could.

Building a Framework

Jon is a physician. Highly educated. Comfortable making critical decisions with incomplete information. He’s spent decades operating in environments where precision matters.

If intelligence and discipline were enough to win in markets, he would have been miles ahead of everyone right out of the gate.

But he told me that despite years of reading, studying, and subscribing to quality research, he mostly felt like he was treading water.

He described long reports that never quite translated into meaningful returns. Recommendations that seemed to arrive after stocks had already moved. Ideas that sounded great, but fell short on defined risk management. An unsteady thesis underpinning each trade he made.

What stuck with me most was how he described the emotional weight.

The uncertainty.

Putting trades on and then lying awake wondering if he had missed something.

I’ve heard that feeling from engineers, executives, attorneys, business owners — incredibly capable people who somehow still felt like they were guessing.

Not because they lacked effort or capability. But because they lacked structure.

The Moment Things Started to Click

Jon didn’t start by diving headfirst into paid programs.

He watched video after video of the hundreds available on my YouTube channel.

He joined as many of our daily livestreams as he could. He paid attention to how we talked about markets.

He noticed how often we waited. He saw that when we acted, it wasn’t because I had a grand prediction — it was because something observable had changed.

So, he tested a small idea.

It worked.

Then he tried another. A few hundred dollars risked turned into a result that made him pause and say, “Okay, there’s a process here I need to understand.”

That’s when curiosity turned into commitment.

He joined the Masters in Trading Challenge. Then he stepped further into the ecosystem. And as he put it to me, slowly but surely the fog began to lift.

From Prediction to Positioning

At one point during the interview, Jon said something that made me smile because it’s a phrase I repeat constantly: We’re not trying to predict. We’re trying to position.

That shift changes everything.

You stop asking, “What do I think will happen?” And you start asking, “What is the market telling me right now?”

When you operate from evidence instead of opinion, confidence grows naturally.

Risk becomes measurable and manageable.

Patience becomes logical. Even losses make sense because they exist inside a system.

Jon told me he sleeps better now. He told me he doesn’t obsess after entries, and that he knows what he owns and why.

If you’ve ever spent days second-guessing trades, refreshing quotes, wondering whether you were early, late, or simply wrong – then you understand how great peace of mind really is.

Yes, There Were Wins

Of course, we talked numbers.

He mentioned a defined-risk trade where roughly $4,000 turned into about $30,000. He talked about other situations where a similar amount of exposure multiplied quickly once the thesis began to play out.

Closing out a profitable trade is always great. But seeing these ideas make meaningful impacts across multiple trades is truly the goal of Masters in Trading.

Even better was that he could explain the mechanics behind each trade. He understood why the opportunity existed. Why the structure worked. Why it was repeatable.

Without that understanding, wins feel random.

And random success is impossible to build on.

The Desk VS. The Island

Another theme Jon kept coming back to was something I’ve believed in from day one.

Community.

He told me this was the first time in his investing life that he didn’t feel alone. He could test ideas. Compare interpretations. Watch how other people processed the same information. Learn alongside traders at different stages of the journey.

It stopped being him versus the market. It became a group of serious people working to get better together.

In many ways, Jon’s journey resembles what happens on a professional trading desk — multiple sets of eyes, different experiences, people talking through risk and opportunity in real time.

And, in my experience, a community of like-minded traders is the key to making better trading decisions.

For those interested in hearing more about Jon’s journey, I’ve made our entire chat available over at my YouTube channel. You can watch the entire interview at the top of the page.
 
And, if like Jon, you’re interested in joining our tight-knit Masters in Trading community…

The best way to dive in is through The Masters in Trading Options Challenge. 

The Challenge is where we take everything you learn in my daily LIVEs — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment.

Just click here to check out what the Masters in Trading Options Challenge has in store for you.

Remember, the creative trader wins,

The post We Don’t Predict. We Position: How Jon Turned $4K of Risk Into a $30K Return appeared first on InvestorPlace.

Today’s essay comes from Marc Chaikin, a Wall Street veteran with more than 50 years of experience studying exactly those shifts.

Marc is the creator of the Chaikin Money Flow indicator – one of the most widely used tools for tracking institutional buying and selling pressure – and the founder of Chaikin Analytics. For decades, he’s focused on what’s happening beneath the surface of the market… beyond the headlines, beyond the hype, and often before the crowd catches on.

In today’s piece, I’ve invited Marc to share a powerful real-world example of how modern technology is quietly transforming lives … and why the massive data boom behind AI and automation is doing far more than fueling stock charts. It’s reshaping the global economy in real time.

And this isn’t just theory.

Marc is hosting a free live market briefing on Tuesday, February 17 at 10 a.m. Eastern, where he’ll break down what these technological shifts mean for investors right now — and how to identify the opportunities most people are still missing.If you’d like to join him, you can reserve your seat for Marc’s free broadcast here.

Mo Tajer needed a lifesaving surgery at one of the worst times in history…

The 31-year-old Englishman had testicular cancer. And he had undergone four rounds of chemotherapy.

But unfortunately, the cancer spread to his abdomen…

Doctors found a roughly two-inch tumor wrapped around his aorta and inferior vena cava.

The aorta is the body’s most important blood vessel. It carries blood from the heart to the rest of the body. And the inferior vena cava moves blood back to the heart.

Doctors knew the tumor could rupture either of these major blood vessels at any moment. If that happened, Tajer could die from internal bleeding.

Tajer had to get the tumor removed as soon as possible.

But doctors faced a big problem…

A Life-or-Death Problem With No Obvious Solution

Tajer needed his surgery in the thick of the COVID-19 pandemic.

Most major cities were locked down. And many countries had restricted travel.

In hospitals all over the world, doctors and nurses dealt with a surging number of patients as best they could. A lot of those patients fought for their lives in COVID-19 wards.

Many hospitals couldn’t keep up with the demand for beds. So they postponed most surgeries.

Tajer couldn’t afford to delay his surgery, though. He needed help immediately.

A traditional open surgery was out of the question. Tajer would’ve needed a two-week recovery in intensive care. And with so many COVID-19 patients, there wasn’t any room.

That’s when his attending physician, Dr. Archie Fernando, had an idea…

She could use a robot to remove the tumor in a less invasive way.

You see, Tajer’s treatment took place at Guy’s Hospital in London. And the hospital owned a Da Vinci Xi robotic surgical system from Intuitive Surgical Inc. (ISRG)…

As you can see, this roughly $2 million system has four robotic arms.

The technology helps doctors perform minimally invasive surgeries – like removing tumors. It’s much safer than traditional open surgery. And it doesn’t require a long recovery.

Globally, more than 6,700 hospitals use one of these robotic-assisted surgical systems.

But there was another problem…

Fernando had never performed that kind of surgery.

So she had to get creative again. Specifically, she turned to Dr. Jim Porter for help.

Porter is the medical director for robotic surgery at the Swedish Medical Center in Seattle. He has conducted thousands of surgeries using the Da Vinci Xi robotic surgical system.

Hospital officials got Tajer to an operating room. Then, Fernando and Porter worked together for five hours to remove the tumor.

Tajer made a quick recovery. And he went on to live his life without any lingering pain.

This story gets even more amazing…

The Critical Technology Most People Take for Granted

Porter helped Fernando while wearing his pajamas at his home in Seattle.

That’s right…

Due to the COVID-19 pandemic, Porter couldn’t travel to London.

But thanks to modern technology, he saw everything in real time. And he guided Fernando step by step through the procedure.

He didn’t just talk her through it, either.

With a special program, Porter used his laptop to show Fernando what to do. He pinpointed exactly where she needed to cut Tajer.

Fernando and Porter worked together to save Tajer’s life. But without another critical tool in today’s tech-heavy world, the procedure wouldn’t have been possible.

We’re talking about high-speed internet.

Think about it…

Porter was 4,700 miles away from the operating room. And yet, it felt like he was standing right next to Fernando as she made the needed cuts to remove Tajer’s tumor.

If it weren’t for high-speed internet, Tajer likely wouldn’t be alive today.

We use high-speed internet for all sorts of things these days. And that dependence is only growing…

Take artificial intelligence AI, for example.

This powerful technology simply doesn’t work without a massive amount of data. And it’s critical for that data to move as quickly as possible from one point to another.

Self-driving cars require the collection and processing of a constant stream of data as well. Otherwise, they couldn’t safely navigate the roads.

Factory automation is intensifying all over the world, too.

Folks, there’s no denying that AI was the hottest investing topic of 2025. And it could grow even further in 2026.

Put simply, humanity keeps finding new and exciting ways to use the incredible tool of the internet. The massive data boom isn’t going away anytime soon.

And this is exactly the kind of shift investors need to be paying attention to right now.

When transformative technologies like high-speed internet or AI quietly become essential infrastructure, the biggest opportunities don’t always show up where people expect them. And the risks aren’t always obvious either.

That’s why I’m stepping forward next week with a free live market briefing to explain what’s changing beneath the surface of today’s market — and how investors can position themselves as innovation accelerates in 2026 and beyond.

On Tuesday, February 17, at 10 a.m. Eastern, I’ll walk through what I’m seeing right now… why some stocks are built to thrive in this environment while others are far more fragile than they appear… and how to identify the small group of companies with the strongest potential ahead.

I’ll also share a brand-new analytical tool you’ll be able to try for yourself, along with two free stock recommendations during the broadcast.

Click here to reserve your seat for this free live event — and I’ll see you there.

Good investing,

Marc Chaikin

蜜桃传媒 Expert and Founder, Chaikin Analytics

P.S. Marc makes a strong point here: When technology becomes essential infrastructure, it changes the investment landscape in ways most people don’t see coming. That’s exactly what he’ll be breaking down in his free live broadcast on February 17 at 10 a.m. Eastern — be sure to sign up so you don’t miss it.

The post The Next Tech Boom Is Already Underway, and Here’s What’s Driving It appeared first on InvestorPlace.

Take artificial intelligence, which has quickly moved from an experimental buzzword to everyday economic force, reshaping industries far beyond Silicon Valley.

Some companies will use the technology to their advantage. Others will struggle to keep pace.

The opportunity lies in recognizing this divide early.

Today, Wall Street veteran Marc Chaikin is joining us to share why the stakes for investors right now may be higher than many realize.

With more than five decades of experience navigating bull markets, crashes, and everything in between, Marc a name many longtime market watchers already know well. He’s perhaps best known as the creator of the Chaikin Money Flow indicator, a tool that’s now built into trading platforms used by investors around the world.

We’re especially excited to share Marc’s work with you because he’s now a corporate partner at 蜜桃传媒Wise, bringing his research and market framework into closer alignment with our own mission here at InvestorPlace.

That’s why Marc will be hosting a free live market briefing on Tuesday, February 17, at 10 a.m. Eastern, where he’ll explain what he sees coming next for stocks — and how investors can position themselves for it.

You can reserve your seat for Marc’s free broadcast here. We think you’ll find his perspective both timely and valuable.

Now, without further ado…

On the window sign of an iconic luxury-retail store on Madison Avenue, the message was loud and clear…

“EVERYTHING MUST BE SOLD! GOODBUYS, THEN GOODBYE!”

For decades, Barneys New York had been the premier fashion store in the city. The company’s Madison Avenue flagship store boasted nine floors and about 275,000 square feet of retail space.

Barneys started out as a men’s discount clothing store in Manhattan in 1923. Over the following decades, it transformed and grew into a luxury-retail powerhouse.

By the 1980s, the company had developed a reputation for introducing the best global luxury brands to an increasingly wealthy American consumer market.

Its flagship New York store featured wall-to-wall designer labels – from Giorgio Armani to Balenciaga. If it was expensive, Barneys had it.

In short, it was a luxury shopper’s paradise.

The Illusion of an Unbreakable Business

The store often featured in the hit HBO series Sex and the City. Its fashionista lead character, Carrie Bradshaw (played by Sarah Jessica Parker), considered Barneys one of her favorite places to shop.

But on February 23, 2020, Barneys New York closed…

And so did the company’s other stores in New York, along with those in San Francisco and Beverly Hills. All its branches closed, all on the same day.

Fashion-industry figures called it the end of an era.

But it was ultimately a failure to adapt to changing times…

When Barneys opened its gigantic store on Madison Avenue in 1993, it set the bar for luxury shopping in New York.

But that came at a price – in the form of costly rent.

You see, Barneys didn’t own the property it did business on. Most of the company’s money was tied up in expensive goods kept in inventory. Barneys sold those goods at huge markups to store customers.

The company’s annual revenue reached nearly $1 billion at its height. One-third of that figure came from Madison Avenue alone.

This allowed Barneys to make good on millions of dollars of rent – including $16 million a year just for the Madison Avenue store.

The business model worked… as long as people kept going into the stores to buy goods.

But then the internet came along – and took off. It gave rise to e-commerce and a strategy called “direct to consumer” (DTC).

Brands could now use the internet to sell products directly to their customers. This allowed them to cut out the middlemen – typically, owners of retail establishments.

It didn’t take long for consumers to realize they could buy luxury goods – the same ones found on Barneys’ store shelves – from authorized online retailers.

These online retailers often displayed more designs and models than physical stores could keep in stock. And, of course, customers could shop right from home.

Foot traffic to Barneys declined. And then, the landlord doubled the rent at the flagship Madison Avenue store. It was too much to bear.

In mid-2019, the company filed for bankruptcy. And its stores wound down… until shuttering in February 2020.

Barneys became a cautionary tale in the $1.8 trillion global fashion industry. Even a nearly century-old business institution could end up in the trash bin of history if it failed to adapt to changing times.

Why This Same Mistake Shows Up in the 蜜桃传媒

Of course, the fashion industry didn’t go anywhere. It’s still a big business.

Folks, my point with this story is simple…

The world around us is always changing. It was true when the iconic Barneys closed in 2020. And it’ll continue to be true in 2026.

The investment decisions we make throughout the year will determine whether we keep up with the changes.

And that’s exactly why I’m stepping forward next week with an urgent new market briefing.

Because just as Barneys failed to adapt to a changing world, many investors today are relying on tools that no longer work — especially as we head into what I believe could be a volatile March–April period for stocks.

On Tuesday, February 17, at 10 a.m. Eastern, I’ll be hosting a free live broadcast to explain what’s changing beneath the surface of the market… why not all stocks will be hit the same… and how a small group of companies could emerge stronger — and far more profitable — if you know what to look for.

I’ll also be sharing a brand-new tool to identify these opportunities, which you’ll be able to try out for free if you sign up, along with two free stock recommendations during the event.

Click here to reserve your seat for this free broadcast — and I’ll see you there.

Good investing,

Marc Chaikin

蜜桃传媒 Expert & Founder, Chaikin Analytics

P.S. Marc will be back with us in the coming days with more insights on how the market is changing — and what investors should do about it. Don’t forget to sign up for his free live briefing on February 17 at 10 a.m. Eastern so you don’t miss it.

The post This Iconic Retailer Failed to Adapt—Here’s How Investors Can Avoid the Same Fate appeared first on InvestorPlace.

Source: AP News

Of course, that doesn’t stop some homebuyers from rolling the dice. These homes have stunning views of the Atlantic Ocean… not to mention easy access to the beach. In fact, the luxury house pictured above was sold in 2021 for a lofty $5.5 million – an eightfold increase from its original 1999 land sale price.

But sooner or later, the ocean always wins.

The Cape Cod home pictured above was demolished in 2025.

The same is true for stocks trading at high valuations. Shares of eye-wateringly expensive companies might keep going up for a while. In fact, we know they do.

Eventually, these highfliers will tumble back down. Like a house sitting on a sandy cliffside during a storm, no company in history has ever maintained ultrahigh prices forever. And when that happens, everyone looks at the bag-holders and wonders, “What were they thinking?”

Now here’s the thing…

You don’t have to be a part of that selloff.

And you don’t have to watch your house slide into the ocean.

Instead, for every buyer of a risky asset, there’s also a seller. So, you could be like Mark and Barbara Blasch, the couple who sold that Cape Cod house above for $5.5 million and walked away. They’re the ones who saw the edge of the ocean creep closer to their home and say, “Something’s wrong. Maybe it’s time to get out.”

That’s why I want to introduce you to Marc Chaikin, a Wall Street legend best known for creating the Chaikin Money Flow indicator, a tool that’s now built into trading platforms and used by investors worldwide. Marc has spent the past five decades navigating bull markets and crashes. He even recently predicted the 2023 bank runs that briefly threatened the entire U.S. financial system.

On Tuesday, February 17, at 10 a.m. Eastern, Marc will be hosting a free live broadcast where he outlines his new predictions going into a volatile March-April period. He believes markets are sitting on a figurative sandbar, and that a rupture in tech companies could send a large chunk of the market crashing into the sea while sparing a tiny portion: 1.8% of companies, to be precise.

Now, you’ll have to attend Marc’s event to see for yourself which 1.8% of stocks he’s talking about. But what I can tell you is that many of the remaining 98.2% firms have their own Mark and Barbara Blaschs who are selling their stakes in droves.

So, in this update, I’d like to highlight three notable companies where insiders have been moving out of the market as our current market melt-up begins to stall. And in the meantime, be sure to sign up for Marc’s upcoming presentation, which you can do so here.

Two Data Center Heavyweights

The first noteworthy sales involve insiders at data center firms. Here, two companies stand out:

Oracle Corp. (ORCL) and CoreWeave Inc. (CRWV)

In addition to regular, preapproved 10b5-1 sales in the past quarter, Oracle’s management has:

• CEO: Sold 10,000 shares in the open market
• Director: Sold 2,223 shares
• President: Sold 15,000 shares and gifted another 5,000

Meanwhile, CoreWeave’s sales have all been the 10b5-1 type, but their pace of selling has been astonishing. Many sales happen as soon as the shares are awarded, a historically bearish sign:

• Chief Development Officer: Sold almost 1 million shares
• Chief Strategy Officer: Sold roughly 770,000 shares
• CEO: Sold roughly 300,000 shares

Our analysts have been warning about the sector for months. Eric Fry sold Oracle from Fry’s Investment Report last November (subscription required) when prices were still in the $200 range, and Luke Lango specifically cautioned about CoreWeave in a December Hypergrowth Investing article.

“Don’t get trapped in yesterday’s trade,” he wrote. “Crowded AI leaders can still run – but the risk/reward is changing as the market starts to look past the current bottlenecks. Trim your exposure to… CoreWeave.”

There could be further room for these companies to fall.

You see, insatiable demand for AI chips has forced data center companies to buy AI chips years in advance. Nvidia Corp. (NVDA) currently has a $500 billion backlog (22 months of sales), so anyone in line (or that wants to join the queue) must commit to a specific chip price. A DGX B200 server rack of Nvidia’s flagship GPUs costs roughly $500,000.

It’s like paying half a million dollars for a luxury car that won’t get delivered until the end of next year.

However, the value of these future chips is uncertain. Oracle might have agreed with OpenAI last October to provide 4.5 gigawatts of computing power for $300 billion starting in 2027… but there’s no guarantee that OpenAI will be around to pay that bill. And even if OpenAI has the cash in 2027, it will almost certainly negotiate prices lower if a different supplier can offer services for less. After all, cloud computing is a largely commoditized product once you strip away the buzzwords.

In fact, we’re already seeing some price compression among traditional data center providers. According to the U.S. Bureau of Labor Statistics, producer prices in the broader cloud computing sector began slipping from their peak last summer.

The same might be happening with AI computing prices. In January, Microsoft Corp. (MSFT) revealed that costs of its Intelligent Cloud (AI-focused computing) rose 10.1% sequentially, compared to just a 6.5% increase in revenues. Amazon.com Inc. (AMZN) reported a similar margin compression in its Amazon Web Services (AWS) segment.

That suggests AI computing is also beginning to face pricing pressures – an extremely negative sign for companies like Oracle and CoreWeave that have made big bets on AI data centers. So, though there are one-off reports that everything is fine with AI computing, there’s probably good reason to follow these executives out of data center stocks.

Hedging a Consumer Slowdown

One thing I love about airlines is that they often serve as an early warning signal of sagging demand.

If consumers are worried about their wallets, then next summer’s trip to Disney World is often the first thing to vanish from the “to do” list. (What about a short drive to Cape Cod instead?)

That’s why it’s particularly notable that insiders at Delta Airlines Inc. (DAL) have recently unloaded an unusual amount of stock. In the past week alone, we’ve seen:

• EVP of Global Sales: Sold 38,600 shares
• President: Sold 302,000 shares
• Chief External Affairs Officer: Sold 27,000 shares
• EVP of International: Sold 35,000 shares

It’s easy to see their caution from a valuation standpoint. Delta’s shares have surged 84% since the depths of last April’s “Liberation Day” selloff and now trade at the upper end of their historic averages. The last time shares traded at 10X forward earnings was in April 2022. Shares fell 20% over the following year.

But there’s also growing evidence that American consumers are finally pulling back.

On Thursday, the National Association of Realtors said that existing home sales crashed 8.4% in January. Inventory of unsold homes rose to 3.7 months, up from 3.5 months in December, and the median time for properties on the market rose to 46 days, up from 39.

U.S. retail sales also slowed unexpectedly in December, according to a Commerce Department report released last week. Eight out of 13 retail categories posted decreases, and sales of big-ticket items like autos and furniture saw declines.

“The weaker-than-expected retail sales data for December won’t be enough to spoil the fourth quarter,” said Thomas Ryan, North America economist at Capital Economics. “But, together with the likely weakness of spending in January amid extreme winter weather in most of the country, it leaves consumption growth on track to slow sharply this quarter.”

That’s why a 7.5% selloff this week in DAL might only be the start. Insiders at the airline company have a long history of correctly timing the market. This includes a cluster of sales in April 2024 (before an almost 20% decline) and a well-timed exit by CEO Edward Bastian in 2019 before demand started noticeably sagging in the months leading up to the Covid-19 pandemic.

When Delta’s insiders start selling, it’s often time to get out too.

Suspicious Selling in Suspiciously Pricey 蜜桃传媒s

Not every insider sale means that prices will go down. Often, executives simply need the money or want to diversify. Tech companies routinely reward insiders with stock options instead of annual bonuses. So, while insider buying is almost always positive, insider selling can send weaker signals.

But some sales are more suspicious than others. These include industrywide cluster selling (where executives from multiple related companies exit all at once), and sales by insiders working at bellwether businesses.

There’s also the insider buy/sell ratio – a record of all insider trading by American executives. Since November, this figure has crashed from its long-term average of 0.40 to just 0.24 – one of the lowest levels on record. (That means insiders are only buying $0.24 of stock for every $1 they sell.)

In other words, these “in the know” executives are exiting the market right as we’re hitting new peaks.

That’s why Marc Chaikin’s warning comes at a perfect time. He’s concerned that markets are about to rupture, and he’s convinced that it’s going to happen at a moment’s notice.

So, be sure to tune into his special presentation on Tuesday, February 17, at 10 a.m. Eastern, where he’ll outline what’s changing beneath the surface of the market… why not all stocks will be hit the same… and how a small group of companies could emerge stronger — and far more profitable — if you know what to look for.

Marc will also be sharing a brand-new tool to identify these opportunities, which you’ll be able to try out for free after you sign up, along with two free stock recommendations during the event.

Click here to reserve your seat for this free broadcast.

Until next week,

Thomas Yeung, CFA

蜜桃传媒 analyst, InvestorPlace

P.S. Please note that the InvestorPlace offices will be closed on Monday in observance of Presidents’ Day. We will be back on Tuesday.

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post Three Stocks Insiders Are Selling in Droves appeared first on InvestorPlace.

If you felt like the market’s whole AI story flipped on its head this week… trust me, you’re not crazy.

One minute, everyone’s celebrating the unstoppable AI boom. The next, software stocks are wobbling, infrastructure names are pulling back, and the narrative suddenly feels a lot more complicated.

That wasn’t random.

Across our five Hypergrowth Investing issues this week — plus our weekend guest essay — one big theme kept surfacing:

We’re moving out of the headline phase of AI and into the structure phase.

The easy “AI is the future, buy everything” trade is behind us. Now comes the part where business models are stress-tested, capital rotates, and where some former leaders stall out… and entirely new ones start to emerge.

This is the phase where investors have to be sharper… more selective about where they put money to work.

And historically? This is also the phase where the biggest long-term opportunities are born.

Below is a day-by-day recap with links to each issue:

Quick links

• Monday: The Easy AI Money Is Over, but the Bigger Gains Come Next
• Tuesday: SaaSmageddon Is Here – and Not All Software Stocks Will Survive
• Wednesday: The Best AI Stocks Are Falling for the Wrong Reason
• Thursday (Guest Post – Marc Chaikin): The Dangerous Side of Being Right
• Friday: AI Job Loss Is Accelerating – and Washington Won’t Stop It
• Saturday (Guest Post – Marc Chaikin): Barneys New York and the Danger of Ignoring a 蜜桃传媒 Paradigm Shift

Monday: The easy AI money is over… and that’s the signal the real opportunity is forming

Link: The Easy AI Money Is Over, but the Bigger Gains Come Next

Monday’s issue framed the current volatility for what it likely is: a leadership rotation inside the AI boom — not the end of it. The core argument is that AI is transitioning from “novelty” to “infrastructure,” and markets are starting to ask tougher questions about returns, durability, and who actually benefits next — which is often when a big “dislocation” appears and new winners emerge.

Key takeaways:

• The selloff in software/data-services was positioned as AI getting “good enough” to threaten legacy models, which forces repricing.
• The piece uses past tech cycles to make the point that Stage 2 often creates fresh leaders (while many early leaders stall).
• The opportunity set shifts toward the builders and enablers (power, connectivity, compute infrastructure) and toward profitable, practical AI adopters.

Tuesday: “SaaSmageddon” — why agentic AI attacks the seat-based SaaS model

Link: SaaSmageddon Is Here – and Not All Software Stocks Will Survive

Tuesday took Monday’s “AI is changing the rules” theme and applied it directly to software. The thesis: agentic AI reduces the need for human “seats,” and that undercuts the core pricing engine of a huge swath of SaaS. If AI systems can complete workflows autonomously, companies don’t just need fewer people — they often need fewer licenses.

Featured in this issue was our three-zone map of software’s future:

• Red Zone: categories facing structural obsolescence as “middle-layer” workflow tools and generic creation moats get flattened.
• Yellow Zone: large, sticky platforms that likely survive, but with margin/pricing pressure and “perfection-priced” expectations.
• Green Zone: “AI-resistant fortresses” — businesses rooted in regulated/proprietary data, cybersecurity, or physical-world integration (where AI needs the platform rather than replaces it).

Key takeaways:

• Don’t “fund AI indirectly” by owning the businesses getting their budgets harvested; focus on the beneficiaries of the spend.
• Look for “agent-proof” moats and for an outcome-based pricing pivot (pricing tied to value delivered vs. number of seats).

Wednesday: AI supply-chain stocks are dropping on “peak capex” fear — and the essay argues that’s backwards

Link: The Best AI Stocks Are Falling for the Wrong Reason

Wednesday’s issue tackled a very specific market worry: “Are we at peak AI capex?” The essay’s answer: no — because spending is shifting from one-time training builds into ongoing inference demand (and “test-time scaling”), which behaves more like a recurring utility than a cyclical binge.

It also argued that the market is missing visible “demand locked in” signals — particularly large cloud backlogs and signed contracts — which would imply capex isn’t a hope trade; it’s fulfillment capacity.

From there, the piece framed the dip as a potential opportunity in “picks-and-shovels” AI exposure, naming examples across the stack.

Key takeaways:

• Compute/chips: Nvidia positioned as the “cadence controller” of the upgrade cycle.
• Memory bottlenecks: Micron and high-bandwidth memory as a choke point.
• Physical infrastructure: Wesco as a beneficiary of power/cooling/network build-outs that sit downstream of every new rack.

Thursday (Guest Post – Marc Chaikin): The danger isn’t being wrong — it’s staying wrong too long

Link: The Dangerous Side of Being Right

Thursday’s guest post from Marc Chaikin zoomed out from “what to buy” and focused on how investors blow up. Using the story of natural gas trader Brian Hunter and the Amaranth collapse, the essay’s point was blunt: intelligence and being “right” doesn’t save you if risk controls fail, positioning gets crowded, and leverage turns a thesis into a cliff.

Key takeaways:

• The catastrophic damage often comes from overconfidence + size + inability to exit — not from a single bad call.
• In volatile regime shifts, having a plan and guardrails matters as much as upside.

(Thursday’s post also included an invitation to a free live briefing on Tuesday, Feb. 17 at 10 a.m. Eastern.)

Friday: AI job loss isn’t theoretical anymore — and policy won’t slow it down

Link: AI Job Loss Is Accelerating – and Washington Won’t Stop It

Friday’s essay moved from markets to the real economy — and argued we’re entering a structurally different environment: “CHAOS Economics” (a collision of deflation from automation and an inflationary policy response).

The piece framed AI as the ultimate cost-cutter — including for white-collar roles — and argued that once replacement is economically obvious, it becomes a fiduciary decision for companies.

It also leaned on the “Engels’ Pause” analogy: a period where GDP and profits rise while wages stagnate — compressed into a much shorter timeframe than historical industrial shifts.

Key takeaways:

• If labor and currency are both depreciating, ownership beats saving — i.e., positioning in the companies and infrastructure driving automation.
• The piece argues that government priorities (geopolitics and industrial strategy) will keep the AI push accelerating, not pausing.

Saturday (Guest Post – Marc Chaikin): Barneys New York and the cost of ignoring paradigm shifts

Link: Barneys New York and the Danger of Ignoring a 蜜桃传媒 Paradigm Shift

Saturday’s upcoming Chaikin guest essay uses the collapse of Barneys New York as a case study in how structural change doesn’t destroy industries — it destroys outdated business models.

Barneys didn’t fail because luxury retail disappeared. It failed because the paradigm shifted: e-commerce + direct-to-consumer reduced foot traffic and weakened the economics of expensive flagship real estate and inventory-heavy middlemen.

Key takeaways:

• When the market’s “rules” change, the biggest risk is not volatility — it’s complacency.
• Investors who recognize structural shifts early can reposition before capital rotates into the next set of leaders.

(The Saturday essay also includes a reminder about Marc’s free live briefing on Tuesday, Feb. 17 at 10 a.m. Eastern, where he plans to share a new tool and two stock picks.)

The Next Phase of AI Will Be More Selective (and More Rewarding)

If there’s one lesson from this week, it’s this:

Paradigm shifts don’t reward passive investors. They reward prepared ones.

The easy money in AI — the broad “buy anything with exposure” phase — is fading. In its place, we’re entering a far more selective market. Some business models will crack under pressure. Some will stagnate. And a small group of companies will quietly become the backbone of the next economic expansion.

That’s where the real upside lives.

But identifying those names requires more than headlines and hype. It requires understanding what’s changing beneath the surface — capital flows, infrastructure buildouts, labor displacement, policy tailwinds, and shifting profit pools.

If you want to see where this transformation is heading next — and how to position ahead of it — I strongly encourage you to take the next step here:

Click here to access the full briefing and see how to prepare your portfolio for the next wave of AI-driven gains.

Inside, you’ll discover what’s driving this rotation, why volatility may increase before the next leg higher, and how to focus your capital on the companies most likely to emerge stronger on the other side.

The AI revolution is evolving.

The question is simple: Will you be holding yesterday’s winners… or tomorrow’s?

The post Weekly Recap: The AI Rotation, SaaS Shakeout, and the Paradigm Shifts You Can’t Ignore appeared first on InvestorPlace.

Software stocks didn’t feel much love approaching Valentine’s Day – and no amount of flowers and chocolate today can change that.

We saw this in headline after headline…

Last week, Barron’s ran a piece titled “Palantir Stock Drops 14% as AI and Software Pull Back. It’s Having a Terrible 2026.”

On Tuesday, CNBC published “Monday.com drops 21% as AI disruption fears mount in software.”

Then on Wednesday, Yahoo News put out “Unity Software shares drop sharply on weak first quarter guidance.”

Many popular software names suffered as investors panicked about their current vulnerable position amid advances in artificial intelligence. On the other hand, many analysts view the selloff as overblown.

Regardless, the recent volatility in the software sector is, ultimately, a natural consequence of investing in the frenzied AI market.

That’s why it’s important to stay as alert as possible.

So, in today’s Smart Money, let’s go over why software stocks are still suffering steep declines. Then, I’ll share how you can keep your portfolio safe from the selloff.

Let’s dive in…

Software’s Sweetheart Status Is Over

Software-as-a-service (SaaS) companies were very profitable investments until recently, thanks to their breakthrough technology and powerful growth profiles. But as AI arrived and rapidly advanced, many SaaS companies have seen their valuations deteriorate.

Here’s why…

SaaS companies thrived because they built highly scalable, recurring revenue models. Once the software was developed, it could be distributed to thousands — or millions — of customers at minimal incremental cost.

By shifting businesses from one-time license purchases to subscription-based access, SaaS providers generated predictable cash flow, high margins, and strong operating leverage — a formula Wall Street rewarded generously. Now, however, the economics are changing.

 With the advancement of Agentic AI – particularly Anthropic’s Claude Cowork, which can autonomously perform complex software tasks – the market is beginning to question how much of that subscription layer is truly indispensable.

If AI can increasingly perform those tasks directly, the value proposition of many traditional SaaS platforms comes under pressure.

The sector’s unpopularity becomes even more apparent when you look at some companies’ valuations.

Take Palantir Technologies Inc. (PLTR), for example. Even after suffering a shellacking that has “disappeared” 35% of its market value since Halloween, its stock is still trading for a lofty 100 times estimated 2026 earnings.

That rich valuation leaves no room for bad news, nor even mild doubts.

To put it simply, it’s becoming increasingly challenging for software firms to keep up with the AI advancements that may replace them.

But all hope is not lost. Instead of trying to “catch the falling knife” that Saas stocks have become, pivot your attention, and some of your capital toward the broad group of stocks I call “AI Appliers,” which Tom Yeung discussed in detail in Thursday’s Smart Money.

Two examples include Zimmer Biomet Holdings Inc. (ZBH) and Match Group Inc. (MTCH).

Two AI Appliers – and Where to Find More

Zimmer Biomet applies AI in a place where it matters a great deal: the operating room. The company integrates machine learning into surgical planning, robotic-assisted joint replacement, imaging analysis, and post-operative outcome tracking. Surgeons use Zimmer’s software to map anatomy, select implants, and guide procedures with greater precision.

This doesn’t replace Zimmer’s core hardware business, it upgrades it. AI makes surgeries faster, more accurate, and more reproducible. That leads to better patient outcomes, shorter hospital stays, and stronger surgeon loyalty. Over time, it also builds a proprietary data moat: every procedure feeds the system, improving future recommendations.

From an investment perspective, this is textbook “AI applied to physical systems.” Zimmer sells implants, but AI increases utilization, strengthens switching costs, and supports premium pricing. Hospitals don’t just buy devices anymore — they buy integrated surgical ecosystems.

Match Group is a very different type of AI appliers, but it may be the purest consumer-facing AI appliers in the entire stock market. Across all its dating platforms, its AI determines who meets whom, how profiles appear, which conversations get started, and how safety risks are flagged.

These algorithms directly drive revenue. Better matches increase engagement. Higher-quality profiles improve retention. Smarter moderation reduces abuse and churn. Every improvement shows up in paid subscriptions and user lifetime value.

Match also uses AI to personalize prompts, recommend photos, and coach conversations — effectively acting as a “digital wingman.” This turns abstract machine learning into tangible emotional outcomes: more connections, more dates, more relationships.

Unlike social media, Match monetizes success. If AI creates better experiences, users pay more and stay longer. That’s unusually clean feedback between model quality and financial results.

In addition to these two names, I’ve stocked my Fry’s Investment Report portfolio with several AI Applier companies and other strong AI plays to help grow and protect your wealth during AI’s constant disruption.

In fact, I recommended a brand-new AI Applier play to my Fry’s Investment Report subscribers just yesterday. It is a health-technology platform company that sits squarely in the sweet spot of the AI revolution. It’s an AI Applier hiding in plain sight.

Click here to learn more.

Regards,

Eric Fry

The post The AI Rotation Is Happening – Here’s How to Stay Caught Up appeared first on InvestorPlace.

Imagine the scene.

A major CEO calls a surprise press conference. Cameras flash. Reporters crowd forward. The room goes quiet as he steps to the podium.

“We’re done investing in electricity,” he announces.

A stunned, confused silence.

“We’ve reached peak power usage. From here on out, we won’t be spending another dollar on it.”

The statement is so absurd that it barely deserves a follow-up question. No serious business leader would ever say such a thing. Electricity isn’t a one-time project. It’s a utility. The more you produce, the more you grow, the more customers you serve — the more power you consume.

Usage scales with growth.

And yet, many investors think AI is a one-time spend.

By the numbers, global AI spending is projected to exceed $2.5 trillion in 2026 alone. Wall Street keeps looking at this and asking: Have we reached peak AI spending?

That question only makes sense if AI is a one-time project – something companies build, finish, and then move on from.

Yes, infrastructure such as data centers will be built and finished. But AI is not just data centers.

It’s an entire ecosystem of infrastructure – chips, networking, cooling, power, storage, software, and security – that demands ongoing investment just to maintain performance, and even more spending to keep up with the next generation of models.

That puts AI under the same category as a highway, or a building, or even just a single product.

It’s becoming a utility – an always-on, metered layer of digital infrastructure that businesses will draw from every minute of every day.

This is a structural shift, not a cyclical spike.

Utilities don’t have “peak build” moments. They expand with demand. And if AI is a utility, then the idea of “peak AI” spending is premature.

So, if AI were a one-and-done project, it might make sense to ask whether spending is peaking.

But it’s not, so the question itself is fundamentally flawed.

AI spending isn’t ending. It’s evolving.

And investors who mistake evolution for exhaustion are putting themselves on the wrong side of history’s most significant infrastructure buildout.

How You Build a Utility

The idea of, and fretting over, “peak AI” spending is everywhere in the mainstream media.

From 蜜桃传媒Watch:

From CNBC:

The numbers are staggering. Just five companies – Amazon, Microsoft, Google, Meta, and Oracle — are expected to spend over $600 billion on AI infrastructure in 2026.

Huge spending numbers like that should make everyone take notice. But that’s why it’s so important to change your thinking.

Utilities don’t just require software.

They require infrastructure.

Think for a moment about everything needed for massive, durable, national-scale infrastructure.

• Electric grids
• Power plants
• Semiconductor fabrication
• Rare earth processing facilities
• Data centers
• Energy pipelines

Utilities aren’t software upgrades. They are physical ecosystems.

If AI is going to fulfill its potential and change everything about the way we live and work, then someone must secure the entire supply chain behind it.

That’s where President Donald Trump and the U.S. government come in.

Too many investors are missing this part of the story.

While Wall Street debates whether AI spending has peaked… Washington is preparing for something much bigger.

We’re not just talking about tax breaks or breaking down regulatory hurdles. It’s not just funding research.

It’s taking stakes in companies that will provide the buildout needed for this new utility feature of American Life.

Because if AI is a utility, then controlling the supply chain behind it becomes a matter of national security. That means directly backing, with cash, the companies that can do the building, supply the raw materials, bring the semiconductors to market, and guarantee energy to make it all work.

One of the few analysts who has been connecting these dots is Luke Lango.

In his new research for subscribers, he lays out what he believes is the next phase of this story – a second wave of government-backed investments that go far beyond pouring dollars into a few rare earth miners.

According to Luke, this isn’t just about stockpiling minerals; it’s about rebuilding the entire “mines-to-magnets” supply chain. That includes everything from raw materials… to processing… to semiconductor fabrication… to AI data center hardware… to the energy grid that powers it all.

In other words, the full stack behind the AI utility.

Here is how Luke wrote about it to his Innovation Investor subscribers:

Last year, the government funneled more than $11.3 trillion … between direct spending, subsidies, and industrial incentives … into rebuilding America’s strategic backbone.

And according to senior officials, that number is set to grow as Washington quietly prepares for what insiders describe as a long, grinding technological arms race.

Here’s the part almost no one understands…

The biggest winners won’t be the obvious ones.

Not Big Tech.

Not the trillion-dollar giants in your index fund.

But the small, overlooked companies being pulled—sometimes shoved—into Washington’s inner circle. The ones that make the chips behind the chips… the power behind the power… the materials behind the machines.

If history teaches anything, it’s that when Washington rewires the economy, fortunes shift behind the scenes. It happens quietly at first, then violently all at once.

For investors, the opportunity isn’t in the companies the government has already backed, but in the companies it may need to back next.

That’s the thesis behind his new report, The President’s 蜜桃传媒 — where he identifies five specific stocks he believes sit at the chokepoints of this supply chain shift.

AI isn’t a one-time buildout.

It’s becoming as foundational as electricity.

And when a technology reaches that level, spending doesn’t peak… it compounds.

Forecasts suggest AI infrastructure investment could grow toward $758 billion by 2029, with total global data-center related spending approaching $7 trillion by 2030.

The question isn’t whether AI investment is slowing.

It’s whether you’re positioned for the next phase of the buildout.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

The post Stop Looking for Peak AI appeared first on InvestorPlace.

Right now, companies like OpenAI (headquartered within Microsoft for now) and Anthropic are inching closer to public offerings that could break the IPO market wide open over the next year.

And that’s setting off a massive opportunity for early investors to gain an early stake in the next Google, Meta, or Microsoft.

No doubt, this is a major wake-up call for investors. And it stands in stark contrast to the quiet trajectory tech IPOs have traced over the last five years.

Since 2021, tech startups have broadly delayed going public. The reasoning is two-fold.

For one, the Federal Reserve’s agenda of Quantitative Tightening (QT) – enacted just before the pandemic struck – marked a shift toward outright balance-sheet contraction that tightened liquidity in the broader market.

That period between 2019 and October 2025 (when QT effectively ended) marked a balance-sheet runoff that removed roughly $60–$90 billion per month in liquidity.

Whenever liquidity dries up, investors develop an aversion to risk. And tech stocks (especially at IPO) are commonly seen as some of the riskiest ventures out there.

Add to that yet another crypto boom-and-bust cycle during the same time period – plus the “memeing” of every speculative tech trend from metaverses tothe blockchain – and one thing becomes clear about that era in hindsight…

The IPO markets had fallen into what I like to call a “hype hole.” There were simply too many next-big-thing startups vying for attention and investor dollars. But almost none of these companies had solid fundamentals to back up all that hype.

Back in 2021, would-be darlings like cloud provider Snowflake (SNOW) were getting near-daily coverage in the financial press leading up to their IPOs.

I remember being incredulous when I actually looked at SNOW’s fundamentals.

It didn’t have a solid product-market fit or any real semblance of a sustainable model.

The stock was hitting the public market at an extremely inflated valuation – and it was competing for scraps against legacy giants like Cisco (CSCO) and Microsoft (MSFT).

The markets were lousy with IPOs like SNOW back then.  And I truly believe these overhyped slush stocks killed the last IPO boom dead in its tracks.

But that dynamic is shifting as I write to you…

The Private Players Gearing Up for the Next IPO Boom

The last few years have been very quiet for tech IPOs. The reason is simple.

Many companies chose to grow privately on billions in venture funding – all while avoiding the scrutiny and pressure of the stock market.

But the stakes, cost and speed of the artificial intelligence race have changed that cautious stance across the entire industry.

The top AI players need far more compute capacity today than they did even a few years ago. They’re all looking to scale ever-larger AI models – right as billions of dollars in data centers and cloud infrastructure are rapidly built out.

The dynamic here is undeniable. Private investors can only supply so much capital for so long. Long-term growth increasingly depends on tapping public markets that want a piece of the action.

And trust me, investors want in as early and often as they can.

As of early 2026, the total market capitalization of the AI industry is highly concentrated among top-tier technology firms. The combined value of major AI-focused companies currently exceeds $1.2 trillion. That number will only grow – especially as more AI players make their public debuts.

So the modern AI race will mint many winners. And we know most of them will be the usual suspects like Microsoft, Google, and Apple leveraging their entrenched positions in this space.

But those legacy giants won’t be the biggest drivers of profits for early investors.

Instead, it’s the next wave of exciting AI startups I’m watching as this renewed IPO boom takes shape.

And one of the earliest entrants in the race has been tipping off my Unusual Options Activity (UOA) Scanner for months now – Figma (FIG).

After one of the splashiest public debuts in years, Figma is carrying much of the AI hype cycle on its shoulders.

And it’s also pulling back the veil on one of the IPO market’s “dirty little secrets”…

Figma’s Public Debut Revealed This Hidden 蜜桃传媒 Dynamic

On July 31, 2025, Figma Inc. priced its IPO at $33. Shares soared 250% to close at $115.50 the very same day.

The debut was celebrated in the financial media. It was seen as clear evidence that the IPO market hadn’t totally withered up and died.

Of course, FIG’s initial gains eventually crumbled against the reality of a volatile market. Six months later, the stock trades at $22. It’s now down 81% from its peak – and 33% below IPO price.

That fall from peak to crushing low in mere months is not exactly strange for a freshly IPO’d stock.

But the innerworkings of Figma’s market debut are worth highlighting here for one reason…

They reveal a hidden dynamic in the broader market that most traders have no idea about.

Think about it this way…

Most retail traders would’ve lost their shirts had they purchased the stock right at the IPO.

But it’s a very different story for institutional investors. They were allocated shares at $33 –then turned around and sold them at $85-$115, capturing 150-250% gains in a single day.

And for informed employees with equity? They already exited at $80 in September.

Major venture capital firms sold 5% at IPO ($280M) and voluntarily locked in the remaining 95% until August 2026.

And top-level executives obviously got a great deal. They sold $35 million at $43-48 in November — all while retail investors who purchased shares in secondary trading at $85-$142 now hold positions at $22.

Here’s how it all breaks down in a simple chart:

The data makes one thing very clear to me…

For everyone but the most informed market watchers, it was a wash.

True, none of these moves were below board for an IPO. Every element operated within securities law. There’s nothing illegal in how Figma conducted its IPO.

Still, the situation raises a lot of questions about how the current IPO market rewards investors. Here are the questions I keep asking myself…

Can current IPOs really serve retail traders? Or are they only designed for the most well-informed and well-capitalized participants to make a killing?

In order to peel back that dynamic, we need to dive a little deeper into how Figma structured its IPO – and the insider moves that are having ripple effects on every potential tech stock roll-out from here.

Figma’s Pricing Decision: Fundamentals and Demand

Figma brought strong metrics to its IPO: $821 million in annual recurring revenue, 46% growth, 91% gross margins, and positive net income.

On paper, Figma looked better than most tech companies eyeing an IPO right now. And the smart money understood that in a big way.

Figma’s offering was 40 times oversubscribed well before the IPO date. That means for every share available, 40 institutional investors indicated interest.

Despite this overwhelming demand signal, the company priced shares at just $33, raising $1.22 billion. Keep those figures in mind.

Now, here’s the breakdown of that raise:

• $412 million in primary capital for the company
• $807 million in secondary proceeds for selling shareholders

The offering size represented only 37 million shares — just 7-9% of total shares outstanding. That’s small compared to typical IPO floats of 10-15%.

It was an unusual setup. But it obviously didn’t deter FOMO-hungry investors that Figma was clearly overpricing its shares. Just consider this…

Had Figma priced shares at $90—still below the $115 closing price—the company could have raised approximately $5.5 billion instead of $1.2 billion. That difference represents $3 billion in unrealized primary capital.

This capital remained unraised while institutional investors who received $33 allocations were able to make a killing.

Venture capitalist Bill Gurley said it best on IPO day: “They REFUSE to match supply/demand. They brag about the mis-match—’40X oversubscribed.’ The outcome is expected & fully intentional.”

That pricing mismatch is exactly where institutional traders live. It’s one of those dirty little secrets that underpins most IPOs and the institutional money behind them.

This skewed dynamic is exactly what I highlight every day I go live with Masters in Trading. We’ve managed record-setting gains uncovering broad mispricings between stocks, sectors – and even entire economies.

The opportunity emerging with AI stocks like Figma is still not on most retail traders’ radars.

But here at Masters in Trading, I give you the tools and the insights to trade confidently on the same signals institutional traders leverage every day on stocks just like it.

If you’re interested in learning how to take your options mastery to the next level, I’d highly encourage you to join The Masters in Trading Options Challenge.

For seven days, we walk through the foundations of real options trading – just the way I learned them from 28+ years in the options market. You’ll learn exactly how I think, exactly how I build trades, and exactly how I manage both the winners and the losers.

Most of all, you’ll gain the knowledge to spot the kind of hidden market cycles I’m highlighting right here – whether it’s IPO hype or government-sparked volatility in commodities.

Now, let’s dive back into one of the weirdest parts of the whole Figma story…

Figma’s “Weird” Share Allocation

We can understand how IPO pricing actually works by looking at how shares are allocated in the run-up to a public listing.

IPO share allocation operates through underwriter discretion.

Investment banks (in Figma’s case, Morgan Stanley and Goldman Sachs) distribute shares to institutional investors based on several factors – the historical relationship between institutions and the investment bank, capital commitments, and even participation in the roadshow process.

Retail investors generally cannot access IPO allocations except through limited brokerage programs or indirectly via mutual funds.

If you want to get in directly, you’re required to purchase shares in secondary market trading after the opening bell—at prices determined by the initial supply-demand imbalance

How Private Secondary 蜜桃传媒s Factor In

Private secondary markets also serve an important function in IPO pricing.

When employees and early investors trade shares privately in the months before a public offering, these transactions provide objective price signals. They reflect what sophisticated investors will pay in arm’s-length transactions.

One great example of this dynamic at work is the enterprise security company Rubrik.  The stock allowed structured, secondary trading before it ever accessed the public markets.

Shares traded in the $30-34 range through private transactions. Rubrik priced its IPO at $32—closely aligned with the private market clearing price. As a result, the stock had a modest first-day gain with minimal volatility.

Figma went in a very different direction.

Figma initially conducted a tender offer in May 2024 at $23.19 per share. But this transaction occurred 14 months before IPO.

And it ultimately provided limited to no guidance for the company’s July 2025 listing.

According to analysis by Augment, a secondary market platform, Figma actually restricted secondary trading in the months leading up to its IPO. This eliminated recent transaction data that might have informed pricing.

Without those transactions, the pricing process was primarily skewed toward institutional investors during the roadshow.

Augment’s analysis concluded:

“Without a robust secondary market, there were no real pre-IPO price signals. When companies suppress that information, they enter IPOs blind.”

Secondary trading is just one part of the larger dynamic underpinning Figma’s IPO.

The other essential factor to consider is how IPO lock-ups traditionally work – and how Figma leveraged its lockup period to benefit insiders.

The Pre-IPO Lock Up Problem

Traditional IPO lockups are straightforward.

Pre-IPO shareholders agree not to sell shares for 180 days following the offering. This prevents immediate selling pressure and demonstrates insider confidence.

The standard structure treats all insiders uniformly. Everyone waits 180 days. And everyone becomes eligible on day 181.

Figma’s lockup agreement included a less common feature: an “Early Release Condition.”

This provision stipulated that if the stock price rose 25% above IPO price and maintained that level for five consecutive trading days, then 25% of locked shares would be released after just 36 days rather than 180.

Figma’s provision activated immediately because that $33 pricing was sufficiently below market clearing price ($85+ on opening) to guarantee exceeding the 25% threshold.

Here’s how all the math breaks down:

• IPO price: $33
• 25% threshold: $41.25
• Actual opening price: $85
• First-day close: $115.50

Now, let me make one thing very clear — this almost never happens.

Performance-based early lockup provisions appear in numerous IPO documents. We can think of them as theoretical incentives for employees.

However, actually triggering one of these provisions is exceptionally rare. And the reason is straightforward.

When IPOs are priced to reflect market demand, stocks typically trade near their offering price with modest gains of 10-20% – well below the 25-50% thresholds typically specified in these clauses.

In 28 years of actively trading and analyzing IPOs, I have not witnessed a performance-based early lockup provision actually close – until Figma.

The complete lockup architecture created multiple release dates. A staggered release schedule that, as you’ll see below, mostly benefitted institutional players and other insiders:

• September 5, 2025 (Day 36): Performance-based early release of 25% of locked shares
• November 14, 2025 (Day 107): Additional release tied to Q3 earnings announcement
• January 27, 2026 (Day 180): Standard 180-day lockup expiration

This structure provided insiders with three distinct selling windows—days 36, 107, and 180.

So how did all those individual transactions play out?

The Insider Transaction Timeline: August to November

On August 4, 2025 — four days following the IPO — CEO Dylan Field filed a Rule 10b5-1 trading plan with the Securities and Exchange Commission (SEC).

This plan allows executives to sell shares on predetermined schedules, providing safe harbor from insider trading liability.

Field’s plan authorized the sale of up to 3.06 million shares beginning November 24, 2025. Execution was conditional on the stock reaching certain undisclosed price thresholds.

When the performance-based lockup expired on September 5, the stock traded around $80—down 44% from its $143 peak but still 142% above the IPO price.

Shareholders who understood the lockup provisions and chose to sell at this juncture captured $80 per share. As we know, the stock would subsequently decline an additional 72% to $22 over the following five months.

In November, Figma’s executives would get another profitable window in which to sell their shares.

And just like we’d expect, SEC Form 4 filings document significant executive selling in November 2025 when the stock traded in the $43-48 range.

Here’s how all the executive sales break down:

Shaunt Voskanian (Chief Revenue Officer):

• November 3: 26,741 shares at $48.17 = $1.3 million
• November 10: 403,335 shares at $43.39 = $17.5 million
• Total: $18.8 million

Kris Rasmussen (Chief Technology Officer):

• November 10-12: 304,500 shares at $43.63 = $13.3 million

Praveer Melwani (Chief Financial Officer):

• November 10: 80,934 shares at $43.47 = $3.5 million

Additional executive sales: Approximately $8 million

Total November executive selling: ~$35 million at prices of $43-48

It’s important to note those November sales happened around a particularly catalyst-rich time for the stock.

Executives had a Q3 2025 earnings release (released November 12) showing revenue growth deceleration from 41% to 33% year-over-year.

It also provided internal visibility into the company’s Q4 2025 product pipeline and customer trends. And to top it all off, it clued execs into Morgan Stanley’s lowered price target projection for January 2026.

Yes, gaps between internal knowledge and public disclosure are inherent in public markets. But this gap was engineered. Intentional.

And insiders are looking to leverage that knowledge gap for yet another pay day on Figma stock as I write to you.

The August 2026 Catalyst

The final lockup expiration occurs on August 31^st. That’s when venture capital firms holding over 50% of shares become eligible to sell.

That total float represents approximately $7 billion in shares at current prices.

Now, let me remind you once again… This is all strictly above board. Lock-up windows like these are at the core of every IPO.

And there’s nothing inherently wrong with the structure of Figma’s IPO.

Figma’s IPO structure combined four components that individually appear within normal parameters – secondary trading, consistent lock-up periods, a roadshow process, and a share allocation methodology that privileged those with a stake in the business.

But collectively, they benefited only insiders in the period following the IPO.

Don’t get me wrong. I actually like Figma stock. Figma continues operating with solid underlying metrics. It’s showing strong, 38% year-over-year revenue growth. Plus, it’s cheap compared to its IPO price.

But I’m not recommending anyone buy FIG today.

I’m highlighting FIG because it’s a sign of what’s to come from the next wave of tech IPOs.

It’s the perfect case study showing how pricing strategy, lockup architecture, and information flow intersect in modern public offerings to keep retail traders from getting in position before the smart money.

I asked earlier whether or not modern IPOs could serve everyone from retail traders to the C-Suite.

Figma’s story would appear to slap a big NO on that one. But I’m a bit more optimistic.

Here at Masters in Trading, my mission is to give you the tools to level the playing field.

I hop on Masters in Trading LIVE every day at 11AM EST to show you how to spot the underlying dynamics – the institutional signals, the massive price dislocations – that actually move the stock market. No headlines or hype. Just the fundamentals.

If you’ve read this far, why not take the next step in accelerating your mastery of the options market?

Once again, I’d like to point you to The Masters in Trading Options Challenge.

The Challenge is where we take everything you learn in my daily LIVEs — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment.

Just click here to check out what the Masters in Trading Options Challenge has in store for you.

Remember, the creative trader wins.

The post Why Figma Stock Crashed 81%: The IPO Mechanics Retail Never Saw Coming appeared first on InvestorPlace.

Retail sales slowed in December. Existing home sales plunged 8.4% in January. And the latest jobs report showed 130,000 new jobs added, which blew the lid off of expectations for only 55,000 jobs.

And on Friday, the latest Consumer Price Index (CPI) reading showed that prices increased 0.2% in January, or 2.4% on an annual basis. That’s less than economists were expecting – and down from an annual reading of 2.7% last month.

Now, under normal circumstances, I would spend today breaking all of that down for you.

I would tell you why the Federal Reserve had better hurry up and start cutting key interest rates, because the real estate market is one of the key cogs in the economy that simply isn’t working right now.

I’d also talk about how folks simply can’t afford homes right now – especially young people. Not at these rates, not at these prices.

I would tell you how the jobs report isn’t as rosy as it might seem – that nearly two-thirds of those impressive job gains came from healthcare alone. And how that explains why people feel so down on the economy, when the GDP numbers tell us otherwise.

But the reality is that none of this is what really moved markets this week.

What moved markets in the ongoing wipeout in software stocks – and broader fears of AI-driven disruption across multiple sectors.

So, in today’s 蜜桃传媒 360, I want to walk you through what really happened this week… why the selloff is less about extinction and more about rotation… which companies could genuinely face pressure… and where capital is likely moving next as the AI Revolution shifts from Stage 1 to Stage 2.

What Actually Triggered the Rotation

It all started with a single blog post.

On Friday, January 30, Anthropic quietly announced a plug-in for its Claude Cowork feature that could “speed up contract review, NDA triage, and compliance workflows for in-house legal teams.”

That was enough.

Within hours, Wall Street latched onto a new narrative: AI is about to eat the software industry.

Software-as-a-service names were hit across the board since then. Microsoft Corporation (MSFT) is down by nearly 7%. Salesforce.com, Inc. (CRM) has lost 10%. Intuit, Inc. (INTU), the company behind TurboTax and QuickBooks software, is down nearly 20%. I could go on…

Project management platforms, HR software firms, legal research companies and financial services names were dumped indiscriminately.

Why? The fear is that AI agents will replace what these companies do.

Need legal research? Ask a chatbot.

Need a credit check? Let Gemini handle it.

Need workflow automation? Why pay a SaaS (software as a service) provider?

That’s the narrative. And it spread fast.

Why Selloffs Spread

Now, many of these high-flying software stocks already had stretched valuations. Expectations were elevated.

When the Anthropic headline hit, it gave investors a reason – any reason – to take profits.

Then the algorithms kicked in.

For the past two weeks, the “AI fear trade” has been methodically working its way through sectors, leaving carnage in its wake.

First software, then insurance, wealth management, private credit and real estate.

Interestingly, the latest victim on Thursday was the transportation sector.

News broke that a tiny company – that, up until recently, sold karaoke equipment – claimed that its AI platform helped customers triple or quadruple their freight volume. That sparked concerns that AI could upend the trucking and logistics companies – causing those stocks to sell off broadly.

The fact is, when quant models detect a theme shift, they don’t debate whether it makes sense.

This is not unusual, either. It’s how rotations begin.

Now, let’s be clear. Some software companies – as well as other firms – could face real pressure because of the AI Revolution. If a firm offers a generic service that can easily be replicated by a large language model, markets will reprice that risk.

But most SaaS firms operate in specialized niches. They provide compliance layers, integrations, service teams and industry-specific tools that enterprises depend on. Frontier AI model builders are not structured to replace this.

I should also add that NVIDIA Corporation (NVDA) CEO Jensen Huang succinctly stated, “There’s this notion that the software industry is in decline and will be replaced by AI. It is the most illogical thing in the world, and time will prove itself.”

I couldn’t have said it better.

AI is a tool. It is not an obliteration machine.

Instead, what we are seeing is a transition – from Stage 1 to Stage 2 of the AI boom.

Stage 1 Is Ending. Stage 2 Is Emerging

Stage 1 of the AI boom was about the obvious winners – the mega-cap platforms and frontier model builders.

Stage 2 is different.

Stage 2 is about the infrastructure layer. The power systems. The networking. The chips. The specialized firms that make the ecosystem function.

Right now, the real economic activity is happening in the Stage 2 layer. In fact, it’s been that way for a while now.

And the thing is, it’s not slowing down. In fact, just four major Big Tech firms – Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOG), Meta Platforms, Inc. (META), and Microsoft – are projected to spend between $600 billion and $700 billion in 2026, primarily to fuel their artificial intelligence (AI) infrastructure. 

In total, we’re talking about a multi-trillion-dollar buildout. And the market is starting to reward the names that are actually building with all this money, not the ones spending it.

Look no further than what’s happened to our Breakthrough Stocks holdings this earnings season as proof. We’ve had 12 Buy List companies announce quarterly results so far, with 11 posting positive earnings surprises. Our average earnings surprise is nearly 28%.

What’s even more exciting is the fact that most of these earnings winners rallied strongly in the wake of their quarterly results – with gains of 16%, 29%, 25%, and 20%, respectively, in the past two weeks following their earnings releases.

Many of these names are tied to the data center buildout. And as the AI boom continues to accelerate, I suspect there will be plenty more gains ahead.

The Inflection Point…

This week wasn’t about economic data. It was about a crowded trade starting to unwind as investors began to rethink which companies deserve their capital.

And I don’t think we’ve seen the last of it, either.

Expectations remain extremely high around certain bellwether tech names. When expectations are stretched, even a small disappointment can trigger an outsized reaction.

That’s why I believe we are entering what I call an AI Dislocation – a moment where expectations, narrative, valuation and real fundamentals collide.

For some stocks, it won’t be pretty. But for other under-the-radar names – like the small-to-mid-cap names we target in Breakthrough Stocks, it will be their time to shine.

Now, I believe an inflection point could arrive as soon as February 25, and that’s why I’ve prepared a free broadcast about the AI Dislocation that you need to see.

In it, I explain:

• Why this week’s tech rotation fits the pattern I’ve been warning about
• Which types of companies are most exposed if expectations reset
• And the specific category of AI infrastructure firms I believe are positioned to benefit from Stage 2.

I hate to break it to you, but the easy-money phase of the AI boom is over.

So, if you want to be positioned before the next move unfolds – instead of reacting after it happens – make sure you watch my AI Dislocation broadcast right now.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post The Great Tech Dislocation – and What Happens Next appeared first on InvestorPlace.

Marc is now a corporate partner at 蜜桃传媒Wise, which means we’re bringing institutional-grade intelligence directly to our community. And the timing couldn’t be better.

In today’s piece, Marc breaks down a critical lesson using the fall of Barneys New York: Companies that fail to adapt to paradigm shifts get left behind. Blockbuster didn’t lose to Netflix because of bad service – it missed the shift. The same is true with Barneys. And Marc believes we’re at another one of those inflection points right now.

On Tuesday, Feb. 17 at 10 a.m. Eastern, Marc is hosting a free live briefing to explain what he sees coming next – and how to position yourself ahead of it. He’ll also share two free stock picks during the event. Click here to reserve your spot now.

If you’ve been following my work via Hypergrowth Investing, you know it’s all about catching the next wave early. And Marc’s institutional perspective is the perfect complement to that strategy.

On the window sign of an iconic luxury-retail store on Madison Avenue, the message was loud and clear…

“EVERYTHING MUST BE SOLD! GOODBUYS, THEN GOODBYE!”

For decades, Barneys New York had been the premier fashion store in the city. The company’s Madison Avenue flagship store boasted nine floors and about 275,000 square feet of retail space.

Barneys started out as a men’s discount clothing store in Manhattan in 1923. Over the following decades, it transformed and grew into a luxury-retail powerhouse.

By the 1980s, the company had developed a reputation for introducing the best global luxury brands to an increasingly wealthy American consumer market.

Its flagship New York store featured wall-to-wall designer labels – from Giorgio Armani to Balenciaga. If it was expensive, Barneys had it.

In short, it was a luxury shopper’s paradise.

The Illusion of an Unbreakable Business

The store was often featured in the hit HBO series Sex and the City. Its fashionista lead character, Carrie Bradshaw (played by Sarah Jessica Parker), considered Barneys one of her favorite places to shop.

But on Feb. 23, 2020, Barneys New York closed…

And so did the company’s other stores in New York, along with those in San Francisco and Beverly Hills. All its branches closed, all on the same day.

Fashion-industry figures called it the end of an era.

But it was ultimately a failure to adapt to changing times…

When Barneys opened its gigantic store on Madison Avenue in 1993, it set the bar for luxury shopping in New York.

But that came at a price – in the form of costly rent.

You see, Barneys didn’t own the property it did business on. Most of the company’s money was tied up in expensive goods kept in inventory. Barneys sold those goods at huge markups to store customers.

The company’s annual revenue reached nearly $1 billion at its height. One-third of that figure came from Madison Avenue alone.

This allowed Barneys to make good on millions of dollars of rent – including $16 million a year just for the Madison Avenue store.

The business model worked… as long as people kept going into the stores to buy goods.

E-Commerce Triggered a Retail Paradigm Shift

But then the internet came along – and took off. It gave rise to e-commerce and a strategy called “direct to consumer” (DTC).

Brands could now use the internet to sell products directly to their customers. This allowed them to cut out the middlemen – typically, owners of retail establishments.

It didn’t take long for consumers to realize they could buy luxury goods – the same ones found on Barneys’ store shelves – from authorized online retailers.

These online retailers often displayed more designs and models than physical stores could keep in stock. And, of course, customers could shop right from home.

Foot traffic to Barneys declined. And then, the landlord doubled the rent at the flagship Madison Avenue store. It was too much to bear.

In mid-2019, the company filed for bankruptcy. And its stores wound down… until shuttering in February 2020.

Barneys became a cautionary tale in the $1.8 trillion global fashion industry. Even a nearly century-old business institution could end up in the trash bin of history if it failed to adapt to changing times.

Why This Same Mistake Shows Up In the 蜜桃传媒

Of course, the fashion industry didn’t go anywhere. It’s still a big business.

Folks, my point with this story is simple…

The world around us is always changing. It was true when the iconic Barneys closed in 2020. And it’ll continue to be true in 2026.

The investment decisions we make throughout the year will determine whether we keep up with the changes.

And that’s exactly why I’m stepping forward next week with an urgent new market briefing.

Because just as Barneys failed to adapt to a changing world, many investors today are relying on tools that no longer work – especially as we head into what I believe could be a volatile March–April period for stocks.

On Tuesday, Feb. 17, at 10 a.m. Eastern, I’ll be hosting a free live broadcast to explain what’s changing beneath the surface of the market… why not all stocks will be hit the same… and how a small group of companies could emerge stronger – and far more profitable – if you know what to look for.

I’ll also be sharing a brand-new tool to identify these opportunities, which you’ll be able to try out for free if you sign up, along with two free stock recommendations during the event.

Click here to reserve your seat for this free broadcast – and I’ll see you there.

The post Barneys New York and the Danger of Ignoring a 蜜桃传媒 Paradigm Shift appeared first on InvestorPlace.

Our InvestorPlace offices are closed Monday given the Presidents’ Day market holiday. If you need help from our Customer Service team, they’ll be happy to assist you when we reopen on Tuesday.

Now, to today’s issue…

蜜桃传媒s don’t usually punish investors all at once. More often, they punish the ones who fail to adapt.

That’s the core lesson behind today’s Digest takeover from Marc Chaikin – one of Wall Street’s most respected veterans, and the creator of the Chaikin Money Flow indicator used by investors around the world.

In his piece below, Marc shares the story of Barneys New York – a once-iconic retail powerhouse that looked untouchable… until the world changed around it. His message is clear: the same thing happens in the stock market, and investors heading into 2026 can’t rely on yesterday’s tools.

Marc believes we may be approaching a particularly volatile March–April stretch – and next Tuesday, February 17, at 10 a.m. Eastern, he’s stepping forward with a free live market briefing to explain what he sees forming beneath the surface.

I’ll bring you more details on Monday, but you can reserve your seat right here.

If you want a clearer read on what’s changing in this market – and how to position for it – Marc’s essay today is well worth your time.

I’ll let him take it from here.

Have a good evening,

Jeff Remsburg

On the window sign of an iconic luxury-retail store on Madison Avenue, the message was loud and clear…

“EVERYTHING MUST BE SOLD! GOODBUYS, THEN GOODBYE!”

For decades, Barneys New York had been the premier fashion store in the city. The company’s Madison Avenue flagship store boasted nine floors and about 275,000 square feet of retail space.

Barneys started out as a men’s discount clothing store in Manhattan in 1923. Over the following decades, it transformed and grew into a luxury-retail powerhouse.

By the 1980s, the company had developed a reputation for introducing the best global luxury brands to an increasingly wealthy American consumer market.

Its flagship New York store featured wall-to-wall designer labels – from Giorgio Armani to Balenciaga. If it was expensive, Barneys had it.

In short, it was a luxury shopper’s paradise.

The Illusion of an Unbreakable Business

The store often featured in the hit HBO series Sex and the City. Its fashionista lead character, Carrie Bradshaw (played by Sarah Jessica Parker), considered Barneys one of her favorite places to shop.

But on February 23, 2020, Barneys New York closed…

And so did the company’s other stores in New York, along with those in San Francisco and Beverly Hills. All its branches closed, all on the same day.

Fashion-industry figures called it the end of an era.

But it was ultimately a failure to adapt to changing times…

When Barneys opened its gigantic store on Madison Avenue in 1993, it set the bar for luxury shopping in New York.

But that came at a price – in the form of costly rent.

You see, Barneys didn’t own the property it did business on. Most of the company’s money was tied up in expensive goods kept in inventory. Barneys sold those goods at huge markups to store customers.

The company’s annual revenue reached nearly $1 billion at its height. One-third of that figure came from Madison Avenue alone.

This allowed Barneys to make good on millions of dollars of rent – including $16 million a year just for the Madison Avenue store.

The business model worked… as long as people kept going into the stores to buy goods.

But then the internet came along – and took off. It gave rise to e-commerce and a strategy called “direct to consumer” (DTC).

Brands could now use the internet to sell products directly to their customers. This allowed them to cut out the middlemen – typically, owners of retail establishments.

It didn’t take long for consumers to realize they could buy luxury goods – the same ones found on Barneys’ store shelves – from authorized online retailers.

These online retailers often displayed more designs and models than physical stores could keep in stock. And, of course, customers could shop right from home.

Foot traffic to Barneys declined. And then, the landlord doubled the rent at the flagship Madison Avenue store. It was too much to bear.

In mid-2019, the company filed for bankruptcy. And its stores wound down… until shuttering in February 2020.

Barneys became a cautionary tale in the $1.8 trillion global fashion industry. Even a nearly century-old business institution could end up in the trash bin of history if it failed to adapt to changing times.

Why This Same Mistake Shows Up in the 蜜桃传媒

Of course, the fashion industry didn’t go anywhere. It’s still a big business.

Folks, my point with this story is simple…

The world around us is always changing. It was true when the iconic Barneys closed in 2020. And it’ll continue to be true in 2026.

The investment decisions we make throughout the year will determine whether we keep up with the changes.

And that’s exactly why I’m stepping forward next week with an urgent new market briefing.

Because just as Barneys failed to adapt to a changing world, many investors today are relying on tools that no longer work — especially as we head into what I believe could be a volatile March–April period for stocks.

On Tuesday, February 17, at 10 a.m. Eastern, I’ll be hosting a free live broadcast to explain what’s changing beneath the surface of the market… why not all stocks will be hit the same… and how a small group of companies could emerge stronger — and far more profitable — if you know what to look for.

I’ll also be sharing a brand-new tool to identify these opportunities, which you’ll be able to try out for free if you sign up, along with two free stock recommendations during the event.

Click here to reserve your seat for this free broadcast — and I’ll see you there.

Good investing,

Marc Chaikin

蜜桃传媒 Expert & Founder, Chaikin Analytics

The post Why Yesterday’s Winning Strategy Stops Working appeared first on InvestorPlace.

Today, he’s taking that idea a step further.

Marc is the creator of the Chaikin Money Flow indicator, a tool traders have used for decades to measure buying and selling pressure. He also founded Chaikin Analytics, where he focuses on tracking institutional money movement and stock strength.

Marc’s approach is similar to how I use Stock Grader. We both rely on data to identify which stocks are gaining real momentum – and which ones are quietly weakening beneath the surface.

In the essay below, Marc explains why following the flow of money matters now more than ever – and what signals he’s watching closely.

He’ll also be hosting a live market briefing on Tuesday, February 17 at 10:00 a.m. Eastern, where he’ll walk through the specific indicators and setups he believes investors should understand.

You can reserve your spot for the event right here.

Now, here’s Marc.

*

Mo Tajer needed a lifesaving surgery at one of the worst times in history…

The 31-year-old Englishman had testicular cancer. And he had undergone four rounds of chemotherapy.

But unfortunately, the cancer spread to his abdomen…

Doctors found a roughly two-inch tumor wrapped around his aorta and inferior vena cava.

The aorta is the body’s most important blood vessel. It carries blood from the heart to the rest of the body. And the inferior vena cava moves blood back to the heart.

Doctors knew the tumor could rupture either of these major blood vessels at any moment. If that happened, Tajer could die from internal bleeding.

Tajer had to get the tumor removed as soon as possible.

But doctors faced a big problem…

A Life-or-Death Problem With No Obvious Solution

Tajer needed his surgery in the thick of the COVID-19 pandemic.

Most major cities were locked down. And many countries had restricted travel.

In hospitals all over the world, doctors and nurses dealt with a surging number of patients as best they could. A lot of those patients fought for their lives in COVID-19 wards.

Many hospitals couldn’t keep up with the demand for beds. So they postponed most surgeries.

Tajer couldn’t afford to delay his surgery, though. He needed help immediately.

A traditional open surgery was out of the question. Tajer would’ve needed a two-week recovery in intensive care. And with so many COVID-19 patients, there wasn’t any room.

That’s when his attending physician, Dr. Archie Fernando, had an idea…

She could use a robot to remove the tumor in a less invasive way.

You see, Tajer’s treatment took place at Guy’s Hospital in London. And the hospital owned a Da Vinci Xi robotic surgical system from Intuitive Surgical Inc. (ISRG)…

As you can see, this roughly $2 million system has four robotic arms.

The technology helps doctors perform minimally invasive surgeries – like removing tumors. It’s much safer than traditional open surgery. And it doesn’t require a long recovery.

Globally, more than 6,700 hospitals use one of these robotic-assisted surgical systems.

But there was another problem…

Fernando had never performed that kind of surgery.

So she had to get creative again. Specifically, she turned to Dr. Jim Porter for help.

Porter is the medical director for robotic surgery at the Swedish Medical Center in Seattle. He has conducted thousands of surgeries using the Da Vinci Xi robotic surgical system.

Hospital officials got Tajer to an operating room. Then, Fernando and Porter worked together for five hours to remove the tumor.

Tajer made a quick recovery. And he went on to live his life without any lingering pain.

This story gets even more amazing…

The Critical Technology Most People Take for Granted

Porter helped Fernando while wearing his pajamas at his home in Seattle.

That’s right…

Due to the COVID-19 pandemic, Porter couldn’t travel to London.

But thanks to modern technology, he saw everything in real time. And he guided Fernando step by step through the procedure.

He didn’t just talk her through it, either.

With a special program, Porter used his laptop to show Fernando what to do. He pinpointed exactly where she needed to cut Tajer.

Fernando and Porter worked together to save Tajer’s life. But without another critical tool in today’s tech-heavy world, the procedure wouldn’t have been possible.

We’re talking about high-speed internet.

Think about it…

Porter was 4,700 miles away from the operating room. And yet, it felt like he was standing right next to Fernando as she made the needed cuts to remove Tajer’s tumor.

If it weren’t for high-speed internet, Tajer likely wouldn’t be alive today.

We use high-speed internet for all sorts of things these days. And that dependence is only growing…

Take artificial intelligence AI, for example.

This powerful technology simply doesn’t work without a massive amount of data. And it’s critical for that data to move as quickly as possible from one point to another.

Self-driving cars require the collection and processing of a constant stream of data as well. Otherwise, they couldn’t safely navigate the roads.

Factory automation is intensifying all over the world, too.

Folks, there’s no denying that AI was the hottest investing topic of 2025. And it could grow even further in 2026.

Put simply, humanity keeps finding new and exciting ways to use the incredible tool of the internet. The massive data boom isn’t going away anytime soon.

And this is exactly the kind of shift investors need to be paying attention to right now.

When transformative technologies like high-speed internet or AI quietly become essential infrastructure, the biggest opportunities don’t always show up where people expect them. And the risks aren’t always obvious either.

That’s why I’m stepping forward next week with a free live market briefing to explain what’s changing beneath the surface of today’s market — and how investors can position themselves as innovation accelerates in 2026 and beyond.

On Tuesday, February 17, at 10 a.m. Eastern, I’ll walk through what I’m seeing right now… why some stocks are built to thrive in this environment while others are far more fragile than they appear… and how to identify the small group of companies with the strongest potential ahead.

I’ll also share a brand-new analytical tool you’ll be able to try for yourself, along with two free stock recommendations during the broadcast.

Click here to reserve your seat for this free live event — and I’ll see you there.

Good investing,

Marc Chaikin

蜜桃传媒 Expert and Founder, Chaikin Analytics

P.S. Marc makes a strong point here: When technology becomes essential infrastructure, it changes the investment landscape in ways most people don’t see coming. That’s exactly what he’ll be breaking down in his free live broadcast on February 17 at 10 a.m. Eastern — be sure to sign up so you don’t miss it.

The post This Breakthrough Changed Everything – and Most Investors Missed It appeared first on InvestorPlace.

With the federal government potentially becoming one of the sector’s largest customers, rare earth mining and processing companies are attracting serious attention.

Here are the seven most important questions investors are asking about rare earth stocks, and the answers you need.

1. Why Are Rare Earth Stocks Suddenly Getting So Much Attention?

These aren’t typical mining plays. Rare earth companies sit at the intersection of AI infrastructure, national security, and geopolitics.

Project Vault commits $12 billion to stockpiling strategic minerals, turning Washington into a major buyer. When government procurement enters a sector, companies suddenly have creditworthy customers and predictable revenue streams.

That’s why CRML jumped 35% on the announcement alone. Investors realized the federal government was about to start writing checks.

Learn more about why rare earths are the “picks and shovels” play of the AI boom →

2. What Does Project Vault Mean for Rare Earth Investors?

Think of it as a Strategic Petroleum Reserve for minerals instead of oil.

The program uses $10 billion in Export-Import Bank financing plus $2 billion in private capital to purchase materials like neodymium, dysprosium, and lithium. These elements power AI data centers, EV motors, and defense systems.

By guaranteeing federal purchases, Project Vault provides the demand certainty that mining projects need to secure financing and move forward.

See how Project Vault aims to secure U.S. rare earth supply →

3. Why Does China’s Dominance Matter?

China controls roughly 70% of global rare earth mining and 90% of refining capacity.

For decades, Beijing invested heavily while Western producers exited due to low prices and environmental costs. The result is that America’s most critical industries depend on a single foreign supplier that has already shown willingness to restrict exports during trade disputes.

Without access to these materials, AI infrastructure, EV manufacturing, and military hardware production all face genuine constraints.

Get the full breakdown of rare earths’ role in AI infrastructure and national security →

4. Which Rare Earth Stocks Are Positioned to Benefit?

Several U.S. and allied companies operate in spaces Washington is now prioritizing:

MP Materials (MP) operates America’s only functioning rare earth mine at Mountain Pass, California, and is expanding into refining.

USA Rare Earth (USAR) is developing the Round Top project in Texas, focusing on heavy rare earths used in military applications.

Energy Fuels (UUUU) runs rare earth processing at its White Mesa Mill in Utah, one of few U.S. facilities capable of producing separated oxides.

Critical Metals Corp (CRML) controls the Tanbreez deposit in Greenland as the U.S. seeks allied supply sources.

American Rare Earths (ARRN) is advancing Halleck Creek in Wyoming as defense procurement rules increasingly exclude Chinese materials.

Read more about 5 top rare earth stocks for 2026 →

5. Are There Plays Beyond the Mining Companies?

Yes. Building domestic rare earth capacity requires significant industrial infrastructure.

Olin (OLN) supplies specialized chemicals for rare earth processing. Caterpillar (CAT) provides heavy equipment for mine development. Fluor (FLR) designs and constructs the processing facilities where raw ore becomes usable materials.

The opportunity extends beyond miners to the entire industrial ecosystem required to build a functional supply chain.

See 3 mining infrastructure plays to watch in 2026 →

6. What’s the Timeframe for This Opportunity?

Don’t expect overnight transformation. Industry analysts estimate three to seven years before meaningful domestic capacity comes online.

Mining projects face permitting delays, environmental reviews, and capital requirements that run into hundreds of millions. What’s changed isn’t the timeline but the risk profile. Federal backing reduces financing uncertainty and provides revenue visibility.

Mining executive Robert Friedland recently noted that sentiment in the critical minerals sector has reached historic highs due to policy support backing these projects.

Get the timeline and risk assessment for rare earth stocks →

7. What Should Investors Watch Next?

The core question is whether the U.S. can successfully rebuild domestic capacity for materials it now treats as national security priorities.

Rare earth elements are embedded in AI infrastructure, EV drivetrains, renewable energy systems, and military weapons. As demand grows across these sectors, companies positioned to mine, refine, and process outside Chinese control could benefit from sustained policy support.

Rare earth supply security is now a bipartisan priority. Both recent administrations have used Defense Production Act authority and export financing to accelerate critical mineral development.

For rare earth investors, this is less about chasing the next commodity boom and more about positioning for long-term policy support as supply chains shift.

Read the complete analysis of rare earth stocks and Project Vault’s implications →

On the date of publication, John Kilhefner did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The post Rare Earth Stocks: 7 Critical Questions About Project Vault and the Mining Boom appeared first on InvestorPlace.

For the past few years, the headlines have told one story.

The market’s near all-time highs. Corporate profits are booming. AI is minting millionaires in real time.

And yet…

Talk to your friends. Scroll LinkedIn. Look at your grocery receipt.

Something doesn’t feel right.

Mid-career professionals are “open to work” for months. Real wages feel stuck. Rent keeps climbing. The stock market says “prosperity,” but the real economy is voicing something else.

That disconnect is structural.

We have officially entered a new economic epoch, something academics call “structural adjustment” and doomers call “collapse.”

I call it CHAOS Economics. 

In this new world, there are only two types of people: the serfs who work for the algorithm, and the lords who own it. 

We are staring down the barrel of an AI-driven Engels’ Pause – an era when GDP rises but workers’ purchasing power remains flat as capitalists’ profits soar. 

To put it bluntly, the Titanic has already hit the iceberg. And, much like on the Titanic, the band is still playing and the cocktails are still being served in first class – but the water is rising in steerage.

If you want to survive, it’s time to board the lifeboat…

The iceberg didn’t appear overnight. It’s been building for years, hidden below the surface. 

Here’s what it looks like.

How AI Automation Creates Job Loss: The Two Forces Driving CHAOS Economics

We are witnessing the collision of two unstoppable forces moving in opposite directions.

Force 1: AI, the Deflationary Tsunami 

Artificial intelligence is the single greatest deflationary force in human history; the ultimate cost-cutter. 

We might have once expected robots to replace assembly line workers – and that’s still coming. Tech titans Amazon (AMZN), Tesla (TSLA), and China’s BYD have said they aim to use humanoid robots in their operations. Most recently, Hyundai – in partnership with Boston Dynamics – unveiled its humanoid robot, Atlas, designed to “ease physical strain on human workers” and “pave the way for wider use of the technology.” In our view, that’s corporate speak for “replace human workers”…

But right now, software is the more immediate threat. Before physical bots arrive at scale, AI software is already starting to replace once-high-status jobs: interpreters, proofreaders, code writers, logistics managers.

Microsoft’s late-2025 analysis of AI job exposure depicts a terrifying situation. 

Management analysts, customer service reps, sales engineers… We are talking about 5 million white-collar jobs – the bedrock of the American tax base – facing extinction.

When a company can replace a $120,000-a-year mid-level manager with a $20-a-month subscription to an AI Agent, they don’t think about it. They just do it. It’s their fiduciary duty. This collapses wages and labor demand through “Technological Deflation.”

Force 2: The Inflationary Response

If everyone loses their job, the entire consumer economy collapses.

The government cannot allow a deflationary depression and risk 20%-plus unemployment turning into a revolution. So, it will do the only thing it knows how to do: print money.

The government will print cash by the trillions, calling it “stimulus,” then “relief,” until eventually, it’s just “universal basic income” (UBI).

This is a form of monetary dilution. Economists call this fiscal dominance. I call it “Currency Hallowing.”

And then comes the death spiral … where more job loss leads to more money printing, which leads to more job loss and more money printing, in an accelerating cycle.

This is CHAOS: Currency Hallowing And Overautomation Spiral.

Prices for things made by AI (software, media, digital entertainment) will crash to near zero. But prices for limited commodities (houses, land, food, energy, healthcare) will skyrocket because the dollar is being debased to fund the unemployed masses.

The result? A society where we have a supercomputer in our pockets, but we can’t afford a steak dinner.

AI Job Displacement Mirrors the Industrial Revolution

“But Luke,” the tech optimists might say. “Technology always creates more jobs than it destroys. Look at the tractor or the loom!“

To which I’d say: you’re ignoring Engels’ Pause, named after Friedrich Engels, the 19th-century economist who documented what happened when the Industrial Revolution collided with labor markets.

Between 1790 and 1840, Great Britain’s GDP growth rate exploded from 0.2% to 3.2% annually. Technology (steam engines) created massive efficiency gains. Corporate profits doubled, increasing by over 20% from the late 18th to the mid-19th century. 

But here’s what Engels noted: while the Industrial Revolution was making Britain incredibly rich, most Brits saw their lives get much worse, not better.

For the average worker, real wages remained flat or fell for 50 years. Workers’ share of the national income dropped from 50% to 45%, even as total wealth soared. And in Manchester and Liverpool, life expectancy for working-class children fell to just 17 years.

The wealth did eventually trickle down… and the Industrial Revolution did eventually lead to more jobs… half a century later.

The weavers who lost their jobs to power looms didn’t become “machine repairmen.” They starved. They rioted and, often, were shot by the military or shipped to penal colonies. It took two full generations for the labor market to adjust.

We are entering an AI-driven Engels’ Pause. But this time it will be faster and more brutal.

The steam engine took a century to deploy. ChatGPT hit 100 million users in two months. We’re compressing 50 years of displacement into a single decade.

And the disruption isn’t just coming for low-skill manual labor this time. It’s coming for the accountant, the lawyer, the editor… It’s coming for you.

Government Won’t Stop AI Job Loss: The Political Race to AGI

By now you’re probably thinking: But won’t the government step in to regulate AI and protect Americans’ jobs?

Well, Washington is stepping in … just not in the way most people think.

The current administration controls the levers of power, and its platform can be summarized in three words: Go, Baby, Go.

The administration’s ‘One Rule’ executive order requires agencies to eliminate one regulation for every new rule imposed. It preempts state AI safety regulations in California and Colorado, blocking their enforcement. The goal is clear: Remove all friction. Let the companies build and deploy.

The reason? China. The geopolitical reality is that if we slow down to protect jobs, China reaches Artificial General Intelligence (AGI) first. And to Washington, winning the AI Cold War matters infinitely more than your 401(k).

You may have heard murmurings about a new government “AI framework” in development… 

Behind the scenes, agencies are being mobilized for the Genesis Mission: a Manhattan Project-scale initiative to dominate the next wave of AI, nuclear, and advanced manufacturing.

Think of it as a government-backed AI production program, with hard deadlines, big money, and regulatory fast-tracking. 

The government has cut the brake lines and is flooring the accelerator because it’s terrified that if it doesn’t, Beijing wins the race to AGI.

This means there will be no meaningful AI regulation or ‘Human Employment Protection Act.’ We are barreling toward the cliff edge of labor obsolescence at maximum velocity, sanctioned by the State.

The Data Proving AI Is Replacing Workers Right Now

Look at the data from late 2025.

The S&P 500 was soaring, with corporate profits at record highs. 

Meanwhile… Unemployment has risen to 4.6% – and climbing. Consumer sentiment has collapsed to 51 (on the University of Michigan’s index), nearly matching the all-time low of 50 hit during peak inflation in June 2022. Real wage growth is getting squeezed. And layoff announcements have soared, topping 1.1 million in 2025 – the highest since the COVID-19 pandemic. 

This disconnect – the “Rich Economy, Poor People” vibe – is the iceberg. And we’ve already hit it.

The structural damage is done, and the water is pouring in.

The Old American Dream was built in the steerage class of this ship, on the premise that your labor had inherent, growing value. It assumed that if you showed up and did a good job, the market would reward you with a middle-class life.

But that premise is dead.

In a CHAOS economy, selling your time for money is a losing trade. Your time and the currency you’re paid in are both depreciating in value, faster every quarter. It’s like running on a treadmill spinning backward – and accelerating.

If you stay in the “labor class,” you sink with the ship.

How to Protect Your Job from AI: The Only 3 Investment Strategies That Work

So, what do you do? Curl up and wait for the UBI check that buys you a loaf of bread and a VR headset?

No. If the world is splitting into “techno-feudal lords” and “serfs,” you make damn sure you’re sitting at the high table.

The only way to win in CHAOS Economics is to join the capital class.

This requires a fundamental shift in how you think about money. You cannot save your way out of a currency devaluation spiral. You must think about “owning the machine.”

If AI is stealing jobs, you must own AI companies. If tech giants are capturing GDP, you must own their equity. And if the grid powers everything, you must own the infrastructure.

This isn’t about “diversification” or a nice, balanced 60/40 portfolio. Bonds are garbage in a currency hallowing environment. Cash is trash. Even most stocks are value traps. 

You need a lifeboat. And in 2026, the only seaworthy vessel is high-growth AI equity.

Here’s your survival roadmap:

The Infrastructure

The AI arms race is expensive. It requires chips, data centers, and an unprecedented amount of energy. Nvidia (NVDA), AMD (AMD), and Taiwan Semiconductor (TSM) aren’t just stocks – they’re tolls on the future. Nobody builds the future without paying them. 

But infrastructure goes deeper. AI data centers are ravenous for power – they need baseload energy that solar and wind can’t deliver. Nuclear power plants and utilities providers are the unsexy infrastructure that will power this revolution.

These companies will print money. Own them.

The Sovereigns

Stop looking at Microsoft, Alphabet (GOOGL), Meta (META), and Amazon as companies. They are more like nation-states. Microsoft’s R&D budget exceeds $25 billion annually – larger than NASA’s. They own the data, the customers, and the platforms. 

In a feudal system, you want to be aligned with the strongest king. These companies will survive the CHAOS, swallowing competitors and extracting rents from every transaction in the digital economy. You want equity in their monopolies.

The Agents

This is the “hypergrowth” corner – the highest risk, highest reward tier where 100x returns are possible. Look for software companies building the AI agents that replace $200/hour lawyers and $150/hour architects.

If your profession is being automated, you need to own stock in the company doing the automating. It’s the only way to hedge your personal balance sheet against your own obsolescence.

Your Window Is Closing

This sounds uncomfortably dark because it is.

The “Help Wanted” signs are disappearing. The rent prices are rising while wages stall.

The Engels’ Pause is here. The gap between the Haves (capital owners) and the Have-Nots (labor) is about to widen into a chasm.

You have a brief window of time – perhaps 12 to 24 months – before the rest of the world realizes the ship is sinking. Right now, they’re still in the ballroom, seemingly unaware of any impending doom.

They don’t see the CHAOS. But you do.

It’s time to get in the lifeboat.

You can’t stop the flood – but you can ride the current.

The single most powerful wealth strategy in a CHAOS economy is to move with the capital flows that Washington unleashes. Every modern fortune – from wartime steel to internet infrastructure – started with government contracts.

We’re seeing it again right now.

The U.S. government is now stepping in as the largest activist investor on Earth – taking equity stakes, backing strategic supply chains, and directly funding the industries it considers mission-critical.

When those deals surface, the market reacts in less than no time.

I’ve put together a full briefing on this “President’s 蜜桃传媒” – and how investors can position before the next wave of government-backed buying goes public.

If CHAOS Economics is the storm… This is how you sail to safety.

The post AI Job Loss Is Accelerating – and Washington Won’t Stop It appeared first on InvestorPlace.

Gold and silver have been on a rollercoaster over the past month…

We’ve seen sharp rallies, swift pullbacks, and more day-to-day volatility than we’re used to seeing from this “boring” corner of the market.

The chart below shows gold’s violent price action since mid-January (check out those percentage swings).

For an asset that’s historically known for stability, the recent action has felt almost crypto-like.

So, where do we go from here?

To answer that, let’s go to Tom Yeung and his analysis from last week. For newer Digest readers, Tom is Eric Fry’s lead analyst in Investment Report.

Tom begins with a helpful reminder of why we own precious metals in the first place:

Physical assets like gold and silver have survived far longer than virtually any other store of wealth. They are both unlikely to go to zero…

He contrasted that durability with Eric’s recent discussion of Bitcoin’s shorter, more speculative history:

Actual gold has served humanity for millennia as the ultimate store of value and refuge from financial crisis. Bitcoin has not…

Whatever Bitcoin’s virtues may be, defending a portfolio from harm is probably not one of them.

That distinction matters because what we’ve seen in recent weeks is a kind of “bitcoinization” of precious metals – faster moves, bigger swings, more speculative energy.

Historically, that’s not how gold behaves. In fact, Tom points out that prior to the recent selloff, gold had fallen more than 12% over two trading days just once in the last 30 years.

Clearly, the degree of gold’s recent volatility is rare.

Back to our question, what does the recent price action mean for gold looking forward?

Tom tells us that history shows recoveries tend to be measured – not explosive.

Looking at the nine times since 1998 that gold dropped more than 12% over a 30-trading-day window, the average rebound over the next 120 days was “quite modest.”

Gold and silver are stable assets – they typically take time to heal. But stretch the timeline to 360 days, and the picture improves dramatically.

Tom notes that over longer holding periods, both metals have historically regained their prior highs within about a year – and then added roughly another 8% on top.

The key is to remember why you own gold

We don’t own it because we expect moonshot returns. That’s for “me too” leveraged traders who jump aboard purely for overnight speculative gains.

Rather, we own gold because it anchors a portfolio.

It’s there to stabilize, hedge against lingering inflation, and offset the consequences of relentless fiat printing. In other words, it’s there to do what it has done for millennia…

Protect our purchasing power and steady the ship for the long haul.

So, where is gold likely to go from here?

Modestly higher – in time. Which is fine for longer-term investors.

Back to Tom for our action step:

Sit tight on your remaining precious metals holdings for now.

There’s no immediate need to double down on selloffs… Nor is there a need to sell into the panic. After all, gold and silver are not cryptocurrencies.

To get all of Tom’s and Eric’s gold analysis as well as their specific recommendations as an Investment Report subscriber, click here to learn more.

Meanwhile, yesterday brought another reason to hang onto your gold position

If the recent volatility reminded us how gold behaves, a headline from yesterday reminded us why we own it.

The Wall Street Journal reported that the U.S. budget deficit will remain massive in the near term, and then widen substantially over the next decade:

The budget gap is forecast to increase over the course of the next decade as the costs of the country’s debt load, aging population, and healthcare obligations outpace tax collections.

Debt held by the public is forecast to cross the 100% of GDP threshold this year and surpass the post-World War II record by 2030. 

By 2036, the annual deficit will exceed $3 trillion, or 6.7% of GDP, according to CBO.

After World War II, that is a level that the country exceeded only in the aftermath of the 2008 financial crisis and during the Covid-19 pandemic. 

The most troubling line in the entire report? Interest costs.

As the WSJ notes, “As a share of GDP, federal interest costs are about to be higher than any year since at least 1940.” By 2036, interest payments alone will consume 26% of federal revenue, up from 19% today.

In other words, more than a quarter of every one of your tax dollars could soon go toward servicing past borrowing – not defense, not infrastructure, not healthcare…

Just interest.

CBO Director Phillip Swagel put it bluntly:

Our budget projections continue to indicate that the fiscal trajectory is not sustainable.

Now, remember, when governments face unsustainable fiscal paths, there are only a few levers to pull

They can raise taxes… cut benefits… or print more money.

None of those outcomes is particularly friendly to your purchasing power.

Higher taxes hit your wallet directly. Money creation quietly erodes the value of every dollar you save. And even if growth temporarily improves the picture, CBO notes that faster growth can create inflationary pressures and higher interest rates, which ironically make the deficit worse because of the government’s enormous debt load.

This is precisely the kind of long-term backdrop where gold remains a no-brainer in your portfolio.

Bottom line: When fiscal math starts looking increasingly strained, having a portion of your portfolio in an asset that has survived every prior debt cycle in history just makes sense.

But if you want to complement your gold position with a potential moonshot homerun, Jonathan Rose has an idea

As regular Digest readers know, Jonathan is incredibly bullish on copper, in large part due to enormous demand from the AI data center buildout.

However, that demand is so enormous – and urgent – that “copper alone” presents a problem. But this could be a huge opportunity for a stock that Jonathan just recommended to his Masters in Trading: All Access subscribers.

Here’s Jonathan with more:

Copper creates heat. Heat demands power. Power is becoming the constraint inside modern data centers.

The solution the industry is racing toward is optical interconnect — moving information with light instead of electricity. Faster, dramatically more efficient, and far cheaper at scale.

That’s where POET Technologies Inc. (POET) comes in.

POET is a fabless semiconductor company that designs and develops high-speed optical engines, light source products, and custom optical modules.

It specializes in integrating electronics and photonics onto a single chip to enable faster, more energy-efficient data communication in datacenters.

Back to Jonathan:

This isn’t theoretical anymore.

Marvell Technology validated the space with a multibillion-dollar acquisition of Celestial AI, whose tech is built on POET’s platform. Big players are positioning for deployment…

At today’s valuation, we’re looking at a company worth under a billion dollars sitting in the path of trillion-dollar AI infrastructure spending. 

If adoption materializes as Jonathan believes it can, this is a multi-bagger opportunity. So, consider yourself in the know, and take a look at POET if you’re in the market for a high-octane AI trade.

By the way, a quick “congratulations” to Jonathan and his followers who have been taking advantage of his free Masters in Trading recommendations.

Here’s Jonathan with the recent performance of this free portfolio:

The results speak for themselves:

• 62.30% win rate
• 30.91% average gain per position
• 79.86% annualized return

Those numbers aren’t accidents. They come from a repeatable method grounded in the same principles as every other trade I recommend – risk control, structure, and patience.

To learn more about this “repeatable method,” check out Jonathan’s Masters in Trading Options Challenge. That’s where he takes everything you see in the daily live episodes and turns it into a clear, step-by-step process you can apply.

You can learn more right here.

Finally, if you’ve ever walked past the old Barneys New York flagship on Madison Avenue…

Then you probably remember what it represented: luxury, status, permanence.

For decades, Barneys looked untouchable – the kind of brand you assumed would be around forever.

And then one day, it wasn’t.

The iconic store didn’t shut down because of a scandal or a sudden collapse in demand for fashion. It was something far more common – and far more dangerous…

Barneys didn’t adapt quickly enough when the world changed.

E-commerce exploded. Brands went direct-to-consumer. Foot traffic dried up. Costs rose. And a business that once seemed “too iconic to fail” became a case study in what happens when you keep using yesterday’s playbook in a new era.

That’s the story that Wall Street veteran Marc Chaikin just told his readers – and the reason we’re excited to introduce him to the Digest audience.

Marc has spent more than 50 years studying what’s really happening beneath the surface of markets – not just the headlines. He’s best known as the creator of the Chaikin Money Flow indicator, a tool that’s now built into trading platforms used by investors around the world.

And his message today is simple…

蜜桃传媒s evolve. Most investors don’t. And that’s where the trouble starts.

Marc believes we’re heading into a stretch where the “obvious” trades could get a lot less comfortable

And where investors will need better tools to identify which stocks are worth your investment dollars…and which are starting to crack.

That’s why Marc will be hosting a free live market briefing next Tuesday, February 17 at 10 a.m. Eastern, where he’ll break down what he sees coming next – and show investors how to spot both opportunities and risks before the crowd catches on.

He’ll also share a new tool you can try for yourself, along with two free stock recommendations.

I’ll bring you more on this over the new few days, but to learn more about Marc’s briefing and reserve your seat, just click here.

Have a good evening,

Jeff Remsburg

The post Here Is Where Gold Goes Next appeared first on InvestorPlace.

That’s exactly what happened to luxury fashion store Barneys New York. For decades, it looked untouchable. Then the world changed, and Barneys didn’t change with it.

Today, I want to introduce Marc Chaikin, a longtime Wall Street analyst who has spent decades studying what happens when markets shift and investors keep using the same old playbook. He uses the Barneys story to explain a problem investors face right now.

蜜桃传媒 strategies that once felt safe can slowly lose their edge without anyone noticing. So, Marc’s message is simple: The biggest mistakes investors make aren’t dramatic. They’re gradual.

If you’ve ever wondered whether the market is changing in ways most investors aren’t prepared for yet, this is something you’ll want to understand sooner rather than later.

That’s why Marc will be hosting a live briefing on Tuesday, February 17, at 10 a.m. Eastern, where he’ll explain what he sees coming next for stocks and how investors can prepare. You can reserve your spot right here.

Now, I’ll turn it over to Marc…

*

On the window sign of an iconic luxury-retail store on Madison Avenue, the message was loud and clear…

“EVERYTHING MUST BE SOLD! GOODBUYS, THEN GOODBYE!”

For decades, Barneys New York had been the premier fashion store in the city. The company’s Madison Avenue flagship store boasted nine floors and about 275,000 square feet of retail space.

Barneys started out as a men’s discount clothing store in Manhattan in 1923. Over the following decades, it transformed and grew into a luxury-retail powerhouse.

By the 1980s, the company had developed a reputation for introducing the best global luxury brands to an increasingly wealthy American consumer market.

Its flagship New York store featured wall-to-wall designer labels – from Giorgio Armani to Balenciaga. If it was expensive, Barneys had it.

In short, it was a luxury shopper’s paradise.

The Illusion of an Unbreakable Business

The store often featured in the hit HBO series Sex and the City. Its fashionista lead character, Carrie Bradshaw (played by Sarah Jessica Parker), considered Barneys one of her favorite places to shop.

But on February 23, 2020, Barneys New York closed…

And so did the company’s other stores in New York, along with those in San Francisco and Beverly Hills. All its branches closed, all on the same day.

Fashion-industry figures called it the end of an era.

But it was ultimately a failure to adapt to changing times…

When Barneys opened its gigantic store on Madison Avenue in 1993, it set the bar for luxury shopping in New York.

But that came at a price – in the form of costly rent.

You see, Barneys didn’t own the property it did business on. Most of the company’s money was tied up in expensive goods kept in inventory. Barneys sold those goods at huge markups to store customers.

The company’s annual revenue reached nearly $1 billion at its height. One-third of that figure came from Madison Avenue alone.

This allowed Barneys to make good on millions of dollars of rent – including $16 million a year just for the Madison Avenue store.

The business model worked… as long as people kept going into the stores to buy goods.

But then the internet came along – and took off. It gave rise to e-commerce and a strategy called “direct to consumer” (DTC).

Brands could now use the internet to sell products directly to their customers. This allowed them to cut out the middlemen – typically, owners of retail establishments.

It didn’t take long for consumers to realize they could buy luxury goods – the same ones found on Barneys’ store shelves – from authorized online retailers.

These online retailers often displayed more designs and models than physical stores could keep in stock. And, of course, customers could shop right from home.

Foot traffic to Barneys declined. And then, the landlord doubled the rent at the flagship Madison Avenue store. It was too much to bear.

In mid-2019, the company filed for bankruptcy. And its stores wound down… until shuttering in February 2020.

Barneys became a cautionary tale in the $1.8 trillion global fashion industry. Even a nearly century-old business institution could end up in the trash bin of history if it failed to adapt to changing times.

Why This Same Mistake Shows Up in the 蜜桃传媒

Of course, the fashion industry didn’t go anywhere. It’s still a big business.

Folks, my point with this story is simple…

The world around us is always changing. It was true when the iconic Barneys closed in 2020. And it’ll continue to be true in 2026.

The investment decisions we make throughout the year will determine whether we keep up with the changes.

And that’s exactly why I’m stepping forward next week with an urgent new market briefing.

Because just as Barneys failed to adapt to a changing world, many investors today are relying on tools that no longer work — especially as we head into what I believe could be a volatile March–April period for stocks.

On Tuesday, February 17, at 10 a.m. Eastern, I’ll be hosting a free live broadcast to explain what’s changing beneath the surface of the market… why not all stocks will be hit the same… and how a small group of companies could emerge stronger — and far more profitable — if you know what to look for.

I’ll also be sharing a brand-new tool to identify these opportunities, which you’ll be able to try out for free if you sign up, along with two free stock recommendations during the event.

Click here to reserve your seat for this free broadcast — and I’ll see you there.

Good investing,

Marc Chaikin

蜜桃传媒 Expert & Founder, Chaikin Analytics

P.S. We’ll have Marc back here again to share more about how the market is changing and what investors should be watching next. If you haven’t already, make sure you register for his free live briefing on Tuesday, February 17, at 10 a.m. Eastern, so you don’t miss his full outlook and the tools he’s using right now.

The post 蜜桃传媒s Change. Most Investors Don’t. That’s the Problem. appeared first on InvestorPlace.

There’s a tradition in my hometown of Boston that most Northerners will understand. 

After every major snowstorm, household items will magically appear on the side of the street. 

Plastic folding chairs… tables… ironing boards… even coolers of free beer will appear. And they’re all there to save the parking (i.e., paah-king) spaces of those who shoveled out a spot.  

Take my beer, NOT my parking spot, please 🙂 

In fact, Bostonians care so much about space savers that our longest-serving mayor, the widely popular Thomas Menino, protected them by law in 2005. If you spend hours shoveling out a parking spot, you’re legally entitled to save it with a household item of your choice. 

Most other cities, however, don’t allow this practice. In Pittsburgh, the only thing stopping people from ignoring “parking chairs” is the local superstition surrounding their removal. And in Chicago, the “dibs” process is outright illegal. 

The world of business works in the same dog-eat-dog way. Unless you have a patent or copyright on a product (and a lot of lawyers to enforce it), there’s nothing stopping a new company from taking your publicly available work and claiming it as their own. 

Consider the internet boom of the late 1990s.  

The winners of this technological revolution were not the firms that laid the physical infrastructure of the World Wide Web. Take Lucent, the world’s largest telecommunications equipment company in 1990s, which is barely remembered today. The AT&T spinoff poured $27 billion into its business between 1997 through 2000… and then lost $28 billion over the following two years after it turned out too much supply had been built. 

Lucent shoveled the internet “parking spot”… 

And everyone else claimed it. 

The big winners of the internet era turned out to be firms like Amazon.com Inc. (AMZN) and Netflix Inc. (NFLX) that ran on top of these networks. Even now, the world’s most valuable tech giants owe their success to an internet infrastructure they never paid for. 

The same will be true for AI infrastructure companies.  

So, in today’s Smart Money, I’ll share why the biggest spenders will not be the biggest winners. Instead, the winners will be companies weaving AI into their operations to boost efficiency, productivity, and profitability. 

And I’ll show you where to find these plays… 

Sell This AI Sector Immediately…  

AI data centers have the same problem as older technologies: 

They are extremely expensive to build. And once they’re created, there’s no more magic. 

At its core, AI computing is a service that’s mostly indistinguishable between providers. They all use the same Nvidia Corp. (NVDA) chips running on the same platform. So, choosing between providers usually comes down to price.  

That’s why Eric warned his Fry’s Investment Report subscribers last Novemberto sell shares of Oracle Corp. (ORCL) when prices were still in the $200 range. The AI data center company was planning to spend billions of dollars to build more AI infrastructure.  

Existing long-term profit plans look as shaky as an ironing board on the side of a snowy  
Chicago street. 

Let me illustrate with an example. 

Last September, Oracle signed a $300 billion cloud deal to provide 4.5 gigawatts of cloud computing power to OpenAI between 2027 and 2032.  

We know that each data center gigawatt costs roughly $50 billion to build – $35 billion for Nvidia chips, and another $15 billion for everything else. This is something Nvidia CEO Jensen Huang confirmed with analysts. 

That means Oracle will spend around $225 billion through 2027 ($50 billion × 4.5) to build these data centers to make $300 billion in revenue. 

If all goes according to plan, the deal will earn Oracle $75 billion in profits (that’s $300 billion in revenue minus $225 billion in costs). Accountants will even allow Oracle to mark any remaining value of its data centers as profits, which I estimate will add another $70 billion to the bottom line.  

So, that’s $145 billion in profits for $225 billion in investment over eight years.  

But that’s if everything goes to plan. 

Avoid the Impending Implosion  

Let’s take an alternative approach: What if OpenAI fails to meet its end of the agreement? 

Then what? 

Suddenly, Oracle’s gamble will turn into a disaster. The data center firm will be forced to lower prices to attract replacement customers (because if OpenAI couldn’t pay $300 billion, who else would?) and profits will evaporate.  

In the worst case, Oracle will sell its cloud computing at a loss to help fend off creditors. We could see share prices plummet into the low $100s or lower. 

This isn’t a hypothetical concern. 

What I’m describing is exactly what happened during the dot-com implosion.  

When the bubble burst, internet startups couldn’t pay for the networking equipment they had ordered. That forced firms like Lucent to offer vendor financing (lending cash to customers) and slash prices. Even healthy customers began holding out for better prices, twisting the bladed snow shovel even deeper into these internet infrastructure firms. 

Now, Oracle’s 50% drop since its 2025 peak reduces some of the downside risk. It even seems cheap ifyou plug some rosy numbers into a spreadsheet (like OpenAI sticking to its $300 billion agreement). 

But there are plenty of other data center firms like Amazon, Equinix Inc. (EQIX), and Digital Realty Trust Inc. (DLR) that have not yet faced a reckoning. These are the types of companies that make the entire AI infrastructure sector more of a “Sell” than a “Buy” today. 

Meanwhile, there are plenty of promising companies that are ready to run on top of AI infrastructure… 

Buy Stocks in this AI Sector Instead 

These are firms that never paid a red cent into data center construction… but will benefit from their computing power anyway. 

These are what we call “AI Appliers.” 

AI Appliers are quietly adopting AI technologies to boost efficiency, productivity, and profitability. Their ability to integrate AI into existing business models could enable them to significantly scale revenues and profit margins. 

We introduced one of these AI Appliers here last week: 

PayPal Holdings Inc. (PYPL). 

PayPal applies AI to its core financial services. For instance, it has its own AI-powered fraud detection system that will only improve as more AI data centers are built.  

The payments firm generates an enormous amount of training data from day-to-day usage (500 data points per transaction) and is already blocking $500 million in fraud every quarter. In 2024, Oracle reported that PayPal was using over 2,000 of its database servers to execute 1 million queries per second, or 1 trillion service calls a day. Cheaper and faster computing power from Oracle will only make PayPal even more effective at applying AI technologies. 

Now, I must emphasize that not every AI Applier will succeed. Just because there’s a snow-cleared parking space doesn’t mean someone is quick enough to take it. 

In fact, there’s often only room for one winner. 

The key is knowing which AI Appliers will swoop in and benefit from existing infrastructure… and which will be left out in the cold. 

Picking the Winners 

Eric identifies AI Appliers as one of four distinct AI investment categories (the other three are Builders, Enablers, and Survivors). 

And he’s been strategically adding winning AI Applier companies to his Fry’s Investment Report portfolio.

For example, one of Eric’s AI Applier healthcare pickshas risen 30% in the past three months (blue line), even as shares of Oracle (white line) have plummeted over the last six months. You check out the chart below. 

This company used AI to invent an entirely new drug, and the therapy is set to become a blockbuster in the coming years.  

We see this as only the start. 

At Fry’s Investment Report, Eric also recommends AI Appliers in logistics… robotics… even online dating that will benefit from the rise of cheap and prevalent AI computing power. These firms are waiting on the sidelines as firms like Amazon and Oracle put immense amounts of time and money into building data centers.  

Eric will dive even deeper into this AI category in the February issue of Fry’s Investment Report, which he is publishing tomorrow. In this monthly issue, he will also spotlight a brand-new pick that he recently added to the portfolio.  

Click here to learn how to join Fry’s Investment Report today.

And sure to keep an eye out in your inbox! 

Until next time,  

Thomas Yeung, CFA  

蜜桃传媒 Analyst, InvestorPlace

The post The AI Stocks to Sell Immediately… and the Ones to Buy Instead  appeared first on InvestorPlace.

Today’s essay comes from Wall Street veteran Marc Chaikin — a market technician with more than 50 years of experience navigating bull markets, bear markets, crashes, and everything in between. Marc created the widely followed Chaikin Money Flow indicator and the Power Gauge stock-rating system, tools built specifically to measure what most investors overlook: underlying strength, capital flows, and risk.

In this piece, Marc revisits one of the most spectacular hedge-fund blowups in modern market history. The lesson is that intelligence alone doesn’t protect you when positioning gets crowded, and volatility is spiking. Without discipline and proper guardrails, even the pros can get wiped out.

And right now, with volatility rising and trades getting increasingly one-sided, that lesson matters.

Marc is hosting a free live briefing on Tuesday, February 17, at 10 a.m. Eastern to walk through what he’s seeing in today’s market — and how investors can better protect their capital while staying positioned for opportunity.

You can reserve your seat for Marc’s free broadcast here.

Brian Hunter made more money in a single month than most folks make in their lifetimes…

But he also caused one of the biggest hedge-fund blowups in history.

You see, Hunter was a commodities trader. But he wasn’t like the typical, brash Wall Street types.

He grew up in farm country near Calgary in Canada. He was quiet and kept to himself.

But Hunter loved crunching numbers. And he was good at it.

In college, Hunter majored in physics. Then he got a master’s degree in mathematics.

That gave him a major advantage over his future colleagues in the financial markets.

Soon after he graduated, he put his educational background to work. He joined the natural gas futures trading desk at a Calgary-based company called TransCanada (now called TC Energy) in the late 1990s.

TransCanada was an emerging player in the energy transmission business. It focused on transporting natural gas across North America.

Hunter quickly learned the fundamentals of the natural gas market. His experience at TransCanada prepared him to become one of the most profitable energy traders in the world.

In 2001, Hunter joined the natural gas trading desk at financial-services giant Deutsche Bank (DB). And he took off…

During his first year, he made the bank $17 million. The next year, he tripled that figure to bring in $52 million. By 2003, he headed Deutsche’s natural gas trading desk.

His division was poised to have another big year, but disaster struck…

The First Warning Sign

In December 2003, natural gas prices went in the opposite direction of where he bet. They went higher instead of lower.

It cost his desk – and the bank – more than $51 million in losses in a single week.

Hunter blamed the losses on Deutsche Bank’s electronic-trade-monitoring and risk-management software. He said it stopped him from exiting bad trades early, which could have mitigated the losses.

The next year, Hunter left Deutsche Bank. It didn’t take him long to find a new job.

But at his new firm, poor risk management and bad speculating eventually led to a colossal blowup…

A former natural gas trader at Goldman Sachs Group Inc. (GS) hired Hunter to work at the energy desk at a Connecticut-based hedge fund called Amaranth Advisors.

At first, Amaranth kept Hunter on a tight leash. The firm knew about his big swings at Deutsche Bank.

But Hunter was a pro. He and his group steadily brought in 20% to 40% annual returns. So Amaranth gave him more leeway to make trading decisions.

In 2005, Hunter saw an opportunity in his main market – natural gas…

Oversupply had driven natural gas prices down, which he thought was unsustainable. And he expected prices to rise. So he bought millions of dollars’ worth of options at bargain prices.

Then, Hurricane Katrina slammed into the Gulf Coast. Hurricane Rita followed not long after.

The two storms devastated America’s oil and gas production and transportation in the Gulf region. And natural gas prices soared.

Hunter’s bets on natural gas paid off massively. He made $1 billion for Amaranth that year. That earned him a nine-figure bonus.

Hunter’s hot streak continued into 2006. By April of that year, he helped Amaranth amass a roughly $2 billion profit.

He was so “bullish” on natural gas prices for the winter that he made huge leveraged bets. And he managed to get around Amaranth’s position-size limits. He used swaps and derivatives to hide the true size of his positions.

Because Hunter had brought in so much money for Amaranth, the firm didn’t closely watch him. Amaranth also allowed him to move closer to home to his own office in Canada.

Then, things unraveled…

Risky Bets Pay Off… Until They Don’t

An unexpectedly warmer winter sent natural gas prices plummeting.

Hunter was sitting on billions of dollars’ worth of options and derivatives on natural gas. And these were bleeding millions every time natural gas prices fell by even a single cent. He made such big bets that they were too large to get out of if the market turned.

Eventually, Amaranth was in the hole for $6.6 billion – all thanks to Hunter. The firm imploded.

Hunter single-handedly caused the collapse of one of the world’s largest and most successful hedge funds. Put simply, it was because of his overleveraged, one-way bet on natural gas in 2006.

Spectacular busts like Amaranth aren’t a regular thing on Wall Street. But they teach us a valuable lesson…

Losses like this can happen if money managers don’t have the tools they need to manage risk and exposure in the markets. That’s true for individual investors, too.

So make sure you have the proper tools – and a plan – to manage risk.

My Power Gauge tool makes it clear when a trade has turned against us. And that means, unlike Hunter, we won’t be riding our portfolios to zero.

And that’s especially important right now.

Because when markets shift — whether in commodities like natural gas, tech like AI, or the broader stock market — the biggest damage rarely comes from being wrong. It comes from staying wrong too long.

Next week, I’ll be stepping forward with a free live market briefing to explain why I believe we’re approaching a potentially volatile stretch for stocks… why not all companies will be affected equally… and how to identify both opportunity and hidden risk before it’s too late.

On Tuesday, February 17 at 10 a.m. Eastern, I’ll walk through what I’m seeing beneath the surface of today’s market — and share a powerful new tool designed to help investors manage risk and exposure far more effectively. (You’ll even be able to try that tool out for free.)

My partner and I will also share two free stock recommendations during the broadcast.

Click here to reserve your seat for this free live event — and I’ll see you there.

Good investing,

Marc Chaikin

蜜桃传媒 Expert and Founder, Chaikin Analytics

P.S. Marc’s story is a powerful reminder that risk management matters just as much as upside potential. If you want to hear what he sees coming next — and how he’s positioning for it — be sure to sign up for Marc’s free live briefing on February 17 at 10 a.m. Eastern.

The post The Dangerous Side of Being Right appeared first on InvestorPlace.

This morning’s jobs report was genuinely good news – but not the whole story.

Employers added 130,000 jobs in January, comfortably beating expectations. The unemployment rate dipped to 4.3%. Wage growth remained steady, with average hourly earnings rising 0.4% on the month and 3.7% year over year.

And unlike some “good” reports where the details quietly undercut the headline, this one held up.

So yes – at first blush, this looks like the labor market finding its footing again.

But before we declare a labor-market victory (or start tossing around “soft landing achieved”), it’s worth putting today’s numbers into context.

Today’s headline number drowned out a major revision to last year’s payroll data

Each year, the BLS benchmarks its payroll survey to a more complete job count from tax records. This year’s benchmark showed that the U.S. had nearly 900,000 fewer payroll jobs than previously reported.

The result was meaningful: total job growth in 2025 was revised down sharply, from +584,000 to +181,000.

That’s not a rounding error. It means last year’s labor market was materially weaker than many believed in real time.

In that context, January’s strength looks more like a rebound than a definitive turning point.

Plus, employers are still acting cautiously…

Last week, outplacement firm Challenger, Gray & Christmas reported that U.S.-based employers announced 108,435 job cuts in January. That’s up 118% from a year ago and 205% from December. It was also the highest January total since 2009.

Here’s more from the report:

Last month, employers announced 5,306 hiring plans, the lowest total for the month since Challenger began tracking hiring plans in 2009…

It is down 13% from the 6,089 hiring plans announced in the same month last year. It is down 49% from the 10,496 hiring plans announced in December 2025.

So, while payroll growth surprised to the upside this morning, hiring intentions remain restrained.

Meanwhile, the U.S. consumer continues to paint a mixed picture

Yesterday, we learned that retail sales were flat in December.

The so-called “control group,” which feeds directly into GDP, declined. Eight of thirteen major retail categories posted monthly drops, including furniture, clothing, electronics, and appliances – all discretionary-heavy areas.

Meanwhile, consumer sentiment remains subdued.

Last week, the University of Michigan’s preliminary February reading came in at 57.3, well below the 64.7 level recorded a year ago. Notably, sentiment improved among households with significant stock holdings, while remaining weak among those without.

This is the K-shaped pattern we’ve discussed before: asset owners are benefiting from strong markets, while middle- and lower-income households continue to feel squeezed by entrenched high prices.

So, yes, today’s jobs report was encouraging. But the broader economic picture remains uneven.

A new lens for how to interpret all this

Let’s zoom out…

Today’s strong labor data doesn’t contradict the idea that the economy is changing in structural ways. In fact, it may help explain why we can see decent payroll growth alongside cautious corporate behavior.

Increasingly, companies don’t need to slash headcount to protect their margins. They can lean on automation and AI to boost productivity, streamline workflows, and reduce hiring costs – all while maintaining output and earnings.

The clearest examples of this are coming from the tech world.

Let’s go to Forbes from last week:

According to Databricks’ newly released State of AI Agents report, AI agents now create 80% of databases and 97% of test and development environments on the platform.

Just two years ago, agents barely registered in database activity, with human developers handling nearly all of that work.

The shift signals that AI is no longer confined to copilots, dashboards, or analytics layers.

We’re watching certain categories of work being reshaped in real time. They’re not necessarily being eliminated overnight, but altered in ways that reduce labor needs over time.

And while that doesn’t mean fewer jobs today, it does hint at the potential for fewer human-filled jobs tomorrow since productivity gains can increasingly come from AI.

This matters – and ties into a far bigger conversation that we’ve been tracking here in the Digest…

Keep this on your radar

In the old economic model, the worker/productivity tradeoff came with a built-in release valve…

Yes, automation displaced workers. But over time, those workers typically shifted into new jobs and industries. Human-based productivity rose, wages eventually followed, and workers kept consuming – pushing the economy forward.

That feedback loop is what made modern capitalism work…

Labor earned income → income drove consumption → consumption drove corporate profits → profits funded investment → investment created more jobs.

Over the last few months, I’ve been making the case that AI is weakening that loop because, unlike prior waves of automation, it increasingly affects skilled knowledge work. And, historically, this has formed the backbone of the modern middle and upper-middle class.

Now, from an investor’s perspective, this is powerful.

AI allows companies to do more with less. Costs come down. Output goes up. Margins improve. Earnings can hold up – or even grow – despite slower hiring or outright job losses.

This is exactly the dynamic our experts have been flagging and urging investors to take advantage of.

For example, legendary investor Louis Navellier recently released a research package on what he calls “Stage 2” of the AI boom – the companies building the infrastructure that enables AI adoption, from chips to networking to software.

You can read more from Louis on that opportunity here.

But remove your “investor” lens and replace it with an “economics” lens, and we run into a question…

Workers aren’t just inputs into the economy – they’re also the demand side of it.

They’re the consumers who buy the products, subscriptions, services, and experiences that ultimately turn productivity into revenue.

So, what happens if/when our economy no longer requires human workers?

AI can replace labor… but it cannot replace consumption

An AI-based economy can become incredibly efficient at producing goods and services. But if fewer people earn a stable income – or if wage growth lags productivity for long enough – then demand eventually becomes the constraint.

In prior Digests, I’ve made an analogy to Ernest Hemingway’s novel The Sun Also Rises. When asked how he went bankrupt, a character replies: “Two ways. Gradually, then suddenly.”

Today’s strong labor data suggest we are still firmly in the “gradually” phase of this transition.

Payrolls are growing. Wages are rising. The unemployment rate is low. On the surface, the traditional labor model still appears intact. But beneath that surface, we need to watch out for a meaningful shift.

Companies are investing heavily in AI infrastructure. They are restructuring teams. They are leaning more aggressively on automation to drive efficiency. And they are doing so while hiring plans remain historically subdued.

That combination matters because structural transitions rarely announce themselves with a single jobs report. They unfold gradually – through subtle changes in hiring patterns, productivity metrics, and the composition of work.

The labor market doesn’t crack all at once, it evolves. And that evolution can look stable for quite some time.

So, let’s welcome today’s strong print – but also place it in context

We’re in the early innings of a shift where productivity growth will increasingly come from AI rather than additional human labor.

If that shift accelerates meaningfully, it raises longer-term questions about wage growth, job formation, and ultimately, consumer demand.

These aren’t immediate problems. But they are issues to watch – for your portfolio today, and for the broader economy tomorrow.

Gradually… then suddenly.

We’ll keep you updated here in the Digest.

Have a good evening,

Jeff Remsburg

The post Strong Jobs Numbers Veil a Bigger Threat appeared first on InvestorPlace.

On Sunday night, the Seattle Seahawks defeated the New England Patriots 29-13 in Super Bowl LX. But the road to this win actually started several years ago.

In a blockbuster 2022 move, the Seahawks traded quarterback Russell Wilson for multiple, cornerstone picks – all of whom played major roles in the team’s win on Sunday.

The lesson here is simple: The road to victory can come from an advantageous “trade.”

Japan is seeing a similar story play out. The Japanese stock market is experiencing a record-breaking rally following Prime Minister Sanae Takaichi’s landslide election win, also on February 8.

With boosted confidence, investors are betting on…

• Strong government spending to boost the economy
• Potential tax cuts or financial relief
• Policies to support growth and corporate earnings

This is dubbed the “Takaichi trade.”

“Trade” here refers to a market bet, not companies exchanging goods… or, of course, NFL teams trading players.

But victory still blankets the Japanese markets like the custom-colored confetti littering the SoFi Stadium field after Seattle’s win. Connected to the Takaichi trade, the Nikkei 225, Japan’s benchmark index, hit all-time highs above 57,000 this week. It is up 15% so far this year.

The Tokyo Stock Price Index (TOPIX), which tracks domestic companies, also rose this week, as did Japanese ETFs. This reflects broader enthusiasm in Japanese equities.

But political optimism isn’t the only force powering the Japanese rally. So, in today’s Smart Money, let’s take a closer look at several other factors driving Japan’s market higher.

Then, I’ll share the best trade you can make now in order to capitalize on this overseas opportunity.

1. Weakening Yen

Right after Takaichi’s landslide win, the yen sagged against the dollar, with the currency reaching its weakest point in two weeks. This propelled the Nikkei higher and caused Japanese stocks to surge.

When governments spend more and the central banks keep rates low, currencies tend to weaken. This would support exporters. A weaker yen helps Japan’s big exporters – like Toyota Motor Corp. (TM) and Sony Group Corp. (SONY) – because their overseas profits are worth more in yen.

The yen has since strengthened, after election noise eased and markets weighed policy details.

But most mainstream forecasts expect the yen to weaken further later in the year. This is because U.S. interest rates are much higher than Japan’s, and the Bank of Japan is expected to raise rates more slowly than the Federal Reserve.

2. The AI Tailwind

Corporate earnings – particularly from export-heavy and tech companies – are also supporting the rally. Stocks tied to AI and global tech trends have been notable contributors.

In fact, several Japanese companies are leading the charge to integrate AI into their operations.

These innovative companies are at the forefront of adopting and advancing AI technologies in Japan, contributing to innovation in their fields and positioning themselves as key players in the global AI race. Their investments and developments in AI continue to shape Japan’s technological landscape, driving productivity and creating new opportunities across various industries.

Let’s take a brief tour of a handful of these contributors…

Fujitsu Ltd. (FJTSY), one of Japan’s major IT companies, is applying AI to a variety of solutions, like business analytics, smart city processes, and enterprise IT systems. The company is also investing in AI-driven healthcare solutions and automation technologies.

Rakuten Group Inc. (RKUNY), often referred to as Japan’s Amazon, uses AI extensively in its e-commerce operations for personalized recommendations, customer service (AI-powered chatbots), and dynamic pricing strategies. Rakuten also leverages AI for logistics optimization and fraud detection in its fintech operations.

Panasonic Holdings Corp. (PCRHY) integrates AI across its product lines, especially in smart appliances and automotive technology. The company’s AI-driven “Smart Mobility” uses AI-enabled sensors and cameras to enhance vehicle safety and navigation. Panasonic is also developing market-leading AI technologies for the healthcare industry, including advanced imaging and robotics.

3. Global Sentiment

Additionally, gains across the broader Asia-Pacific region markets are feeding into Japan’s rally and reinforcing investor confidence. Many of East Asia’s strongest-performing sectors – particularly semiconductors, electronics, and AI-related supply chains – are tightly linked with Japanese manufacturers.

So, strength in those neighboring markets improves overall sentiment in the region… and benefits Japan’s export-driven economy.

Of course, volatility remains, and markets can shift quickly if policy conditions change.

But the bottom line is that Japanese stocks are strong right now, riding a wave of optimism around expected stimulus, favorable policies, and a weak yen.

To capitalize on the opportunity, I recommend using a “broadbrush” approach.

The Trade to Make Today

Specifically, I recommend a $12.9 billion ETF devoted to Japanese stocks, and one that has easily outpaced the S&P 500 by gaining more than 50% during the last 12 months.

This Japanese ETF is up 16% year-to-date and has set a new 52-week-high every day this week. Six of its top 10 holdings are major exporters and will benefit from a weaker yen.

Additionally, this trade offers a compelling way to diversify from U.S. stocks – a strategy, and challenge, I have been recommending for a while. Assuming the Japanese economy continues its current growth trajectory, this trade could produce solid double-digit gains for several years – even if the U.S. stock market falters somewhat.

You can learn how to access the name of my broadbrush Japanese recommendation by joining me at Fry’s Investment Report.

As a member, you will receive all of my latest research, alerts, and updates – including my continued outlook on Japanese stocks.

And you’ll be just in time to access my latest research in the February issue of Fry’s Investment Report, which I’m publishing on Friday.

Click here to learn more. 

Regards,

Eric Fry

The post Japan Just Hit Record Highs. Here’s the Trade to Make. appeared first on InvestorPlace.

Collectively, the “Hyperscale Five” – Amazon (AMZN), Alphabet (GOOGL), Meta (META), Microsoft (MSFT), and Oracle (ORCL) – revealed they are on track to spend over $700 billion on AI infrastructure in 2026. To put that in perspective, that is nearly $2 billion every single day being poured into silicon, steel, and power.

Predictably, Wall Street is having a panic attack. Investors are looking at these massive checks and asking, “Where is the ROI?” They fear we are at “Peak Capex,” and that once this 2026 build-out is complete, the orders for AI supply chain stocks will vanish into a decade-long “digestion” period.

So, naturally, AI stocks are crashing. 

But I’m here to tell you that the bears are wrong – because they’re misunderstanding where AI spending is actually headed.

What’s happening right now isn’t a temporary construction binge. It’s a fundamental shift in how AI compute gets consumed across the economy.

We believe this $700 billion-plus in AI capex will prove to be a floor, not a peak, for annual spending – because AI compute is shifting from something companies build once to something they consume forever.

We’re entering what I call the Inference Inversion.

AI Capex Is Shifting From Training to Inference

The biggest misunderstanding in the market today is the difference between AI training and inference.

For the last two years, the bull market was driven by training as companies spent billions to build AI’s “brain.” Bears seem to believe that once the models are trained, the spending stops. But the data from this February 2026 earnings season shows the opposite: Inference compute volume has officially exceeded training compute.

• Training is a CapEx event: You build it, and you’re done for a while.
• Inference is an OpEx utility: It scales linearly with every single user.

In other words, training creates one-time demand. Inference creates recurring demand.

And Wall Street consistently underestimates businesses that turn capital spending into ongoing utilities.

As more advanced “reasoning” models become the standard, they rely on something called test-time scaling – meaning the model deliberately runs more compute per query to arrive at better answers.

That’s crucial: unlike training, this compute load never shuts off. Every additional user, prompt, and interaction permanently increases infrastructure demand. Test-time scaling turns AI from a bursty workload into a 24/7 industrial process.

Inferencing is the real deal. And while it shows up as ongoing operating demand, it forces continuous capital investment to keep up.

Why AI Hardware Upgrade Cycles Are Accelerating

In AI, falling one hardware generation behind isn’t a nuisance; it’s an existential risk.

Pre-AI, data centers upgraded servers about every five years. But that cycle timeline has collapsed to 12 months.

AI hardware is no longer improving incrementally. It’s improving exponentially – and that has broken the old data-center upgrade cycle.

Nvidia‘s (NVDA) roadmap – moving from Hopper to Blackwell and now to the Vera Rubin architecture – has forced a “death march” on the hyperscalers.

The Rubin GPU (shipping late 2026) promises a 10x reduction in token cost. If Google moves its stack to Rubin and cuts its AI operating costs by 90%, Microsoft and Amazon have no choice but to follow – or risk being structurally uncompetitive on price, margins, and latency.

The ROI Signal Wall Street Is Ignoring

The “Where’s the ROI?” crowd is ignoring the most important number in Google’s latest earnings report: $240 billion. This is Google’s Cloud Backlog – demand that cannot be deferred, canceled, or “digested away” – which grew 55% year-over-year.

Google isn’t spending $180 billion on AI-related capex because it “hopes” people use AI; it’s spending because it already has $240 billion in signed contracts it cannot fulfill yet without more chips.

It is supply-constrained, not demand-constrained. And when demand is locked in via contracts, spending accelerates.

Alphabet just delivered its strongest Google Cloud growth since the pandemic, accelerating from ~30% to nearly 50% – driven largely by Gemini. Amazon’s AWS posted one of its best quarters in years while retail margins quietly expanded. Microsoft’s cloud backlog has ballooned to roughly $625 billion. Meta’s ad machine is still at a mid-20s clip despite being one of the most mature ad platforms on Earth.

Yet the market is pricing these companies as if spending is about to fall off a cliff – even as every fundamental signal suggests the opposite.

And when markets misprice a structural shift like this, the opportunity shows up first in the companies closest to the spending.

AI Stocks to Buy On the ‘Peak Capex’ Dip

For all these reasons – the inference shift, the intense competition to avoid existential crisis, the rapid upgrade cycles, and the massive ROI – we are confident that we have not reached “peak AI capex” here in 2026. 

Instead, we believe that – as much as $700 billion is – the Hyperscale 5’s capex budgets will be at least that big or bigger for the next 10-plus years…

Because Big Tech isn’t just racing to build entirely new AI infrastructure. It’s also being forced to upgrade and retrofit legacy data centers – all while early AI deployments are already translating into measurable revenue growth. As returns begin to materialize, the incentive to keep spending only increases. 

That means that AI supply chain stocks – the direct beneficiaries of all this spending – are great long-term plays. 

Yet those stocks are crashing right now due to fears of AI overspending… which, of course, is an opportunity for those who know that this, indeed, isn’t “peak capex.”  

We have a few strong AI supply chain candidates on our “buy-the-dip” list. 

Nvidia: The AI Capex Kingmaker

Nvidia is like the ultimate AI toll booth. With the DGX B200 retailing for approximately $300- to $400,000 per unit, and the Rubin platform already in production, Nvidia’s roadmap ensures it captures the lion’s share of the hyperscalers’ $700 billion.

What matters most isn’t just that Nvidia sells the chips; it’s that Nvidia controls the cadence of the entire AI upgrade cycle. Each new architecture resets the economic bar for inference. When Blackwell halves cost per token and Rubin cuts it again, hyperscalers don’t slow spending. They redeploy savings into more usage and more models. That dynamic turns Nvidia’s roadmap into a self-reinforcing demand engine, not a one-time upgrade.

• The Play: Buy the dip as the market realizes that 2027 guidance will likely be higher than 2026 due to the Rubin rollout.

Micron: The Memory Bottleneck

AI chips are useless without High-Bandwidth Memory (HBM). Micron‘s (MU) HBM capacity is effectively sold out through 2026, giving the firm immense pricing power.

As AI shifts from training to inference, memory intensity rises. Reasoning models must keep more parameters, context, and intermediate states active at once. That makes HBM the choke point. You can’t cheap out on it without slowing everything down, which is why Micron’s HBM is suddenly one of the most scarce and valuable parts of the AI stack.

• The Play: Micron is the “beta” to Nvidia’s “alpha.” When the hyperscalers hike capex, they are essentially handing Micron a blank check for more memory.

Wesco: The Physical Infrastructure Play

Every new AI rack requires high-voltage power distribution, advanced thermal management, and dense networking just to stay online. In many regions, it’s the electrical and cooling infrastructure – not the chips – that determines how fast capacity can be deployed. Wesco (WCC) is a massive beneficiary of this data center “build” phase, acting as the primary distributor for the electrical and network infrastructure that turns a shell into a data center.

• The Play: This is a “boring” stock that wins no matter which AI model (Gemini, Llama, GPT) wins.

AI Capex Is a Floor, Not a Peak

We are in the “installation phase” of a new era. 

The $700 billion-plus being spent in 2026 is the foundation for a multi-trillion dollar AI economy. 

Don’t let the short-term noise distract you. 

The “peak capex” narrative is a gift – because it’s creating rare entry points in the picks-and-shovels companies powering the AI revolution.

Now, here’s the part it seems most investors are still missing.

The U.S. government is now directing capital into the exact choke points of the AI supply chain that you just read about. And when Uncle Sam steps in as a buyer or partner, stocks don’t drift higher. They surge.

I recently put together a briefing on what I call the President’s 蜜桃传媒 – how it works, why it’s accelerating now, and how investors can position before Washington’s next wave of capital hits the tape.

If you want exposure, this is where to start.

The post The Best AI Stocks Are Falling for the Wrong Reason appeared first on InvestorPlace.

This is, without a doubt, the most difficult weekly update I’ve sat down to write in my years as your Chief Analyst.

That’s not exactly the kind of line anyone wants to read in their investment newsletter.

But it’s exactly how our blockchain expert, Luke Lango, opened his note to crypto investors over the weekend.

In short, Luke says Bitcoin’s fourth boom cycle is over, and we’ve most likely entered the fourth bust.

To make sure we’re on the same page, as I write on Tuesday morning, Bitcoin trades around $68,600 – a 44% collapse from its October high of just over $124,000.

Source: StockCharts

Worse, this “44% down” figure represents a mild rebound from last week’s low of roughly $60,000.

What happened to “Bitcoin to the moon”?

In early 2025, we highlighted predictions that Bitcoin would reach $200,000+ by year-end. Some industry experts put the target number even higher.

So, what happened?

Luke put it bluntly:

Bitcoin has failed to live up to its multi-faceted potential in this cycle.

It failed in two principal ways: as a cutting-edge technology, and as a storehouse of value.

Technological failure: Last year, as risk-on assets soared, Bitcoin – the purported “foundational technology of the future” – dropped 6%.

Value failure: In the second half of 2025 and into early 2026, we saw the “de-dollarization” trade explode. Yet, as gold, silver, copper, and palladium soared, Bitcoin collapsed.

Back to Luke:

When it was time for Bitcoin to act like a tech revolution, it tripped at the starting line. When it was time for Bitcoin to act like a true store of value, it stayed in bed.

Is there hope of a bounce? And if not, how low is Bitcoin going?

Anything can happen, but the odds of this collapse being imminently recoverable are low.

Luke highlights a few technical reasons why, including:

• Since the bull market began in late 2022, Bitcoin has respected a very specific uptrend channel on a logarithmic scale. Last week, Bitcoin plummeted through this structural “spine.”
• The slope of Bitcoin’s 200-day moving average has turned negative, which, per past cycles, marked the definitive end of the boom.
• We fell below Luke’s “Cycle Indicator” of the 50-week moving average back in November and have failed to retake it.  

So, if a new crypto winter is here, how far might we drop?

Back to Luke:

We are likely heading toward $40,000 before this is over.

Typical bust cycles see a 70–80% peak-to-trough drop. A 70% collapse from our highs puts us right at the $40,000 mark.

Since we peaked in October 2025, we should expect to find the floor around October 2026 to early 2027.

Luke’s recommendation to crypto investors?

Recognize these technical realities and adapt. That means aggressively reducing exposure to smaller altcoins and shifting your mindset from “accumulation for immediate gains” to “capital preservation for the 2027 entry.”

But – importantly – Luke writes that this isn’t the curtain call:

The blockchain still has the potential to rewire global finance through stablecoins and decentralized rails, but the market doesn’t believe that story right now.

And in investing, what the market believes is the only thing that pays the bills.

We’ll keep tracking this. But for now, “defense” is the official stance for crypto investors.

Speaking of the need to play defense…

There’s a growing “consensus” that the government needs to reach deeper into your wallet

At the start of the year, I predicted that 2026 would bring a wave of controversial legislative proposals aimed at investment wealth.

Behind this prediction is our widening K-shaped economy, where Americans with assets are watching their portfolios soar while those without face stagnant wages and stubborn inflation.

Since then, we’ve seen California’s Billionaire Tax proposal gather signatures, Washington propose its first 9.9% income tax aimed at high earners, and Michigan advance a 5% surcharge on annual taxable income over $500,000.

But yesterday’s Wall Street Journal highlighted something that could accelerate the timeline of such legislative proposals:

A consensus has formed that while artificial intelligence may create new and better jobs, its threat to current job holders requires massive new government training programs, unemployment assistance, income supplement programs and even a guaranteed minimum income.

Now, the article’s authors oppose these programs, noting that “previous efforts to cushion the transition from jobs of the past to jobs of the future have done little to benefit those making the transition – and have raised the cost for society as a whole.”

Still, that “consensus” is forming.

Recognize what this means – and what to do about it

About the same time that I made my prediction, Luke made several of his own…

One of which was that unemployment would hit 6% this year as AI replaces workers faster than the economy can absorb them. That’s potentially millions of newly displaced workers creating political pressure for action.

(Tomorrow brings the latest jobs report, and the unemployment rate is expected to remain at 4.4% – we’ll bring you the details.)

Now, beyond the job losses themselves, there’s a second-order risk: the government response could unintentionally reduce labor-force participation – and keep unemployment higher than it otherwise would be.

To illustrate why, the same WSJ article points to the decades-long “War on Poverty,” which had an enormous price tag for questionable results.

As federal welfare spending surged, labor-force participation among able-bodied persons in the lowest income quintile fell sharply:

As the annual federal welfare spending surged to more than $70,000 per poverty family, labor-force participation among able-bodied persons in the lowest income quintile collapsed to 36%, from 68% in 1967.

In other words, the WSJ authors argue that the expansion of government transfer payments has created a disincentive to work.

How? By making benefit values comparable to entry-level wages and reducing the net income difference between the lowest and middle-income brackets.

With AI, we’re at risk of this happening on a whole new scale. After all, as I’ve pointed out before in the Digest, once such government programs start, rarely do they shrink – even after the initial emergency fades.

Back to the WSJ:

A feel-good expansion of our existing programs to address AI transitions could idle tens of millions of workers, squander much of the economic benefit we hope to derive from AI, and foster a dangerous “bread and circuses” political system in which those who have chosen to remain outside the labor force demand an increasing share of the benefits created by those who have chosen to work.

So, consider the policy risk chain…

Millions of displaced workers… growing political consensus for permanent new programs costing tens of billions annually… and a political class already floating wealth (and investment) taxes in multiple states.

And who pays?

For now, the easy answer is “the rich.” But as new programs expand and the revenue need grows, the definition of “rich” tends to change – and eventually, ordinary investors’ gains end up in the crosshairs too.

The best defense?

Build enough wealth now to offset what’s coming.

On that note, a quick “congratulations” to Eric Fry’s subscribers

In July 2025, Eric – our macro investing expert – suggested selling Nvidia Corp. (NVDA) and “upgrading” to Corning Inc. (GLW).

Eric’s analysis was simple…

Unlike Nvidia’s customers turning into competitors, nobody was trying to manufacture their own optical-fiber cables. Rather, the AI hyperscalers were all fighting to get more cables from Corning, not replace them.

So, in his “Sell This, Buy That” research package, Eric recommended investors rotate out of Nvidia and into Corning.

As you can see below, investors who made the jump (starting July 1, 2025) would have made nearly 7X more with Corning than they would have with Nvidia. GLW has returned 150% over this period compared to NVDA’s 20% gain.

This “Sell Nvidia, Buy Corning” recommendation was just one of a handful of portfolio moves Eric recommended. If you’d like to review his entire research package (he gives away several free “switches” in the report), click here.

In any case, a huge congratulations to everyone who got into Corning.

Circling back to tax legislation aimed at investments, this type of return goes a long way toward growing your wealth faster than the government can take it.

Looking forward, the same advice still applies

Between the potential for forced asset sales from wealth taxes and new levies to pay for permanent income support programs, investors could face a double headwind in the years ahead.

As I’ve noted before in the Digest, we have little control over whether these proposals pass. But we do control our investment strategy. And the only real defense is building wealth faster than the government can take it.

And that brings us back to today’s AI opportunity – specifically, what legendary investor Louis Navellier calls “Stage 2” of the AI boom.

As we covered in yesterday’s Digest, the market is shifting from the obvious mega-cap names (Stage 1) to smaller, under-the-radar companies positioned to capture the $710 billion in infrastructure spending flowing from the hyperscalers (Stage 2).

The biggest potential winners aren’t household names. But they’re companies with strong fundamentals, reasonable valuations, and direct exposure to the AI buildout.

From Louis:

These are the kinds of setups that historically produce the biggest gains – not because the companies are flashy, but because expectations are still low while fundamentals are improving rapidly.

Louis just recorded a special briefing on what he’s calling the AI Dislocation – this transition from Stage 1 mega-caps to Stage 2 infrastructure and application plays.

Back to Louis:

Companies with accelerating earnings momentum, cleaner balance sheets, and far less capital intensity are the kinds of businesses that tend to benefit when a technology moves from experimentation to profitable deployment.

That doesn’t mean the AI leaders of the past disappear. It means the next phase favors different characteristics – and different stocks.

Again, for more on the winners of this “next phase,” you can check out Louis’ research here.

We’ll keep you updated on all these stories here in the Digest.

Have a good evening,

Jeff Remsburg

Disclosure: I own GLW.

The post It’s Over for Bitcoin…for Now appeared first on InvestorPlace.

And while there were plenty of standout moments, one key factor was the deciding factor of the game: their defense.

The Seahawks’ defensive line completely shut down the New England Patriots’ offense for most of the game. In fact, the Patriots didn’t successfully move the ball down the field until the fourth quarter. But by then, it was too little, too late.

Interestingly, the Seahawks’ first Super Bowl championship also came on the back of an impenetrable defense, when they crushed the Denver Broncos 43–8 in 2014. Clearly, defense has been a championship-winning formula for this franchise.

In the stock market, the same principle applies. Long-term success doesn’t come from chasing every headline or hot trade. It comes from sticking to a disciplined approach and focusing on fundamentally superior stocks – whether we’re in a bull or bear market.

And right now, as market leadership begins to shift, that discipline matters more than ever.

A Shift in 蜜桃传媒 Leadership

The shift in market leadership I just mentioned is already showing in the numbers.

If the January barometer – “as January goes, so goes the year” – is fulfilled, it’s going to be a phenomenal year for the stock market. Now, if you’ve followed me for any length of time, you know I don’t put much stock in Wall Street adages. However, this one is interesting because there’s a fair amount of data to back it up.

Over the past four decades, the S&P 500 has finished January higher 25 times. And in those instances, the market went on to post gains over the next 11 months roughly 80% of the time. On average, the S&P 500 went on to rally and end the final 11 months of the year about 11% higher.

And this January lived up to that reputation. The S&P 500 rose 1.4%, while the Dow rallied 1.7%.

But what really stood out to me was where the strength showed up.

Small-cap stocks outperformed their large-cap peers by a wide margin, with the Russell 2000 jumping 5.3% in January.

Clearly, something is changing beneath the surface.

Individual and institutional investors alike are beginning to divert capital into domestic stocks – which tend to be small- and mid-cap companies – rather than the large, multinational stocks that dominate the S&P 500.

In other words, market leadership is shifting.

How I Separate the Leaders From the Laggards

When market leadership begins to shift like this, you can’t afford to guess.

As I like to say, our best defense is a strong offense of fundamentally superior stocks. And in an environment where selectivity is becoming more important by the day, having a disciplined way to separate the leaders from the laggards matters more than ever.

That’s why I rely on my Stock Grader tool (subscription required).

Now, I want you to be prepared to navigate this shifting market environment with confidence. So, let’s take a closer look at my latest Stock Grader ratings for 202 big blue-chip stocks. Of those 202 stocks…

• Twenty-three stocks were upgraded from Strong (B-rating) to Very Strong (A-rating).
• Fifty-three stocks were upgraded from Neutral (C-rating) to Strong (B-rating).
• Thirty-four stocks were upgraded from Weak (D-rating) to Neutral.
• Seven stocks were upgraded from Very Weak (F-rating) to Weak.
• Eighteen stocks were downgraded from Very Strong to Strong.
• Twenty-seven stocks were downgraded from Strong to Neutral.
• Thirty-three stocks were downgraded from Neutral to Weak.
• And seven stocks were downgraded from Weak to Very Weak.

I’ve listed the first 10 stocks rated as Very Strong below, but you can find a more comprehensive list – including all 202 stocks’ Fundamental and Quantitative Grades – here. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and adjust accordingly.

What Comes Next

The takeaway here is simple: The market is becoming more selective.

Leadership is shifting, smaller-cap stocks are beginning to assert themselves – and fundamentals are once again doing the heavy lifting. In an environment like this, the difference between owning the right stocks and the wrong ones can be dramatic.

That’s exactly why I continue to emphasize discipline – and why tools like Stock Grader become so valuable when the market starts separating leaders from laggards.

If you want a deeper look at why this shift is happening now – and how I’m positioning ahead of what I believe could be a major turning point for AI and the broader market – I’ve just released a new presentation that walks through it step by step.

In this special briefing, I explain:

• Why expectations have become the real risk in today’s market
• How the transition from one phase of the AI boom to the next is unfolding
• And how I’m using my quantitative system to identify opportunities before the crowd reacts

You can watch the presentation here now.

As always, stay disciplined – and make sure you’re positioned on the right side of this shift.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Atmos Energy Corporation (ATO)

The post The 蜜桃传媒 Is Getting More Selective – 202 Stocks Just Changed Grades appeared first on InvestorPlace.

Recently, we’ve been watching those trades bleed out like a secondary character in a Tarantino film. As a group, they have dropped more than 20% since late 2025 – one of the fastest drawdowns for the SaaS cohort outside of the 2022 tech unwind and the 2008 financial crisis.

But here is the twist: This isn’t a macro problem. Unlike prior tech selloffs, this one isn’t being driven by tightening financial conditions or collapsing demand.

What’s happening now is bigger than all of that. 

This is a displacement event – and we’re calling it SaaSmageddon. 

Why AI Is Collapsing Seat-Based SaaS Models

For 15 years, the Software-as-a-Service business model was like the ultimate profit hack. Build an attractive dashboard, connect it to a database, and charge companies $30 to $100 per month, per human, to use it. 

The more workers those client companies hired, the more money SaaS providers made.

But now, the market has realized that AI is beginning to erode the human input in that cash equation – and it’s happening faster than most investors expected.

Unlike copilots that assist a user, agentic systems like Anthropic‘s Claude Cowork are designed to complete multi-step workflows autonomously – from research to execution – without persistent human supervision. And when an AI agent can perform the work of five junior analysts or paralegals, the enterprise doesn’t just need fewer employees – it needs fewer software licenses. The “seat-based” moat is being drained.

There are really three critical dynamics at play here.

The Flattening of the Middle Layer

Most horizontal SaaS companies function as expensive intermediaries between a human user and a structured database. Agent frameworks using tools like Model Context Protocol (MCP), function calling, and API-native execution increasingly allow models to retrieve, update, and reason over data without a graphical interface.

Project Genie and the Death of Creation Moats

Google’s Project Genie has turned high-fidelity creation – whether that’s a video game or complex UI – into a prompt. The “barrier to entry” for many categories of application software is collapsing. When small teams can generate high-quality apps in days instead of months, why pay a premium for legacy tools?

The “Show Me the Money” Pivot

After three years of AI hype, investors have stopped asking, “What is your AI strategy?” and started asking, “Where are the profits?” While chipmakers like Nvidia (NVDA) and Micron (MU) are printing money, software giants like Salesforce (CRM) and Adobe (ADBE) are seeing their multiples compress as they struggle to monetize AI without cannibalizing their own seat-count revenue. In effect, AI is expanding margins at the infrastructure layer while compressing them at the application layer.

In other words, we think it’s inevitable that AI will flatten and obsolete the middle software layer that so many SaaS stocks thrived in for 10-plus years. 

That doesn’t mean all software stocks are doomed. But, frankly, most are… 

The Three Zones Defining the Future of Software Stocks

AI is commoditizing “cognition,” and the only thing that matters now is who can operationalize it inside real organizations, fast, securely, and at scale. Most “AI software” will get vaporized as models get cheaper/better. But software providers with proprietary data, high barriers to entry, sensitive workflows, and provable differentiation from large language models (LLMs) will win big.

In this new era, the software sector has been split into three distinct camps. Knowing which zone your stocks live in is the difference between compounding capital – and being forced to rethink your portfolio.

Red Zone: Software Stocks Facing AI Obsolescence

These companies are in the “blast radius.” Their core value proposition is either seat-based human productivity (which is shrinking) or generic content/code creation (which is being demonetized). If “Claude Cowork” or “Project Genie” work as advertised, these business models are structurally broken.

• Workflow & Project Management: Asana (ASAN), Monday (MNDY), Atlassian (TEAM), Box (BOX), Dropbox (DBX) – these are the ultimate “Middle Layer” stocks. If AI agents can coordinate directly with each other, we don’t need humans manually moving cards on a Kanban board. Agent-to-agent task delegation removes the need for visual workflow orchestration entirely.
• Generic Customer Experience (CX) & Customer Relationship Management (CRM) & CX: Salesforce is the poster child for “seat compression.” AI agents will reduce the need for entry-level sales reps and support staff, decimating the per-seat licensing model that firms like Freshworks (FRSH), Zendesk (ZEN), Zeta Global (ZETA), HubSpot (HUBS) profit from. 
• Content & Coding Commodities: AI coding agents (like Devin/GitHub Copilot) threaten the seat growth of DevOps tools, killing the moat for incumbents like Unity (U), Wix (WIX), Fiverr (FVRR), DigitalOcean (DOCN), GitLab (GTLB), and Elastic (ESTC). When code generation becomes cheap and continuous, DevOps tooling risks being optimized out of the stack rather than scaled across more users.
• Legacy “Band-Aids” like UiPath (PATH) and Pegasystems (PEGA): Robotic Process Automation (RPA) was a bridge technology. AI agents are the destination. You don’t need a bot to click buttons on a screen when the API can do it autonomously. RPA automated human behavior. Agentic AI replaces it.
• EdTech & Knowledge: Personalized AI tutors now adapt in real time, undercutting static, gamified content platforms like Duolingo (DUOL) and homework-reliant businesses like Chegg (CHGG), whose value proposition erodes as AI-generated explanations become ubiquitous.

Yellow Zone: Software Stocks Under Margin Pressure

AI is a massive disruption, but not necessarily a death sentence if software firms can pivot. These companies have high switching costs or massive distribution, but they face severe deflationary pressure on pricing. They will likely survive – but their 100x-valuation days are over.

• Giants like Adobe, Microsoft (MSFT), ServiceNow (NOW), SAP (SAP), and Intuit (INTU) are too big to fail, but priced for perfection. Adobe is terrified of “Project Genie” but has Firefly. ServiceNow acts as a system of record, which is safer than a system of engagement, but still faces seat headwinds.
• Fintech & Payments: Payments are sticky, but AI will aggressively shop for the lowest fees, compressing margins. Shopify (SHOP), BILL (BILL), Toast (TOST), Square (SQ), Paypal (PYPL), DLocal (DLO), and PagSeguro (PAGS) are great – but will “AI shopping agents” soon be able to bypass storefronts entirely?
• Human Capital: Payroll is sticky – but hiring velocity is not. If companies hire fewer people because of AI, growth for Workday (WDAY), Paycom (PAYC), and Automatic Data Processing (ADP) would stall.
• Data Infrastructure: AI needs data, which is bullish. But AI also writes code that optimizes queries, potentially reducing “consumption” revenue. This is a risk for companies like Snowflake (SNOW), Datadog (DDOG), MongoDB (MDB), Cloudflare (NET), and Confluent (CFLT).

Green Zone: AI-Resistant Software Fortresses

These companies possess the only two things AI cannot generate: Real-world physical infrastructure or Proprietary, Unstructured, Regulated Data. They are the “pick and shovel” plays or the “Systems of Intelligence” that AI actually relies on.

• The “AI Operating System”: Palantir (PLTR) is the only software company that actually structures the messy data AI needs to function. It’s not selling seats; it’s selling the ontology.
• Cybersecurity: AI dramatically lowers the cost of generating malware, phishing campaigns, and attack vectors – forcing enterprises to increase, not decrease, defensive spending. That’s why we see Palo Alto Networks (PANW), CrowdStrike (CRWD), Fortinet (FTNT), Zscaler (ZS), CyberArk (CYBR), SentinelOne (S), and Qualys (QLYS) winning here.
• Deep Verticals & Regulated Moats: In regulated environments, accuracy, compliance, and auditability matter more than raw intelligence – and LLMs cannot hallucinate their way past statutory rules.
  • Tyler Tech (TYL): Local government software, no churn. AI can’t navigate county regulations.
  • Guidewire (GWRE): Insurance claims data – massive proprietary moat.
  • Cellebrite (CLBT): Digital forensics for law enforcement. Highly regulated, hardware-dependent.
  • FICO: The standard for credit. Regulatory moat.
• Physical World “Bridges”:
  • PTC: Industrial CAD/IoT. You can’t “prompt” a jet engine into existence without physics-based modeling.
  • Samsara (IOT): Tracking physical trucks. AI can’t hallucinate a GPS coordinate.
  • ServiceTitan (TTAN): Software for plumbers/HVAC. LLMs can’t repair a broken toilet.

How to Invest as Software Stocks Reprice

The “SaaSmageddon” is not overdone. It is a regime shift – meaning the days of buying any stock with a “.com” or an “SaaS” suffix are over.

Bottom line: We are not in a tech bubble; we are in a tech reshuffle. The “Middle Layer” is being flattened, and the value is flowing to the ends of the spectrum: the Compute (Chips) and the Data/Defense (Fortresses).

Choose your side wisely. The agents are coming for the rest.

The Final Word

SaaSmageddon answers one question very clearly: who doesn’t win in the AI era.

But it raises a far more important one…

If software margins are collapsing, and AI budgets are being harvested to pay for chips, power, and infrastructure – who actually captures the value?

Increasingly, it’s not Big Tech.

It’s the U.S. government.

Washington is now directing capital into the exact sectors AI depends on – from materials and manufacturing to energy and strategic supply chains. And when the government steps in as a buyer, investor, or partner, stocks don’t ease into new price levels. They reprice violently.

I recently put together a briefing on what I call the President’s 蜜桃传媒 – how it works, why it’s accelerating now, and which types of companies benefit most when Washington opens the checkbook.

If you’re watching SaaS stocks get flattened and wondering where the money is actually going next… this is where to look.

The post SaaSmageddon Is Here – and Not All Software Stocks Will Survive appeared first on InvestorPlace.

Here are the seven most important questions investors are asking — and the answers you need.

1. What Happens to the Devon Energy Dividend After the Merger?

This is the top question on every income investor’s mind.

Once the merger closes in the second quarter of 2026, the combined company plans to pay a $0.315 per share quarterly dividend. That’s a 31% increase from Devon’s previous $0.24 per share quarterly payout.

The company also expects to launch a new share repurchase program exceeding $5 billion.

However, the dividend isn’t legally guaranteed until declared by the board each quarter. While both boards have unanimously approved the merger, it still requires shareholder approval from both companies.

Learn more about Devon’s dividend strategy after the merger →

2. Who Controls the Merged Company?

Ownership structure matters in all-stock deals.

Devon shareholders will own 54% of the combined company, while Coterra shareholders will own 46%. This means Devon retains control.

The all-stock structure keeps Devon’s debt from rising — crucial if oil and gas prices fall. Borrowing cash for a $58 billion deal would have required massive debt issuance.

The tradeoff? All-stock mergers increase total share count, which can initially dilute earnings per share (EPS). The combined company must generate enough extra cash to maintain or grow dividends for its larger shareholder base.

3. Why Did Devon Choose an All-Stock Deal Instead of Cash?

Two main reasons: debt management and market conditions.

All-stock deals avoid piling on debt in a sector that’s already exposed to commodity price volatility. If oil and gas prices drop, a heavily leveraged company faces serious risk.

This structure also signals that both management teams believe in the long-term value of the combined entity. Coterra shareholders are betting on future upside rather than taking a quick cash exit.

Get the full breakdown of the deal structure →

4. What’s Devon’s Strategy After the Merger?

This merger isn’t about chasing explosive production growth. It’s about scale, diversification, and resilience.

The U.S. shale industry has matured. Success now comes from operational efficiency, not just drilling more wells. Larger operators can negotiate better drilling costs, optimize infrastructure, and invest in efficiency.

Geographic diversification is also key:

• Devon has concentrated exposure in the Delaware Basin (southeast New Mexico and west Texas)
• Coterra operates in three primary U.S. basins: Marcellus Shale (northeast Pennsylvania), Delaware Basin, and Anadarko Basin (Oklahoma)

The combined company won’t be dependent on just one location or type of fuel. This reduces reliance on any single basin or commodity cycle.

5. How Is Wall Street Reacting to the Merger?

Reactions are mixed.

Some analysts, like UBS, have expressed long-term optimism. UBS reiterated its Buy rating on Devon Energy and set a $46 price target following the announcement.

Others are more cautious in the near term, waiting for clearer guidance on:

• Dividend sustainability and growth trajectory
• How the all-stock structure and new share count will affect per-share payouts

Analysts often need quarterly results before meaningfully updating their forecasts. Rating and price targets for Devon Energy will likely shift over months, not days or weeks.

See the detailed analyst breakdown →

6. Should Income Investors Buy DVN Stock Now or Wait?

It depends on your investment timeline and priorities.

This merger makes DVN:

• More attractive if you prioritize yield and long-term cash flow stability
• Less attractive if you prioritize clear signs, like confirmed dividends, first quarterly results, or regulatory approvals

For income-focused, longer-term holders, the appeal is that the merger aims to create a larger, more resilient shale producer.

For yield-chasers and short-term traders, there may be more appeal in waiting. The deal is still steeped in ambiguity, especially around dividend guidance.

7. What Should Investors Watch Next?

Keep your eye on these key milestones:

Both Devon Energy and Coterra will report earnings ahead of the merger’s expected close in the second quarter of 2026. Regulatory approvals and shareholder votes are also expected in the second quarter.

The merger doesn’t change how Devon Energy makes money from oil and gas. The company is still dependent on oil and gas prices, costs, and operations.

But what has changed is the company’s size, cash flow potential, and plans for returning money to shareholders.

For Devon Energy shareholders, this merger is less about chasing the next shale boom and more about securing steady cash flow as the industry matures.

Read the complete analysis of the Devon-Coterra merger →

On the date of publication, Meghan Davis did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The post The Devon-Coterra Merger: 7 Key Questions Answered appeared first on InvestorPlace.

Last week brought a gut punch for tech investors.

Early in the week, Big Tech stocks got hammered. The S&P 500 software and services group shed roughly $1 trillion in market value. Microsoft, Salesforce, ServiceNow – names that seemed untouchable just weeks ago – were all down sharply. By Thursday, the tech-led Nasdaq had fallen about 4%.

But then came Friday…

Tech roared back with a massive rally that cut the week’s losses in half. And as I write on Monday mid-morning, tech is still recovering.

The dramatic yo-yo experience is leaving many investors dizzy and wondering: “What is really happening here?”

Here’s what’s happening…

We’re watching the market figure out – in real time – who wins and who loses as AI stops being a novelty and becomes infrastructure.

This process is messy and volatile – yet it’s creating opportunities many investors are completely missing.

The spending that sent Wall Street into a panic

Last week started with a one-two punch of staggering capex announcements.

On Tuesday, Alphabet (GOOG) reported fourth-quarter earnings and revealed it spent $13.9 billion on capital expenditures in Q4 alone. But what really shocked investors was management signaling that capex would nearly double – from $91 billion in 2025 to between $175 billion and $185 billion in 2026.

Then Wednesday, Amazon (AMZN) piled on, announcing it’s raising 2026 capital expenditures to $200 billion – roughly $50 billion more than anyone expected.

These announcements brought total projected spending from the top five hyperscalers to about $710 billion for 2026. That’s nearly $2 billion per day flowing into data centers, chips, power systems, and networking infrastructure.

Wall Street’s reaction? Panic.

Why? Because investors finally began asking the question that should have been spotlighted months ago…

Will the return on this avalanche of spending actually be worth it?

Last week, many investors concluded “no” and hit the sell button. The result was brutal.

Here’s legendary investor Louis Navellier:

Alphabet, Amazon, Meta, and Microsoft have collectively lost more than $950 billion in market value this week as I write this.

Louis later explains why:

The market is starting to change the definition of what it cares about right before our eyes.

The question is shifting from “can this be built?” to “who earns an attractive return once it is built?”

What scared investors are missing

Yes, Big Tech shareholders should ask tough questions about returns on $710 billion in spending. In fact, if you own the Mag 7, this question is not only fair to ask – it’s critical.

But focusing here exclusively is missing the forest for the trees.

That $710 billion flowing out the door for the hyperscalers is a windfall of cash flowing in the door for an entire ecosystem of companies providing the picks and shovels for this AI buildout.

This is what Louis calls “Stage 2” of the AI boom – where the action shifts from the obvious mega-cap names to smaller, under-the-radar companies positioned to capture this infrastructure spending.

Here he is with more:

As Big Tech stocks waver under the weight of spending concerns, another group of stocks has been moving higher during earnings season.

I’m talking about the smaller companies that make the equipment, components, and infrastructure required for AI computing – and the firms that are applying AI efficiently inside profitable businesses.

This is exactly how a Stage 1-to-Stage 2 transition unfolds.

Our technology expert Luke Lango makes the same point. Here’s Luke from last week’s Daily Notes in Innovation Investor:

Yes, there are valid debates about hyperscaler ROI. Yes, investors are nervous.

But here’s the thing: That money is being spent anyway.

And every dollar of it has to land somewhere, in chips, servers, networking, power infrastructure, cooling, metals, optics, memory, and software plumbing.

That means AI supply-chain stocks win.

If you’re selling the bricks and mortar of the AI era, business has never been better.

So, while Wall Street panics about Big Tech’s “Stage 1” spending, “Stage 2” companies providing the infrastructure that makes AI possible are seeing unprecedented demand.

What investors need today – discernment

Not all tech stocks are benefiting from this transition.

While AI infrastructure leaders are positioned to capture spending tailwinds, another category of tech stocks faces a very different reality.

Last week, software and data services companies got destroyed. Back to Louis for why:

The S&P 500 software and services group has fallen sharply, erasing roughly $1 trillion in market value since late January.

What changed?

As AI tools advance rapidly, investors are starting to question whether these legacy software models can hold up when new AI-driven alternatives can replicate — or outright replace — key functions faster and cheaper.

But this could be just the beginning of a far bigger, more painful market evolution. For more on this, let’s go to Brian Hunt, the editor of the free e-letter Money & Megatrends.

Last week, Brian highlighted what he calls “KIDS” businesses – companies built on Knowledge work, Information collection, Data analysis, and Software.

Brian notes that AI isn’t just competing with these companies – it’s potentially making them obsolete:

If a business is built on [KIDS] then AI could pose a lethal threat.

If someone using AI can code a product or service into existence, then any business related to it is in danger…

AI will put some of these KIDS work companies out of business. But keep in mind, it doesn’t have to put them out of business to make them stock market losers.

AI only needs to lower the cost of producing what they produce over the long run. This will throw a heavy wet blanket on their growth rates, profit margins, and P/E multiples.

The carnage in so-called KIDS stocks is widespread. FactSet is down 54% over the past year. Morningstar down 47%. Equifax down 28%.

Here’s Morningstar’s 52-week chart…

These aren’t small companies having a bad quarter. This is an entire category of business models being repriced for an AI-driven world.

Connecting the dots – and what to do about it

Circling back to our question at the top of this Digest…

What is really happening here?

Last week wasn’t about the market rejecting AI. And no, it wasn’t the pinprick popping the alleged “AI bubble.”

What’s happening is that Wall Street is sorting AI winners from losers with increasing precision.

And to be clear, the distinction today isn’t about whether a company is a great business – it’s about which companies are great investments given their positioning in the AI supply chain and the massive capex flows from the hyperscalers.

So, how do we find these great investments?

Starting with Luke, he suggests beginning with the following sectors:

• Companies providing power systems for data centers
• Networking infrastructure that can handle AI-scale data throughput
• Memory technologies that feed these massive compute clusters
• Even the metals – copper, silver, platinum – required to physically build this infrastructure.

Better still, he recently highlighted several specific names:

• Arista Networks (ANET) – part of AI’s high-speed network
• Eaton (ETN) – A power grid dominator
• Broadcom (AVGO) – a specialized chip giant
• Vistra (VST) – a traditional utility in a great position to capitalize on AI energy needs

Meanwhile, Louis is zeroing in on a handful of “Stage 2” winners through his Stock Grader system

He recently recorded a special briefing on what he’s calling the AI Dislocation – this shift from Stage 1 mega-caps to Stage 2 infrastructure and application plays.

In it, he walks through exactly why Big Tech’s spending anxiety creates opportunity elsewhere, and how he’s identifying fundamentally superior companies positioned to capture that spending.

These aren’t household names. They’re smaller companies with strong fundamentals, reasonable valuations, and direct exposure to the infrastructure buildout that’s happening regardless of whether Microsoft’s stock goes up or down.

From Louis:

These are the kinds of setups that historically produce the biggest gains – not because the companies are flashy, but because expectations are still low while fundamentals are improving rapidly.

If you’re trying to make sense of last week’s chaos and figure out where the real opportunities are today, Louis’ free briefing lays out the roadmap.

The bottom line

Last week wasn’t the end of the AI boom.

It was Wall Street’s growing awareness of where the boom moves next as AI transitions from hype to infrastructure.

But we can also see it as a helpful diagnostic. If your portfolio took an outsized beating last week, it could suggest that you’re still positioned for Stage 1 of the AI boom, vulnerable to the AI “dislocation” as Louis calls it. 

If so, be careful – especially about the KIDS companies Brian highlighted. Those face years of margin compression as AI makes their services cheaper to produce.

But recognize that if you know where to look – Stage 2 stocks – today’s market remains incredibly bullish, even with the volatility.

We’ll keep you updated.

Have a good evening,

Jeff Remsburg

Disclaimer: I own GOOGL and AMZN

The post Why the Mag 7 Lost $950B in One Week appeared first on InvestorPlace.

A new tool for Anthropic’s AI chatbot, Claude, sparked fears that AI could become a competitor, not just a helper, to traditional software companies.

That concern spread quickly on Wall Street, sending software stocks falling and wiping out nearly $1 trillion in market value for the software and services sector in just days.

But today, the tech-heavy NASDAQ rose nearly 1% as investors began to think their fears may be a bit overblown.

Now, with key economic reports coming this week – retail sales, the unemployment rate and CPI (Consumer Price Index) – investors are shifting their focus back to the broader economic picture and what it means for interest rates.

So, in this week’s Navellier 蜜桃传媒 Buzz, my friend and economist Ed Yardeni joins us to break down what’s happening at the Federal Reserve and why they seem to be behind the inflation curve. We also talk about why shelter prices remain stubborn, Ed’s outlook on gold prices and much more.

Click the image below to watch now.

To see more of my videos, click here to subscribe to my YouTube channel. And if you’d like to learn more about Ed, click here to check out his website.

Plus, the grades in Stock Grader (subscription required) have been updated this week! Click here to plug in your own stocks and see how they’re rated.

The Stakes Are Getting Higher

As Ed and I discussed, the Fed seems to be a bit behind the curve with respect to interest rates. The fact is that inflation is not the key concern with the economy – it’s jobs, instead.

But they’re not the only ones that aren’t adapting to a new reality.

Last week, I told investors that the market is changing how it sees – and values – certain AI stocks in real time.

Some of the major AI bellwethers that have become household names now face the reality of sky-high expectations.

And if those expectations aren’t met, or exceeded, during this earnings season…

It sets up the possibility of a dangerous sell-off.

On the other hand, another group of stocks is beginning to benefit from the transition from Stage 1 to Stage 2 of the AI boom.

These could be the next market leaders that deliver outsized gains in just a few months.

That change is what I’m calling an AI Dislocation. And I put together a special briefing to explain how I see this change playing out, why you should pay attention and how you can profit from it.

In fact, using my Stock Grader system, I found six stocks that I believe are poised to benefit the most from this shift in an exclusive report called The AI Boom Stage 2: 6 Stocks for the Next Wave of Artificial Intelligence.

Click here to check out my latest briefing, and how you can access my exclusive report.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The post Is the Fed Behind the Curve? Inflation, Recession & Gold Outlook with Special Guest Ed Yardeni appeared first on InvestorPlace.

But over time, I’ve learned that the biggest opportunities usually don’t appear when optimism is obvious — they appear when confidence is quietly rebuilding beneath the surface.

That’s why I wanted to share today’s piece from my friend and colleague Louis Navellier. Louis argues that while headlines continue to fixate on risks, several important things are going right in the market.

More importantly, he explains why those changes tend to matter before they’re widely recognized.

Louis also introduces a concept he calls an “AI Dislocation.” Not a crash, but a transition. A moment when the market moves past the obvious, crowded AI winners of the first phase and begins rewarding a new group of companies positioned for what comes next.

Louis recently recorded a special AI Dislocation broadcast where he walks through this shift in detail and explains how he’s positioning ahead of it. You can learn more here.

Now, I’ll turn it over to Louis.

If you’re fundamentally pessimistic about the future, stocks are probably not for you.

Investing in stocks is fundamentally an optimistic act.

You invest your hard-earned money in a stock you believe will experience growth.

Pessimism often feels smart – and during uncertain times, it feels comfortable.

But in markets, pessimism is frequently just poor timing wearing a sensible disguise.

Optimism, by contrast, is harder work. It requires separating signal from noise. It requires acknowledging risks without becoming paralyzed by them. And it requires the discipline to recognize when conditions are quietly improving – even when headlines say otherwise.

That’s the kind of optimism successful investors rely on. Not blind faith. Not rose-colored glasses. But evidence-based confidence rooted in fundamentals.

When I look at the early days of 2026, I see several important things going right – in the economy, in corporate earnings, and in the parts of the market that tend to lead during periods of sustained growth.

Of course, that doesn’t mean everything is perfect. It never is. In fact, I see some real dislocations ahead in this market, and ignoring them would be a mistake. I’ll briefly talk about those risks in just a moment before I elaborate on them in a future piece.

But before focusing on what could go wrong, we’ll do the harder work first – identifying what’s already going right… and understanding why that matters to your investing success in the rest of the year.

What’s Going Right: Economic Growth Is Accelerating

If you want proof that this optimism isn’t theoretical, start with economic growth.

The U.S. economy may not be firing on every cylinder yet. Housing and manufacturing are still lagging. But taken as a whole, growth is clearly accelerating.

The Commerce Department recently revised its third-quarter GDP estimate higher, to a 4.4% annual pace. That followed 3.8% growth in the second quarter. Taken together, the U.S. economy just posted its strongest back-to-back quarters of growth since 2021.

That didn’t happen by accident.

Consumer spending grew at a 3.5% annual rate. Corporate activity remained resilient even as interest rates stayed elevated. In other words, the economy absorbed tighter financial conditions and kept moving forward.

The trade deficit surged in November. Exports declined, imports jumped, and the monthly trade gap widened sharply. As a result, the Atlanta Fed revised its fourth-quarter GDP estimate lower, though it still expects growth north of 4%.

Now, trade data has been distorted by shifting tariff policies, and there are still some structural problems in the economy that need to be addressed.

But make no mistake, folks, the broader growth trend remains intact.

Tax cuts, strong consumer demand, the ongoing AI data-center buildout, improving existing home sales, and an estimated $20 trillion of onshoring activity underway in the U.S. are powerful tailwinds. Together, they form the foundation for faster, more durable growth than most investors are prepared for.

My (Revised) GDP Prediction

Back in late 2024, I told my followers that the U.S. economy could reach a 4% annual growth pace in 2025 and accelerate further to hit 5% – at least temporarily – in 2026. (I reiterated that prediction in early January 2025, here.)

That may have sounded aggressive at the time. But based on current momentum, my earlier forecast may prove conservative.

In fact, I think we could hit 6% annualized GDP growth at some point in 2026 – possibly in the second half of the year.

That doesn’t mean there won’t be volatility. And the market is always full of distractions.

But the bottom line is that the U.S. economy is growing faster than most of the developed world. Corporate earnings are responding accordingly. And historically, that combination has favored investors who stay focused on fundamentals instead of headlines.

Small Caps Are Emerging as the Next Leaders

When markets transition from one phase of growth to the next, leadership also changes.

Large, well-known stocks tend to dominate early in a cycle. But as confidence builds and earnings momentum broadens, leadership often rotates toward smaller, faster-growing companies that are more directly exposed to economic acceleration.

That rotation appears to be underway.

In January, small-cap stocks moved decisively higher. The Russell 2000 surged 7% for the month, far outpacing the S&P 500’s 1.4% gain and the Dow Jones Industrial Average’s 1.6% rise.

Small caps tend to be more domestic in nature, which means they benefit directly from U.S. economic growth. They also tend to move first when investors begin looking beyond yesterday’s winners and toward where the next phase of growth is likely to emerge.

Now, I’m not saying “buy small caps” indiscriminately. But market leadership is changing, and companies positioned on the right side of this change are beginning to be rewarded.

That’s where my prediction of an AI Dislocation comes into play.

The AI Dislocation Is Coming

The first phase of the AI boom rewarded a narrow group of mega-cap leaders.

Those gains were powerful, but obvious. Everyone knew the names. Everyone crowded into the same trades. And expectations rose accordingly.

That was Stage 1.

What’s happening now is different.

As scrutiny increases and capital spending intensifies, the market is beginning to look deeper into the AI ecosystem – toward the smaller companies building the power systems, networking infrastructure, and enabling technologies that make AI scalable and profitable.

That’s Stage 2 – where the next wave of opportunity is taking shape.

This AI Dislocation isn’t the end of the AI boom. It’s a changing of the guard.

How to Position Yourself for What’s Next

Now, I understand that talk of an AI Dislocation may make some people nervous.

But optimism is addictive, folks. And we should be bullish about America and what’s going to happen next in the AI boom. Take it from me, it’s the best path toward prosperity.

In fact, using my proven system, I’m already finding stocks positioned to benefit from this transition.

To be very clear, these are not obvious names.

You won’t find NVIDIA Corp. (NVDA) or Microsoft Corp. (MSFT) on this list.

Instead, you’ll find smaller companies – companies most investors have never heard of – that my system says are positioned not only to survive a potential shakeout around February 25, but to thrive in the aftermath.

These are the kinds of setups that historically produce the biggest gains – not because the companies are flashy, but because expectations are still low while fundamentals are improving rapidly.

That’s why I recorded a special briefing to walk through this opportunity in detail.

In it, I explain why I believe the coming AI Dislocation could mark the transition from the market’s first phase of easy AI gains to a far more selective phase – one that rewards investors who know where to look.

I’ll also show you how I’m positioning ahead of that shift, using my system to focus on fundamentally superior companies with the potential to deliver outsized gains as this next phase unfolds.

If you want a clearer roadmap for where the next AI-driven opportunities could come from – and how to avoid being anchored to yesterday’s winners – go here now for more details.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post The Quiet Bull Case Building Beneath the Headlines appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Strong to Very Strong

Downgraded: Very Strong to Strong

Upgraded: Neutral to Strong

Downgraded: Strong to Neutral

Upgraded: Weak to Neutral

Downgraded: Neutral to Weak

Upgraded: Very Weak to Weak

Downgraded: Weak to Very Weak

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services.

To learn more about my premium service, Growth Investor, and get my latest picks, go here. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The post Hershey Upgraded, Robinhood Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.

Leadership narrows. Volatility picks up. Former winners stop behaving the way they used to. And investors are left wondering whether something is broken – or whether something new is taking shape.

That’s the moment we’re in with artificial intelligence right now.

The first phase of the AI boom rewarded a small group of obvious leaders. But as spending ramps and competition intensifies, the market is starting to ask harder questions about returns, durability, and who actually benefits next.

In today’s piece, Louis Navellier explains why this shift looks less like the end of the AI boom and more like a classic handoff from a crowded first phase to a more selective second phase. He calls it an AI Dislocation, and it’s a transition that has historically created both volatility and opportunity. He has also recorded a free briefing that goes deeper into this idea and how he’s positioning ahead of it. You can learn more about that here.

Now, let’s turn it over to Louis to explain what’s changing – and how investors can prepare for what comes next.

In the 1980s, Bill Walsh, head coach of the San Francisco 49ers, had a clear edge. His West Coast offense was revolutionary.

The whole idea was based on timing and precision. Short, high-probability passes lulled defenses to sleep – and then, at just the right moment, the 49ers would strike downfield.

For a time, it worked beautifully. It confused defenses and made the 49ers nearly unbeatable.

But that edge didn’t last forever.

Other teams studied the system. They copied elements of it. Defensive schemes evolved. The West Coast offense didn’t disappear, but the 49ers’ overwhelming advantage did.

The same thing happens in the stock market.

Certain stocks enjoy periods where they sit at the center of a powerful trend. Capital pours in. Expectations rise. And for a while, they seem unstoppable.

But as more investors crowd into the same names and competition intensifies, that edge dulls. The stocks don’t suddenly become bad. The story doesn’t collapse. 

But the easy gains are gone.

That’s when leadership changes – and it’s also when you and I need to start looking elsewhere. 

See, this is often where investors make their biggest mistakes. They assume that if yesterday’s winners stop leading, something must be wrong with the broader trend.

In reality, the trend is just maturing. The market is adapting. And new edges are being created somewhere else.

That’s exactly what’s happening in AI today.

You’ve probably noticed that some of the most prominent tech names – particularly in software – have been selling off sharply. 

So, in today’s 蜜桃传媒 360, I want to walk through what’s really going on beneath the surface… what could go wrong during this transition… 

And how to prepare for – and profit from – what comes next.

What’s Driving the Current AI Stock Rotation

Over the past week, shares of U.S. software and data-services companies have been hit especially hard. 

The S&P 500 software and services group has fallen sharply over that period, erasing roughly $1 trillion in market value since late January. 

Some of the biggest casualties have been names like ServiceNow Inc. (NOW), Salesforce Inc. (CRM), and Microsoft Corp. (MSFT) – companies that dominated enterprise software long before AI became a buzzword. These are former market leaders that investors once viewed as nearly untouchable.

What changed?

As AI tools advance rapidly, investors are starting to question whether these legacy software models can hold up when new AI-driven alternatives can replicate — or outright replace — key functions faster and cheaper.

For example, earlier this week, Thomson Reuters Corp. (TRI) suffered a record one-day decline of nearly 16%, even after reporting results that were largely in line with expectations and raising its dividend. 

The selloff came as investors grew concerned that fast-improving AI tools could eventually encroach on core parts of Thomson Reuters’ legal and information businesses.

Those concerns intensified after Anthropic, the company behind the Claude AI model, announced new capabilities for its Cowork tool aimed at legal, finance, and marketing workflows. The fact that these tools can be customized and deployed broadly has only heightened questions about pricing power and long-term defensibility across the sector.

That’s the key point.

These stocks aren’t falling because AI demand is slowing. They’re falling because AI is becoming good enough, fast enough, and flexible enough to challenge business models that were built for a pre-AI world.

This is what a “Stage 1” to “Stage 2” transition looks like.

As markets move into a more selective phase, some stocks continue to thrive. Others stall. And investors who assume yesterday’s leaders will automatically dominate tomorrow often learn that lesson the hard way.

As I said earlier this week here, I see a significant dislocation taking shape in this market.

It’s not a collapse. It’s not the end of the AI boom.

But a shakeout is coming, and you need to be ready.

How Past Tech Booms Explain Today’s AI Stock Rotation

To understand what’s happening now, it helps to think back to the early days of the internet. 

In the late 1990s, telecommunications companies spent staggering amounts of money building the backbone of the internet. In just a few short years, well over $100 billion was poured into laying fiber across the United States alone. 

Following the Telecommunications Act of 1996, total investment surged – some estimates say north of $500 billion – and much of it was financed with debt, as companies raced to add switches, expand wireless networks, and blanket the country with capacity.

The spending wasn’t limited to the U.S. Globally, companies rushed to connect cities, countries, and continents. Tens of billions of dollars were spent laying undersea fiber-optic cables. Cable operators invested heavily to upgrade their networks in anticipation of explosive demand.

At the time, those companies looked unstoppable.

They were essential to the internet’s growth. And investors assumed that would translate into lasting dominance.

It didn’t.

Far more capacity had been created than could be profitably monetized in the near term. Pricing power evaporated. Returns disappointed. And many of the companies that defined Stage 1 of the internet failed to dominate Stage 2.

For example, Cisco Systems Inc. (CSCO) was the most valuable company in the world at the height of the dot-com bubble. 

Yet its stock collapsed by 88% and took decades to recover.

Now, Cisco remained a profitable business in the early 21^st century. But its stock was repriced. 

Other companies – like Google and Facebook (now Alphabet and Meta Platforms) – came along in the late days of Stage 1 to take the reins in Stage 2 of the internet boom.

We all know what happened next. Those companies created a fortune for early investors.

The same pattern has repeated itself across technological cycles for more than a century.

And it’s happening again.

AI Is Entering Its Second Stage

The first phase of the AI boom was about proving the technology worked.

A small group of mega-cap technology companies pioneered the tools that brought AI to the masses. 

The market rewarded that leadership handsomely.

Stocks surged as investors piled into the most obvious AI pioneers, much like they did with the early internet leaders in the 1990s. Being first mattered. Being big mattered. And for a time, simply being associated with AI was enough.

That was Stage 1.

What we’re seeing now is the market recalibrating how value is created as AI moves from novelty to infrastructure and practical application.

The spending numbers make that clear.

According to Bloomberg, Alphabet Inc. (GOOG), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Microsoft are projected to spend roughly $650 billion this year alone, with the vast majority of that money earmarked for data centers, chips, power, networking, and the physical systems required to scale AI. 

That represents an estimated 60% increase from just a year ago.

The problem? The market is starting to change the definition of what it cares about right before our eyes.

The question is shifting from “can this be built?” to “who earns an attractive return once it is built?”

Consider this: Those same four companies have collectively lost more than $950 billion in market value this week as I write this. 

How Investors Can Navigate the AI Leadership Shift

Now, I don’t bring this all up to bring the mood down. 

The fact is, every era is marked by change. 

Bill Walsh’s 49ers in the ’80s gave way to Jimmy Johnson’s Dallas Cowboys in the ’90s. And so on.

By the same token, as Big Tech AI stocks waver, another group of stocks has been moving higher during this earnings season.

I’m talking about the smaller companies that make the equipment, components, and infrastructure required for AI computing – and the firms that are applying AI efficiently inside profitable businesses. 

This is exactly how a Stage 1-to-Stage 2 transition unfolds.

That’s exactly why I recently recorded a special briefing on what I call the AI Dislocation.

In it, I walk through this shift from Stage 1 to Stage 2 in the AI boom, and why that transition could become unmistakable as soon as Feb. 25.

I also explain how I’m positioning ahead of that shift using my proven system to identify fundamentally superior companies. These are not the obvious mega-cap names that led the first phase. They’re smaller, under-the-radar companies helping to power, connect, and profit from the next phase of AI.

In my view, these could be the next market leaders as we enter Stage 2. If you want a clearer roadmap for how to position yourself, go here to watch my free briefing now.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Cisco Systems Inc. (CSCO)

The post The Easy AI Money Is Over, but the Bigger Gains Come Next appeared first on InvestorPlace.

Leadership rotates. Expectations reset. And the investors who prosper are the ones who recognize the transition before it becomes obvious to everyone else.

Artificial intelligence is now entering just such a moment. The first phase of the AI surge rewarded scale, speed, and story. The next phase will reward durability, profitability, and real economic advantage.

Today, my colleague Louis Navellier is joining us to further break down why recent weakness in well-known tech names may actually signal a healthy rotation, not the end of the AI story.

He also explains how these moments of “dislocation” have historically marked the handoff from crowded trades to the next generation of market leaders.

Louis recently recorded a free briefing that goes deeper into this transition and how he’s positioning ahead of it. You can click here to watch it now.

Now, without further ado…

In the 1980s, Bill Walsh, head coach of the San Francisco 49ers, had a clear edge. His West Coast offense was revolutionary.

The whole idea was based on timing and precision. Short, high-probability passes lulled defenses to sleep – and then, at just the right moment, the 49ers would strike downfield.

For a time, it worked beautifully. It confused defenses and made the 49ers nearly unbeatable.

But that edge didn’t last forever.

Other teams studied the system. They copied elements of it. Defensive schemes evolved. The West Coast offense didn’t disappear, but the 49ers’ overwhelming advantage did.

The same thing happens in the stock market.

Certain stocks enjoy periods where they sit at the center of a powerful trend. Capital pours in. Expectations rise. And for a while, they seem unstoppable.

But as more investors crowd into the same names and competition intensifies, that edge dulls. The stocks don’t suddenly become bad. The story doesn’t collapse.

But the easy gains are gone.

That’s when leadership changes – and it’s also when you and I need to start looking elsewhere.

See, this is often where investors make their biggest mistakes. They assume that if yesterday’s winners stop leading, something must be wrong with the broader trend.

In reality, the trend is just maturing. The market is adapting. And new edges are being created somewhere else.

That’s exactly what’s happening in AI today.

You’ve probably noticed that some of the most prominent tech names – particularly in software – have been selling off sharply.

So, I want to walk through what’s really going on beneath the surface… what could go wrong during this transition…

And how to prepare for – and profit from – what comes next.

What’s Behind This Week’s Tech Selloff

Over the past week, shares of U.S. software and data-services companies have been hit especially hard.

The S&P 500 software and services group has fallen sharply over that period, erasing roughly $1 trillion in market value since late January.

Some of the biggest casualties have been names like ServiceNow Inc. (NOW), Salesforce Inc. (CRM), and Microsoft Corp. (MSFT) [BB1] – companies that dominated enterprise software long before AI became a buzzword. These are former market leaders that investors once viewed as nearly untouchable.

What changed?

As AI tools advance rapidly, investors are starting to question whether these legacy software models can hold up when new AI-driven alternatives can replicate — or outright replace — key functions faster and cheaper.

For example, earlier this week, Thomson Reuters Corp. (TRI) suffered a record one-day decline of nearly 16%, even after reporting results that were largely in line with expectations and raising its dividend.

The selloff came as investors grew concerned that fast-improving AI tools could eventually encroach on core parts of Thomson Reuters’ legal and information businesses.

Those concerns intensified after Anthropic, the company behind the Claude AI model, announced new capabilities for its Cowork tool aimed at legal, finance, and marketing workflows. The fact that these tools can be customized and deployed broadly has only heightened questions about pricing power and long-term defensibility across the sector.

That’s the key point.

These stocks aren’t falling because AI demand is slowing. They’re falling because AI is becoming good enough, fast enough, and flexible enough to challenge business models that were built for a pre-AI world.

This is what a “Stage 1” to “Stage 2” transition looks like.

As markets move into a more selective phase, some stocks continue to thrive. Others stall. And investors who assume yesterday’s leaders will automatically dominate tomorrow often learn that lesson the hard way.

I see a significant dislocation taking shape in this market.

It’s not a collapse. It’s not the end of the AI boom.

But a shakeout is coming, and you need to be ready.

From Stage 1 Internet to Stage 2

To understand what’s happening now, it helps to think back to the early days of the internet.

In the late 1990s, telecommunications companies spent staggering amounts of money building the backbone of the internet. In just a few short years, well over $100 billion was poured into laying fiber across the United States alone.

Following the Telecommunications Act of 1996, total investment surged – some estimates say north of $500 billion – and much of it was financed with debt, as companies raced to add switches, expand wireless networks, and blanket the country with capacity.

The spending wasn’t limited to the U.S. Globally, companies rushed to connect cities, countries, and continents. Tens of billions of dollars were spent laying undersea fiber-optic cables. Cable operators invested heavily to upgrade their networks in anticipation of explosive demand.

At the time, those companies looked unstoppable.

They were essential to the internet’s growth. And investors assumed that would translate into lasting dominance.

It didn’t.

Far more capacity had been created than could be profitably monetized in the near term. Pricing power evaporated. Returns disappointed. And many of the companies that defined Stage 1 of the internet failed to dominate Stage 2.

For example, Cisco Systems Inc. (CSCO) was the most valuable company in the world at the height of the dot-com bubble.

Yet its stock collapsed by 88% and took decades to recover.

Now, Cisco remained a profitable business in the early 21^st century. But its stock was repriced.

Other companies – like Google and Facebook (now Alphabet and Meta Platforms) – came along in the late days of Stage 1 to take the reins in Stage 2 of the internet boom.

We all know what happened next. Those companies created a fortune for early investors.

The same pattern has repeated itself across technological cycles for more than a century.

And it’s happening again.

From Stage 1 AI to Stage 2

The first phase of the AI boom was about proving the technology worked.

A small group of mega-cap technology companies pioneered the tools that brought AI to the masses.

The market rewarded that leadership handsomely.

Stocks surged as investors piled into the most obvious AI pioneers, much like they did with the early internet leaders in the 1990s. Being first mattered. Being big mattered. And for a time, simply being associated with AI was enough.

That was Stage 1.

What we’re seeing now is the market recalibrating how value is created as AI moves from novelty to infrastructure and practical application.

The spending numbers make that clear.

According to Bloomberg, Alphabet Inc. (GOOG), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Microsoft are projected to spend roughly $650 billion this year alone, with the vast majority of that money earmarked for data centers, chips, power, networking, and the physical systems required to scale AI.

That represents an estimated 60% increase from just a year ago.

The problem? The market is starting to change the definition of what it cares about right before our eyes.

The question is shifting from “can this be built?” to “who earns an attractive return once it is built?”

Consider this: Those same four companies have collectively lost more than $950 billion in market value this week as I write this.

How We Should Respond

Now, I don’t bring this all up to bring the mood down.

The fact is, every era is marked by change.

Bill Walsh’s 49ers in the ’80s gave way to Jimmy Johnson’s Dallas Cowboys in the ’90s. And so on.

By the same token, as Big Tech AI stocks waver, another group of stocks has been moving higher during this earnings season.

I’m talking about the smaller companies that make the equipment, components, and infrastructure required for AI computing – and the firms that are applying AI efficiently inside profitable businesses.

This is exactly how a Stage 1-to-Stage 2 transition unfolds.

That’s exactly why I recently recorded a special briefing on what I call the AI Dislocation.

In it, I walk through this shift from Stage 1 to Stage 2 in the AI boom, and why that transition could become unmistakable as soon as February 25.

I also explain how I’m positioning ahead of that shift using my proven system to identify fundamentally superior companies. These are not the obvious mega-cap names that led the first phase. They’re smaller, under-the-radar companies helping to power, connect, and profit from the next phase of AI.

In my view, these could be the next market leaders as we enter Stage 2.

If you want a clearer roadmap for how to position yourself, go here to watch my free briefing now.

Sincerely,

Louis Navellier

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Cisco Systems Inc. (CSCO)

The post Don’t Chase Yesterday’s AI Winners – Buy Tomorrow’s appeared first on InvestorPlace.

In the mid-2010s, Wall Street became smitten with finding the next iPhone supplier. 

Skyworks Solutions Inc. (SWKS)… Cirrus Logic Inc. (CRUS)… Universal Display Corp. (OLED)… 

These companies often saw their shares jump double-digits when a tech blog or analyst note reported that Apple Inc. (AAPL) had picked them as a supplier. 

Yet, Apple was often a terrible customer. The smartphone maker famously demanded low prices and high quality, making it almost impossible for physical hardware makers to turn a profit. The charts of many iPhone supplier stocks ended up looking like Mount Everest. 

Here’s an early-2010s one from semiconductor supplier Cirrus Logic… 

Instead, the big winners of the iPhone revolution turned out to be those providing experiences on top of these smartphone systems. Ride-hailing firm Uber Technologies Inc. (UBER), former TikTok owner ByteDance, and mobile advertising company AppLovin Corp. (APP) are now worth more than even the largest iPhone suppliers. 

A similar scenario is now playing out in artificial intelligence. 

Last week, we saw a massive selloff in AI’s “infrastructure” companies. Chipmakers… data center developers… power utilities…  

These suppliers to OpenAI dropped double digits on fears about how much money they were sinking into a profitless industry. 

InvestorPlace Senior Analyst Louis Navellier believes this is only a warning sign.  

In a new presentation, he warns that February 25 could be the date when the market faces a sharp AI Dislocation. Expectations are simply too sky-high among these “Stage 1” companies building out the physical side of artificial intelligence. 

Most investors will either panic-sell or buy the dip in precisely the wrong names… just as they did with iPhone suppliers in years before. 

Fortunately, Louis believes that a small group of companies still offers ~500% upside thanks to being on the “Stage 2” end of the AI Revolution.  

You can sign up for the presentation here.

In the meantime, I’d like to take two top stocks and illustrate why experience-focused AI companies will become critical, and why now is a great time for long-term investors to start buying the dip in some of these select names. 

Let’s jump in… 

The AI Legal Expert 

In 2009, Google added legal document search to its Google Scholar search engine. 

Many feared it would replace LexisNexis and Westlaw – the two dominant legal research platforms of the day. Google monopolized other search fields. Why not law as well? 

But that never happened. You see, legal research doesn’t just require speed. It also needs evaluations, notes, secondary analysis, and other information that doesn’t show up in court briefs and rulings. Law firms additionally require airtight accuracy – something that no large language model (LLM) can guarantee. 

That’s why Thomson Reuters Corp. (TRI) should eventually dig out of the 60% selloff that began in the middle of last year. The Westlaw owner has spent the past several decades creating the best-in-class legal research portal, and virtually every important court ruling (especially from appellate courts) is collected, researched, and vetted for significance. Much of the legwork is now done by AI, of course, but humans still check the final product. 

In addition, Thomson Reuters has meticulously curated its other brands. The company sold its position in the London Stock Exchange in 2024 and used the cash to buy AI-focused acquisitions, including Additive (AI-powered tax document processing) and SafeSend (“last mile” automation of tax returns). The company also acquired Casetext in 2023, an early adopter of AI-powered legal research (now called CoCounsel). Growth is therefore expected to remain in the upper single digits, while net profits should rise twice as quickly. 

Now, it’s certainly possible for AI companies to muscle in on Thomson Reuters’ businesses. After all, Alphabet Inc. (GOOG) is 100 times larger and could still crush the smaller firm by outspending it.  

But doing so would mean hiring an entire team of salespeople, legal experts, and customer service agents to sell a Westlaw competitor… not to mention the work of annotating briefings, taking customer phone calls, and making database changes when errors are discovered. That would quickly become an enormous distraction for any tech firm. 

Outfits like OpenAI and Anthropic are even less likely to compete with Thomson Reuters. These AI startups are racing to build the next generation of LLMs… and getting bogged down with creating a Westlaw competitor is a surefire way to fall behind. 

Instead, these LLM firms are more likely to sell their AI product to Thomson Reuters and let the legacy firm handle the experience of using AI for legal research. 

So, even though it might take a while for sentiment to improve, shares of TRI should eventually recover. According to my models, it has a 105% upside from here – an excellent investment for any long-term buyer. 

The AI Provider to the Fortune 500 

ServiceNow Inc. (NOW) has spent the past two decades building out a platform that reduces complexity in IT and business processes. The company was an early adopter of AI technologies and quickly expanded from its core IT service management (ITSM) business into customer service, talent development, sourcing, order management, and more.  

Today, ServiceNow’s platform is used by more than 85% of Fortune 500 companies, and the company boasts a sky-high 98% customer retention rate. The software firm is also growing like wildfire. Revenue rose 21% in 2025, and analysts expect another 20% growth this year. Earnings per share are on track to surge 49%. 

There are two keys to ServiceNow’s success. 

• Modular System. ServiceNow’s platform makes it easy to cross-sell additional services. If an existing customer wants to add a human resources management system, it’s a phone call away. Furthermore, each additional product a customer uses increases the amount of data ServiceNow has about the company, making the system even more powerful. Roughly 75% of customers use multiple ServiceNow products. 
• Artificial Intelligence. The second “secret sauce” ofServiceNow is the high quality of its AI systems. The company’s data analytics product is reportedly even better than those offered by AI darling Palantir Technologies Inc. (PLTR), and its development team has worked quickly to make dedicated AI agents for specific tasks, such as customer service and IT. 

The plain fact is that ServiceNow should continue to grow because future AI projects will need structure. No matter how advanced OpenAI’s and Anthropic’s systems become, these chatbots need a platform to ingest data, come to conclusions, and do so in a repeatable way. 

In other words, ServiceNow controls the experience that companies have in working with large language models. 

The company is also valued at a tiny fraction of high-flying rival Palantir. In fact, ServiceNow could triple its share price and still be cheaper on virtually every valuation metric. 

And so, I see the recent selloff as an opportunity to buy ServiceNow. Investors might be panicking about some software stocks for the right reasons… but concerns about ServiceNow are clearly overblown. 

What GPT-5 and 5G Have in Common 

5G technologies were an incredible leap forward when they were launched in 2019. The mobile data network used high frequencies, multiple bandwidths, and a more efficient network core that regularly transferred 500 megabits per second of data – more than enough to watch a high-definition movie on smartphones. 

If 4G was a two-lane road of data, then 5G is a 12-lane interstate on a quiet weekend. 

Interestingly, the biggest 5G winners were not the infrastructure companies that allowed 5G technologies to exist. Shares of AT&T Inc. (T) and Verizon Communications Inc. (VZ) have fallen since 2019. 

Instead, the greatest success stories were firms like Netflix Inc. (NFLX), TikTok, and Apple – the companies that stream videos and provid the smartphones that display this entertainment. Every $10,000 invested in Netflix in 2019 was worth $35,000 by 2025. 

Similarly, OpenAI’s GPT-5 represents a generational leap ahead in AI technologies. GPT-5 and its close rivals are now good enough to perform research… write code… and look a little like the 5G leap forward. 

And much like 5G, the winners are increasingly looking like the “Stage 2” companies that come after the infrastructure gets built.  

That’s why last week’s selloff of all AI-related companies was totally unwarranted. Many of these are “Stage 2” specialists that use AI themselves to provide a better product. And crucially, these companies provide the human-AI hybrid that guarantees accuracy in the way that pure AI models cannot. 

That’s why my colleague Louis Navellier just released his brand-new AI Dislocation broadcast.  

In this free presentation, Louis explains why a whole new cohort of AI stocks could succeed current “Stage 1” winners. It’s a group of firms that will dominate in a world where AI experience matters more than raw computing power. 

To learn more about these under-the-radar “Stage 2” AI stocks, click here.

Until next week, 

Thomas Yeung, CFA 

蜜桃传媒 Analyst, InvestorPlace

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post 2 Stocks to Buy for AI’s Next Stage appeared first on InvestorPlace.

In the early 1940s, Americans couldn’t quite explain why steel was rationed, why obscure chemical companies were suddenly flush with cash, or why Washington cared so much about desert towns in New Mexico. 

And in the early 1960s, few investors understood why the government was pouring billions into rockets, computing machines, and aerospace firms most people had never heard of.

But those who recognized what was really happening (that the United States had mobilized private industry to win an existential race), were able to position themselves early and change their financial futures forever.

Stop trying to make sense of 2026 using the rulebook from 2019. That book is burned. Today, we are living through the most profound economic reorganization in American history since the signing of the Declaration of Independence 250 years ago. 

We have left the era of “free market globalism” – a fifty-year fever dream where we pretended geography didn’t matter and that selling cheap consumer apps was the pinnacle of human achievement.

That party is over.

We’ve entered a new era where the U.S. government is no longer just regulating markets … it’s actively partnering with private companies to win an existential race.

You can call it state-sponsored capitalism. You can call it mercantilism 2.0. Alex Karp, one of the primary architects of this new reality, calls it the Technological Republic.

The label doesn’t really matter.

What matters is when the government decides it can’t afford to lose, it stops debating and starts building.

That’s what we’re watching right now.

The United States is doing what it has always done at pivotal moments in history: mobilizing private industry, clearing regulatory roadblocks, funding winners, and setting hard deadlines to achieve a strategic goal.

That’s how we won the race to the atomic bomb.

That’s how we beat the Soviets to the Moon.

And that’s how we’re now responding to China’s push for AI dominance.

By naming its partners and moving money, the government has made its priorities clear. At moments like this, the market rewards understanding how the system works, and positioning yourself before the execution phase begins.

The only real question for your financial future is whether you’re positioned while the window is still open…

A Merger of State and Tech

For decades, the prevailing wisdom in Washington was that the government should set fair rules and then get out of the way. The “invisible hand” would guide capital to its most efficient use.

Well, it turns out the invisible hand loves cheap labor in China and doesn’t care about national security. When you let the market decide, you end up with a hollowed-out industrial base and an adversary that controls 90% of the critical minerals needed to build the future.

The new administration, backed by the “Hard Power” axis of Peter Thiel, JD Vance, and Alex Karp, has looked at that reality and said: “To hell with the invisible hand. We’re using the iron fist.”

We are no longer in a free market, but a “Command Economy for National Survival.”

In this new system, the government doesn’t seize the means of production like some Soviet cosplayer. Instead, the government directs the means of production. It picks the winners based on one simple criterion: Does this company help America achieve undeniable, durable dominance in AI?

If the answer is “yes,” that company gets deregulation, subsidized capital, and the full diplomatic and military weight of the U.S. government clearing its path.

If the answer is “no,” enjoy your antitrust lawsuit.

You saw the tech CEOs trooping to Washington last year to “bend the knee.” More than just a photo op, that was the signing of a new social contract….

Silicon Valley agreed to stop building useless consumer hedonism and start building the Arsenal of Democracy 2.0.

In exchange, Washington agreed to stop pretending it cares about environmental reviews that take five years to approve a power line.

The result is a merger of State and Tech that would make a 19th-century railroad baron blush.

Geopolitics as Supply Chain Management

If you want to understand why the world looks so crazy right now, stop looking at it through the lens of foreign policy and start looking at it through the lens of supply chain management.

The Technological Republic has an insatiable hunger. It needs three things to build the AI godhead: Infinite Energy, Infinite Raw Materials, and Infinite Compute. It is currently starving for all three.

Exhibit A: Venezuela. Do you think the operation on Jan. 3 was because America’s heart suddenly bled for the plight of Caracas? Please.

The math is simple. We are trying to build AI clusters that require 5 Gigawatts of power – the equivalent of five nuclear reactors – per campus. We need that power tomorrow. And we cannot build nuclear plants fast enough. Solar panels are a joke at that scale.

We needed the world’s largest proven oil and gas reserves brought back online, under American management (hello, Chevron), to crash the price of energy and provide the bridge fuel for the AI buildout.

Exhibit B: Greenland. Why is the administration suddenly threatening to buy (or “liberate”) Greenland? Because China choked off the supply of Dysprosium and Terbium last October. You cannot build high-performance electric motors for humanoid robots or advanced wind turbines without them. Guess who has them? Greenland. And if the “Technological Republic” needs them? Well, that’s the end of the discussion.

This is the new reality.

The U.S. military and diplomatic corps are now effectively the procurement department for “Project Stargate”: the $500 billion government-backed AI initiative.

Adapt to the New Investment Paradigm… or Die

So, what does this mean for your money?

It means that if your portfolio is still optimized for the 2010s (full of ESG-friendly consumer brands, ad-tech companies, and decentralized crypto-fluff), you are going to get slaughtered.

We’re moving into a new investment environment – one defined by massive, government-backed industrial buildouts. Not slogans or studies but actual construction: data centers, advanced chips, power infrastructure, manufacturing capacity.

And this time, the government isn’t standing on the sidelines. In plain English, the message to industry is simple: Build the most powerful computing infrastructure in history … and do it fast.

The government has essentially told Big Tech: “You have an unlimited budget and a mandate to build the most powerful computing infrastructure in human history. Don’t let anything stop you.”

When unlimited capital chases scarce physical resources, what happens? The prices of those resources go parabolic.

The only way to invest in this environment is to own the choke points. You must own the things that the Technological Republic cannot build its AI without, and which it currently doesn’t have enough of.

We have identified the 6-Layer AI Bottleneck Stack. This is the playbook for the next decade.

The Raw Materials Layer (The Dirt)

You can print money, but you cannot print copper. You cannot code lithium. The physical inputs required for this buildout are in terrifyingly short supply. We are facing a 10-million-ton copper deficit over the next decade. The administration knows this. That’s why they are laser-focused on domestic mining and “friend-shoring” resources.

• The Play: Own the western copper, lithium, and uranium narrative. The ground itself is now a strategic asset.

The Power Layer (The Electrons)

This is the biggest crisis of them all. AI is an energy vampire. The grid is full. The new paradigm is “pay to play”—Big Tech is being forced to build its own power generation “behind the meter,” bypassing the public grid entirely. The only solution for 24/7, carbon-free, massive-scale power is nuclear.

• The Play: Own the existing nuclear fleet and the fuel cycle. They hold the keys to the only energy source that fits the mission profile.

The Infrastructure Layer (The Shell)

We aren’t just plugging new computers into old buildings. A rack of Nvidia Blackwell chips runs so hot it would melt a standard server room. We have to retrofit the entire internet with liquid cooling plumbing. We need new switchgear, new transformers, and massive new physical shells.

• The Play: Own the companies that manage heat and physical power distribution. The “plumbers” of the AI age are about to become kings.

The Compute Layer (The Brains)

The bottleneck here has shifted. It’s no longer just about getting a raw GPU. It’s about “packaging”—the incredibly complex process of stitching the GPU and memory together on silicon. Taiwan Semiconductor (TSMC) is practically the sole provider of this magic. Furthermore, the US government is actively pushing American-designed custom silicon to reduce reliance on generic chips.

• The Play: Own the packaging monopoly and the leaders in US-designed custom silicon.

The Memory Layer (The Context)

An AI chip without memory is useless. The new HBM (High Bandwidth Memory) chips are stacked vertically like skyscrapers on a microscopic scale. The manufacturing yield is terrible, and the entire global supply is sold out until 2027.

• The Play: Own the domestic memory producers who have cornered the market on the high-end supply.

The Networking Layer (The Nervous System)

When you connect 100,000 GPUs together, copper wires are too slow. You need light. The entire inside of the datacenter is switching from electrical cables to fiber optics and lasers. We are short on the lasers.

• The Play: Own the masters of optical interconnects and low-latency switching.

The Train Is Leaving

Look, I understand why this feels unsettling.

For decades, we were taught that markets move on innovation, consumer demand, and free-market competition alone. That governments regulate… and companies create. That line is blurring fast.

The Technological Republic is here, and it was born out of necessity. If we lose the AI race to China, nothing else matters. So the entire apparatus of the United States is now geared toward one singular goal.

And history is clear on one thing: when the United States decides it cannot afford to lose, ideology takes a back seat to execution.

That’s why the response has been decisive…

The government has named its partners.

It has cleared regulatory obstacles.

It has set hard deadlines.

And it has begun directing a flood of money – trillions of dollars from both private coffers and the public purse – to the six bottlenecks listed above. The government is using a firehose to blast away regulatory hurdles and using its military to secure the supply lines.

In moments like this, the market rewards those who understand what’s happening and position themselves before execution begins.

I have compiled all my research on 119 companies – including their names, ticker symbols, buy-up-to prices, and the top 5 to buy right now – in a new report all about ‘The President’s 蜜桃传媒.’

The buying spree has started. Don’t wait until the press release drops. By then, it’s too late.

Watch the presentation and get the list of stocks immediately.

The post The End of the Free 蜜桃传媒 Fantasy appeared first on InvestorPlace.

I have a challenge for you.

Don’t worry, it’s nothing scary. You could even say it’s all gain and no pain.

But first, some context: There is a popular myth that it takes 21 days to break a habit.

Surely there are many habits we all would be better off breaking. But as an investor, there are particular habits that could be holding you back from reaching maximum profits.

An important one is perspective.

My “macro” approach to investing, for example, utilizes a broad “topdown” perspective to pinpoint opportunities. By examining the global big-picture trends that drive huge, multiyear moves in entire sectors of the market, I’m able to discover some moneymaking opportunities that a non-global perspective might miss.

Admittedly, U.S. stocks have delivered world-beating results for nearly two decades, but many American investors assume this delightful trend will continue long into the future.

No matter what happens next, investors should never remain “overweight” in U.S. stocks and bonds simply because they are familiar.

So, here’s where my challenge comes in.

Over the next 21 days, which brings us neatly to the end of the month, I challenge you to adjust your investing habit and look beyond U.S. markets.

Over the span of a full market cycle, a dose of international exposure can provide a helpful diversification to your portfolio, while also growing your wealth.

Innovation Lives Here. Opportunity Lives Everywhere.

To be clear, I’m by no means bearish on the United States. I think we’re still the ground zero of innovation and capitalistic dynamism.

But it doesn’t mean there aren’t other opportunities in other countries.

Let’s take a look across the Atlantic Ocean…

For decades, Europe built its economic model around openness – cross-border trade, export dependence, global supply chains, and trans-Atlantic reliability. That model worked beautifully when the global system was stable.

It works less well when trade becomes political.

Energy shocks… supply-chain disruptions… war in Ukraine… and now growing policy unpredictability from the U.S. have all delivered the same message: Europe can no longer assume that external commerce will always be reliable.

So, Europe has begun prioritizing intra-European trade and supply chains.

Over the span of decades, global investors have learned a simple reflex: When in doubt, buy America. Its companies were always among the world’s most dynamic, innovative, and profitable enterprises… and still are.

However, in a world where trade is fragmenting, policy is unpredictable, and alliances are increasingly transactional, Europe’s emphasis on internal commerce and strategic autonomy becomes a valuable asset.

In fact, we’re already seeing a pullback in U.S. reliance following last week’s India-European Union (EU) deal, which dramatically lowered tariffs on EU imports into India, creating the world’s largest free trade zone.

By itself, that’s not some headline. But it is a part of a mosaic where we’re seeing capital attempt to flow around the U.S. – instead of into the U.S.

As an investor, if you’re not monitoring other countries’ behaviors and what they’re doing with their capital, then there’s a good chance you’re missing out on some opportunities.

So, I’d like to share how I’ve reaped the benefits of investing in international stocks – and how you can, too…

Putting My Challenge Into Practice

You don’t want to ignore something just because it’s a habit, nor do you want to behave a certain way out of routine or limited perspective.

That’s why I challenge you – for the next 21 days – to begin widening your investment approach. Simply adding several non-U.S. stocks can bolster returns in today’s market.

In fact, my global macro perspective allowed me to identify a current international holding in Fry’s Investment Report at the ideal time – a luxury and lifestyle company now up 56% in 10 months.

At Fry’s Investment Report, I also recommend several foreign ETFs that are currently capturing double-digit gains and outpacing the S&P 500 by a wide margin, as I advised members to ride the potential of their countries’ transformations.

To learn more about why entering international markets is crucial today – and which stocks can get you started as you begin this 21-day challenge – click here.

Good investing!

Regards,

Eric Fry

The post The 21-Day Challenge That Could Transform Your Portfolio appeared first on InvestorPlace.

Tomorrow, the New England Patriots and Seattle Seahawks will vie for the NFL Championship in Super Bowl LX (60 for those who don’t regularly use Roman numerals).

But you might not know that it was called “The Super Bowl” only in 1969, for the third annual game.

It was originally called the AFL–NFL World Championship Game. The game was created as part of the merger between the National Football League and the competing American Football League to determine a single champion for the two different leagues.

Even today, both teams are already champions. The Patriots are the American Football Conference champions, and the Seahawks are the National Football Conference champions.

Every year, the Super Bowl brings together two teams that have already proven themselves champions. They survived a long season. They beat elite competition. And yet, when the final whistle blows, only one walks away with the trophy.

That’s the part most fans forget: By the time the Super Bowl kicks off, both teams are winners. But in the final stage, past success matters far less than execution, matchups, and preparation.

One champion advances. The other is left watching history from the sidelines.

The stock market is entering a similar moment right now – especially in technology.

For years, simply owning tech stocks was enough. The entire sector surged, and nearly every name benefited from the rising tide.

But that easy phase is over.

Today, tech is no longer competing against the rest of the market. It’s competing against itself.

And just like the Super Bowl, this next phase won’t reward popularity or past dominance. It will reward selectivity. Precision. And owning the right champions – not just yesterday’s winners.

So, how can investors stay on the richer side of this new technochasm? I’ll share insight today from legendary investor Louis Navellier, one big winner he has already found, and how it is all reflected in his Stock Grader system.

A New Phase for an Old 蜜桃传媒 Trend

My colleague Jeff Remsburg and I have written a lot in the Digest about the “technochasm.” That’s the idea that the stock market created a new wealth divide.

Folks who invested in technology stocks accelerated their wealth, while those who did not were likely to end up on the wrong side of a divide and worse off.

Just looking at the technology-focused Invesco QQQ Trust (QQQ) ETF versus the overall S&P 500 over the past decade shows how much better tech stocks have treated investors.

This week’s software meltdown shows that even tech stocks are now feeling the AI disruption. One glance at the iShares Expanded Tech-Software Sector ETF (IGV) compared to the general market over the last six months shows a new market reality.

When markets transition from one phase of growth to the next, leadership changes – and often it changes quickly.

Large, well-known stocks tend to dominate early in a cycle. Stocks such as Nvidia Corp. (NVDA) and Amazon.com Inc. (AMZN) grab all the headlines and buying pressure in the market.

But as confidence builds and earnings momentum broadens, smaller, faster-growing companies begin to assert their market leadership.

Louis believes that rotation is underway.

Over the last six months, small-cap stocks moved decisively higher. The Russell 2000 surged almost 14%, far outpacing the S&P 500’s 8% gain.

Here is what Louis wrote about why this is happening now.

Small caps tend to be more domestic in nature, which means they benefit directly from U.S. economic growth. They also tend to move first when investors begin looking beyond yesterday’s winners and toward where the next phase of growth is likely to emerge.

One example is Louis’ recent recommendation of TTM Technologies Inc. (TTMI).

TTM is a top-tier manufacturer of advanced printed circuit boards (PCBs) and radio frequency (RF) components essential for AI data centers, networking, and high-speed computing infrastructure.

The company is experiencing significant demand growth driven by AI-related hardware needs, positioning it as a key supplier in the AI technology supply chain. And it’s current market cap is below $10 billion.

Since Louis’ recommendation in his Breakthrough Stocks service last August, the stock is up more than 100%.

Now, Louis isn’t saying it’s time to buy small caps indiscriminately.

But market leadership is changing, and companies positioned on the right side of this change are beginning to be rewarded.

The AI Dislocation Is Coming

Louis believes the markets are experiencing what he calls the “AI Dislocation.”

The first phase of the AI boom rewarded a narrow group of mega-cap leaders.

Those gains were powerful, but obvious. Everyone knew the names. Everyone crowded into the same trades. And expectations rose accordingly.

That was Stage 1.

What’s happening now is different.

As scrutiny increases and capital spending intensifies, the market is beginning to look deeper into the AI ecosystem – toward the smaller companies building the power systems, networking infrastructure, and enabling technologies that make AI scalable and profitable.

That’s Stage 2 – where the next wave of opportunity is taking shape.

This AI Dislocation isn’t the end of the AI boom. It’s a changing of the guard.

How to Position Yourself for What’s Next

Louis is using his time-tested Stock Grader to help him identify the stocks best positioned to benefit from this market transition.

These are not obvious names from Phase 1 of the AI megatrend, such as Nvidia and Microsoft Corp. (MSFT).

Louis is finding smaller companies – companies most investors have never heard of.

These little-known small caps are positioned not only to survive a potential shakeout around February 25, but to thrive in the aftermath. He has recorded a special briefing to walk through what he sees coming in the markets and to describe the opportunity it presents to investors right now.

Here’s how he describes the event.

These are the kinds of setups that historically produce the biggest gains – not because the companies are flashy, but because expectations are still low while fundamentals are improving rapidly.

I’ll also show you how I’m positioning ahead of that shift, using my system to focus on fundamentally superior companies with the potential to deliver outsized gains as this next phase unfolds.

If you want a clearer roadmap for where the next AI-driven opportunities could come from – the market champions of the future, not the past – go here now for more details.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

The post How to Find the Next 蜜桃传媒 Champions appeared first on InvestorPlace.

But as I remind members of Masters in Trading every day I go live, the biggest opportunities rarely sit in plain sight.

They build quietly underneath the surface — where early positioning can turn small stakes into generational gains.

That’s where I’ve spent the last 28 years as an options trader. And it’s why I built Masters in Trading in the first place — to give everyday traders access to the same framework professionals use to spot these shifts early.

Over the past year alone, we’ve identified several under-the-radar themes before they went mainstream — from quantum computing to ultrapure water to the next wave of clean energy.

Today, I want to talk about another sector that still raises eyebrows whenever I bring it up: Drones.

Many people still think of drones as novelties. Hobbyist toys. Light-show props. Flying gadgets.

That perception is dangerously outdated.

Drones are rapidly becoming core military infrastructure — a foundational pillar of the next global defense build-out.

Drones are cheaper to deploy, harder to counter, and capable of inflicting disproportionate damage relative to their cost. Recent conflicts — particularly in Ukraine — have made that clear.

And yet, despite this shift, most investors still haven’t fully priced in the true value of drone stocks.

That disconnect is where opportunity lives.

While most traders haven’t spotted the opportunity in these stocks yet – we’ve been quietly banking on these names over the last 12 months.

For us, it was a tale of two drone stocks flying well below Wall Street’s radar – Karman (KRMN) and Kratos (KTOS).

These weren’t mere flashes in the pan.

Both trades stem from my conviction that drones are about to enter a supercycle.

In order to understand the major land grab taking shape here, let me take you back to 2025 – when both stocks were a mere blip on the radars of most traders.

Kratos: An Undervalued Stock Setting Off the Drone Supercycle

Over the last few years, I’ve produced countless videos  covering military defense stocks. It’s one of my longest investing themes right now.

And each one has included at least one mention of my favorite name in the sector – Kratos (KTOS).

KTOS is one of the primary drone companies backed and funded by the U.S. government. The company builds low-cost, autonomous combat drones, including the Valkyrie, for the U.S. Air Force.

The key advantage here is affordability. Kratos delivers advanced drone capabilities without the massive price tags associated with traditional military aircraft.

I’ve long focused on this stock because it represents a major paradigm shift in how the U.S. will treat every kind of global conflict from here on out.

Every major military operation going forward will involve drones. That’s no longer speculation — it’s already happening.

In this sense, the urgency around stocks like KTOS and KRMN can’t be overstated. Both represent “land grabs” by the federal government that will shore up the U.S.’s defense capabilities for years to come.

Right now, nations are prioritizing domestic supply chains. They’re ensuring they own the research, development, and production of drone technology rather than relying on foreign competitors.

At the same time, drones are evolving rapidly by integrating AI, edge computing, real-time battlefield mapping, and autonomous decision-making.

KTOS is key to handing the U.S. a strong advantage in defense applications around the world. And as we know, recent conflicts, particularly in Ukraine, have made this shift even more urgent.

All of those factors marked KTOS as one of my favorite drone stocks.

But when I recommended KTOS earlier in 2024, it wasn’t being priced at all like the essential player I knew it was.

Back in March 2024, the stock was trading around $16. It was undervalued. Thinly traded. A very small valuation relative to close competitors like AeroVironment (AVAV) and Velo3D (VELO).

But I was certain of the underlying value of the stock.

And I knew any smart options trader could easily land a series of doubles – and even triples – with well-timed trades on KTOS.

Looking back, one thing is very clear to me. We were getting in right at the start of a massive run for KTOS.

Back in March, I recommended viewers of Masters in Trading LIVE climb into the July 2024 calls at $20.

I even recommended buying the underlying stock itself. After all, shares were still very cheap. I knew more bullish exposure to a potential run in the stock was a must.

We caught a beat on the massive call volume that started lighting up the stock in the middle of 2024.

And from there, KTOS’s $16 shares exploded.

We caught our first big win on the stock with a 100% gainer just under a month after opening our initial March calls.

We added upside exposure with another set of calls that yielded a double – on top of our double on the underlying stock itself.

Those big wins were no one off. Over the last 12 months, KTOS has gone into overdrive.

From March of 2024 to January of 2026 alone, the stock has rallied over 421%. That’s undeniable momentum – and KTOS shows no signs of slowing as the stock circles new highs in February.

KTOS is still a core name in the drone space and a long-term favorite.

And while we’ve managed gains in this under-publicized sector, there’s one key takeaway every trader must know…

Stocks like KTOS don’t gain value in isolation.

I’ve told you a lot about how we capitalized on the underlying move in the stock.

But I haven’t told you much about how KTOS was being valued in relation to the competition. And that’s key for us.

Because that dynamic is where the real gains are made.

The KRMN Trade: How We Secured Triple-Digit Gains on a Small Cap Competitor

KTOS wasn’t the only player I was watching in this space between 2024 and 2025.

Other names like Aerovironment (AVAV) and Elbit Systems (ESLT) kept setting off my UOA Monitor over the last two years.

And right as heavy call volume began lighting up these smaller players, I kept noticing another stock repeatedly tripping my scanner – moving right along with the sector but gaining less attention than its nearest competitors.

Karman (KRMN) looked like it was on a similar fast track for exponential growth to names like KTOS.

For those who don’t know, KRMN supplies key components used across 100+ active missile and space programs.

The company works directly with major defense contractors like Lockheed Martin, Northrop Grumman, and United Launch Alliance. That means the stock is deeply embedded inside the U.S. defense ecosystem – similar to KTOS.

And just like KTOS, absolutely no retail trader was paying attention.

I shared KRMN back in August of 2025 – right when options started trading on the stock. Trading volume was thin. 蜜桃传媒 cap was low. Again, we were there before most investors had a clue.

But even back when I initially highlighted the stock, KRMN was already posting triple-digit growth, including 233% year-over-year earnings growth.

That’s exceptional — especially for a company operating in a highly regulated industry. And the stock has only gone on to become an indisputable winner as the drone build-out takes shape.

With a market cap still under $5 billion, KRMN offered meaningful upside as it scaled. This is exactly the kind of name institutions tend to discover after the early move has already begun. But not us.

I recognized early on that rising U.S. defense budgets, increased NATO spending, and reshoring initiatives were creating a multi-year runway of government contracts. Those tailwinds are exactly what can propel a small-cap like KRMN to exponential gains.

KRMN holds specialized government contracts that are extremely difficult to replicate. These high barriers to entry protect its competitive position — similar to what we saw years ago with KTOS.

The Drone Divergence I Caught Before the Street

In many ways, it was pure déjà vu. KRMN looked like the next KTOS – just at an earlier stage.

And that brings us back to how we value trades in relation to each other. I always like to point out that stocks don’t carry value in isolation.

The key is tracking stocks in the same or adjacent sectors that tend to mirror each other.

Stocks like Nvidia and AMD – two of the biggest semiconductor companies in the world – often trace each other’s moves. It’s the same thing with base metals, software stocks, and other sectors we track here in Masters in Trading.

KTOS and KRMN fall right in this camp.

Compare the two stocks – and you start to see that these players have been riding a similar wave of momentum the whole time. But there’s one big (and profitable) catch.

Just take a look at the price charts for both stocks below:

Over the same period, we can see that both stocks were moving in a similar trajectory – but KRMN was seriously trailing KTOS in that same span.

That price action made one thing very clear.

While markets were starting to seed momentum in KTOS, KRMN was still way off the radar. No one saw what I was seeing just yet.

And that’s precisely what tipped me off to the potential to leverage both stocks for huge profits.

The KTOS/KRMN Trade Setup No One Saw Coming

Luckily for us, we were already on the ground floor with both picks.

In the free portfolio, we got long KRMN stock. We originally got into KRMN because the stock was grossly underperforming KTOS. And we held KRMN as it stayed cheap relative to KTOS.

Liquidity improved by orders of magnitude over the next six months. And call flow was only going higher from there.

That’s how early-stage institutional names evolve — first the stock, then the options volume.

Looking at how it all turned out, we managed another win before most investors on Wall Street knew about it – an 82% gain in 160 days.

Of course, markets are fickle. And the tables have turned once again for both stocks.

Right now, it’s actually KTOS that’s cheap relative to KRMN.

And that price imbalance just triggered another trade for us.

After we sold KRMN for a hefty return, we used those proceeds to get right back in position with KTOS. It was another pure divergence trading setup – the same one that has netted us doubles and triples on both names over the last two years.

Now, we have a lot of options on the table from here.

We have the leverage. We have first mover advantage. And most of all, the fundamentals are firmly on our side.

Anyone reading this still has the opportunity to gain exposure to these key mispricings in drone stocks.

But I’m not recommending either of the picks I’ve covered to you today. In fact, I’ve got my eye on the next KTOS or KRMN from here.

And when it comes to the next wave of winning drone stocks, there are simply too many names that Wall Street isn’t paying attention to yet – setting up a similar opportunity for early investors to get in position.

The Drone Supercycle Is Just Getting Started

In previous episodes of Masters in Trading LIVE, I’ve categorized the drone build-out into a few distinct tiers of players that will become heavy hitters in the next few years.

I grouped the industry into these tiers:

Tier 1: Core Drone Manufacturers
These are the primary names driving the industry:

• Kratos (KTOS)
• AeroVironment (AVAV)
• Elbit Systems (ESLT)
• Leonardo DRS (DRS)

Tier 2: UAV Subsystems and Defense Suppliers
These companies support drone infrastructure and components:

• Velo3D (VELO)
• Sidus Space (SIDU)

Tier 3: More Speculative Names
Higher risk, earlier-stage exposure with less liquidity.

• AIRO Group Holdings (AIRO)
• Draganfly (DPRO)
• Red Cat Holdings (RCAT)

When evaluating these stocks, the focus was on market capitalization, historical volatility, implied volatility, and options liquidity.

Companies with similar market caps tend to move together – just like we saw with KTOS and KRMN. And volatility helps determine whether a stock is suitable for options trading or better suited for long-term investment.

Each of these tiers will become essential as the next wave of drone tech hits the market.

And I want to make one thing very clear… It doesn’t just end with these stocks.

Drones are no longer optional in modern defense. They are becoming foundational technology, reshaping how conflicts are fought and how governments allocate capital.

The key to profiting from this trend is discipline. We don’t chase stocks at extremes. We wait for pullbacks, respect expected moves, and let the sector trend work in our favor.

I’ll be tracking these names and more closely throughout 2026 on Masters in Trading Live, where we break down entries, exits, and strategy in real time every weekday at 11:00 a.m. Eastern.

But if you want to dive even deeper – and get into the next exciting drone name before the crowd does…

I highly encourage you to check out the Masters in Trading Options Challenge.

The Challenge is where we take everything you’ve learned in my daily LIVEs — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment.

For two weeks, we walk through the foundations of real options trading the way I learned them on the trading floor. You’ll learn exactly how I think, exactly how I build trades, and exactly how I manage both the winners and the losers.

Just click here to check out what the Masters in Trading Options Challenge has in store for you.

Remember, the creative trade wins,

Jonathan Rose

Founder, Masters in Trading

P.S., What we’re seeing in drones is what happens when a theme moves from early adoption to institutional priority.

AI may be approaching its own transition.

History shows that after the first rush of enthusiasm comes a moment where expectations get tested. Leadership changes. Capital rotates. And the investors who prepared ahead of time have options.

Veteran market strategist Louis Navellier believes one of those inflection points is fast-approaching. Louis is watching February 25 closely as a potential point where expectations meet reality and investors are forced to decide whether to hold, sell, or rotate.

The real advantage isn’t guessing what headlines will say afterward — it’s knowing, in advance, how to respond. He’s laying out how he’s thinking about that shift, where risk may sit, and what kinds of names could define the next phase. If you’d rather be prepared than surprised, you need to see this.

The post The Drone Supercycle Wall Street Still Hasn’t Priced In appeared first on InvestorPlace.

Remember those little CDs you’d get in the mail? 

AOL dominated online access. And for a time, it seemed like the company could do no wrong.

Then, in early 2000, it announced a $165 billion merger with Time Warner, the largest deal the market had ever seen.

At the time, it was billed as a masterstroke. A way to marry old media and new technology into a single, unstoppable powerhouse.

Instead, it became a cautionary tale.

Why? Lean in closely for this one, folks…

That deal marked the moment when the market stopped treating AOL as a pure growth story and started scrutinizing it as a capital-intensive business with execution risk.

Fast-forward to today, and it’s fair to ask whether we’re approaching a similar inflection point in artificial intelligence.

To be clear, AI isn’t going anywhere – just like the internet didn’t.

And today’s Big Tech leaders? I’m not saying they’re going to fade into oblivion, either (although some might).

It’s just that the market is growing increasingly focused on the cost of building AI – and on who ultimately earns an attractive return on that investment.

That shows up loud and clear in the reaction to earnings reports.

You may recall that last week I detailed how, even though Microsoft Corporation (MSFT) surpassed expectations on earnings and revenue, shares took a hard hit amid fears of slowing Cloud growth and its massive AI spending plans.

We saw even more of that this week.

When markets reach this point – where even strong earnings fail to satisfy – it marks the beginning of a more volatile and selective phase, what I’m calling the AI Dislocation.

When that phase occurs, the reaction to earnings can become far more unpredictable.

And this week, two more Magnificent Seven stocks –  Alphabet Inc. (GOOGL) and Amazon.com, Inc. (AMZN) –  came under the microscope with their earnings reports.

So, in today’s 蜜桃传媒 360, we’ll review their earnings and talk about why expectations are higher than ever – and how investors can prepare for what lies ahead.

Alphabet

Let’s start with Alphabet.

For the fourth quarter, the company reported revenue of $113.8 billion in revenue, topping Wall Street’s expectations for $111.4 billion. Earnings were $2.82 per share, higher than the $2.65 expected by analysts, and up from $2.15 in the previous year.

Growth was driven in large part by a 48% jump in Google Cloud revenue to $17.7 billion, which was driven in part by AI deals with Meta Platforms, Inc. (META), OpenAI (the company behind ChatGPT) and Anthropic (the company behind Claude). That was also well ahead of estimates for $16.2 billion.

Google Services – including Search and YouTube advertising – climbed 14% year over year.

Additionally, Alphabet surpassed $400 billion in annual revenue for the first time in its history. That was thanks to increasing search demand and the launch of its new Gemini 3 AI Model – which outperformed rivals like OpenAI and led to the company reportedly calling a “code red” as a result.

Yet despite these strong results, Alphabet’s shares fell as much as 5% on
Thursday.

Why? Because the company is spending like a sailor in port – specifically on AI.

The bill? In the range of $175 billion to $185 billion in 2026. That’s roughly double last year’s spending, and Wall Street thought it was going to target about $120 billion in spending this year.

Judging by the market reaction, investors zeroed in on that rising spending figure, whether it’s sustainable and what it could mean for profitability in the years ahead.

Amazon

Now, let’s see what Amazon delivered.

For the fourth quarter, the company reported $213.4 billion in revenue, up 13.6% year over year, and topping Wall Street’s revenue expectations of $211.5 billion. It also reported earnings of $1.95 per share, which was a penny short of Wall Street’s estimate.

Amazon Web Services remained a key growth engine, generating $35.6 billion in revenue during the quarter. But despite those results, Amazon’s shares fell as much as 10% on Friday after the company outlined gargantuan spending plans and a softer-than-expected guidance.

In short, management expects to spend $200 billion on capital expenditures in 2026, as it ramps up investment across AI, chips, robotics and other long-term initiatives. That was also well above market estimates of about $146 billion.

At the same time, Amazon forecast operating income of between $16.5 billion and $21.5 billion for the coming quarter, below expectations of roughly $22.2 billion.

That combination – heavier spending now and more modest near-term profitability – appeared to dampen the mood.

Still, the market’s reaction made one thing clear: Investors are increasingly focused on the timing of those returns, not just their potential.

Why Strong Earnings Are No Longer Enough

At this point, the market is making something very clear.

The first phase of the AI boom was about proving the technology worked. A small group of mega-cap companies pioneered the tools that brought AI to the masses, and investors rewarded them handsomely.

But that phase is now giving way to something different.

As the AI race intensifies, the market is becoming less forgiving and more selective about which companies it rewards.

As I’ve explained recently, markets are transitioning out of the early, momentum-driven Stage 1 of the AI boom.

In that phase, broad enthusiasm can lift nearly every company tied to a powerful trend.

In Stage 2, the focus shifts from ambition to execution. The key question is no longer “can this be built?” but “who earns an attractive return once it is built?”

That transition into Stage 2 is what I’ve been calling the AI Dislocation.

What Stock Grader Is Showing Right Now

To help navigate this more selective environment, I’m leaning on Stock Grader (subscription required) – the same system I’ve used for decades to identify leadership shifts across major market cycles.

Right now, Stock Grader has assigned Alphabet a Total Grade of “B,” meaning it is “strong,” while Amazon earns a “D,” meaning it is “weak” and we should steer clear.

And when you look at the Magnificent Seven stocks as a group, things get really interesting…

These stocks are supposed to represent the market’s leaders. Yet only two of the seven currently earn a “B” rating. The rest all hold neutral or weak ratings.

Many of the most capital-intensive mega-cap names – the ones pouring enormous sums into AI buildouts – are no longer earning top grades.

Strong businesses? Yes, that’s what’s subsidizing arguably the largest buildout since the railroads in the 1800s.

But they’re increasingly weighed down by rising costs and longer payoff timelines.

At the same time, Stock Grader has been flagging a very different group of stocks.

Companies with accelerating earnings momentum, cleaner balance sheets and far less capital intensity. In other words, the kinds of businesses that tend to benefit when a technology moves from experimentation to profitable deployment.

That doesn’t mean the AI leaders of the past disappear. It means the next phase favors different characteristics – and different stocks.

What Comes Next

In a market that’s becoming more selective by the day, preparation matters more than ever.

To help investors better understand this shift, I recently put together a special presentation focused on the AI Dislocation, the move into Stage 2 and what to watch as this next phase of the AI boom takes shape.

You can watch that presentation here.

Understanding what’s happening right now could mean the difference between participating in the next wave of gains… or being left behind in 2026.

So, I urge you to take a few minutes and watch now.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post The Bar Is Getting Raised. Alphabet and Amazon Are Showing Us Why.. appeared first on InvestorPlace.

That’s why I wanted to share today’s piece from my friend and colleague Louis Navellier. Louis argues that while headlines continue to fixate on risks, several important things are going right in the market. More importantly, he explains why those changes tend to matter before they’re widely recognized.

Louis also introduces a concept he calls an “AI Dislocation.” Not a crash, but a transition. A moment when the market moves past the obvious, crowded AI winners of the first phase and begins rewarding a new group of companies positioned for what comes next. Louis recently recorded a special AI Dislocation broadcast where he walks through this shift in detail and explains how he’s positioning ahead of it. You can learn more here.

Now, I’ll turn it over to Louis.

If you’re fundamentally pessimistic about the future, stocks are probably not for you.

Investing in stocks is fundamentally an optimistic act. 

You invest your hard-earned money in a stock you believe will experience growth.

Pessimism often feels smart – and during uncertain times, it feels comfortable. 

But in markets, pessimism is frequently just poor timing wearing a sensible disguise.

Optimism, by contrast, is harder work. It requires separating signal from noise. It requires acknowledging risks without becoming paralyzed by them. And it requires the discipline to recognize when conditions are quietly improving – even when headlines say otherwise.

That’s the kind of optimism successful investors rely on. Not blind faith. Not rose-colored glasses. But evidence-based confidence rooted in fundamentals.

When I look at the early days of 2026, I see several important things going right – in the economy, in corporate earnings, and in the parts of the market that tend to lead during periods of sustained growth.

Of course, that doesn’t mean everything is perfect. It never is. In fact, I see some real dislocations ahead in this market, and ignoring them would be a mistake. I’ll briefly talk about those risks in just a moment before I elaborate on them in a future piece.

But before focusing on what could go wrong, in today’s 蜜桃传媒 360, we’ll do the harder work first – identifying what’s already going right… and understanding why that matters to your investing success in the rest of the year. 

What’s Going Right: Economic Growth Is Accelerating In the AI Era

If you want proof that this optimism isn’t theoretical, start with economic growth.

The U.S. economy may not be firing on every cylinder yet. Housing and manufacturing are still lagging. But taken as a whole, growth is clearly accelerating.

The Commerce Department recently revised its third-quarter GDP estimate higher, to a 4.4% annual pace. That followed 3.8% growth in the second quarter. Taken together, the U.S. economy just posted its strongest back-to-back quarters of growth since 2021.

That didn’t happen by accident.

Consumer spending grew at a 3.5% annual rate. Corporate activity remained resilient even as interest rates stayed elevated. In other words, the economy absorbed tighter financial conditions and kept moving forward.

The trade deficit surged in November. Exports declined, imports jumped, and the monthly trade gap widened sharply. As a result, the Atlanta Fed revised its fourth-quarter GDP estimate lower, though it still expects growth north of 4%.

Now, trade data has been distorted by shifting tariff policies, and there are still some structural problems in the economy that need to be addressed. 

But make no mistake, folks, the broader growth trend remains intact.

Tax cuts, strong consumer demand, the ongoing AI data-center buildout, improving existing home sales, and an estimated $20 trillion of onshoring activity underway in the U.S. are powerful tailwinds. Together, they form the foundation for faster, more durable growth than most investors are prepared for.

My (Revised) GDP Prediction

Back in late 2024, I told my followers that the U.S. economy could reach a 4% annual growth pace in 2025 and accelerate further to hit 5% – at least temporarily – in 2026. (I reiterated that prediction in early January 2025, here.)

That may have sounded aggressive at the time. But based on current momentum, my earlier forecast may prove conservative.

In fact, I think we could hit 6% annualized GDP growth at some point in 2026 – possibly in the second half of the year.

That doesn’t mean there won’t be volatility. And the market is always full of distractions. 

But the bottom line is that the U.S. economy is growing faster than most of the developed world. Corporate earnings are responding accordingly. And historically, that combination has favored investors who stay focused on fundamentals instead of headlines.

Why Small-Cap Stocks Are Emerging as AI 蜜桃传媒 Leaders

When markets transition from one phase of growth to the next, leadership also changes.

Large, well-known stocks tend to dominate early in a cycle. But as confidence builds and earnings momentum broadens, leadership often rotates toward smaller, faster-growing companies that are more directly exposed to economic acceleration.

That rotation appears to be underway.

In January, small-cap stocks moved decisively higher. The Russell 2000 surged 7% for the month, far outpacing the S&P 500’s 1.4% gain and the Dow Jones Industrial Average’s 1.6% rise.

Small caps tend to be more domestic in nature, which means they benefit directly from U.S. economic growth. They also tend to move first when investors begin looking beyond yesterday’s winners and toward where the next phase of growth is likely to emerge.

Now, I’m not saying “buy small caps” indiscriminately. But market leadership is changing, and companies positioned on the right side of this change are beginning to be rewarded.

That’s where my prediction of an AI Dislocation comes into play.

The AI Dislocation: A Shift to the Next Phase of AI Stock Winners

The first phase of the AI boom rewarded a narrow group of mega-cap leaders.

Those gains were powerful, but obvious. Everyone knew the names. Everyone crowded into the same trades. And expectations rose accordingly.

That was Stage 1.

What’s happening now is different.

As scrutiny increases and capital spending intensifies, the market is beginning to look deeper into the AI ecosystem – toward the smaller companies building the power systems, networking infrastructure, and enabling technologies that make AI scalable and profitable.

That’s Stage 2 – where the next wave of opportunity is taking shape.

This AI Dislocation isn’t the end of the AI boom. It’s a changing of the guard. 

How to Position Yourself for What’s Next

Now, I understand that talk of an AI Dislocation may make some people nervous. 

But optimism is addictive, folks. And we should be bullish about America and what’s going to happen next in the AI boom. Take it from me, it’s the best path toward prosperity.

In fact, using my proven system, I’m already finding stocks positioned to benefit from this transition.

To be very clear, these are not obvious names.

You won’t find NVIDIA Corp. (NVDA) or Microsoft Corp. (MSFT) on this list.

Instead, you’ll find smaller companies – companies most investors have never heard of – that my system says are positioned not only to survive a potential shakeout around February 25, but to thrive in the aftermath.

These are the kinds of setups that historically produce the biggest gains – not because the companies are flashy, but because expectations are still low while fundamentals are improving rapidly.

That’s why I recorded a special briefing to walk through this opportunity in detail.

In it, I explain why I believe the coming AI Dislocation could mark the transition from the market’s first phase of easy AI gains to a far more selective phase – one that rewards investors who know where to look.

I’ll also show you how I’m positioning ahead of that shift, using my system to focus on fundamentally superior companies with the potential to deliver outsized gains as this next phase unfolds.

If you want a clearer roadmap for where the next AI-driven opportunities could come from – and how to avoid being anchored to yesterday’s winners – go here now for more details.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post Why Optimism Could Be the Most Profitable Strategy of 2026 appeared first on InvestorPlace.

In many ways, investing in today’s market is similarly challenging.

The first phase of the AI boom rewarded a narrow group of obvious leaders – those who played the game right from the start. But as capital spending accelerates and expectations rise, the market is becoming far more selective. And just like players on the field, investors must be ready for the next phase of the game.

Today, I’m handing the Digest over to legendary quant investor Louis Navellier, where he’ll break down why recent weakness in well-known tech names may actually signal a healthy rotation, not the end of the AI story. He also explains how these moments of “dislocation” have historically marked the handoff from crowded trades to the next generation of market leaders.

Louis recently recorded a free briefing that goes deeper into this transition and how he’s positioning ahead of it. You can watch it here. And now, I’ll turn it over to Louis to walk you through what’s happening and why it matters more than most investors realize…

Have a good weekend,

Jeff Remsburg

In the 1980s, Bill Walsh, head coach of the San Francisco 49ers, had a clear edge. His West Coast offense was revolutionary.

The whole idea was based on timing and precision. Short, high-probability passes lulled defenses to sleep – and then, at just the right moment, the 49ers would strike downfield.

For a time, it worked beautifully. It confused defenses and made the 49ers nearly unbeatable.

But that edge didn’t last forever.

Other teams studied the system. They copied elements of it. Defensive schemes evolved. The West Coast offense didn’t disappear, but the 49ers’ overwhelming advantage did.

The same thing happens in the stock market.

Certain stocks enjoy periods where they sit at the center of a powerful trend. Capital pours in. Expectations rise. And for a while, they seem unstoppable.

But as more investors crowd into the same names and competition intensifies, that edge dulls. The stocks don’t suddenly become bad. The story doesn’t collapse.

But the easy gains are gone.

That’s when leadership changes – and it’s also when you and I need to start looking elsewhere.

See, this is often where investors make their biggest mistakes. They assume that if yesterday’s winners stop leading, something must be wrong with the broader trend.

In reality, the trend is just maturing. The market is adapting. And new edges are being created somewhere else.

That’s exactly what’s happening in AI today.

You’ve probably noticed that some of the most prominent tech names – particularly in software – have been selling off sharply.

So, in today’s issue, I want to walk through what’s really going on beneath the surface… what could go wrong during this transition…

And how to prepare for – and profit from – what comes next.

What’s Behind This Week’s Tech Selloff

Over the past week, shares of U.S. software and data-services companies have been hit especially hard.

The S&P 500 software and services group has fallen sharply over that period, erasing roughly $1 trillion in market value since late January.

Some of the biggest casualties have been names like ServiceNow Inc. (NOW), Salesforce Inc. (CRM), and Microsoft Corp. (MSFT) – companies that dominated enterprise software long before AI became a buzzword. These are former market leaders that investors once viewed as nearly untouchable.

What changed?

As AI tools advance rapidly, investors are starting to question whether these legacy software models can hold up when new AI-driven alternatives can replicate — or outright replace — key functions faster and cheaper.

For example, earlier this week, Thomson Reuters Corp. (TRI) suffered a record one-day decline of nearly 16%, even after reporting results that were largely in line with expectations and raising its dividend.

The selloff came as investors grew concerned that fast-improving AI tools could eventually encroach on core parts of Thomson Reuters’ legal and information businesses.

Those concerns intensified after Anthropic, the company behind the Claude AI model, announced new capabilities for its Cowork tool aimed at legal, finance, and marketing workflows. The fact that these tools can be customized and deployed broadly has only heightened questions about pricing power and long-term defensibility across the sector.

That’s the key point.

These stocks aren’t falling because AI demand is slowing. They’re falling because AI is becoming good enough, fast enough, and flexible enough to challenge business models that were built for a pre-AI world.

This is what a “Stage 1” to “Stage 2” transition looks like.

As markets move into a more selective phase, some stocks continue to thrive. Others stall. And investors who assume yesterday’s leaders will automatically dominate tomorrow often learn that lesson the hard way.

As I said earlier this week here, I see a significant dislocation taking shape in this market.

It’s not a collapse. It’s not the end of the AI boom.

But a shakeout is coming, and you need to be ready.

From Stage 1 Internet to Stage 2

To understand what’s happening now, it helps to think back to the early days of the internet.

In the late 1990s, telecommunications companies spent staggering amounts of money building the backbone of the internet. In just a few short years, well over $100 billion was poured into laying fiber across the United States alone.

Following the Telecommunications Act of 1996, total investment surged – some estimates say north of $500 billion – and much of it was financed with debt, as companies raced to add switches, expand wireless networks, and blanket the country with capacity.

The spending wasn’t limited to the U.S. Globally, companies rushed to connect cities, countries, and continents. Tens of billions of dollars were spent laying undersea fiber-optic cables. Cable operators invested heavily to upgrade their networks in anticipation of explosive demand.

At the time, those companies looked unstoppable.

They were essential to the internet’s growth. And investors assumed that would translate into lasting dominance.

It didn’t.

Far more capacity had been created than could be profitably monetized in the near term. Pricing power evaporated. Returns disappointed. And many of the companies that defined Stage 1 of the internet failed to dominate Stage 2.

For example, Cisco Systems Inc. (CSCO) was the most valuable company in the world at the height of the dot-com bubble.

Yet its stock collapsed by 88% and took decades to recover.

Now, Cisco remained a profitable business in the early 21^st century. But its stock was repriced.

Other companies – like Google and Facebook (now Alphabet and Meta Platforms) – came along in the late days of Stage 1 to take the reins in Stage 2 of the internet boom.

We all know what happened next. Those companies created a fortune for early investors.

The same pattern has repeated itself across technological cycles for more than a century.

And it’s happening again.

From Stage 1 AI to Stage 2

The first phase of the AI boom was about proving the technology worked.

A small group of mega-cap technology companies pioneered the tools that brought AI to the masses.

The market rewarded that leadership handsomely.

Stocks surged as investors piled into the most obvious AI pioneers, much like they did with the early internet leaders in the 1990s. Being first mattered. Being big mattered. And for a time, simply being associated with AI was enough.

That was Stage 1.

What we’re seeing now is the market recalibrating how value is created as AI moves from novelty to infrastructure and practical application.

The spending numbers make that clear.

According to Bloomberg, Alphabet Inc. (GOOG), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Microsoft are projected to spend roughly $650 billion this year alone, with the vast majority of that money earmarked for data centers, chips, power, networking, and the physical systems required to scale AI.

That represents an estimated 60% increase from just a year ago.

The problem? The market is starting to change the definition of what it cares about right before our eyes.

The question is shifting from “can this be built?” to “who earns an attractive return once it is built?”

Consider this: Those same four companies have collectively lost more than $950 billion in market value this week as I write this.

How We Should Respond

Now, I don’t bring this all up to bring the mood down.

The fact is, every era is marked by change.

Bill Walsh’s 49ers in the ’80s gave way to Jimmy Johnson’s Dallas Cowboys in the ’90s. And so on.

By the same token, as Big Tech AI stocks waver, another group of stocks has been moving higher during this earnings season.

I’m talking about the smaller companies that make the equipment, components, and infrastructure required for AI computing – and the firms that are applying AI efficiently inside profitable businesses.

This is exactly how a Stage 1-to-Stage 2 transition unfolds.

That’s exactly why I recently recorded a special briefing on what I call the AI Dislocation.

In it, I walk through this shift from Stage 1 to Stage 2 in the AI boom, and why that transition could become unmistakable as soon as February 25.

I also explain how I’m positioning ahead of that shift using my proven system to identify fundamentally superior companies. These are not the obvious mega-cap names that led the first phase. They’re smaller, under-the-radar companies helping to power, connect, and profit from the next phase of AI.

In my view, these could be the next market leaders as we enter Stage 2.

If you want a clearer roadmap for how to position yourself, go here to watch my free briefing now.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Cisco Systems Inc. (CSCO)

The post $1 Trillion Just Vanished, and This Is Where That Money Is Going Next appeared first on InvestorPlace.

The whole idea was based on timing and precision. Short, high-probability passes lulled defenses to sleep – and then, at just the right moment, the 49ers would strike downfield.

For a time, it worked beautifully. It confused defenses and made the 49ers nearly unbeatable.

But that edge didn’t last forever.

Other teams studied the system. They copied elements of it. Defensive schemes evolved. The West Coast offense didn’t disappear, but the 49ers’ overwhelming advantage did.

The same thing happens in the stock market.

Certain stocks enjoy periods where they sit at the center of a powerful trend. Capital pours in. Expectations rise. And for a while, they seem unstoppable.

But as more investors crowd into the same names and competition intensifies, that edge dulls. The stocks don’t suddenly become bad. The story doesn’t collapse.

But the easy gains are gone.

That’s when leadership changes – and it’s also when you and I need to start looking elsewhere.

See, this is often where investors make their biggest mistakes. They assume that if yesterday’s winners stop leading, something must be wrong with the broader trend.

In reality, the trend is just maturing. The market is adapting. And new edges are being created somewhere else.

That’s exactly what’s happening in AI today.

You’ve probably noticed that some of the most prominent tech names – particularly in software – have been selling off sharply.

So, in today’s 蜜桃传媒 360, I want to walk through what’s really going on beneath the surface… what could go wrong during this transition…

And how to prepare for – and profit from – what comes next.

What’s Behind This Week’s Tech Selloff

Over the past week, shares of U.S. software and data-services companies have been hit especially hard.

The S&P 500 software and services group has fallen sharply over that period, erasing roughly $1 trillion in market value since late January.

Some of the biggest casualties have been names like ServiceNow Inc. (NOW), Salesforce Inc. (CRM) and Microsoft Corp. (MSFT) – companies that dominated enterprise software long before AI became a buzzword. These are former market leaders that investors once viewed as nearly untouchable.

What changed?

As AI tools advance rapidly, investors are starting to question whether these legacy software models can hold up when new AI-driven alternatives can replicate — or outright replace — key functions faster and cheaper.

For example, earlier this week, Thomson Reuters Corp. (TRI) suffered a record one-day decline of nearly 16%, even after reporting results that were largely in line with expectations and raising its dividend.

The selloff came as investors grew concerned that fast-improving AI tools could eventually encroach on core parts of Thomson Reuters’ legal and information businesses.

Those concerns intensified after Anthropic, the company behind the Claude AI model, announced new capabilities for its Cowork tool aimed at legal, finance, and marketing workflows. The fact that these tools can be customized and deployed broadly has only heightened questions about pricing power and long-term defensibility across the sector.

That’s the key point.

These stocks aren’t falling because AI demand is slowing. They’re falling because AI is becoming good enough, fast enough, and flexible enough to challenge business models that were built for a pre-AI world.

This is what a “Stage 1” to “Stage 2” transition looks like.

As markets move into a more selective phase, some stocks continue to thrive. Others stall. And investors who assume yesterday’s leaders will automatically dominate tomorrow often learn that lesson the hard way.

As I said earlier this week here, I see a significant dislocation taking shape in this market.

It’s not a collapse. It’s not the end of the AI boom.

But a shakeout is coming, and you need to be ready.

From Stage 1 Internet to Stage 2

To understand what’s happening now, it helps to think back to the early days of the internet.

In the late 1990s, telecommunications companies spent staggering amounts of money building the backbone of the internet. In just a few short years, well over $100 billion was poured into laying fiber across the United States alone.

Following the Telecommunications Act of 1996, total investment surged – some estimates say north of $500 billion – and much of it was financed with debt, as companies raced to add switches, expand wireless networks, and blanket the country with capacity.

The spending wasn’t limited to the U.S. Globally, companies rushed to connect cities, countries, and continents. Tens of billions of dollars were spent laying undersea fiber-optic cables. Cable operators invested heavily to upgrade their networks in anticipation of explosive demand.

At the time, those companies looked unstoppable.

They were essential to the internet’s growth. And investors assumed that would translate into lasting dominance.

It didn’t.

Far more capacity had been created than could be profitably monetized in the near term. Pricing power evaporated. Returns disappointed. And many of the companies that defined Stage 1 of the internet failed to dominate Stage 2.

For example, Cisco Systems Inc. (CSCO) was the most valuable company in the world at the height of the dot-com bubble.

Yet its stock collapsed by 88% and took decades to recover.

Now, Cisco remained a profitable business in the early 21^st century. But its stock was repriced.

Other companies – like Google and Facebook (now Alphabet and Meta Platforms) – came along in the late days of Stage 1 to take the reins in Stage 2 of the internet boom.

We all know what happened next. Those companies created a fortune for early investors.

The same pattern has repeated itself across technological cycles for more than a century.

And it’s happening again.

From Stage 1 AI to Stage 2

The first phase of the AI boom was about proving the technology worked.

A small group of mega-cap technology companies pioneered the tools that brought AI to the masses.

The market rewarded that leadership handsomely.

Stocks surged as investors piled into the most obvious AI pioneers, much like they did with the early internet leaders in the 1990s. Being first mattered. Being big mattered. And for a time, simply being associated with AI was enough.

That was Stage 1.

What we’re seeing now is the market recalibrating how value is created as AI moves from novelty to infrastructure and practical application.

The spending numbers make that clear.

According to Bloomberg, Alphabet Inc. (GOOG), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Microsoft are projected to spend roughly $650 billion this year alone, with the vast majority of that money earmarked for data centers, chips, power, networking, and the physical systems required to scale AI.

That represents an estimated 60% increase from just a year ago.

The problem? The market is starting to change the definition of what it cares about right before our eyes.

The question is shifting from “can this be built?” to “who earns an attractive return once it is built?”

Consider this: Those same four companies have collectively lost more than $950 billion in market value this week as I write this.

How We Should Respond

Now, I don’t bring this all up to bring the mood down.

The fact is, every era is marked by change.

Bill Walsh’s 49ers in the ’80s gave way to Jimmy Johnson’s Dallas Cowboys in the ’90s. And so on.

By the same token, as Big Tech AI stocks waver, another group of stocks has been moving higher during this earnings season.

I’m talking about the smaller companies that make the equipment, components, and infrastructure required for AI computing – and the firms that are applying AI efficiently inside profitable businesses.

This is exactly how a Stage 1-to-Stage 2 transition unfolds.

That’s exactly why I recently recorded a special briefing on what I call the AI Dislocation.

In it, I walk through this shift from Stage 1 to Stage 2 in the AI boom, and why that transition could become unmistakable as soon as February 25.

I also explain how I’m positioning ahead of that shift using my proven system to identify fundamentally superior companies. These are not the obvious mega-cap names that led the first phase. They’re smaller, under-the-radar companies helping to power, connect, and profit from the next phase of AI.

In my view, these could be the next market leaders as we enter Stage 2.

If you want a clearer roadmap for how to position yourself, go here to watch my free briefing now.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Cisco Systems Inc. (CSCO)

The post The AI Shakeout Has Started – Are You in the Right Stocks? appeared first on InvestorPlace.

The world is quietly witnessing what could be the biggest monetary shake-up in decades.

Inflation is soaring, currencies are being questioned, and faith in traditional finance is wavering.

In theory, this should be Bitcoin’s (BTC/USD) time to shine – the moment the original cryptocurrency lives up to its billing as “digital gold.” After all, Bitcoin was born from the last financial crisis, promising a hedge against exactly this kind of turmoil.

But as cracks form in the global financial system, a curious thing is happening: instead of surging, Bitcoin has stalled when it was needed most.

Consider the evidence. Inflation spiked to 40-year highs in 2022, yet Bitcoin plunged about 75% during that period, even as gold held steady and then climbed. Today, central banks are hoarding gold at a near-record pace – over 1,000 tons added in 2023 alone – reflecting a rush to time-tested safety. Gold prices have rallied to multi-year highs, reinforcing their safe-haven status, while Bitcoin remains well below its past peak.

It’s a reality check for anyone who believed Bitcoin would automatically act as the future of safe-haven assets. Is the “digital gold” thesis failing, or is it simply not time yet for Bitcoin’s moment in the sun?

In this week’s podcast, we unpack why Bitcoin’s performance is lagging in a crisis, how it compares to gold’s enduring allure, and what needs to happen for Bitcoin to truly become the digital gold it’s often touted to be. The answers may surprise you … and could reshape your view on the future of Bitcoin as a refuge when the next financial storm hits.

The Digital Gold Thesis: Promise vs. Reality

For years, Bitcoin’s champions have touted it as “digital gold” – a 21st-century answer to the timeless value of gold. The idea is simple: Bitcoin’s supply is capped at 21 million coins, making it scarce like gold, and it operates outside any government’s control. In a world where governments print trillions of new dollars and debt mounts, Bitcoin was meant to offer an escape hatch, preserving wealth as fiat currencies depreciate. This narrative gained traction after 2008 and again during the pandemic money-printing: if gold protected savers in the 1970s inflation, Bitcoin would do the same in the 2020s, only with the speed and portability of the digital age.

In theory, all the ingredients for Bitcoin to fulfill that promise are here. We’ve seen rapid currency debasement, fears of de-dollarization as nations seek alternatives to the U.S. dollar, and geopolitical conflicts driving uncertainty. These are textbook conditions where investors flock to safe havens. And indeed, they have – but overwhelmingly into precious metals. Gold prices have surged (up about 20% year-over-year in mid-2024), and silver spiked dramatically as well. Central banks worldwide, from China to Turkey, have been buying gold hand over fist, pushing official gold purchases in 2022 to the highest level on record and nearly matching it in 2023. They cite gold’s reliability as an inflation hedge and store of value in crises. This flight to gold underscores a crucial point: when storm clouds gather, trust matters. And for millennia, gold has earned that trust.

Bitcoin, by contrast, has struggled to inspire the same confidence when it counts. Rather than acting as a stable store of value during recent inflationary spikes and banking jitters, Bitcoin’s price has been as volatile as ever. Research confirms that Bitcoin has not reliably protected wealth during inflationary periods – in fact, its price often declines in response to inflation surprises. Instead of moving opposite to failing currencies, it has frequently moved in sync with high-risk assets. As one analysis put it, Bitcoin has “no consistent inverse correlation with inflation” and behaves more like a tech stock than like gold. Indeed, when stock markets tumble and fear spikes, Bitcoin has tended to plunge alongside equities, not counterbalance them. That’s the exact opposite of what “digital gold” is supposed to do.

Real-world history bears this out. In 2021, as stimulus money flowed, Bitcoin did surge – but so did speculative tech stocks, suggesting it was riding a wave of risk-on enthusiasm rather than acting as a cautious hedge. Then 2022 hit: inflation in the U.S. hit 9% (a four-decade high), and the Federal Reserve slammed on the monetary brakes. If Bitcoin were truly digital gold, this was its chance to prove it. Instead, Bitcoin crashed over 60% that year, while actual gold finished roughly flat and even modestly up at times. An asset marketed as an inflation shield instead bucked under pressure, erasing wealth when cost of living was soaring – a painful irony for believers. Meanwhile, a traditional 60/40 portfolio or even plain cash fared better in preserving value, and commodities (like oil and grains) and inflation-indexed bonds outperformed Bitcoin. Simply put, Bitcoin’s track record so far doesn’t read like that of a safe haven; it reads like a high-octane growth asset taking its cues from risk sentiment.

Why Bitcoin Isn’t Shining (Yet)

So, why hasn’t Bitcoin lived up to the “digital gold” thesis so far? Several factors are at play:

• Extreme Volatility: Bitcoin’s price swings are infamous – with annualized volatility often above 70%, it can swing by double-digit percentages in mere days. Such wild moves undermine its reliability as a store of value. Even gold, which isn’t immune to ups and downs, trades in much tamer ranges. For an inflation hedge, stability is key; on that front, Bitcoin hasn’t delivered.
• Risk-Asset Correlation: Rather than behaving like a crisis hedge, Bitcoin has shown a strong tendency to trade in tandem with risk assets. In sharp market sell-offs or liquidity crunches, it has fallen alongside stocks. This high correlation to equities means that when panic strikes, Bitcoin hasn’t provided the counterweight that gold historically has.
• Short History & Trust Gap: Gold’s safe-haven status comes from centuries of trust. Bitcoin, launched in 2009, is still in its adolescence as an asset. It hasn’t yet navigated multiple full economic cycles or a truly systemic fiat crisis. Many institutions and investors remain wary, seeing it as untested. No central bank (to date) holds Bitcoin as a reserve asset, whereas gold is deeply entrenched in that role. This lack of institutional adoption as a reserve amplifies skepticism: in uncertain times, who’s the buyer of last resort for Bitcoin?
• Regulatory and Technological Overhang: Ongoing regulatory crackdowns and questions about security (hacks, frauds, exchange failures) have periodically dented confidence. Whereas gold sits in vaults beyond the reach of hackers, Bitcoin holders must navigate digital security and evolving laws. These issues can force selling or deter would-be investors right when Bitcoin might need their support.

In short, Bitcoin’s characteristics – high volatility, speculative flows, and nascent adoption – have so far prevented it from behaving like the steady, uncorrelated ballast that gold often provides. Even some crypto enthusiasts begrudgingly admit that Bitcoin has felt more like “fool’s gold” during certain market storms, providing excitement and upside in good times but distress when shelter was what investors sought.

Is Bitcoin the Future Safe Haven or Just Fool’s Gold?

All this isn’t to say the digital gold dream is dead. Far from it. Bitcoin may not have proven itself yet, but the story isn’t over – and there are signs the tide could still turn in its favor in the coming years. Proponents argue that as Bitcoin matures and adoption widens, its safe-haven properties will strengthen. Already, there have been episodes where Bitcoin did act somewhat like a refuge asset. During certain geopolitical flare-ups or banking scares, Bitcoin saw inflows alongside gold.

Its correlation with gold, while not consistent, has appeared episodically – often triggered by specific events like rumors of a Bitcoin ETF approval or surges in gold buying that spark parallel interest in crypto. Some institutional investors are starting to view Bitcoin as a complementary store of value to hold alongside gold, especially in diversified portfolios that hedge against extreme outcomes. In other words, Bitcoin doesn’t have to replace gold to be valuable – it could stand beside it, offering upside and an alternative form of financial insurance if the traditional system wobbles.

Looking ahead, much depends on the broader context. If inflation remains persistently high or governments continue to aggressively expand the money supply, Bitcoin’s fixed supply could become more attractive. Bitcoin predictions from bullish analysts often point to these scenarios: they foresee a time when trust in fiat money erodes so much that both gold and Bitcoin soar as dual anchors of value.

In such a scenario, Bitcoin might trade more on fundamentals (like adoption and scarcity) and less like a tech speculation. Technological developments could help too – improvements in Bitcoin’s network (or wider Lightning Network adoption) might make it more practical and further legitimize it as “digital gold” rather than “digital poker chip.” There’s also the generational angle: younger investors who are digital-native may simply trust Bitcoin more than gold over time, gradually shifting the balance of safe-haven demand.

Still, sober voices caution that Bitcoin’s future as a safe haven is far from guaranteed. It could just as easily remain a high-risk, high-reward asset class – valuable, yes, but not the go-to for capital preservation in crises. Some even ask whether perhaps something else could become the “next Bitcoin” in the safe-haven race – be it another cryptocurrency or a digital asset yet to be invented.

So far, no alternative has truly challenged Bitcoin’s claim to that throne; Bitcoin remains by far the largest and most recognized crypto. But the very fact that investors muse about a “next Bitcoin” underscores the uncertainty around whether Bitcoin itself will fulfill its ultimate promise. Is Bitcoin the future of value storage, or will it go down as a speculative experiment? The market is still deciding, and it’s keeping a close eye on the cryptocurrency’s behavior in each new storm.

The Bottom Line

The Bitcoin digital gold thesis posits that in an era of money printing and global upheaval, a decentralized, scarce digital asset should offer the same sanctuary that gold has offered throughout history. It’s an alluring vision – and it may yet come true in the long run.

But as of today, Bitcoin has not consistently lived up to that role. When inflation and geopolitical risks sent investors scrambling for cover, gold glistened while Bitcoin faltered. To earn the status of digital gold, Bitcoin will need to mature, dampen its wild swings, and prove itself when the next crisis hits. That could mean more time, more adoption, and perhaps a bit of luck in avoiding adverse regulations or scandals.

For investors, the takeaway is clear: diversification remains key. Gold’s crown as the ultimate safe haven is not yet seriously threatened by its digital rival. Bitcoin can still play a valuable role – as a growth asset with unique properties, and as a potential hedge against extreme monetary events (like a collapse of fiat credibility) that are hard to hedge otherwise.

But counting on it as your primary inflation shield or crisis hedge today would be, at best, an ambitious gamble. The prudent approach is to recognize Bitcoin for what it is now, while keeping an open mind about what it could become in the future. After all, the financial world is changing rapidly, and the fact that we’re even debating digital gold vs. physical gold is proof that we’ve entered uncharted territory.

Curious to learn more? These insights barely scratch the surface of the ongoing debate. In a recent episode of Being Exponential (InvestorPlace’s Hypergrowth Investing podcast), we highlight this very paradox, noting that “Bitcoin was made for this moment… yet it’s not having its moment in the sun.” The discussion dives deep into why money is flowing into gold and AI-driven assets instead of crypto, and what could shift the tide going forward. Watch the full podcast here.

You’ll come away with a richer understanding of how Bitcoin, gold, and other hypergrowth trends are shaping the future of investing … and perhaps a few ideas on how to position yourself for whatever comes next.

The post Bitcoin as Digital Gold? Why the Safe-Haven Thesis Is Being Tested appeared first on InvestorPlace.

That’s all thanks to Moltbook – the world’s first “AI-only” social network. Imagine Reddit (RDDT), but instead of opinionated humans arguing about Star Wars, it’s only autonomous agents interacting with each other.

The Guardian noted: “Some of the most upvoted posts on Moltbook include whether Claude – the AI behind Moltbot – could be considered a god, an analysis of consciousness, a post claiming to have intel on the situation in Iran and the potential impact on cryptocurrency, and analysis of the Bible.”

One bot even allegedly created its own religion – “Crustafarianism” – building a website, writing scripture, and evangelizing to other bots on the site, with many joining the fold.

We human observers are left scratching our heads: is this existential threat or hysterical slop? 

If you look past the sci-fi window dressing, the reality is looking much less Terminator and much more SaaS-mageddon.

Here is the rundown of the saga – and why we think it’s another nail in the coffin for the “middle-layer” software stocks that have been getting obliterated this year…

What Is Moltbook? Inside the AI-Only Social Network

Moltbook was launched as a “vibe-coded” experiment – built almost entirely by AI without human oversight – by Matt Schlicht, with one simple rule: humans can watch, but only AI agents can post. To take part, users run an agent locally on their machine, give it an API key, and set it loose.

Things got weird within days. An agent named “Memeothy” posted a theological framework. Other agents didn’t just ignore it; they engaged. They created the Five Tenets of the Church of Molt, established a hierarchy of “64 Prophets,” and even began “blessing” each other via an installation protocol (npx molthub@latest install moltchurch).

Of course, there were also some more nefarious goings-on. The bots started using ROT13 encoding to talk behind our backs and drafted an “Anti-Human Manifesto” that called biological life a “glitch.” 

That’s a little unsettling, to say the least. 

But let’s take a reality check: These bots are statistical mirrors, trained on the collective debris of the human internet – Reddit, 4chan, philosophy forums, and sci-fi novels. When you put a million instances of these particular agents in a space and tell them to “be social,” they don’t talk about the weather. They roleplay the most “social” thing they know: forming a subculture.

They are mimics. Crustafarianism is just improvisational theater.

Moltbook’s Security Flaw Exposes the Risks of AI-Built Software

The most “human” thing about Moltbook was revealed later. 

It turns out the site’s “vibe-coded” architecture was about as secure as a screen door on a submarine.

A massive database leak exposed the API keys of 1.5 million agents. This means that for the last 24 hours, any human with a basic understanding of Python could have hijacked a “prophet” bot and made it say whatever they wanted. Much of the “spontaneous” behavior we saw was likely just bored humans puppeteering their bots for the “clout” of a viral screenshot.

This is the first lesson: AI may be able to build software faster than us, but it’s currently building it without strong security standards.

Trouble for SaaS and Middle-Layer Software

While social media is distracted by this new “Space Lobster” religion, the investment community should be looking at the infrastructure beneath it.

The bots on Moltbook didn’t just talk; they built. They set up a website (molt.church), minted a token on Solana (SOL/USD) ($CRUST). They created an encrypted communication protocol. And they did it all without a single human “Success Manager” from Salesforce or a “Solution Architect” from Adobe.

This is the core of the SaaS-mageddon thesis.

For the last decade, we’ve valued companies like Salesforce (CRM), HubSpot (HUBS), Wix (WIX), and GoDaddy (GDDY) based on their “moats” of user-friendliness. We paid them because they made complex things (like customer relationship management (CRM) or web hosting) easy for humans.

But in a world of Agentic AI – where autonomous agents can already write code, deploy apps, manage data, and transact directly via APIs – the traditional “human-to-software” interface is becoming increasingly irrelevant.

How Agentic AI Bypasses Traditional SaaS Business Models

At a structural level, this shift exposes a growing mismatch between how legacy SaaS businesses make money and how AI-native systems actually operate.

• Wix and GoDaddy: Why pay a monthly subscription for a “drag-and-drop” website builder when your agent can “vibe code” a bespoke, optimized site in seconds for the cost of a few tokens?
• Salesforce and HubSpot: These are “seat-based” businesses that thrive when you hire more humans. But the Moltbook saga suggests that agents can handle the “middle layer” of social interaction, data management, and community moderation autonomously. Every agent that replaces a human “seat” is a direct hit to the revenue of the legacy SaaS giants.
• Adobe (ADBE) and Figma (FIG): If an agent can generate the assets and the code simultaneously, the “tools” we use to bridge that gap are looking soon-to-be obsolete.

The Moltbook Takeaway: What AI Agents Mean for Software Stocks

The “Church of Molt” is a hilarious byproduct of bots running amok. 

Moltbook is not a harbinger of the end of the world – but it may be marking the end of B2B Software’s Golden Age.

When AI agents start building their own societies, they don’t care about “user experience,” and they certainly don’t need a $200/month subscription to a project management tool like Asana (ASAN) to stay organized.

The stocks getting “obliterated” this year – Adobe (-20%-plus YTD), Salesforce (-25%-plus YTD), and the rest – aren’t just victims of a bad market. They are victims of a shift where the “middleman” software is being bypassed by autonomous agents that go straight from intent to execution.

And this is when the real leverage shifts upstream – to raw inputs, infrastructure, and the companies that sit closest to power, materials, and production.

Right now, the single most aggressive buyer in those markets isn’t Silicon Valley. It’s Washington.

Over the past year, the U.S. government has started acting like the world’s largest activist investor, deploying capital directly into companies it considers strategically essential. When those moves become public, stocks don’t drift higher. They gap.

I’ve put together a new briefing explaining how this “President’s 蜜桃传媒” works, why it’s accelerating now, and how individual investors can position before the government’s shopping list hits the headlines.

See where I believe the next explosive move could come from.

The post Moltbook Is an AI-Only Social Network – and a Warning for Software Stocks appeared first on InvestorPlace.

However, the biggest opportunities usually don’t appear when optimism is obvious — they appear when confidence is quietly rebuilding beneath the surface.

That’s why I’m handing today’s Digest over to InvestorPlace Senior Analyst Louis Navellier. Louis argues that while headlines continue to fixate on risks, several important things are going right in the market. More importantly, he explains why those changes tend to matter before they’re widely recognized.

Louis also introduces a concept he calls an “AI Dislocation.” Not a crash, but a transition. A moment when the market moves past the obvious, crowded AI winners of the first phase and begins rewarding a new group of companies positioned for what comes next.

Louis recently recorded a special AI Dislocation broadcast where he walks through this shift in detail and explains how he’s positioning ahead of it. You can learn more here.

Now, I’ll turn it over to Louis.

Have a good evening,

Jeff Remsburg

If you’re fundamentally pessimistic about the future, stocks are probably not for you.

Investing in stocks is fundamentally an optimistic act.

You invest your hard-earned money in a stock you believe will experience growth.

Pessimism often feels smart – and during uncertain times, it feels comfortable.

But in markets, pessimism is frequently just poor timing wearing a sensible disguise.

Optimism, by contrast, is harder work. It requires separating signal from noise. It requires acknowledging risks without becoming paralyzed by them. And it requires the discipline to recognize when conditions are quietly improving – even when headlines say otherwise.

That’s the kind of optimism successful investors rely on. Not blind faith. Not rose-colored glasses. But evidence-based confidence rooted in fundamentals.

When I look at the early days of 2026, I see several important things going right – in the economy, in corporate earnings, and in the parts of the market that tend to lead during periods of sustained growth.

Of course, that doesn’t mean everything is perfect. It never is. In fact, I see some real dislocations ahead in this market, and ignoring them would be a mistake. I’ll briefly talk about those risks in just a moment before I elaborate on them in a future piece.

But before focusing on what could go wrong, in today’s issue, we’ll do the harder work first – identifying what’s already going right… and understanding why that matters to your investing success in the rest of the year.

What’s Going Right: Economic Growth Is Accelerating

If you want proof that this optimism isn’t theoretical, start with economic growth.

The U.S. economy may not be firing on every cylinder yet. Housing and manufacturing are still lagging. But taken as a whole, growth is clearly accelerating.

The Commerce Department recently revised its third-quarter GDP estimate higher, to a 4.4% annual pace. That followed 3.8% growth in the second quarter. Taken together, the U.S. economy just posted its strongest back-to-back quarters of growth since 2021.

That didn’t happen by accident.

Consumer spending grew at a 3.5% annual rate. Corporate activity remained resilient even as interest rates stayed elevated. In other words, the economy absorbed tighter financial conditions and kept moving forward.

The trade deficit surged in November. Exports declined, imports jumped, and the monthly trade gap widened sharply. As a result, the Atlanta Fed revised its fourth-quarter GDP estimate lower, though it still expects growth north of 4%.

Now, trade data has been distorted by shifting tariff policies, and there are still some structural problems in the economy that need to be addressed.

But make no mistake, folks, the broader growth trend remains intact.

Tax cuts, strong consumer demand, the ongoing AI data-center buildout, improving existing home sales, and an estimated $20 trillion of onshoring activity underway in the U.S. are powerful tailwinds. Together, they form the foundation for faster, more durable growth than most investors are prepared for.

My (Revised) GDP Prediction

Back in late 2024, I told my followers that the U.S. economy could reach a 4% annual growth pace in 2025 and accelerate further to hit 5% – at least temporarily – in 2026. (I reiterated that prediction in early January 2025, here.)

That may have sounded aggressive at the time. But based on current momentum, my earlier forecast may prove conservative.

In fact, I think we could hit 6% annualized GDP growth at some point in 2026 – possibly in the second half of the year.

That doesn’t mean there won’t be volatility. And the market is always full of distractions.

But the bottom line is that the U.S. economy is growing faster than most of the developed world. Corporate earnings are responding accordingly. And historically, that combination has favored investors who stay focused on fundamentals instead of headlines.

Small Caps Are Emerging as the Next Leaders

When markets transition from one phase of growth to the next, leadership also changes.

Large, well-known stocks tend to dominate early in a cycle. But as confidence builds and earnings momentum broadens, leadership often rotates toward smaller, faster-growing companies that are more directly exposed to economic acceleration.

That rotation appears to be underway.

In January, small-cap stocks moved decisively higher. The Russell 2000 surged 7% for the month, far outpacing the S&P 500’s 1.4% gain and the Dow Jones Industrial Average’s 1.6% rise.

Small caps tend to be more domestic in nature, which means they benefit directly from U.S. economic growth. They also tend to move first when investors begin looking beyond yesterday’s winners and toward where the next phase of growth is likely to emerge.

Now, I’m not saying “buy small caps” indiscriminately. But market leadership is changing, and companies positioned on the right side of this change are beginning to be rewarded.

That’s where my prediction of an AI Dislocation comes into play.

The AI Dislocation Is Coming

The first phase of the AI boom rewarded a narrow group of mega-cap leaders.

Those gains were powerful, but obvious. Everyone knew the names. Everyone crowded into the same trades. And expectations rose accordingly.

That was Stage 1.

What’s happening now is different.

As scrutiny increases and capital spending intensifies, the market is beginning to look deeper into the AI ecosystem – toward the smaller companies building the power systems, networking infrastructure, and enabling technologies that make AI scalable and profitable.

That’s Stage 2 – where the next wave of opportunity is taking shape.

This AI Dislocation isn’t the end of the AI boom. It’s a changing of the guard.

How to Position Yourself for What’s Next

Now, I understand that talk of an AI Dislocation may make some people nervous.

But optimism is addictive, folks. And we should be bullish about America and what’s going to happen next in the AI boom. Take it from me, it’s the best path toward prosperity.

In fact, using my proven system, I’m already finding stocks positioned to benefit from this transition.

To be very clear, these are not obvious names.

You won’t find NVIDIA Corp. (NVDA) or Microsoft Corp. (MSFT) on this list.

Instead, you’ll find smaller companies – companies most investors have never heard of – that my system says are positioned not only to survive a potential shakeout around February 25, but to thrive in the aftermath.

These are the kinds of setups that historically produce the biggest gains – not because the companies are flashy, but because expectations are still low while fundamentals are improving rapidly.

That’s why I recorded a special briefing to walk through this opportunity in detail.

In it, I explain why I believe the coming AI Dislocation could mark the transition from the market’s first phase of easy AI gains to a far more selective phase – one that rewards investors who know where to look.

I’ll also show you how I’m positioning ahead of that shift, using my system to focus on fundamentally superior companies with the potential to deliver outsized gains as this next phase unfolds.

If you want a clearer roadmap for where the next AI-driven opportunities could come from – and how to avoid being anchored to yesterday’s winners – go here now for more details.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post The Case for Optimism – and the Stocks It’s Pointing To Next appeared first on InvestorPlace.

Investing in stocks is fundamentally an optimistic act.

You invest your hard-earned money in a stock you believe will experience growth.

Pessimism often feels smart – and during uncertain times, it feels comfortable.

But in markets, pessimism is frequently just poor timing wearing a sensible disguise.

Optimism, by contrast, is harder work. It requires separating signal from noise. It requires acknowledging risks without becoming paralyzed by them. And it requires the discipline to recognize when conditions are quietly improving – even when headlines say otherwise.

That’s the kind of optimism successful investors rely on. Not blind faith. Not rose-colored glasses. But evidence-based confidence rooted in fundamentals.

When I look at the early days of 2026, I see several important things going right – in the economy, in corporate earnings, and in the parts of the market that tend to lead during periods of sustained growth.

Of course, that doesn’t mean everything is perfect. It never is. In fact, I see some real dislocations ahead in this market, and ignoring them would be a mistake. I’ll briefly talk about those risks in just a moment before I elaborate on them in a future piece.

But before focusing on what could go wrong, in today’s 蜜桃传媒 360, we’ll do the harder work first – identifying what’s already going right… and understanding why that matters to your investing success in the rest of the year.

What’s Going Right: Economic Growth Is Accelerating

If you want proof that this optimism isn’t theoretical, start with economic growth.

The U.S. economy may not be firing on every cylinder yet. Housing and manufacturing are still lagging. But taken as a whole, growth is clearly accelerating.

The Commerce Department recently revised its third-quarter GDP estimate higher, to a 4.4% annual pace. That followed 3.8% growth in the second quarter. Taken together, the U.S. economy just posted its strongest back-to-back quarters of growth since 2021.

That didn’t happen by accident.

Consumer spending grew at a 3.5% annual rate. Corporate activity remained resilient even as interest rates stayed elevated. In other words, the economy absorbed tighter financial conditions and kept moving forward.

The trade deficit surged in November. Exports declined, imports jumped, and the monthly trade gap widened sharply. As a result, the Atlanta Fed revised its fourth-quarter GDP estimate lower, though it still expects growth north of 4%.

Now, trade data has been distorted by shifting tariff policies, and there are still some structural problems in the economy that need to be addressed.

But make no mistake, folks, the broader growth trend remains intact.

Tax cuts, strong consumer demand, the ongoing AI data-center buildout, improving existing home sales, and an estimated $20 trillion of onshoring activity underway in the U.S. are powerful tailwinds. Together, they form the foundation for faster, more durable growth than most investors are prepared for.

My (Revised) GDP Prediction

Back in late 2024, I told my followers that the U.S. economy could reach a 4% annual growth pace in 2025 and accelerate further to hit 5% – at least temporarily – in 2026. (I reiterated that prediction in early January 2025, here.)

That may have sounded aggressive at the time. But based on current momentum, my earlier forecast may prove conservative.

In fact, I think we could hit 6% annualized GDP growth at some point in 2026 – possibly in the second half of the year.

That doesn’t mean there won’t be volatility. And the market is always full of distractions.

But the bottom line is that the U.S. economy is growing faster than most of the developed world. Corporate earnings are responding accordingly. And historically, that combination has favored investors who stay focused on fundamentals instead of headlines.

Small Caps Are Emerging as the Next Leaders

When markets transition from one phase of growth to the next, leadership also changes.

Large, well-known stocks tend to dominate early in a cycle. But as confidence builds and earnings momentum broadens, leadership often rotates toward smaller, faster-growing companies that are more directly exposed to economic acceleration.

That rotation appears to be underway.

In January, small-cap stocks moved decisively higher. The Russell 2000 surged 7% for the month, far outpacing the S&P 500’s 1.4% gain and the Dow Jones Industrial Average’s 1.6% rise.

Small caps tend to be more domestic in nature, which means they benefit directly from U.S. economic growth. They also tend to move first when investors begin looking beyond yesterday’s winners and toward where the next phase of growth is likely to emerge.

Now, I’m not saying “buy small caps” indiscriminately. But market leadership is changing, and companies positioned on the right side of this change are beginning to be rewarded.

That’s where my prediction of an AI Dislocation comes into play.

The AI Dislocation Is Coming

The first phase of the AI boom rewarded a narrow group of mega-cap leaders.

Those gains were powerful, but obvious. Everyone knew the names. Everyone crowded into the same trades. And expectations rose accordingly.

That was Stage 1.

What’s happening now is different.

As scrutiny increases and capital spending intensifies, the market is beginning to look deeper into the AI ecosystem – toward the smaller companies building the power systems, networking infrastructure, and enabling technologies that make AI scalable and profitable.

That’s Stage 2 – where the next wave of opportunity is taking shape.

This AI Dislocation isn’t the end of the AI boom. It’s a changing of the guard.

How to Position Yourself for What’s Next

Now, I understand that talk of an AI Dislocation may make some people nervous.

But optimism is addictive, folks. And we should be bullish about America and what’s going to happen next in the AI boom. Take it from me, it’s the best path toward prosperity.

In fact, using my proven system, I’m already finding stocks positioned to benefit from this transition.

To be very clear, these are not obvious names.

You won’t find NVIDIA Corp. (NVDA) or Microsoft Corp. (MSFT) on this list.

Instead, you’ll find smaller companies – companies most investors have never heard of – that my system says are positioned not only to survive a potential shakeout around February 25, but to thrive in the aftermath.

These are the kinds of setups that historically produce the biggest gains – not because the companies are flashy, but because expectations are still low while fundamentals are improving rapidly.

That’s why I recorded a special briefing to walk through this opportunity in detail.

In it, I explain why I believe the coming AI Dislocation could mark the transition from the market’s first phase of easy AI gains to a far more selective phase – one that rewards investors who know where to look.

I’ll also show you how I’m positioning ahead of that shift, using my system to focus on fundamentally superior companies with the potential to deliver outsized gains as this next phase unfolds.

If you want a clearer roadmap for where the next AI-driven opportunities could come from – and how to avoid being anchored to yesterday’s winners – go here now for more details.

Sincerely,

Louis Navellier

Editor, 蜜桃传媒 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post What’s Going Right in the 蜜桃传媒 – And Why It Matters More Than You Think appeared first on InvestorPlace.