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Costco Wholesale (COST -0.78%) is not only one of America’s favorite retailers. It’s also been a top retail stock to own over its history.

Over the last decade, it’s up 570%, easily outpacing the S&P 500‘s increase of 240%, and most investors would argue that Costco is lower-risk than the broad-based index. After all, the retailer is a classic defensive stock. As a consumer staples company, it sells primarily products that people need, like groceries, paper products, and health and beauty products. It’s also known for its buy-in-bulk bargain prices, which attract consumers in both good times and bad.

Costco has actually underperformed the market this year as it’s up just 4% through Sept. 19, pulling back from its recent peak. Is this a buying opportunity for the retail giant? Let’s take a look at the arguments to buy, sell, or hold Costco.

Image source: Getty Images.

Buy Costco

Costco is one of the most, if not the most, reliable retailers in the industry. It’s the leader in the membership-based warehouse retail sector, well ahead of competitors like BJ Wholesale and Walmart‘s Sam’s Club.

Costco regularly ranks among the top in customer satisfaction among retailers, and it has a strong renewal rate, at 93% in fiscal 2024 in North America and 90.5% globally.

Costco’s business model has also proven to be rock-solid in any market, and its low prices keep customers coming back. The company makes most of its net income through membership fees, essentially selling goods at near-cost to incentivize buying memberships.

That’s created a wide economic moat as it has grown its membership base by about 10% annually in recent years. Costco is also continuing to open new stores, expanding its footprint in the U.S. and internationally. Given the demand for new stores, as well as its growth in e-commerce, Costco’s growth runway appears to be longer than it is for most large retailers.

And given the stability of its business, Costco is a great bet to deliver steady growth, which is why it trades at a premium.

Additionally, Costco also has a track record of paying special dividends every three years or so, rewarding shareholders.

Sell Costco

Costco’s results speak for themselves. The company has a long track record of delivering steady same-store sales growth and expanding profits.

However, Costco’s growth seems to be generously priced into the stock at this point as it trades at a price-to-earnings ratio of 54, which is more expensive than about any other brick-and-mortar retailer.

Costco trades at a premium in part because the business is so reliable, but the stock’s growth has been driven over the years by multiple expansion, rather than just earnings growth. A stock can’t grow like that forever, and that might explain why Costco has underperformed the S&P 500 this year.

A good business alone isn’t enough of a reason to buy a stock. It has to trade at a good value as well.

Hold Costco

Costco is a classic buy-and-hold stock. While it could go through ups and downs according to market trends and company-specific events, it has a business model that should continue to endure despite pressure from e-commerce or potential economic turmoil.

Given the balance between the success of the business and the high valuation, holding the stock makes sense.

What’s the verdict?

Under normal circumstances, there’s a good argument for Costco being a long-term buy, but the stock is expensive enough, at double the price-to-earnings ratio of the S&P 500, that there’s better value to find elsewhere.

Holding Costco looks like the best option now. While it could underperform the market in the short or even medium term, it still looks like a winner over the long term.

Intel (INTC -2.59%) just had one of its best days in years, with its stock price surging after Nvidia (NVDA 3.70%) revealed it would take a $5 billion stake in the chipmaker and partner on new products. The stock price is now up about 50% on the year.

While the market loved the deal, it is worth taking a closer look at what this deal really means for Intel and whether this is a true turning point or just a short-term jolt.

Image source: Getty Images.

Why Nvidia is partnering with Intel

The collaboration between Nvidia and Intel appears largely aimed at rival Advanced Micro Devices (AMD 1.73%). AMD’s central processing units (CPUs) have been steadily taking share from Intel in both the data center and computer segments. Meanwhile, the company has started to fuse its graphics processing units (GPUs) and CPUs together, which is a direct challenge to Nvidia. However, thus far, most of its success in this area has been in gaming and computers and not in artificial intelligence (AI).

Nonetheless, Nvidia does not appear content to just dominate the massive data center market, and with this collaboration, it will look to address the laptop market as well. It also looks to stave off any advantages that AMD may gain in the data center market with a combined GPU/CPU chip, especially as the market moves more toward inference.

As such, the companies will look to combine Intel CPUs with Nvidia GPUs connected by NVLink, giving laptop buyers an integrated option that is much more powerful. Intel will also build custom x86 CPUs for Nvidia’s rack-scale servers, making Nvidia a major customer for its chips. That is a big win for Intel, given how much share it has lost to AMD in the data center over the past five years. For Nvidia, this is about making sure AMD doesn’t gain too much ground with its own combined CPU/GPU solutions.

While the $5 billion investment is a drop in the bucket for Nvidia, it does matter for Intel. Intel has been burning through cash trying to scale its foundry business and build new fabs in the U.S. and Europe. Its foundry operating losses were $3.2 billion last quarter, worse than a year ago.

The Nvidia capital injection, along with $9 billion from the U.S. government and $2 billion from SoftBank, gives Intel a $16 billion war chest to keep investing without wrecking its balance sheet. It also signals to the market that Nvidia sees Intel as too important to fail. The company may be a competitor in some markets, but Nvidia apparently wants a strong CPU partner to keep AMD from getting too much leverage in the CPU market.

Is Intel’s stock a buy?

Despite the stock’s huge jump, there are still plenty of risks with the Intel story. Intel’s core PC business remains soft, with client computing revenue down 3% year over year last quarter. Its data center and AI segment revenue grew just 4%, which was far behind the booming numbers from Nvidia and even AMD.

And while the company says its product roadmaps remain on track, its recent history is not good, with the company often missing deadlines or even scrapping products. In addition, Nvidia said that it is not giving up on the CPUs it has been developing with Arm Holdings.

Intel’s money-losing foundry business is also an issue, and it does not sound like Nvidia is riding to the rescue with regard to this part of its business. Nvidia has made clear that it is not moving away from Taiwan Semiconductor Manufacturing as its primary manufacturing partner. Intel doesn’t have the expertise or scale of TSMC, so Nvidia is still very reliant on the foundry leader.

While the partnership with Nvidia is a positive, it doesn’t solve all of Intel’s problems. It still needs to prove it can execute and that all the money it’s pouring into its foundry business will pay off. Gaining Nvidia as a foundry customer likely would have been a bigger deal, but that was not the case.

Meanwhile, after the jump in its stock price this year, the stock is no longer in the bargain bin. As such, I wouldn’t chase the rally.

It’s the classic deserted desert island scenario: I have to pick just one stock that I would buy today and then hold forever. I can’t move the goalposts by picking an exchange-traded fund (ETF) and I’m not planning to build a portfolio around this name.

It’s just one stock, and it will be my only investment for all time. All alone.

Mind you, I don’t recommend actually doing this with real money. Diversification matters, and no stock is absolutely risk-free. This is just a fun little thought experiment.

That being said, I could imagine entrusting my life savings to Amazon (AMZN 0.23%) today. Here’s how Jeff Bezos’ empire earned this rare honor.

I’m almost cheating — Amazon is like an ETF in disguise

If I can’t diversify my single-stock holding with an ETF, I’ll go with a leader across many different industries instead. Amazon fits the bill to perfection:

• With $137 billion of second-quarter sales, Amazon is a world-leading e-commerce titan.

• The Amazon Web Services (AWS) division didn’t exactly invent cloud computing, but it was an early provider in that field and remains a top name today. In the second quarter of 2025, AWS sales landed at $30.9 billion.

• Within the AWS envelope, you’ll find Amazon in several distinct positions of leadership. AWS is a top choice for artificial intelligence (AI) services, both on the systems training and real-time AI operations sides. Amazon’s digital advertising platform proved its worth on September 10 when it won the Netflix (NFLX 1.59%) ad-selling contract in 11 key markets.

• The massive e-commerce business requires a world-class shipping infrastructure, and Amazon is reselling these services to other online retailers nowadays.

That’s an online shopping portal, the world’s largest cloud computing service, top-notch advertising and AI services, and a winning physical logistics business — all wrapped in a single stock. That’s a pretty respectable single-business impersonation of a truly diversified investment portfolio.

When corporate synergy actually works

Amazon’s conglomerate structure comes with some unique benefits, too. Let’s play some buzzword bingo! Here are a few examples of corporate synergy with material benefits:

• AWS started as a little side gig, trying to make some money from the online infrastructure Amazon had installed and wasn’t always using. Now, it’s the other way around — any time Amazon’s retail business needs a digital tool (web server space, AI support, data analytics, ad-tech innovation…) AWS is the obvious in-house choice.

• Profits collected in the incredibly lucrative AWS division can be deployed in other projects. The shipping infrastructure saw massive expansion in the 2020-2022 era, for example. This push would not have been possible without the AWS segment’s booming profits.

• Amazon’s advertising platform benefits from the enormous bank of transaction data in the company’s own retail operations.

• The Prime customer loyalty program has become the digital glue that holds Amazon’s growth drivers together. Come for the free one-day shipping, stay for the award-winning Prime Video shows or the Echo/Alexa smart home system. Or, you know, the other way around.

The Prime directive: Borrowing brilliance from Costco

Speaking of Prime, by the way, that’s Amazon borrowing a page out of the Costco Wholesale (COST -0.05%) playbook. Costco’s operations would lose money without its membership program. With it, you make Costco shoppers more likely to choose that store (because I’m paying for that precious card anyway) while generating a rich stream of nearly pure profit.

Amazon uses Prime in a similar fashion — unlocking synergies and collecting profits as a direct result.

Image source: Getty Images.

Wrapping up this trillion-dollar thought experiment

If you’re skipping to the final chapter of my Amazon analysis, here’s the short version.

I expect Amazon to remain a business leader for decades to come. It’s among the 5 most valuable businesses today, measured by market cap, and I see no reason why that would change in the long run.

This little trillion-dollar stock should serve me well on that hypothetical desert island.

Starbucks (SBUX 1.46%) is a household name. But the business hasn’t worked out well for investors. The share price is down 4% in the past five years (as of Sept. 18). This is due to ongoing struggles that are hitting the company’s financials, which management is trying to fix.

This restaurant stock trades 34% below its record high. But if things start improving, perhaps Starbucks can win over investors in the long run.

If you buy shares with $10,000 in 2025, will you become a millionaire in 10 years?

Image source: Starbucks.

Trying to turn things around

Starbucks hired former CEO of Chipotle Brian Niccol a year ago to fix things at the coffeehouse chain. Starbucks has been struggling, as its brand took a hit from customers’ perception about the company’s political stance. And customers weren’t happy with aspects of the store and ordering experience, like longer wait times, high prices, and a complex menu. It’s not surprising that disappointing financial results caused the stock to perform poorly.

Niccol’s notable success running the Tex-Mex fast-casual chain could help Starbucks. Key initiatives include investing more into employees to improve the customer experience. Starbucks will also simplify the menu.

The finances are still out of order, though. Same-store sales, one of the most important metrics for restaurants, declined 2% in the latest fiscal quarter (Q3 2025 ended June 29). This was the sixth straight quarter that a fall was recorded. Until this figure starts growing again, investors have every right to be concerned.

The overarching goal is to again make Starbucks a top destination for customers. A successful turnaround will take time. But there is optimism. “We’re building back a better Starbucks experience and a better business,” Niccol said during the company’s Q3 results.

Dominating the retail coffee market

Starbucks currently sports a market cap of $94 billion, a size deserving of respect. Early investors must be pleased. Since the company’s initial public offering in 1992, shares have put up a 32,850% total return (as of Sept. 18). During the same period of time, the S&P 500 has produced a total return of 3,010%.

This business dominates the industry. As of June 29, there were 41,097 Starbucks locations scattered across the globe. While the company has a presence seemingly everywhere, its two biggest markets, the U.S. and China, combined represent 61% of its store footprint.

There are still reasons to appreciate this business. It has one of the most recognizable brands on the face of the planet. And it’s consistently profitable. In the past five years, it has posted an average operating margin of 13.5%.

The business has been well ahead of other restaurants and retailers when it comes to integrating technology into its operations. The Starbucks Rewards program (similar to what is offered today) was created in 2009, and it now has 34 million 90-day active members in the U.S. This gives management a valuable channel to communicate directly with customers, while collecting data that informs product and marketing strategies.

Should you buy Starbucks?

The consensus view among Wall Street sell-side analysts is that Starbucks’ revenue will increase at a compound annual rate of 5.5% between fiscal 2024 and 2027, while earnings per share will grow at a yearly clip of 0.8%. This weaker outlook, coupled with an expensive price-to-earnings ratio of 35.8, doesn’t present a compelling opportunity.

Investors are better off avoiding buying Starbucks. There’s a lot of risk right now, as it could take time for the financial picture to improve. If the valuation becomes more attractive, then that perspective could shift.

Investors also should not expect the business to turn a $10,000 starting capital outlay into $1 million in a decade. This is an extremely low-probability outcome, as it’s an unbelievable gain in a short period of time. It’s best to focus your attention on building a diversified portfolio of high-quality stocks.

There are lots of reasons to like PepsiCo (PEP 0.77%) as a possible investment for your long-term portfolio. One of the best reasons is its generous dividend yield — recently at 4.1%. That yield is far above the S&P 500‘s recent yield of just 1.2%, and better still, it’s a payout that’s been growing at a good clip — an annual average of more than 7% over the past decade.

But wait — there’s more! Its payout ratio — the percentage of earnings paid out in dividends — was recently quite reasonable, too, at 67%. That leaves plenty of room for further growth. (PepsiCo has upped its dividend for 53 years in a row!)

Image source: Getty Images.

Many people might imagine PepsiCo as mainly a beverage business, but they’d be wrong. It’s very much a snack business, too, with brands such as Lay’s, Doritos, Cheetos, and Quaker alongside Gatorade, Pepsi-Cola, Mountain Dew, and SodaStream. PepsiCo has a new pending acquisition, too, of the prebiotic soda brand Poppi.

PepsiCo’s stock looks appealing at recent levels, with a forward-looking price-to-earnings (P/E) ratio of 16.5, well below the five-year average of 21.9. The low valuation is due to the stock having slumped in recent years, as it tries to adapt to changing tastes. It’s doing so, including via the Poppi acquisition, and it’s cutting costs, too.

Chairman and CEO Ramon Laguarta recently noted:

As we look ahead, we will continue to build upon the successful expansion and growth of our International business and accelerate initiatives to improve our North America business performance. These initiatives include more portfolio innovation and cost optimization activities that aim to stimulate growth and profitability. As a result, for fiscal 2025, we remain confident in our ability to deliver low-single-digit organic revenue growth…

This could be a great time to snag some shares if you’re bullish on PepsiCo’s long-term potential.

It wasn’t a big surprise that Federal Reserve Chairman Jerome Powell cut interest rates at the Fed’s September meeting on Wednesday. In July, he implied in no uncertain terms that a rate cut was coming, and the likelihood was that it was going be a quarter of a point. That’s what has happened. The governing body also signaled that two more cuts would come at its next two meetings, in October and December.

Powell noted that there are mixed signals in the economy, which made it a difficult decision. Normally, the Fed keeps rates high until inflation backs down, and right now, inflation is higher than the Fed wants it to be. Nonetheless, the once-strong job market is beginning to falter, and a reduction in interest rates should stimulate the economy and employment opportunities.

A more active economy with more jobs and money flowing is great news for most businesses, and some companies will feel the change more acutely. Visa (V 1.19%), SoFi Technologies (SOFI 4.96%), and Carnival (CCL -2.86%) (CUK -2.67%), are three stocks that should benefit in a big way.

Image source: Getty Images.

1. Visa: The best indicator of spending habits

Visa is the largest credit card company in the world, and its performance tells the story of the economy to some degree. Because it’s a credit card network, its processed volume is a strong indication of how people are spending. And because it targets a wide range of demographics, its message is fairly universal.

The purpose of cutting interest rates is to boost the economy, and Visa is a major beneficiary of higher spending. Visa’s core business is providing the network, or infrastructure, that moves money from a customer’s partnering bank to a merchant, taking a small cut of each transaction. Although it has branched out to other services, they mostly center around different ways of moving money. More money flowing means more money for Visa.

It has been performing well despite the higher interest rates. In the 2025 fiscal third quarter (ended June 30), revenue increased 14% year over year, and payments volume was up 8%. It’s highly profitable, since it has a simple, low-cost model, and net income increased 8% over last year in the quarter.

Lower interest rates should further boost Visa’s earnings, benefiting this Warren Buffett-backed stock. Visa is a solid long-term investment, offering value to most portfolios.

2. SoFi: A young bank disruptor

Banks have a two-sided relationship with interest rates. They make more money on net interest income when rates are higher, but they also suffer from higher default rates because consumers struggle to pay back loans. They also take out loans at lower rates for that reason, and altogether, banks usually do better with lower rates.

That goes for the industry as a whole, but I’m picking SoFi in particular partly because of its large lending segment, and partly because it’s growing much faster than almost any other bank, which means it stands to gain a lot from an improving economy.

SoFi is a neobank, a cadre of digital banks that have no physical branches and offer a modern take on financial management. In addition to student, personal, and home loans, it offers a broad array of standard banking services and typically beats out national averages on savings rates for deposits.

It also offers non-standard services like cryptocurrency trading on its app, and it recently said it would offer international money transfers on a Blockchain network. That could offer real value, since sending money internationally is often a complicated, expensive, and long process.

SoFi’s lending segment struggled last year when interest rates were at a high, and it has already benefited from lower rates with accelerated revenue growth and better credit metrics. Even lower rates should help all of its segments, which, aside from lending, include financial services, like bank accounts and investing, and tech platform, which is a business-to-business financial infrastructure.

As it becomes a larger and more formidable player in finance, it should be able to weather future uncertainty even better.

3. Carnival: Great performance, high debt

Carnival is sailing through smooth seas as customers continue to sign up for its cruises. Demand is at historical highs, operating income is at a record, and the company is ordering new ships and launching new destinations to meet all of this demand.

There’s only one kink in the business: it has massive debt. It’s been paying it off responsibly, but it’s still more than $27 billion. This year, it has refinanced $7 billion at better rates, saving millions on interest. It will now be able to refinance more of its debt at lower rates.

Outside of the debt, the investment thesis for Carnival is strong. It’s the largest global cruise operator, and demand has stayed healthy despite high inflation. That’s resiliency.

Carnival stock is still cheap today due to the concerns about the debt, but as it pays it down and becomes more profitable, expect the stock to keep climbing.

Is your portfolio in need of a new growth name? Perhaps a stock that hasn’t raced to a nosebleed valuation thanks to the advent of artificial intelligence? They’re out there. You just have to dig a little deeper to find them, pushing through all the noise being created by the market’s most popular names right now.

One of these hidden gems is a young company called Upstart Holdings (UPST -0.27%). Here’s what it does and why you should consider it now.

What’s Upstart?

You may already be familiar with Upstart, but if you’ve only recently stumbled across this name, here’s the deal. In simplest terms, Upstart is a new kind of credit bureau.

In their infancy, established credit bureaus like Equifax, TransUnion, and Experian did their job well enough with the tools available at the time. All three of them were launched before the advent of the internet, while two of them were created before the invention of anything that might even be considered something akin to a modern-day computer. Verifying an individual’s income and manually keeping track of any late or missed payments back then was actually a pretty impressive achievement.

Image source: Getty Images.

Data storage and information-sharing technology have obviously changed for the better in the meantime. The traditional credit bureaus’ approach to determining credit scores, however, hasn’t. All of them still assign quantified scores to criteria like someone’s payment history, current indebtedness, income, and how old that consumer‘s credit history is.

But there’s now a better way. Using an artificial intelligence algorithm that considers more than 1,600 data points about each and every individual, Upstart can do what traditional credit bureaus simply can’t. That’s come up with a hyper-accurate picture of someone’s actual creditworthiness. And it can do so in a matter of seconds, delivering that information to a potential lender via the internet at any time of day.

Honestly, it’s surprising someone didn’t do it before former Google executive and current CEO Dave Girouard launched the company back in 2012 with fellow former Google executive Anna Counselman and statistical science expert Paul Gu.

Whatever the case, shareholders have been well-rewarded since the company’s initial public offering back in December of 2020. The stock’s up more than 240% from its IPO price of $20, and more than 50% above its first trade on a public exchange.

This is still just the beginning, though. There’s still a ton of upside potential left to tap.

Three reasons to buy Upstart stock

There are several compelling reasons to dive into a stake in Upstart here. But three stand out and are bullish enough in and of themselves.

1. The technology works

It’s not just a meaningless solution to a problem that doesn’t exist. The algorithm works. Upstart’s platform allows for 43% more loan approvals than conventional credit bureaus do. And, one-third of the loans it prompts are made at a lower interest rate than would have been offered through a more traditional approval approach. It’s a win for consumers as well as lenders, not to mention the middlemen that benefit when a would-be borrower qualifies to make a purchase.

2. And lenders are increasingly embracing it

A technology that works is one thing. A technology that the marketplace believes in enough to use is another. In this vein, adoption of Upstart’s technology got the expected slow start. As of the time of its 2020 public offering, only a handful of lenders were using its platform, facilitating $4.1 billion worth of loans in 2021, translating into revenue of $305 million for the company itself.

Last year, though, Upstart’s solution led over 100 lenders to approve nearly $6 billion in loans, translating into revenue of $637 million. The company expects to report a top line of more than $1 billion this year, en route to analysts’ expectation of $1.34 billion revenue next year and 2027 sales of $1.6 billion. Of that $1.6 billion, $216 million of it should be turned into net profit versus this year’s likely near-breakeven.

Data source: Simply Wall St. Chart by author.

3. You can step in at a discounted price

Given the fiscal trajectory here, one would expect Upstart stock to be soaring. And it’s certainly had its bullish moments. But none of those moments have been seen for very long since late last year.

While the company’s shares recovered with the rest of the market following February’s and March’s meltdown, they have not followed through like other stocks have. Rather, they’ve peeled back a bit from July’s high, and are now trading where they were in November. The market is still pretty worried about the economic impact of lingering inflation — a concern Girouard expressed during August’s second-quarter earnings call.

Investors, however, are arguably pricing in too much of this concern. Analysts seem to think so, anyway. The analyst community still supports a consensus target of $78.79 despite the stock’s recent pullback, which is 15% above Upstart shares’ present price. That’s not a bad tailwind to start out a new trade with.

Just don’t lose perspective on what you’re buying into

A promising prospect? Sure. But not one without its risks. Even if its earnings are poised to grow and dramatically widen profit margin rates over the course of the coming couple of years, its net earnings rates are still rather thin. It wouldn’t take much turbulence to do plenty of relative damage to these fragile bullish expectations.

There’s also no real moat to keep would-be competitors from entering the market with a similar credit-scoring technology, including the familiar credit bureaus themselves. Neither is a reason for volatility-tolerant and risk-tolerant investors to avoid Upstart shares, though.

As to the latter, while there’s no significant tangible moat, the lending industry’s disinterest in embracing change effectively serves as one. Upstart has time to continue becoming the dominant name in the AI-powered lending business. With its tech already refined and available, there would be little need for lenders to consider an alternative that isn’t likely to perform any better.

And as to the former, although the young business is still somewhat unpredictable from one quarter or even one year to the next, look five years down the road. Upstart’s platform is superior to alternative credit-scoring tech. Sheer practicality will drive long-term growth here, even if the stock doesn’t reflect this growth with straight-line forward progress.

There are several great companies capitalizing on the artificial intelligence (AI) boom that would make solid stocks to buy right now. But among leading tech giants, Alphabet (GOOG 1.27%) (GOOGL 1.23%) stands out.

The stock is up over 75% since hitting a 52-week low in April, but it still trades at a reasonable valuation. With 2 billion users and one of the best enterprise cloud services available, Alphabet is well-positioned to help investors outperform the market.

Image source: Getty Images.

How Google is benefiting from AI

Earlier in the year, some investors were concerned about Google’s competitive position as more people started using ChatGPT and other models to look up information. This overlooked the power of Google’s Gemini AI model, which has emerged as one of the best models out there.

Gemini powers all the company’s consumer services, like Search, and it is making a difference in the company’s financial performance. Revenue from Search — the company’s largest business — grew 12% year over year in the second quarter. This momentum reflects increasing search queries with AI Overviews.

Google is also competitively positioned in cloud services. The number of new customers using Google Cloud jumped 28% quarter over quarter in Q2. Management credits this momentum to its global base of AI-optimized data centers, custom AI chips, storage, and software offerings.

It can’t be emphasized enough that Google’s AI capabilities are only possible because of the company’s substantial free cash flow. It generated $67 billion in free cash flow over the last year, while spending $67 billion in capital expenditures for technology and AI infrastructure.

Google has the resources to deliver the best AI experiences for its users, yet Alphabet stock trades at a forward price-to-earnings multiple of 25. That’s a reasonable multiple to pay for a company that just reported a 22% year-over-year increase in earnings last quarter.

A BARGAIN hunter mother has shared a stern warning to parents about a viral buy from The Range.

Last year, mums and dads were racing to stores desperate to get their hands on the must-have buy that was sure to make the festive season even more special.

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And earlier this month, parents were left overjoyed to see that the purse-friendly product was now available to buy again.

But one shopper has been left very disappointed with the Large Christmas Sleigh Hamper, which she claimed is “not worth the hype.” 

Eager to alert others about the “flimsy” purchase, Emma Smith took to social media to express her frustration with the £7.99 buy.

Posting on Extreme Couponing and Bargains UK, a private Facebook group with 2.6 million members, the savvy shopper uploaded snaps of the huge sleigh, which was once sold-out and can hold dozens of gifts and decorations.

Alongside her post, she shared a messaged to “everybody thinking of getting The Range viral large Christmas Sleigh Hamper.”

She fumed: “I would not waste your money.”

Sharing pictures of the damaged sleigh, she snapped: “The cardboard is very flimsy.”

As well as this, she claimed: “The sleigh has collapsed to the side.”

Clearly very frustrated with her purchase, which has been described as a “fun way to display gifts” and is hailed as “the gift that keeps on giving,” Emma added: “Definitely not worth the hype!”

Emma’s post has clearly shocked many, as it was posted just 13 hours ago, but has already racked up almost 200 likes and 239 comments.

Big divide

But social media users were left totally divided – while some were thankful for her thoughts, others had “no issues” with their Christmas Sleigh Hamper, which is bound to turn your home into a magical festive scene in seconds.

One person said: “Not buying again. I was crazy to get it from The Range. When you put it away it won’t fold back up. It’s cute but not worth it and very small.” 

Looks like it’s been forced together tbh. For the price, it looks amazing, warts and all

Facebook user

Another added: “Thank you, I was going to get one. So glad I saw this post.” 

A third commented: “Same happened to mine! Filled it with sweets and it couldn’t take the weight and the legs buckled!” 

However, at the same time, one shopper wrote: “I got these two years ago and this will be the third year I’ve used them. Mine are great. No issues with them.” 

A second chimed in: “I got two the other day and put them up and all fine.” 

Someone else beamed: “I got the large one from The Range last year and I’ll be using it again as I found it ok and didn’t have any problems with it.” 

Whilst one user observed: “Looks like it’s been forced together tbh. For the price, it looks amazing, warts and all.”

Definitely not worth the hype!

Emma Smith

However, to this, Emma wrote back and claimed: “It wasn’t forced. The cardboard is hard regardless so you’ve got to make sure it’s put in the slots properly.” 

Meanwhile, others praised a similar sleigh hamper from B&M.

One shopper shared: “B&M ones are better and cheaper!”

Another agreed: “Got mine from B&M, £5. Sturdy and solid.”

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Say what you want about his boring buy-and-hold approach to picking stocks. Just don’t deny Warren Buffett’s market-beating results. Shares of his company — conglomerate Berkshire Hathaway — have reliably outperformed the S&P 500 (^GSPC 0.49%) since he took the helm back in 1970. Investors only needed to remain patient enough to let time do the bulk of the genius investor’s work.

The thing is, he’s as good at his job today as he’s ever been. That’s why you’d be wise to poach a few of his picks while you still can before Buffett steps down as Berkshire’s CEO at the end of this year.

With that as the backdrop, here’s a closer look at three of Berkshire Hathaway’s holdings that would be great additions to almost anyone’s portfolio right now.

Image source: Motley Fool.

Apple

Anyone keeping tabs on Apple (AAPL 3.25%) of late almost certainly knows it’s been a challenging year for the company. What was supposed to be a solid 2025 fueled by demand for its AI-capable iPhones and its custom-built artificial intelligence (AI) solutions has been anything but solid. As it turns out, not only were Apple’s suite of AI tools a disappointment, consumers aren’t exactly clamoring for handheld access to such technology anyway. That’s a big reason this stock’s still down from its late-December peak even with its bounceback from April’s low.

It’s also worth noting that Berkshire has been paring back its stake in Apple since early last year, and by quite a bit, from more than 900 million shares then to only 280,000 now. Although it’s not clear if Buffett and his lieutenants culled the bulk of their Apple position specifically because of Apple’s AI headwinds, it is clear Berkshire’s chiefs no longer felt comfortable holding such a big stake in the company.

Well, good news for faithful Apple shareholders is on the horizon. Wedbush Securities analyst Daniel Ives recently noted, “We believe that iPhone 17 [the newest iteration of the smartphone] preorders will be up 5%-10% vs. last year as we estimate that roughly 20% of the 1.5 billion users worldwide have not upgraded their phones over the past four years.”

This jibes with similar optimism from JPMorgan (JPM 0.51%) analyst Samik Chatterjee as well as analysts with Morgan Stanley (MS 0.29%). This suggested demand also indirectly indicates faith in Apple’s top-down overhaul of its AI-powered digital assistant — which flopped last year — will be ready when it’s re-released early in the coming year.

It’s also possible that consumers just weren’t ready to embrace first-generation AI technology and were simply waiting to see what it was and how it worked. Even Apple’s die-hard fans could have been looking to sidestep the bumps in the road that any new tech tends to run into.

Whatever the case, after a tough year, Apple appears to be getting back to its old impressive self.

For what it’s worth, despite all the recent selling, Apple is still Berkshire Hathaway’s biggest stock holding, occupying more than 20% of its portfolio of publicly traded companies.

Kroger

Kroger (KR -0.48%) will never be a high-growth name, for the record. The grocery industry is just too mature and too competitive.

Not every investment has to be a growth stock, though. You could still do well with a dividend-paying value name like this one.

Kroger is, of course, one of the nation’s biggest grocery chains, operating 2,731 stores that serve more than 11 million customers every day. Last year, it turned in a net operating profit of more than $3.8 billion and net income of nearly $2.7 billion, which is huge by grocery store standards.

But still — groceries? Don’t dismiss the way this company is modernizing (and even digitizing) this old brick-and-mortar business. For instance, while its same-store sales grew 3.4% year over year during the second quarter of 2025, its online sales improved by 16%. That’s business which could have easily been lost to rival Walmart or in some instances even lost to Amazon. Indeed, e-commerce now accounts for about one-tenth of Kroger’s revenue.

In the meantime, Kroger is monetizing its online presence in an even more creative way — through advertising. National brands can now pay the grocer for more prominent promotion at Kroger.com.

Perhaps the most meaningful way Kroger builds long-term value for shareholders, however, is with its dividend paired with stock buybacks. The forward-looking yield of 2% isn’t exactly thrilling, but it’s based on a dividend payment that’s now been raised for 19 consecutive years at an average annualized growth rate of 13%. At the same time, persistent stock repurchases have whittled down the number of outstanding shares of Kroger from roughly 1.6 billion as of 2000 to less than 700 million now, with another $2.5 billion just waiting to be spent on buybacks before the end of this year.

This might help put things in perspective: Between the buybacks, reinvested dividends, and the stock’s simple price appreciation, over the course of the past 20 years, an investment in Kroger stock would have outperformed the same-sized investment in an S&P 500 index fund.

BYD Company

Finally, add BYD Company (BYDDY 0.28%) to your list of Buffett stock picks that just might belong in your portfolio as well.

You may think you’ve never heard of it, but you’re probably more familiar with it than you realize. Remember the electric vehicle (EV) company that became bigger than Tesla (as measured by unit sales) early this year? That’s BYD. You’ve just heard little about it because the Chinese company primarily serves the Chinese market.

That’s changing, though. While you still can’t purchase a BYD-made EV in the United States, registrations of BYD vehicles in Europe soared more than 200% to 13,503 in July of this year, extending a growth streak that’s most definitely taking a toll on Tesla’s share in the EV-receptive market.

In fact, the company’s so confident of this continued growth that it’s committed to manufacturing all of its EVs intended for European drivers within Europe by 2028. Indeed, BYD is aiming to sell half of its cars outside of China by 2030. With a fleet of seven massive cargo ships that can each carry thousands of vehicles, it could do it regardless of where these cars end up being manufactured.

Although U.S. consumer interest in EVs is only lukewarm (at best), the International Energy Agency predicts the worldwide number of EVs will quadruple between the end of last year and 2030.

It’s admittedly not Buffett’s usual kind of stock pick. He’s frequently touted the value of America’s capitalistic economy and the ingenuity it inspires, and tends to limit his holdings to U.S. stocks. For the record, it’s not as if Berkshire owns a massive number of BYD shares. Its 162.6 million shares are only worth about $2.3 billion at this time or less than 1% of Berkshire Hathaway’s stock portfolio.

The fact that Buffett made the unusual trade in the first place back in 2008 and has since stuck with most of the position this whole time, however, speaks volumes about its potential.

Tech giants continue to announce more capital investment in artificial intelligence (AI) technology. Demand remains strong from large enterprises looking to gain better insights from their data using AI-powered services in the cloud.

Two companies that are benefiting from these trends are Alphabet (GOOG 1.27%) (GOOGL 1.23%) and Amazon (AMZN 0.23%). These companies are in a strong competitive position to bring AI innovation to consumers and enterprises, and better yet, their stocks are reasonably valued relative to their earnings potential.

Image source: Getty Images.

1. Alphabet 

Shares of Alphabet have surged in 2025 as investors begin to recognize Google as an AI juggernaut. Google’s Gemini AI model powers intelligent features across all the company’s services, including Search, Google Cloud, and other apps. With 2 billion people using services like Google Search and Gmail every day, that makes Google one of the top consumer brands profiting from AI.

Google Search is having a strong year, all thanks to AI. Search revenue grew 12% year over year in Q2. New features like AI Overviews and AI Mode are driving more search frequency and new use cases for Search that is fueling more advertising revenue.

On the enterprise side, Google Cloud is seeing tremendous demand for AI services. Businesses are migrating their data to leading cloud platforms to access AI-powered analytics and application-building tools. This drove an impressive 32% year-over-year increase in cloud revenue last quarter, while the segment’s operating profit more than doubled.

AI is also bringing internal improvements to Google’s operations, such as automating more than 30% of its code. This frees up time for Google’s engineers to work on new ideas that can speed up its product development. This has the potential to accelerate its growth over the next decade, which isn’t reflected in the stock’s valuation.

Management plans to spend $85 billion in capital expenditures in 2025, up from the previous estimate of $75 billion. This is to meet the growing demand for cloud and other services, signaling that Google’s future growth is undervalued.

Even after the recent climb, the stock still trades at a forward price-to-earnings (P/E) multiple of 23 based on 2026 estimates. This is attractive for an AI-first company that should deliver double-digit annualized earnings growth over the long term.

2. Amazon

Amazon is another tech juggernaut that would make a solid addition to any investor’s portfolio right now. Its financial results have been solid this year, with improving sales and profitability in its largest business, e-commerce. But Amazon is also the leading cloud services provider, which is raking in billions in annualized revenue for enterprise AI services.

Amazon Web Services (AWS) generates $116 billion in annualized revenue. This represents 18% of the company’s total revenue, but produces most of the company’s profit. While AWS is facing greater competitive pressure from Microsoft Azure and Google Cloud, it continues to sign major deals with global brands. Last quarter, AWS signed new agreements with PepsiCo, Peloton, and Warner Bros. Discovery, among others.

Demand for AI is so great it is stretching AWS’ computing capacity. Specifically, generative AI solutions are experiencing triple-digit year-over-year growth. This means as Amazon invests in bringing more compute capacity online, AWS revenue could accelerate in 2026.

AI is also benefiting Amazon’s e-commerce operations through more intelligent delivery routing, inventory placement, and faster order processing, with more than 1 million robots at its warehouses. This shows a valuable synergy taking shape where AI improves the efficiency of the e-commerce business, while higher revenues from e-commerce help fund more investment in research and development for AI innovation in cloud services.

In many ways, Amazon has become an AI-first business, making it a solid choice for investors looking for a relatively safe business to invest in AI for the long haul.

The stock is trading at a forward P/E of 30 times, using next year’s earnings estimate. This is reasonable for a business that just posted a year-over-year earnings increase of 33%, partly driven by AI-driven cost efficiencies in e-commerce. Analysts expect the company to deliver 17% annualized earnings growth, which could double the stock by 2030.

We’re quite possibly at the start of what could be a major technological shift with the onset of artificial intelligence (AI). No one knows what new products, services, or companies will be created. However, with estimates of 25-fold growth in the AI market between 2023 and 2023 (according to a UN Trade and Development report), this can’t be ignored.

Smart investors will consider ways of betting on this trend. But you don’t have to search far and wide. If you’re ready to invest $3,000, here are two top AI stocks to buy and hold for the long term.

Image source: Getty Images.

Dominant forces in the internet age

Two of the most successful businesses of all time are Alphabet (GOOG 1.27%) (GOOGL 1.23%) and Meta Platforms (META -0.26%), which rose to dominance as the internet became much more prevalent. Without a doubt, these are two of the best AI stocks investors should look at.

Alphabet and Meta are in very advantageous positions. They already have thriving business models with offerings that reach vast audiences. Alphabet has six products that each serve more than 2 billion people. During the month of June, Meta’s family of apps had 3.48 billion daily active users.

I believe a sound strategy is to find businesses that are leveraging AI to improve their existing offerings. In this way, the new technology can be used to upgrade the user experience instead of trying to create something completely new. These companies are doing a great job in this regard.

Alphabet’s Gemini model is embedded in its various products and services. And Search, which investors have worried could easily get disrupted by chatbots, counts more than 100 million monthly active users combined on the AI Mode feature in the U.S. and India.

Meta is using AI to provide better content recommendations. This is working so well that it led to a 6% jump in time spent on Instagram in the latest quarter.

These companies generate their revenues primarily from digital advertising efforts. They’re both utilizing AI to help their customers create more effective, creative, and successful ad campaigns. Meta founder and CEO Mark Zuckerberg called out the opportunity of improving the ad experience.

“If we deliver on this vision, then over the coming years I think that the increased productivity from AI will make advertising a meaningfully larger share of global GDP than it is today,” he said on the first-quarter earnings call in 2025. This could lead to much more revenue down the road.

I think AI will simply widen the already huge economic moats that Alphabet and Meta have developed. It seems extremely unlikely that these businesses will get disrupted anytime soon. As they push forward with their respective AI capabilities, it becomes even more challenging for companies to encroach on their territory.

Money is not a concern

Businesses are spending huge amounts of money on AI strategies. Alphabet and Meta are no different. Combined, their capital expenditures are set to total $154 billion in 2025, with increases coming in the years ahead. These numbers are hard to overlook.

While the returns from this AI investment are uncertain, which is the market’s biggest worry, these companies are in such strong financial shape that it should be less of a concern. Alphabet ended Q2 with $95 billion in cash, cash equivalents, and marketable securities on its balance sheet. Meta had $47 billion. With incredibly lucrative business models, demonstrated by the tens of billions in profits generated each quarter, they have the resources to move fast and position themselves to be leaders in the AI age.

Cheapest of the “Magnificent Seven”

What’s particularly exciting about these two companies is that investors don’t have to chase expensive valuations in order to gain exposure to AI in their portfolios. There’s undeniably a lot of buzz in this area of the market. However, Alphabet and Meta trade at the cheapest price-to-earnings ratios of all the “Magnificent Seven” constituents.

With $3,000, investors can buy about six shares of Alphabet and about two shares of Meta. These might be the only AI stocks you’d need to own.

Much like the companies that issue stocks, blockchains that issue cryptocurrencies can be analyzed by the amount of revenue they produce. Assets with more revenue and more revenue growth are likely to be better investments than those without.

By that standard, Solana (SOL 0.87%) is worth looking at closely as a potential investment. On Sept. 18 alone, its decentralized applications (dApps) generated roughly $6.9 million in revenue, more than the next 10 chains combined, and nearly three times the next largest competitor’s tally for the day. That certainly adds to the case for buying it, but when that fact is put in context, investors will also find some reasons to be a little bit cautious here.

Image source: Getty Images.

A reason to buy: A booming app economy

Before getting into the weeds, let’s start with a quick definition. In this context, “application revenue” is the sum of revenue earned by apps on a chain, which is distinct from base gas fees. By convention, the metric excludes stablecoin issuers, liquid staking, and gas itself. It’s a basic measurement of the level to which actual users are paying apps for their services.

So when Solana’s apps pulled in millions of dollars over a 24-hour period, outpacing not just its biggest competitor, Ethereum, but the rest of the field in aggregate, it was a big deal. What’s even more salient is that over the prior 30 days, Solana’s total application revenue of $211 million was more than twice Ethereum’s, so these results were not just a blip.

If you want one reason to buy Solana right now, this is it: There are customers consistently paying to use the applications on its chain, and far more of them than on any other network.

But why does this matter in the bigger scheme of things? The main reason is that app revenue tends to compound.

When app developers see users paying for services, they’re heavily incentivized to make and ship more of their products to that venue. Then the growth flywheel spins even faster as customers see that they can address multiple needs within the same ecosystem. Solana is thus where many developers perceive the growth to be.

Investors should also understand how this value generation accrues to Solana itself rather than just to application-related tokens.

In a nutshell, application revenue does primarily accrue to the applications and their treasuries or tokenholders, not directly to Solana holders. With that said, more usage generally boosts demand for blockspace and the network’s fee markets. And satisfying a customer’s demand for Solana app services requires them to buy and hold Solana to cover their fees. In other words, the ownership flywheel to Solana’s value is more indirect than on chains that burn a larger portion of fees, but strong app revenue still signals a healthy economy that can attract capital and talent, and more activity on the chain does induce more demand for the coin, and thus, drives its price higher.

A reason to be cautious: The headline numbers don’t tell the whole story

There’s an important catch here with Solana’s application revenue. A lot of the applications generating the largest proportion of the network’s revenue are not exactly focused on serious lines of business.

In fact, a large slice of Solana’s application revenue currently depends on applications that streamline the launching and trading of meme coins, which are cyclical, highly speculative, and often simply a stand-in for gambling. That makes sense given that meme coins accounted for roughly 70% of Solana’s decentralized exchange volume at one point, with over 60% of Solana app revenue being closely related to meme coin investing. If market conditions become a bit less frothy, that volume and those revenues are likely to dry up rapidly.

Does that make Solana uninvestable? Not at all. It just means that investors should be aware that its casino-like projects are the ones that are the most successful at the moment. Casinos can be profitable to own, but it’s still important to recognize that you’re (at least in part) buying a portion of one by buying Solana right now.

Assuming that the revenue mix gradually broadens — and it likely will — Solana can convert today’s traffic into longer-lived and more serious segments, and hang onto its mindshare among developers. If its mix stays overly dependent on meme coins, it might be a volatile ride, and the crypto’s upside might have a lower cap.

The investment thesis for buying this coin still rests on the real economic signal that users are paying to use apps at scale on this chain, and at a vastly higher rate than they’re doing that elsewhere. There are a lot of reasons to be bullish about Solana’s future, so the balance of risk and reward here does still tilt heavily toward buying it.

One way to have your cake and eat it too is to accept a long holding period and restrict yourself to a modest position sizing, at least until there’s clearer evidence of the ecosystem widening a bit. Until then, just remember that casinos wouldn’t be so large and opulent if they were bad at making money.

Diving into the stock market can be an excellent way to build lasting wealth. One type of stock that you may find appealing is dividend stocks. A study conducted by Hartford Funds found that, over a 50-year period, dividend stocks consistently outperformed non-dividend payers with lower volatility.

Dividend Kings are companies that have consistently increased their dividends for 50 years or longer. These stalwarts have earned the trust of their shareholders and consistently demonstrated a proven ability to grow payouts year after year, regardless of the economic conditions.

If you’re looking to boost your portfolio with a passive income component and seek steady returns, here are three dividend stocks that could make excellent additions today.

Image source: Getty Images.

Federal Realty Investment Trust

Federal Realty Investment Trust (FRT -0.59%) operates as a real estate investment trust (REIT). It specializes in high-quality retail-based properties, which include shopping centers and mixed-use properties. As a REIT, Federal Realty is required to distribute 90% of its taxable income to shareholders, making it a popular choice among dividend investors.

Federal Realty holds the distinction of being the only REIT to earn Dividend King status, having raised its payout for 57 consecutive years. This impressive streak is a testament to its diversified holdings and strong balance sheet in what can be a volatile real estate market.

The REIT primarily invests in real estate regions characterized by high population density and affluent populations. This approach helps insulate it from changing economic conditions, as more affluent households can be resilient in the face of recessions or inflation in the economy. With a strong business and robust development pipeline supported by steady funds from operations growth, Federal Realty is a quality dividend stock to consider buying today.

Cincinnati Financial

Cincinnati Financial (CINF 0.06%) provides property and casualty (P&C) insurance to corporate and individual customers. It’s one of the top 25 largest P&C insurers in the United States.

In the insurance industry, underwriting profitable policies is the name of the game. Insurers like Cincinnati Financial operate in a highly competitive environment, so accurately assessing risk and pricing policies is crucial.

Over the past five years, Cincinnati Financial’s combined ratio has averaged a solid 94.6%. This means that for every $100 in premiums it writes, it has generated roughly $5 in profit. In the highly competitive insurance industry, the combined ratio tends to average around 100%, so consistently generating an underwriting profit is key to sustainable, long-term growth.

Cincinnati Financial boasts an impressive history of raising its annual cash dividend over the past 65 years. Only seven companies can boast a longer streak. Its long track record is a testament to its sound underwriting and stellar capital management. With a conservative dividend payout ratio of 29%, Cincinnati Financial is well-positioned to keep rewarding investors with a growing dividend.

S&P Global

S&P Global (SPGI -0.03%) provides credit ratings to entities that issue debt worldwide and serves an important role in financial markets. As a credit rating agency, it provides opinions about credit risk and the ability and willingness of entities to meet their financial obligations. Investors rely on these opinions on credit quality to help manage risk.

The company also owns the S&P 500 index (in a joint venture with CME Group), along with a variety of other index benchmarks used by professional investors. Finally, it provides data and analytics, such as through its Capital IQ Pro platform, which offers another stream of cash flow that’s uncorrelated with credit ratings.

S&P Global enjoys a robust 50% share of the credit ratings market, giving it a strong competitive advantage, especially considering the importance of credit ratings for the global economy. With its stable and diverse business model and strong balance sheet, S&P Global has grown its dividend payout for 52 consecutive years and has a solid platform to keep this streak going.

Intel (INTC -3.22%) has a new and powerful ally. On Thursday, Nvidia (NVDA 0.34%) said it will invest $5 billion in Intel and codevelop multiple generations of custom products, spanning data centers and PCs. Intel shares jumped more than 20% on the news, as investors digested what a tie-up with the leader in artificial intelligence (AI) computing could mean for the company’s multiyear turnaround.

The semiconductor veteran designs and manufactures CPUs and runs a contract manufacturing business. In recent years, Intel has wrestled with product delays, shrinking margins, and heavy losses in its foundry segment. The Nvidia partnership gives Intel access to new design opportunities and a stronger place in AI-centric systems. Whether that translates into durable earnings power is the question investors care about.

Image source: Getty Images.

A vote of confidence that counts

Nvidia’s announcement laid out two concrete planks. First, Intel will design Nvidia-custom x86 CPUs that Nvidia will integrate into its AI infrastructure platforms. Second, Intel will build x86 system-on-chips for PCs that integrate Nvidia RTX GPU chiplets.

As part of the collaboration, Nvidia will invest $5 billion in Intel common stock at $23.28 per share, subject to regulatory approvals.

“This historic collaboration,” Nvidia CEO Jensen Huang said, ties Nvidia’s AI stack to Intel’s vast x86 ecosystem. Intel CEO Lip-Bu Tan framed it as confidence in Intel’s roadmap and manufacturing — and a path to “new breakthroughs for the industry.”

The market reaction was swift. Intel rose more than 20% intraday, while Nvidia ticked higher as well. The move arrives as Intel trims costs, resets capital spending, and narrows its focus. Notably, the companies did not commit to shifting Nvidia’s GPU manufacturing to Intel’s fabs; investors should view this as a design and platform collaboration plus equity capital — not a wholesale manufacturing shift.

Recent results show a company still in repair

Intel’s business results have been underwhelming. Its second-quarter revenue was $12.9 billion, roughly flat year over year. Generally accepted accounting principles (GAAP) gross margin declined to 27.5%, and GAAP earnings per share was a loss of $0.67, pressured by $1.9 billion of restructuring charges and other one-time items. Non-GAAP earnings per share were a loss of $0.10.

For the third quarter, Intel guided revenue to $12.6 billion to $13.6 billion and non-GAAP earnings per share of about $0.00 at the midpoint.

There were signs of operational progress and AI relevance. Data center and AI revenue rose 4% year over year to $3.9 billion, and Intel highlighted that its Xeon 6776P is the host CPU in Nvidia’s latest DGX B300 systems.

Still, the overall picture remains mixed, with margins depressed and the foundry business a drag as Intel pares projects and slows certain builds to defend returns.

“We are laser-focused on strengthening our core product portfolio and our AI roadmap,” Tan said in the quarterly release — a reminder that the turnaround is still very much underway.

What’s next?

Viewed through an investor lens, two things matter: earnings power and price. With trailing-12-month revenue around low-$50 billion and losses on the bottom line, price-to-earnings is not useful; price-to-sales in the mid-2s is a better quick gauge for now. That leaves the stock leaning on a credible path back to healthier gross margins and operating income.

The Nvidia deal may help by anchoring Intel CPUs inside Nvidia’s AI platforms, creating a new PC silicon vector with integrated RTX chiplets, and signaling third-party confidence that can attract talent and customers. But execution — on both products and cost discipline — still has to show up in the numbers.

Of course, Nvidia’s involvement doesn’t guarantee success. Foundry losses and prior write-downs underscore how costly it is to rebuild manufacturing relevance.

Additionally, investors shouldn’t forget Intel’s challenges. Its guidance implies only modest sequential improvement, and Intel must prove it can expand gross margin back toward a level that supports sustainable free cash flow.

Finally, competition is intense, with Advanced Micro Devices growing in servers and client CPUs even before layering in its own AI accelerators. And while the partnership is meaningful, it does not remove the need for Intel to hit product and manufacturing milestones over the next several quarters.

But Nvidia’s stake and the co-development roadmap arguably do increase the odds that Intel’s turnaround gains traction. The collaboration creates real product hooks and stronger incentives for both sides to make the designs successful. If Intel converts these tailwinds into margin recovery and stable growth over time, today’s valuation could look reasonable for investors with patience.

Uber Technologies (UBER 4.26%) has been hitting its stride. And the market is taking notice, as investors view the business in an extremely favorable light. As of Sept. 17, shares are up 54% in 2025 and 191% in the past three years. That’s an incredible rise that has driven its market capitalization to nearly $200 billion.

It’s important not to simply assume that the gains will continue. Investors should think about the factors that can support further upside. In this instance, it’s easy to be optimistic. Here are four reasons to buy Uber stock like there’s no tomorrow.

Image source: Getty Images.

1. Growth

The first reason to add Uber to your portfolio focuses on the company’s growth, which has been spectacular. In the latest quarter (Q2 2025, ended June 30), Uber had 180 million monthly active platform consumers (MAPCs), up from 76 million exactly seven years ago. Unsurprisingly, this has led to soaring gross bookings and revenue in both the mobility and delivery segments.

Uber is currently available in 15,000 cities across the globe. However, there is still expansionary potential. Getting consumers to use multiple services, known as cross-promotion, is a big opportunity, as is boosting usage frequency.

There’s also the Uber One subscription program, which counts 36 million members. They spend significantly more than non-members. Increasing the share of MAPCs that become Uber One members can drive substantial growth.

2. Profitability

In 2019, Uber posted a whopping operating loss of $8.6 billion. Since then, management’s intense focus on running the business in a more efficient manner has worked wonders. In the last six months, the company reported operating income of $2.7 billion. This impressive profitability is the second reason to buy the stock.

Uber is proving that it can scale up in an extremely lucrative manner. Wall Street is bullish. Consensus analyst estimates call for earnings per share to increase at a compound annual rate of 23% between 2025 and 2027, much faster than projected revenue gains.

Free cash flow is also pouring in, totaling $2.5 billion in the second quarter. This is giving the leadership team confidence. They just announced a $20 billion share buyback authorization.

3. Autonomous vehicles

There are a lot of companies out there working on autonomous vehicle (AV) technology. While Uber previously had an AV unit, it sold this segment in 2020. Instead, the business is partnering with others, whether car makers or software providers, in an effort to help develop this technology. There are currently 20 partners.

Uber is in an advantageous position because it directly controls the relationship with 180 million MAPCs. Therefore, it has access to a large pool of demand. And it has expertise in operating a huge tech platform. This gives it a capital-light way to play in the AV market.

This doesn’t mean that Uber’s strategy is completely fail-safe. For instance, there is a risk that Tesla could be successful in its efforts to scale up its robotaxi service. This would create a competing platform to Uber.

4. Economic moat

Buying and holding companies that possess an economic moat, or durable competitive advantages, can contribute to investing success. Uber has this important characteristic, which is the fourth reason to add the business to your portfolio.

As a platform, the company benefits from a powerful network effect. More riders (drivers) add more value to drivers (riders), making the service more useful as it gets bigger.

Uber also has noteworthy intangible assets that support its ongoing success. Its brand is so strong that its often used interchangeably as a verb, indicating robust user mindshare. And the company’s ability to collect and utilize its data is also worth pointing out. This has spawned a new business line with digital advertising, a segment that raked in $1.5 billion in annualized revenue in Q1 earlier this year.

Uber’s growth trajectory, rising profits, position in the AV market, and economic moat are four reasons to buy the stock like there’s no tomorrow.

If you have $5,000 you can afford to invest in the stock market, a good option is to put that money into an investment that can generate recurring dividend income, while also having the potential to rise in value in the long run. That can put your money to work in multiple ways, potentially accumulating gains over time while also generating some good cash flow for your portfolio.

Exchange-traded funds (ETFs) can be excellent options to consider because they can give you a balanced investment into many stocks, possibly even hundreds or thousands of them. That means you don’t have to worry about how individual stocks are doing.

From a dividend investor’s point of view, that also means you don’t have to worry about the dreaded risk that a company will announce a dividend cut or suspension. I’ve been there, and even investing in seemingly safe dividend stocks can still end up with disappointment later on. The best way to protect yourself against that is with a well-diversified dividend ETF.

A great option is the Schwab U.S. Dividend Equity ETF (SCHD -0.44%).

Image source: Getty Images.

The Schwab U.S. Dividend Equity ETF offers a terrific yield

One of the most appealing features of this Schwab fund is undoubtedly its high dividend yield. At 3.7%, that’s a far higher payout than what you’d collect if you simply tracked the S&P 500, as its average yield is just 1.2%.

To put that into perspective, if you invested $5,000 into the ETF today, you could expect to collect approximately $185 in dividends over the course of an entire year. In comparison, however, a $5,000 investment in an ETF tracking the S&P 500 would only generate $60 per year, given the index’s low yield.

What’s great is that, because the fund invests in around 100 stocks, your eggs aren’t all in one basket and dependent on one or even a couple of high-yielding stocks.

The fund focuses on safe dividend stocks and keeps its fees minimal

The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100, an index that prioritizes quality and sustainability when it comes to dividends. It isn’t simply adding high-yielding stocks into its portfolio. Some of the big names in the Schwab portfolio include Verizon Communications, PepsiCo, and Chevron. These are blue chip dividend stocks that are known for not only regularly paying dividends, but also for growing their payouts over time. Not every stock will have the same robust background, but it’s a good indication of the quality of the dividend stocks the fund is invested in.

Another solid feature of the fund is that its expense ratio is just 0.06%. That means if you invested $5,000, your annual fees from holding the ETF would be just $3. That’s less than the price of a cup of coffee in most places, and in exchange, you get an investment with a diversified position in some of the best dividend stocks in the world.

A great ETF to buy and forget about

The Schwab U.S. Dividend Equity ETF isn’t a high-powered growth investment, but it can be a dependable investment to hold in your portfolio for many years. When the market was in turmoil in 2022 and the S&P 500 crashed, this Schwab fund’s total returns (which include reinvested dividends) were a negative 3%. That’s a far cry from the performance of the broad index, which lost 18% in value.

This year it’s been a different story, with the Schwab U.S. Dividend Equity ETF’s total returns coming in at just 2% versus nearly 14% for the S&P 500. That’s the trade-off that you often need to take when opting for safety and security. You’ll sacrifice some gains when times are good, but in return, you can minimize your losses when times are tough.

Along the way, you can still collect an above-average dividend from this ETF without incurring significant fees. That’s why the Schwab U.S. Dividend Equity fund can be a suitable option to hang on to for the long haul.

BRYAN ROBSON has told Manchester United chiefs to back Ruben Amorim for the long haul and slammed the club’s recent history of signing flops.

The United legend says the revolving door of managers since Sir Alex Ferguson’s retirement in 2013 has wrecked any chance of stability, and insists under-fire former Sporting Lisbon boss must be given at least THREE years to fix the mess.

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Speaking to The Telegraph, Robson said: “We’ve changed managers that many times since 2013.

“I feel you have to stick and say, ‘No, we are not sacking the manager. We are not blaming.’

“When you have a little bit of money and the club are going to allow you to change your squad, you need three years to get the team right.

“For me, three years at Manchester United should be enough.”

Amorim, 40, has had a disastrous start to life as United boss, winning just eight of his first 31 games.

But Robson is urging the board to give him more time, despite fans on social media calling for his sacking.

Robson didn’t hold back when reflecting on the transfer blunders of the Ed Woodward era, suggesting too many signings simply weren’t up to scratch.

He fumed: “Look at the money we spend. It’s up to you to go around the world and get top players who are going to improve you.”

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“I think five years ago some of the players we bought were just not good enough to be Manchester United players. It’s an accumulation of that.”

And Robbo, who captained United through some of their most hard-fought years, believes the club lost its way by ignoring experienced Premier League stars in favour of flashy foreign names.

“The other thing I think we went away from is getting good, experienced Premier League players.

“So when they get to 28, you bring them on board if you can. There have been loads of players who have left clubs.”

And his message to United’s decision-makers couldn’t be clearer.

He added: “When I was in management, I believed that if you bought average players, you got an average team.”

United will get a chance to bounce back from their derby defeat to Manchester City last weekend when they host Chelsea in Saturday’s late Premier League kick-off at Old Trafford.

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Quantum computing is emerging as the next big investment trend, although we’re still a few years out from seeing commercially viable quantum computing. As a result, investors are wondering what the best approach to quantum computing is.

There are publicly traded quantum computing investments, like IonQ (IONQ 5.39%), that have massive upside if they work out. However, they also come with big risks if their technology isn’t adopted. Multiple big tech companies are also involved in the quantum computing arms race, like Alphabet (GOOG 1.27%) (GOOGL 1.23%). These companies have nearly unlimited resources compared to the start-ups, but don’t have near the upside. This makes them safer picks, but investors might be worried they’re leaving too much potential on the table by not taking some risk.

So, between the two, which is the best quantum computing investment right now?

Image source: Getty Images.

Investors must pay a premium for IonQ

There is a significant size difference between the two companies. Alphabet is a tech behemoth with a market cap of $2.9 trillion, while IonQ is a comparatively small $17 billion company. However, despite Alphabet’s size, the stock is far cheaper than IonQ. Let me explain.

Currently, IonQ isn’t making a ton of money. It’s relying on various research partnerships and contracts that it has signed to generate revenue. In Q2, it recognized revenue of $21 million, which is a rounding error compared to Alphabet’s results. Alphabet generated $96.4 billion in revenue during Q2, making IonQ’s revenue 0.0218% of Alphabet’s total. That’s a huge difference.

With Alphabet, you’re paying about 8 times sales for the stock, or for every dollar of sales over 12 months, you’re paying $8. IonQ trades for 242 times sales, so it’s quite a bit more expensive.

GOOG PS Ratio data by YCharts

This mismatch is because the market is far more excited about IonQ’s future than Alphabet’s. Should both companies develop commercially relevant quantum computing systems, the effect it will have on each company’s growth is quite different. For Alphabet, it will likely contribute a few extra percentage points each quarter. For IonQ, a major system sale could cause its revenue to double or triple year over year. That explosive growth is what excites investors the most with IonQ, although it’s far from guaranteed.

Buying both stocks allows investors to balance risk

There’s no guarantee that the approach Alphabet or IonQ is taking will be a winning one. There may be a hidden flaw in each company’s design that doesn’t appear for a few years, which could eliminate them from contention in the quantum computing arms race.

While this would be disappointing for Alphabet, it wouldn’t be the end of the world. It would continue down its path of AI dominance and also thrive on the advertising revenue generated by the Google search engine.

Unfortunately, if this happens to IonQ, the stock would likely go to $0, losing investors a ton of money. This scenario is probably more likely for IonQ than quantum computing success, and investors must be aware of this risk.

So, which one is the better buy? I’d say if you’re afraid of a stock going to zero, then IonQ is one to avoid, and Alphabet is more attractive. However, I think there’s a better approach. By devoting no more than 1% of your portfolio positioning to a quantum computing long shot like IonQ, you can capture some of the upside if it makes it big while limiting downside risk. Additionally, by purchasing shares of Alphabet to balance this risk out, investors can get two impressive quantum computing plays. This basket approach is a smart way to invest in an emerging field like quantum computing, as it balances out risk by investing in multiple companies.

For the first time since artificial intelligence (AI) captured Wall Street’s imagination, investors are beginning to broaden their scope beyond the “Magnificent Seven.” Two names that have attracted growing attention this year are Oracle and CoreWeave.

Unlike the tech titans that dominate headlines, Oracle and CoreWeave are carving out their niche at the infrastructure layer of the AI ecosystem. The opportunity they’ve identified is straightforward but also mission-critical: providing cloud-based access to GPUs. These chips — designed primarily by Nvidia and Advanced Micro Devices — remain supply constrained as they are largely absorbed by the world’s largest companies.

This supply imbalance has created an opportunity to enable AI model development by offering GPUs as a service — a business model that allows companies to rent chip capacity through cloud infrastructure. For businesses that cannot secure GPUs directly, infrastructure services are both time-saving and cost-efficient.

In the background, however, a small, albeit capable, company has been competing with Oracle and CoreWeave in the GPU-as-a-service landscape. Let’s explore how Nebius Group (NBIS 5.54%) is disrupting incumbents and why now is an interesting time to take a look at the stock for your portfolio.

17.4 billion reasons to pay close attention to Nebius

Last week, Nebius announced a five-year, $17.4 billion infrastructure agreement with Microsoft. For reference, up until this point, Nebius’ management had been guiding for $1.1 billion in run rate annual recurring revenue (ARR) by December. I point this out to underscore just how transformative this contract is in terms of scale and duration.

The Microsoft deal not only places Nebius firmly alongside peers like Oracle and CoreWeave in the AI infrastructure conversation, but it also serves as validation that its technology is robust enough to meet the standards of a hyperscaler.

For Microsoft, the partnership is equally strategic. With GPUs in chronically short supply and long lead times to expand data center capacity, this agreement allows Microsoft to secure adequate compute resources without stretching internal infrastructure or assuming the upfront capital expenditure (capex) budget and execution risks that come with it.

Image source: Getty Images.

Why this deal matters for investors

AI investment is not a cyclical trend — it’s a structural shift. Enterprises are deploying applications into production at unprecedented speed, workloads are scaling rapidly, and new use cases in areas like robotics and autonomous systems are emerging.

For companies that supply the compute underpinning this increasingly complex ecosystem, these dynamics create durable secular tailwinds. By securing Microsoft as a flagship customer, Nebius has established itself within this foundational layer of the AI infrastructure economy.

Is Nebius stock a buy right now?

Since announcing its partnership with Microsoft, Nebius shares have surged roughly 39% as of this writing (Sept. 16). With that kind of momentum, it’s natural to wonder whether the stock has become expensive. To answer that, it helps to put its valuation in context.

Prior to the Microsoft deal, Nebius was guiding for $1.1 billion in ARR by year-end. If I assume Microsoft’s $17.4 billion commitment is evenly spread across five years (2026 to 2031), that adds about $3.5 billion annually — bringing Nebius’ pro forma ARR closer to $4.6 billion.

Against its current market cap of $21.3 billion, Nebius stock trades at an implied forward price-to-sales (P/S) ratio of 4.6. On the surface, that looks meaningfully discounted to peers like Oracle and CoreWeave.

ORCL PS Ratio data by YCharts

That said, there are important caveats to consider. My analysis assumes no customer attrition over the next several years — this is unrealistic due to competitive pressures. While Nebius may continue winning large-scale contracts, it’s also reasonable to expect some customer churn.

Moreover, comparing Nebius’ future ARR to Oracle’s and CoreWeave’s current revenue base is not an apples-to-apples match. Oracle, for example, has reportedly inked a $300 billion cloud deal with OpenAI. Meanwhile, CoreWeave also has multiyear, multibillion-dollar commitments tied to OpenAI. The catch is that OpenAI itself doesn’t have the cash on its balance sheet to fully fund these agreements — leaving questions about their viability.

In short, Nebius appears attractively valued relative to its peers — but the landscape is evolving quickly and riddled with moving parts. The more important takeaway is that Nebius is now winning significant business alongside its brand-name peers.

In my eyes, this validation in combination with ongoing structural demand tailwinds makes Nebius a compelling buy and hold opportunity as the AI infrastructure narrative continues to unfold.