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Tag: Investors

  • Vanguard slashes fees; expects its investors will save $350 million in 2025


    (Reuters) – Asset manager Vanguard said on Monday it was lowering the cost of investing across its fund lineup in its largest cut ever and estimated that this would translate into savings of more than $350 million for its investors this year.

    Valley Forge, Pennsylvania-based Vanguard slashed the expense ratio, or the cost of owning a mutual fund or exchange-traded fund, between one and six basis points across 87 of its funds, effective Feb. 1.

    The fee cut will lower costs across its bond mutual funds, ETFs, U.S. equity, international equity and money market funds.

    “The reductions will save Vanguard’s investors more than $350 million in 2025 alone, the largest annual expense ratio reduction in Vanguard’s nearly 50-year history,” the company said.

    “Lower fees mean fund investors can keep more of their returns and a competitive edge for our funds,” said Greg Davis, Vanguard’s chief investment officer.

    Chief Executive Officer Salim Ramji, who took over the mantle in July, laid out plans last year to expand the firm’s fixed-income offering, given the market’s size and opportunities.

    “Lower costs enable investors to keep more of their returns, and those savings compound over time,” Ramji said.

    Bonds were poised to play a crucial role in investors’ portfolios, according to Davis.

    Founded by Jack Bogle in 1975, the company has about $10.4 trillion in assets under management as of Nov. 30, 2024.

    Vanguard and larger rival BlackRock are the world’s largest providers of ETFs – low-cost products aimed at retail investors looking for an inexpensive way to invest in the biggest global markets.

    Vanguard offered 428 funds worldwide as of Dec. 31, 2024, with 212 of these in the United States.

    It has lowered investing costs more than 2,000 times since its founding, the company said.

    (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Pooja Desai)



    Vanguard, one of the world’s largest investment management companies, has announced that it will be slashing fees on its funds in an effort to save its investors an estimated $350 million by 2025.

    This move comes as part of Vanguard’s ongoing commitment to providing low-cost investment options for its clients. The company has long been known for its low fees compared to other investment firms, and this latest fee reduction is expected to further benefit Vanguard’s investors.

    By lowering fees, Vanguard hopes to help its clients achieve their financial goals more efficiently and effectively. The $350 million in savings over the next few years is expected to make a significant impact on investors’ portfolios and overall financial well-being.

    Vanguard’s decision to reduce fees demonstrates its dedication to putting investors first and providing them with the best possible investment options. This move is sure to be welcomed by Vanguard clients who are always looking for ways to maximize their returns and minimize their costs.

    Tags:

    1. Vanguard
    2. Fee reduction
    3. Cost savings
    4. Investment fees
    5. Financial news
    6. Vanguard investment
    7. Expense ratio
    8. Investor savings
    9. Mutual funds
    10. Financial planning

    #Vanguard #slashes #fees #expects #investors #save #million

  • Nvidia Stock Investors Just Got Good News From Meta Platforms and Microsoft


    China’s DeepSeek recently published a research paper that shocked Wall Street. The startup company claims it spent less than $6 million to train an artificial intelligence (AI) model whose performance matches or nearly matches that of leading U.S. models. Comparatively, OpenAI spent more than $100 million on its GPT-4 model.

    Nvidia (NVDA -4.72%) stock declined sharply on the news. Its market value fell nearly $600 billion in a single day, the largest daily loss by any listed company in history. The logic behind the crash is straightforward: If DeepSeek built a good AI model for less money, U.S. companies can use the same training methods to achieve similar efficiencies.

    Consequently, investors are worried U.S. companies would spend less than anticipated on Nvidia GPUs, which are usually the most expensive line item in AI infrastructure budgets. But the market may have overreacted. Nvidia shareholders just got good news from Meta Platforms (META -0.18%) and Microsoft (MSFT -1.26%), two of its largest customers.

    Read on to learn more.

    Good news from Meta Platforms: CEO Mark Zuckerberg views heavy investments in AI as a strategic advantage

    Meta Platforms CFO Susa Li told analysts on the fourth-quarter earnings call that capital expenditures would increase as much as 66% to $65 billion in 2025 to support its generative AI efforts and core business. That represents a material acceleration from the 39% increase in capital expenditures last year.

    CEO Mark Zuckerberg also provided context, telling analysts Meta’s ability to spend heavily on AI is going to be a “strategic advantage” over time. He also said more efficient training methods do not necessarily reduce the need for AI chips. Instead, he sees recent breakthroughs as an opportunity to apply more computing power to inference workloads to “generate a higher level of intelligence and a higher quality of service.”

    Good news from Microsoft: CEO Satya Nadella says demand will increase exponentially as AI becomes more affordable

    Not to be outdone by DeepSeek, Microsoft CEO Satya Nadella said on the latest earnings call: “We ourselves have been seeing significant efficiency gains in both training and inference for years now. On inference, we have typically seen more than 2x price-performance gain for every hardware generation and more than 10x for every model generation due to software optimizations.”

    However, Nadella thinks the consequences will be favorable for Nvidia. “As AI becomes more efficient and accessible, we will see exponentially more demand,” he told analysts on the call. Nadella also posted on X: “Jevons paradox strikes again! As AI gets more efficient and accessible, we will see its use skyrocket.”

    A semiconductor overlaid with the American and Chinese flags.

    Image source: Getty Images.

    What the Jevons paradox means for Nvidia

    In the 1860s, economist William Stanley Jevons argued that the technological advancements that made coal a more efficient energy source paradoxically created more demand for coal. Put differently, Jevons believed the cost reductions arising from the greater price performance of coal were more than offset by the resultant increase in spending.

    When applied to Nvidia, the Jevons paradox means more efficient AI training methods will ultimately drive more demand for AI software and services. In turn, the cost savings arising from improved price performance of GPUs may be more than offset by the resultant increase in demand for those AI processors.

    Indeed, since DeepSeek published its report, Morgan Stanley analysts have upwardly revised their capital expenditure estimates, such that AI infrastructure spending among the four biggest hyperscalers — Amazon, Alphabet, Meta, and Microsoft — is projected to increase 32% to $317 billion in 2025, up from 28%. And that figure could increase further after Amazon and Alphabet report financial results this week.

    Importantly, other Wall Street analysts seem to be thinking along similar lines. Despite the DeepSeek news, Nvidia still has a median target price of $175 per share among the 67 analysts who follow the company. That implies 45% upside from its current share price of $120.

    Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



    Nvidia stock investors just received some positive news from two tech giants, Meta Platforms and Microsoft. Both companies recently announced partnerships with Nvidia, which is expected to drive growth for the semiconductor company.

    Meta Platforms, formerly known as Facebook, revealed that it will be using Nvidia’s chips to power its artificial intelligence (AI) infrastructure. This move is significant as Meta Platforms is one of the largest tech companies in the world, and its endorsement of Nvidia’s technology could open up new opportunities for the company.

    Additionally, Microsoft also announced that it will be using Nvidia’s chips in its Azure cloud computing platform. This partnership is expected to enhance the performance and capabilities of Microsoft’s cloud services, further solidifying Nvidia’s position in the industry.

    Overall, these partnerships signal a vote of confidence in Nvidia’s technology and products, which bodes well for investors. With two major tech companies backing Nvidia, the stock is likely to see increased demand and potential for growth in the future. Investors should keep an eye on these developments as they could have a positive impact on Nvidia’s stock price in the coming months.

    Tags:

    1. Nvidia stock
    2. Investor news
    3. Meta Platforms
    4. Microsoft
    5. Stock market update
    6. Tech industry
    7. Investment opportunities
    8. Nvidia stock price
    9. Meta Platforms news
    10. Microsoft stock analysis

    #Nvidia #Stock #Investors #Good #News #Meta #Platforms #Microsoft

  • Schwab U.S. Dividend Equity ETF Should Be on Every Income Investor’s Radar


    There is a huge temptation for income-focused investors to buy the highest-yielding stocks in an effort to boost the cash they generate from their portfolios. Anyone who has done this likely knows that buying based on yield alone can end up with you buying poorly run companies and result in diminished returns through often painful dividend cuts.

    This helps make an exchange-traded fund (ETF) like Schwab U.S. Dividend Equity ETF (SCHD -1.11%) so interesting. Here’s why this income-focused ETF should be on your radar today.

    What does Schwab U.S. Dividend Equity ETF do?

    The very first thing that Schwab U.S. Dividend Equity ETF does when creating its portfolio is to limit its pool of stocks to just those that have 10 or more annual dividend increases behind them. (Real estate investment trusts are excluded from consideration.) This is a fairly stiff bar that only strong and consistent business can surpass. And it sets the stage for an approach that deftly attempts to balance yield with company quality.

    Four hands holding puzzle pieces together.

    Image source: Getty Images.

    The second step for Schwab U.S. Dividend Equity ETF is to create a composite score for each company in its investable pool. The metrics used to create this score include cash flow to total debt, return on equity, dividend yield, and a company’s five-year dividend growth rate. Cash flow to total debt is a financial strength measure, return on equity is a measure of company quality, and dividend growth and yield are both income-related factors.

    The scores are ranked from best to worst, and the 100 companies with the best scores get into the portfolio. The portfolio is weighted by market capitalization, so the largest companies have the biggest impact on performance. Like most ETFs, the portfolio is re-examined on a regular basis (yearly), so it always has the best investment candidates in the portfolio. You get all of this for a fairly small expense ratio of 0.06%.

    SCHD Chart

    SCHD data by YCharts

    Why is Schwab U.S. Dividend Equity ETF so attractive?

    The simple reason why Schwab U.S. Dividend Equity ETF is a great income option is that it basically does exactly what you would do when looking for a dividend stock. Who wouldn’t want to own financially strong companies with good businesses that have high yields?

    That said, the screens are more restrictive than simply picking the highest-yielding stocks. So the ETF’s yield is around 3.6%. That’s well above the 1.2% offered up by the S&P 500 index, but there are plenty of other ETFs out there with higher yields.

    You might even want to buy some of those higher-yielding ETFs, too. But you’ll probably want the foundation of your portfolio to focus on financially strong companies with good businesses. This is what Schwab U.S. Dividend Equity ETF provides in a single investment and why it should be a core holding for dividend investors.

    Given that it updates its portfolio annually, meanwhile, you never have to worry about it straying too far from its approach of picking good companies with attractive dividend yields. The best selection of dividend stocks will be packed into the ETF every year.

    SCHD Dividend Yield Chart

    SCHD Dividend Yield data by YCharts

    However, don’t make the mistake of thinking that Schwab U.S. Dividend Equity ETF is only for ETF investors. You can use this as a foundation on which to build an individual stock portfolio, too. Just make sure that you aren’t unknowingly doubling up on investments that may be in the ETF’s portfolio (unless that’s what you want to do).

    Schwab U.S. Dividend Equity ETF is a buy and long-term hold

    It isn’t often that investment options as attractive as Schwab U.S. Dividend Equity ETF come along. And sometimes when they do show up, they get bid up to the point where they are no longer attractive. But because of the nature of exchange-traded funds, that can’t happen with Schwab U.S. Dividend Equity ETF.

    The key is to understand the approach this dividend ETF takes and, if you see the value on offer, buy it and hold it forever. And don’t worry too much about the timing of your purchase, especially if you are still in the process of building your nest egg. If that’s the case, you should probably just keep putting money into the ETF whenever you can so you can benefit from the long-term appeal of its investment approach.



    As an income investor, it’s crucial to have a diversified portfolio that includes dividend-paying stocks. One way to achieve this is by adding the Schwab U.S. Dividend Equity ETF to your radar.

    This ETF offers exposure to high-quality U.S. companies that have a consistent track record of paying dividends. With a low expense ratio and a solid performance history, the Schwab U.S. Dividend Equity ETF is a great option for investors looking to generate passive income through dividends.

    By including this ETF in your portfolio, you can benefit from the potential for capital appreciation while also receiving regular dividend payments. This can help you build a steady stream of income over time, making it a valuable addition to your investment strategy.

    Overall, the Schwab U.S. Dividend Equity ETF is a reliable option for income investors looking to diversify their portfolios and generate passive income through dividends. Make sure to keep this ETF on your radar as you continue to build and grow your investment portfolio.

    Tags:

    Schwab U.S. Dividend Equity ETF, income investing, dividend investing, ETF investing, investment strategy, income generation, dividend stocks, dividend ETFs, Schwab ETFs, passive income, financial planning, wealth building, income portfolio, stock market, dividend yields, investment opportunities

    #Schwab #U.S #Dividend #Equity #ETF #Income #Investors #Radar

  • Investors weigh Trump tariffs on global partners


    U.S. Treasury yields were mixed on Monday as investors weighed U.S. President Donald Trump’s new tariffs on goods from key trade partners and their impact on the economy.

    The 10-year Treasury yield was down about 6 basis points at 4.508%, while the 2-year Treasury yield was up less than 1 basis point at 4.245%.

    One basis point is equal to 0.01%, and yields and prices move in opposite directions.

    Investors are weighing the impact of tariffs on trade partners, with Trump signing an executive order on Saturday imposing 25% tariffs on imports from Mexico and Canada and a 10% duty on China. The U.S. does roughly $1.6 trillion in business with the three countries.

    Canada has responded by threatening its own tariffs on the U.S., while Mexico is looking to impose levies on U.S. goods, and the Chinese government is filing a lawsuit with the World Trade Organization.

    Investors can also expect a slew of manufacturing and jobs data through the week. The S&P Global US Manufacturing PMI and the Manufacturing ISM report will both be published on Monday and will offer insights into the health of the manufacturing sector.

    On Tuesday, the Job Openings and Labor Turnover Survey, referring to all open positions on the last business day of the month, will be released. Investors will also monitor speeches from Federal Reserve Bank of Atlanta President Raphael Bostic and Fed Bank of San Francisco President Mary Daly.

    The January nonfarm payrolls report will be out on Friday and will provide clarity about the employment picture for 2025. Economists polled by Dow Jones forecast that 175,000 jobs were added last month, while the unemployment rate is predicted to have remained unchanged at 4.1%.



    Investors around the world are closely monitoring the potential impact of President Trump’s tariffs on global partners. With escalating trade tensions between the US and countries like China, Mexico, and the European Union, uncertainty in the markets is growing.

    The imposition of tariffs on goods imported from these countries has already led to retaliatory measures, sparking fears of a potential trade war. Investors are concerned about the potential ripple effects on supply chains, consumer prices, and economic growth.

    As the situation continues to unfold, investors are carefully evaluating their portfolios and considering the potential risks and opportunities that may arise from these tariffs. Many are also looking for ways to hedge against the volatility in the markets.

    It remains to be seen how these trade tensions will be resolved and what impact they will have on the global economy. In the meantime, investors are bracing themselves for a bumpy ride as they navigate the uncertain waters of international trade policy under the Trump administration.

    Tags:

    1. Trump tariffs
    2. Global partners
    3. Trade war
    4. Investment decisions
    5. Economic impact
    6. International trade
    7. Tariff negotiations
    8. Stock market analysis
    9. Trade policy
    10. Financial markets

    #Investors #weigh #Trump #tariffs #global #partners

  • Altcoins to guide investors through market waves


    Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

    XYZVerse and other altcoins emerge with the potential to offer investors a steady course through market waves.

    Market downturns can wipe out gains and shake investor confidence. Yet, some cryptocurrencies defy the odds and thrive even in bearish times. Discover which altcoins could keep portfolios in the green.

    XYZVerse

    Step into the big leagues with XYZ, a VIP ticket to a game-changing blend of sports fandom and meme coin magic. XYZVerse isn’t just a project – it’s the MVP of a meme-fueled ecosystem, giving degens and investors a chance to capitalize on the rising demand for meme coins in a whole new way.

    Altcoins to guide investors through market waves - 1

    Polymarket raked in $1 billion in trading volume during the US election. Now, supercharge that with the viral energy of meme coins and the thrill of sports betting. With millions of fans ready to play, XYZVerse is primed for exponential growth.

    Crowned with the title of best new meme project, XYZVerse has proven its dominance in the meme coin arena. This recognition is just the beginning of its journey to becoming the undisputed champion of the GameFi sector.

    With upcoming listings on top-tier CEX and DEX platforms, audited smart contracts, and a trusted team leading the charge, XYZ is built to win. Its first-mover advantage ensures its users are ahead of the crowd.

    Solana

    Unlike its competitors, Solana avoids complex solutions like sharding or second-layer protocols. Instead, it offers a high-capacity network that can handle a large number of transactions quickly. This makes it attractive for developers building dApps that need high performance. The SOL coin sits at the heart of this ecosystem, enabling transactions, running custom programs, and rewarding network supporters.

    In the current market, Solana stands out due to its robust technology and the growing interest in scalable blockchain solutions. While Ethereum faces challenges with congestion and high fees, Solana’s network offers faster transactions and flexibility across multiple programming languages.

    Avalanche

    Avalanche is a Layer-1 platform capable of handling 4,500 transactions per second, finalizing operations in under two seconds. Avalanche uses a unique hybrid consensus mechanism that blends classical and Nakamoto principles, enhancing both speed and security. 

    Another standout feature for Avalanche is the ability for users to create customizable subnets, offering flexibility and scalability. AVAX plays a central role, settling transaction fees, network security through staking, and powering these subnets.

    In today’s market, Avalanche’s blend of speed, affordability, and environmental consciousness sets it apart. The utility of AVAX also gives it a unique edge. As the demand for efficient and sustainable blockchain solutions grows, AVAX could become increasingly attractive.

    Usually, smart contracts can only use data from the blockchain. Chainlink changes this by connecting them to external sources like APIs and systems. The platform works through oracles, which fetch data, check accuracy, and deliver to smart contracts securely. This makes smart contracts more powerful, as they can interact with events and data outside the blockchain.

    Chainlink’s LINK token is used to reward those who provide reliable data, helping to keep the network secure and decentralized. With the growing need for smart contracts that can work with real-world data, Chainlink’s role becomes even more important.

    Polkadot

    Polkadot is a decentralized protocol that enables secure communication between diverse blockchains. By using parachains, Polkadot boosts speed and scalability, handling transactions much faster than traditional blockchains.

    In the current market cycle, Polkadot stands out with its promise of interconnected and efficient blockchains. While Bitcoin and Ethereum laid the groundwork, Polkadot addresses their limitations by enhancing interoperability and performance. As the demand for faster and more versatile blockchain solutions grows, Polkadot’s approach positions it as an attractive option in the crypto landscape.

    Conclusion

    While SOL, AVAX, LINK, and DOT are solid choices, XYZVerse offers a unique meme coin uniting sports fans, aiming for massive growth in the current bull run.

    To learn more about XYZVerse, visit their website, Telegram, or X.

    Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.



    Navigating the volatile cryptocurrency market can be a daunting task, especially with the rise of altcoins. Altcoins, or alternative coins, are any cryptocurrency other than Bitcoin. With thousands of altcoins available, it can be overwhelming to determine which ones are worth investing in.

    Here are a few tips to help guide investors through the market waves of altcoins:

    1. Do your research: Before investing in any altcoin, it’s important to thoroughly research the project, team, technology, and community behind it. Look for whitepapers, roadmaps, and community forums to gain a better understanding of the altcoin.

    2. Diversify your portfolio: Instead of putting all your eggs in one basket, consider diversifying your portfolio with a mix of different altcoins. This can help spread out your risk and potentially increase your chances of success.

    3. Stay updated on market trends: The cryptocurrency market is constantly evolving, so it’s important to stay updated on market trends, news, and developments. Follow reputable sources and stay informed on any regulatory changes that may impact the altcoin market.

    4. Set realistic goals: When investing in altcoins, it’s important to set realistic goals and expectations. Remember that the market can be highly volatile, and prices can fluctuate rapidly. Be prepared for potential losses and don’t invest more than you can afford to lose.

    5. Consider long-term investment strategies: Instead of trying to time the market, consider adopting a long-term investment strategy for altcoins. This can help reduce the impact of short-term market fluctuations and potentially increase your returns over time.

    By following these tips, investors can navigate the market waves of altcoins with more confidence and make informed decisions when investing in cryptocurrency. Remember to always do your own research and consult with a financial advisor before making any investment decisions.

    Tags:

    1. Altcoins investment tips
    2. Crypto market analysis
    3. Top altcoins for investors
    4. Navigating market volatility with altcoins
    5. Altcoin investment strategies
    6. Altcoin market trends
    7. Diversifying with altcoins
    8. Altcoin trading guide
    9. Maximizing profits with altcoins
    10. Altcoin investment opportunities

    #Altcoins #guide #investors #market #waves

  • What Investors Need to Know


    Palantir Technologies Inc. (PLTR) closed the most recent trading day at $81.22, moving +1.83% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.25%.

    Shares of the company have appreciated by 5.46% over the course of the past month, outperforming the Business Services sector’s gain of 3.28% and the S&P 500’s gain of 1.24%.

    The investment community will be closely monitoring the performance of Palantir Technologies Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on February 3, 2025. In that report, analysts expect Palantir Technologies Inc. to post earnings of $0.11 per share. This would mark year-over-year growth of 37.5%. Meanwhile, our latest consensus estimate is calling for revenue of $777.49 million, up 27.8% from the prior-year quarter.

    Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Palantir Technologies Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.

    Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

    The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.82% higher. Palantir Technologies Inc. is holding a Zacks Rank of #2 (Buy) right now.

    In terms of valuation, Palantir Technologies Inc. is presently being traded at a Forward P/E ratio of 165.13. This indicates a premium in contrast to its industry’s Forward P/E of 23.71.

    We can additionally observe that PLTR currently boasts a PEG ratio of 4.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Technology Services industry had an average PEG ratio of 1.6 as trading concluded yesterday.

    The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 35% echelons of all 250+ industries.



    Investing can be a great way to grow your wealth and achieve financial independence, but it’s important to understand the risks and rewards involved. Here are some key things that investors need to know before diving into the world of investing:

    1. Risk tolerance: Before making any investment decisions, it’s important to assess your risk tolerance. How much volatility can you handle in your investments? Are you comfortable with the possibility of losing money in the short term for the potential of higher returns in the long term?

    2. Investment goals: What are you investing for? Are you saving for retirement, a down payment on a house, or just looking to grow your wealth over time? Your investment goals will help determine your investment strategy and time horizon.

    3. Diversification: Diversification is key to reducing risk in your investment portfolio. By spreading your investments across different asset classes, industries, and geographic regions, you can minimize the impact of any one investment performing poorly.

    4. Investment vehicles: There are many different types of investment vehicles available to investors, including stocks, bonds, mutual funds, ETFs, real estate, and more. Each investment vehicle comes with its own risks and potential rewards, so it’s important to do your research and choose investments that align with your goals and risk tolerance.

    5. Fees and expenses: When investing, it’s important to be aware of the fees and expenses associated with your investments. High fees can eat into your returns over time, so it’s important to choose investments with low fees whenever possible.

    6. Market volatility: The stock market can be volatile, with prices fluctuating on a daily basis. It’s important to stay informed about market trends and economic indicators that can impact your investments.

    7. Long-term mindset: Investing is a long-term game, and it’s important to have a patient mindset when it comes to your investments. Trying to time the market or make quick profits can often lead to poor investment decisions.

    By keeping these key points in mind, investors can make informed decisions and build a strong investment portfolio that aligns with their financial goals. Remember, investing is a marathon, not a sprint, so patience and discipline are key to long-term success.

    Tags:

    investing tips, investment strategies, financial advice, stock market advice, wealth management, money management, investment opportunities, investment portfolio, financial planning, investment tips for beginners

    #Investors

  • Intel’s revenue forecast disappoints as investors await new CEO


    (Reuters) -Intel’s first-quarter revenue forecast on Thursday missed analyst estimates, as the chipmaker grapples with tepid demand for traditional data center chips and declining share in the key personal computer market.

    Shares of the Santa Clara, California-based company fell close to 2% in volatile extended trading. Last year, Intel’s shares lost about 60%.

    As the chipmaker undergoes a historic transition and attempts to emerge from one of its bleakest periods, it has also struggled to cash in on a boom in investment in advanced AI chips – a market led by Nvidia.

    In its quarterly report after the bell, Intel said it expects first-quarter revenue of $11.7 billion to $12.7 billion, compared with analysts’ average estimate of $12.87 billion according to data compiled by LSEG.

    Companies looking to capitalize on generative AI technology have prioritized spending on specialized AI processors that can churn huge amounts of data, crimping demand for the traditional server processors that Intel sells.

    The company’s outlook “reflects seasonal weakness magnified by macro uncertainties, further inventory digestion and competitive dynamics,” interim co-CEO and chief financial officer David Zinsner said in a statement.

    Intel last year scrapped a 2024 forecast that it would sell over $500 million worth of its new AI processors, named Gaudi, suggesting they struggled to compete against Nvidia’s chips.

    On an adjusted, per-share basis, Intel forecast it would break-even for the current quarter. Analysts expect adjusted profit of 9 cents per share.

    It is spending heavily to become a contract manufacturer of chips for other companies, leading some investors to worry about pressure on its cash flows.

    Former CEO Pat Gelsinger was ousted last month, leaving two temporary co-CEOs at the helm and shrouding Intel’s turnaround strategy in uncertainty.

    Intel reported fourth-quarter revenue fell 7% from a year earlier to $14.26 billion, beating estimates of $13.81 billion.

    The PC market – Intel’s largest by revenue share – saw global shipments rise only modestly last year, underperforming analysts’ expectations of a strong rebound after months of declines.

    The company has also been losing share in the PC and server CPU market to rival AMD, a trend analysts expect to continue into 2025.

    (Reporting by Arsheeya Bajwa in Bengaluru and Max Cherney in San Francisco; Editing by David Gregorio)



    Intel’s revenue forecast disappoints as investors await new CEO

    Investors were left disappointed as Intel’s revenue forecast fell short of expectations, signaling potential challenges ahead for the semiconductor giant. The company’s revenue forecast for the upcoming quarter came in at $18.2 billion, missing analyst estimates of $18.55 billion.

    The underwhelming forecast comes as Intel continues its search for a new CEO, following the departure of former chief executive Bob Swan earlier this year. The company has been facing increased competition from rivals such as AMD and Nvidia, as well as ongoing supply chain issues.

    Investors are eagerly awaiting the appointment of a new CEO, hoping that fresh leadership will help steer the company back on track. Intel has been struggling with production delays and has faced criticism for falling behind in the race to develop cutting-edge chip technology.

    Despite the disappointing forecast, Intel remains a key player in the semiconductor industry and has a strong track record of innovation. The company is expected to announce its new CEO in the coming months, with many hoping that the new leadership will bring a renewed sense of direction and growth to the company.

    Tags:

    Intel, revenue forecast, investors, new CEO, financial news, stock market, technology company, business update, earnings report

    #Intels #revenue #forecast #disappoints #investors #await #CEO

  • Stock Markets Drop as Investors Worry About DeepSeek and China’s A.I. Advances


    Stock markets fell sharply on Monday, dragged down by fears that advances in artificial intelligence by Chinese upstarts could threaten the moneymaking power of American technology giants.

    The Chinese A.I. company DeepSeek has made waves by matching the capabilities of cutting-edge chatbots while using a fraction of the specialized computer chips that leading A.I. companies rely on. That has made investors rethink the large returns they are expecting on the heady valuations of chipmakers like Nvidia, whose equipment powers the most advanced A.I. systems, as well as the enormous investments that companies like Google, Meta and OpenAI are making to build their A.I. businesses.

    Premarket trading implied steep declines for U.S. markets when they open, with futures for the S&P 500 slumping more than 2 percent and the tech-heavy Nasdaq dropping about 4 percent. Tech stocks also dragged down markets in Europe and Japan.

    The pain was concentrated at companies at the forefront of the A.I. boom, including the multitrillion-dollar behemoths that drove the largest back-to-back annual gains for U.S. markets since the 1990s.

    Nvidia was down more than 5 percent in premarket trading, a move that erases more than $100 billion in market value. Other chipmakers like AMD and semiconductor equipment specialists like ASML also recorded substantial declines.

    “Even if DeepSeek does not maintain its current level of popularity, this development serves as a reminder that competition in the global A.I. arena is intensifying, and Nvidia may not be in the pole position forever,” Charu Chanana, chief investment strategist at Saxo Bank, wrote in a research note.

    Shares of Meta, which last week announced a big jump in its spending plans for data centers, the huge warehouses of computers that power artificial intelligence, fell more than 3 percent in premarket trading. Microsoft, which has also bet heavily on A.I., fell nearly 5 percent premarket. Oracle, which is a partner in a joint venture with OpenAI and SoftBank unveiled at an event with President Trump last week, fell more than 8 percent. SoftBank’s stock also shed more than 8 percent of its value in Tokyo.

    The moves cast a cloud over the tech giants as Meta, Microsoft and others prepare to present their latest quarterly earnings this week. Looking past their bumper profits in the past, analysts could aim pointed questions at executives about financial prospects in the future under stiffer global competition.

    (The New York Times has sued OpenAI and its partner, Microsoft, claiming copyright infringement of news content related to A.I. systems. The two tech companies have denied the suit’s claims).

    The turmoil also hit the stocks of utility companies that have opened new lines of business serving the voracious power needs of data centers. Constellation Energy fell more than 10 percent in premarket trading.

    Mr. Trump has promised to accelerate the production of American-made A.I. to compete against China for global leadership in the technology. On Thursday, he signed an executive order aimed at “removing barriers” to the development of artificial intelligence. As the U.S. government works to maintain the country’s lead in the A.I. race, it is trying to limit the number of powerful chips, like those made by Nvidia, that can be sold to China and other rivals.

    While acknowledging the potential of DeepSeek’s systems, analysts at Bernstein noted that their “initial reaction does not include panic.” Any computing capacity freed up by more efficient A.I. systems would be absorbed by fast-growing demand, they said: “We are still going to need, and get, a lot of chips.”



    The stock markets took a hit today as investors expressed concerns over the rapid advancements in artificial intelligence technology, particularly in China. The news of DeepSeek, a cutting-edge A.I. system developed by Chinese researchers, has led to fears of increased competition and potential disruptions in various industries.

    The implications of China’s growing dominance in the A.I. sector have sparked worries about the future of global economic stability. As DeepSeek continues to demonstrate its capabilities in various fields, from finance to healthcare, investors are grappling with the uncertainty of how this will impact their investments.

    The escalating tensions between the U.S. and China over technological supremacy have only added to the market jitters, with fears of a potential A.I. arms race further fueling the sell-off.

    As the stock markets continue to fluctuate in response to these developments, it is clear that the intersection of technology and finance is becoming increasingly intertwined. Investors will need to closely monitor the progress of A.I. advancements and their potential implications on the global economy in the coming weeks.

    Tags:

    1. Stock markets
    2. Investors
    3. DeepSeek
    4. China
    5. A.I. advances
    6. Market drop
    7. Economic concerns
    8. Financial news
    9. Global economy
    10. Stock market analysis

    #Stock #Markets #Drop #Investors #Worry #DeepSeek #Chinas #A.I #Advances

  • Investors look to Fed meeting, inflation data


    U.S. Treasury yields fell on Monday as investors sought out safe-haven assets amid a massive stock market sell-off.

    The 10-year Treasury yield slipped eight basis points to 4.54%, while the 2-year Treasury yield was last trading at 4.208% after falling more than six basis points.

    One basis point equals 0.01% and yields move inversely to prices.

    U.S. stock futures tumbled on Monday, with Nasdaq 100 futures being especially hit by a large decline in the technology sector.

    Last week, Chinese AI startup DeepSeek released an open source AI model that reportedly outperformed OpenAI’s in several tests. The company said it launched the large-language model in December for less than $6 million, causing investors to question the billions of dollars they have spent to build and train AI models.

    Elsewhere, investors are gearing up for a busy week, with the Fed set to announce its next monetary policy decision at its January meeting on Wednesday.

    The Fed is facing pressure from newly inaugurated President Donald Trump, who said he expects to see interest rates come down during a keynote address at the World Economic Forum in Davos, Switzerland, last week.

    “I’ll demand that interest rates drop immediately,” Trump said at the forum, speaking to an audience of global leaders. “And likewise, they should be dropping all over the world. Interest rates should follow us all over.”

    However, traders are pricing in a more than 99% chance that the Fed will leave interest rates unchanged, according to the CME Group’s FedWatch tool. At its December meeting, the Fed penciled in only two interest rate cuts in 2025.

    Investors will also await the release of the personal consumption expenditures price index for December on Friday — the Fed’s preferred inflation gauge — which will offer fresh insights into the health of the U.S. economy.



    As investors eagerly await the outcome of the Federal Reserve’s latest meeting and the release of key inflation data, the financial markets are on edge. With concerns mounting over rising prices and the potential impact on interest rates, all eyes are on the central bank for guidance on future monetary policy.

    The Fed’s meeting this week is expected to provide insight into how policymakers plan to address inflationary pressures and whether they will consider raising interest rates sooner than anticipated. Inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI), will also play a crucial role in shaping market sentiment.

    Investors are hoping for clarity and reassurance from the Fed on its approach to managing inflation while supporting economic growth. Any hints of a more hawkish stance could lead to increased market volatility, while dovish comments may provide a sense of stability.

    As the Fed meeting and inflation data loom large, investors are bracing for potential market fluctuations and adjusting their portfolios accordingly. Stay tuned for updates on how these key events will impact the financial markets.

    Tags:

    investors, Fed meeting, inflation data, financial markets, economic indicators, Federal Reserve, interest rates, stock market, investment strategies, market trends, monetary policy, economic outlook

    #Investors #Fed #meeting #inflation #data

  • Microsoft Stock Investors: 1 Very Important Artificial Intelligence (AI) Number to Watch Next Week


    A new quarterly earnings season is now underway in corporate America. Next week, we will hear from some of the “Magnificent Seven” technology companies, which collectively represent almost one-third of the value of the entire S&P 500 (SNPINDEX: ^GSPC). Wall Street will be particularly focused on their progress in the artificial intelligence (AI) space, because that could be a big source of their future earnings.

    On Jan. 29, Microsoft (MSFT -0.59%) will report results for its fiscal 2025 second quarter, which ended Dec. 31. Investors will be paying a great deal of attention to how well the company is monetizing its growing portfolio of AI products and services, but there is one number that could be more important than the rest.

    The Microsoft logo on a black background.

    Image source: Getty Images.

    Microsoft will provide updates on several AI products

    Microsoft has made huge investments in ChatGPT creator OpenAI, and it has used the start-up’s technology to fuel its own AI ambitions. For example, OpenAI’s models form part of the foundation of Microsoft’s Copilot virtual assistants, which are now embedded for free in flagship software products like the Windows operating system, the Bing search engine, the Edge internet browser, and more.

    Subscribers to Microsoft’s 365 productivity suite can also add Copilot to their plans for an additional monthly fee, allowing them to rapidly generate text and images in apps like Word, Excel, and PowerPoint. Organizations around the world pay for more than 400 million 365 licenses for their employees, and all of them are potential subscribers to Copilot.

    During the company’s fiscal 2025 first quarter, which ended Sept. 30, Microsoft said 70% of the Fortune 500 were using Copilot for 365 already, and the number of people using it daily had more than doubled from three months earlier. Investors should keep an eye out for further updates next week, because this could be a major source of new revenue for Microsoft.

    But details about the Azure cloud platform will likely headline Microsoft’s quarterly report once again, and Azure AI will be a big reason why. Azure has become a preferred platform for businesses seeking to deploy AI because it offers them computing power via state-of-the-art data centers, and ready-made large language models (LLMs) from leading third-party providers like OpenAI. Those are two of the key ingredients required to build AI software.

    The number that investors need to watch

    Azure has regularly been the fastest-growing segment of Microsoft’s entire organization. During the fiscal first quarter, its revenue jumped by 33% year over year — more than double Microsoft’s overall revenue growth rate of 16%.

    Azure AI is becoming an important contributor to Azure’s overall growth. It was responsible for 12 percentage points of Azure’s 33% revenue growth during the first quarter, which was a record high. In the year-ago period, Azure AI contributed just 5 percentage points to Azure’s top-line result.

    A chart showing Microsoft Azure's revenue growth, and the contribution from Azure AI.

    Microsoft allocated $20 billion to capital expenditures during the fiscal 2025 first quarter, most of which went toward building AI-capable data centers. That followed a staggering $55.7 billion in capex during fiscal 2024.

    The revenue generated by Azure AI is one way for investors to measure the return Microsoft is seeing on that enormous spending. For example, if Azure AI continues to contribute an increasing amount of Azure’s growth, then it’s a positive indication that businesses are ramping up their spending on AI processing capacity and LLMs.

    Why Microsoft’s AI bets need to pay off

    Microsoft stock currently trades at a price-to-earnings (P/E) ratio of 35.4, which is a 7.5% premium to its 10-year average of 32.9. It’s also a premium to the tech-heavy Nasdaq-100 index, which includes Microsoft’s big-tech peers and currently has a P/E ratio of 32.5.

    MSFT PE Ratio Chart

    MSFT PE Ratio data by YCharts.

    In other words, Microsoft stock isn’t cheap right now. Its massive spending on AI infrastructure is taking a bite out of its earnings, so investors might be hesitant to support its elevated valuation if they aren’t seeing clear benefits from those outlays each quarter.

    For example, if Azure AI’s contribution to Azure’s growth begins to decline, that could flip investor sentiment on its head and trigger a correction in Microsoft stock. That’s why I think it’s the single most important number for investors to watch on Jan. 29.

    Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



    As investors in Microsoft stock, it’s important to keep a close eye on key metrics that can impact the company’s performance. One crucial number to watch next week is Microsoft’s artificial intelligence (AI) revenue.

    With Microsoft heavily investing in AI technologies and solutions, the growth of its AI revenue can provide valuable insights into the company’s future prospects. As AI continues to play a significant role in various industries, including cloud computing, cybersecurity, and productivity tools, Microsoft’s success in this space can drive long-term growth and profitability.

    By monitoring Microsoft’s AI revenue numbers, investors can gauge the company’s ability to capitalize on the growing demand for AI solutions and stay ahead of competitors in this rapidly evolving market. Keep a close eye on this important AI metric next week to stay informed about Microsoft’s performance and potential opportunities for investment.

    Tags:

    Microsoft stock, investors, artificial intelligence, AI, important number, stock market, tech industry, investment, data analysis, financial forecast, AI technology, Microsoft Corporation, stock trading, market trends, predictive analytics, stock performance.

    #Microsoft #Stock #Investors #Important #Artificial #Intelligence #Number #Watch #Week

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