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Why Plug Power Stock Skyrocketed 27.6% This Week

Key Points

  • The "Big, Beautiful Bill" extends hydrogen industry tax credits through 2028, boosting Plug Power and other hydrogen stocks.

  • Plug Power continues to struggle with stagnant sales and significant cash burn.

Shares of Plug Power (NASDAQ: PLUG) soared this week, up 27.6% as of market close on Thursday. The spike comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq-100 were up 1.7% and 1.5%, respectively.

Earlier this week, Trump's major budget bill was amended to extend tax incentives for hydrogen power, providing critical relief to Plug Power and other hydrogen stocks. That said, Plug Power is in a tough financial position.

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The "Big, Beautiful Bill" is amended

President Trump's "Big, Beautiful Bill," which passed the Senate earlier this week and is likely to soon clear the House, was amended to extend critical tax incentives for the hydrogen industry for two more years. The latest version provides tax relief for hydrogen operators through January 2028, rather than the 2026 end date in previous versions of the bill. This significant change sent Plug Power and hydrogen stocks across the board higher.

Workers in an industrial setting.

Image source: Getty Images.

Plug Power is not in a great position

Investors interested in the company should know that Plug is struggling financially. The company's sales have stagnated and even declined for some time -- with the notable exception of last quarter -- and it is operating at a loss. Its cash burn is not sustainable.

For investors with a high risk tolerance, Plug could be a speculative turnaround play, but I would caution most investors to stay away. Even if the bill passes and the tax credits are extended, Plug is in a very rocky situation.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Planet Labs Soared Today

Key Points

  • Planet Labs shares rose after announcing a major multiyear satellite imaging deal with the German government.

  • The 240 million euro agreement expands Planet Labs’ role in European defense and security, building on recent contracts with U.S. agencies.

  • The company occupies a unique niche with high growth potential, but investors should be aware of risks such as possible share dilution.

Shares of Planet Labs (NYSE: PL) climbed on Thursday, closing up 11.2% as of the 1 p.m. ET early market close for the Fourth of July holiday. The rise comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 0.8% and 1%, respectively.

Planet Labs, a satellite imaging company, signed a major deal earlier this week that is continuing to boost shares.

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Planet Labs inks major deal

The company announced on Tuesday that it has signed a deal with the German government to provide satellite imagery and geospatial data "in support of European peace and security." The multiyear, 240 million euro agreement also includes artificial intelligence (AI)-powered intelligence from the imagery and data Planet Labs provides.

The deal marks a major step in the company's push into Europe and defense and security-related applications. In a statement, Will Marshall, CEO and co-founder of Planet Labs, said of the deal, "With the changing geopolitical landscape, the demand for sovereign access to geospatial intelligence is more urgent than ever before, and Planet's satellite services model is uniquely designed to enable large area security monitoring."

The sun rising over the Earth from space.

Image source: Getty Images.

This could be the first of many such deals, as countries across Europe commit to increasing defense spending after last month's NATO summit.

Although the contracts are smaller in scope, this month saw the company announce several other significant contracts with the U.S. Department of Defense and the U.S. Navy.

Planet Labs is growing

Although the stock is not cheap and investors should be aware of possible dilution as the company raises money to fund growth, I think Planet Labs is a good pick for those with a high risk tolerance. The company operates in a unique niche that has a lot of potential.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Lucid Group Stock Is Jumping Today

Key Points

  • Lucid reported record vehicle deliveries in Q2, growing 38% year over year on the back of new Gravity SUV sales.

  • Despite setting new milestones, Lucid’s production still outpaced demand.

  • The EV maker faces significant challenges as the broader EV market softens.

Shares of Lucid Group (NASDAQ: LCID) are climbing on Thursday. The luxury electric vehicle maker's stock gained 5.4% as of 11:30 a.m. ET. The rise comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 0.8% and 1%, respectively.

Lucid reported its Q2 2025 production and delivery numbers yesterday, revealing somewhat mixed results.

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Lucid ramps up Gravity sales

In the second quarter ending June 30, Lucid produced 3,863 vehicles and delivered 3,309. These numbers alone are somewhat disappointing; overproducing 554 vehicles could indicate demand is lagging behind management's expectations. The numbers also mean that Lucid needs to more than double its production in the second half of the year to meet its goal of 20,000 vehicles produced in 2025.

Still, the quarter was a record for Lucid, with deliveries up 38% year over year (YOY). Its deliveries for the first six months of the year are up 50% YOY. Those numbers look especially impressive when you consider Tesla and Rivian are both reporting shrinking numbers. The growth is primarily driven by the company's new Gravity SUV.

Person charging EV.

Image source: Getty Images.

Challenges remain

Lucid is still priced at the top end of the market and will struggle to reach the mass-market scale of Tesla without introducing a more affordable option. Gravity sales have been encouraging, but are still lagging behind targets set by the company.

Despite the growth, I have serious doubts Lucid can execute a turnaround, especially as the broader EV market softens. The rollout of its Gravity SUVs is a make-or-break moment for the struggling company.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Why Dogecoin Is Spiking Today

Dogecoin (CRYPTO: DOGE) is up on Tuesday. Over the last 24 hours, the cryptocurrency was trading up 4.4% at its highest. The spike comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) closed up 1.1% and 1.4%, respectively.

Dogecoin and most of the crypto market were up today after Jerome Powell spoke to Congress, revealing the Fed is adopting a more crypto-friendly approach. Developments in the Iran-Israel conflict also boosted markets.

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The Fed takes a friendly tone toward crypto

Federal Reserve Chair Jerome Powell confirmed on Tuesday that U.S. banks can serve cryptocurrency firms, so long as they follow specific risk management and consumer protection rules. Powell emphasized that the Fed won't block lawful bank-crypto relationships and has eliminated "reputational risk" from its bank supervision framework, aligning with recent changes by the FDIC and OCC.

These comments signal policy shifts that remove key barriers that had hindered crypto access to traditional banking. Investors across the crypto market were enthusiastic about what this means for the future of digital currencies, including Dogecoin.

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Investors bet global conflict will ease

Tensions were high today after a ceasefire in the Israel-Iran war broke down. Still, investors appeared encouraged by Iran's somewhat limited response to U.S. strikes on its nuclear facilities, and markets, including crypto, were up.

Dogecoin is still a meme coin

Despite today's jump, I do not recommend investing in Dogecoin. The fact is that it is a meme coin; its value is derived not from utility, but from "vibes." That makes it incredibly volatile and subject to wild swings in price, and long-term value can be wiped out on a whim.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Oracle Stock Is Jumping Today

Shares of Oracle (NYSE: ORCL) jumped 4.2% as of 3:50 p.m. ET Tuesday. The jump comes as the S&P 500 and the Nasdaq Composite both had positive days.

The tech company announced a new contract with the state of Texas that will help Texas public safety officers leverage artificial intelligence (AI).

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Oracle and Texas team up

Texas agencies now have streamlined access to the Oracle Public Safety Suite via a new contract with the Texas Department of Information Resources (DIR). This partnership gives law enforcement, emergency services, schools, and other public entities streamlined access to AI-enhanced safety tools through what it says is a simplified, pre-negotiated process. The tools help integrate key functions of call-taking, dispatch, record tracking, and evidence management into a unified system. The tools also feature generative AI-assisted case reporting and record management to help reduce administrative workloads.

Investors bet global conflict will ease

Oracle, along with the whole market, also saw a boost today from developments in the Middle East. Although tensions were high after a ceasefire in the Israel-Iran war was violated, investors appeared encouraged by Iran's somewhat limited response to U.S. strikes on its nuclear facilities.

The sun from space with the Earth in the foreground.

Image source: Getty Images.

A strong outlook

Oracle is betting big on AI and investing heavily to compete. The company is part of the Stargate program and could benefit greatly from its AI aspirations. Chairman Larry Ellison has called the program "the biggest AI training project out there." Given its growth prospects, even with a price-to-earnings ratio (P/E) of 47, I think Oracle can be a solid addition to a well-diversified portfolio.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.

Why Quantum Computing Stock Is Skyrocketing This Week

Shares of Quantum Computing (NASDAQ: QUBT) are surging this week, up 24.2% as of 1:22 p.m. ET. The jump comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) both had modest gains.

At his company's GTC Paris developer conference on Wednesday, Nvidia CEO Jensen Huang indicated that he thinks quantum computing is reaching an "inflection point," boosting stocks across the industry.

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Jensen changes his tune

Earlier this year, Huang sent quantum stocks sliding after he said he believes useful quantum computers were 15 years or more away. He later qualified his remarks and walked them back somewhat, even hosting executives from around the industry to "tell him why he was wrong."

On Wednesday, however, he went much further, making the most directly bullish comments thus far. Huang said that he believes the industry is nearing an "inflection point" and that "we are within reach" of being able to apply the technology "in areas that can solve some interesting problems in the coming years."

A digital representation of a futuristic city.

Image source: Getty Images.

A long road ahead

As much as this seems a significant departure from his original stance, it seems to me that investors may be reading past what Huang actually said. There's a difference between solving "some interesting problems" and the full maturation of quantum technology that delivers on its transformative promise. There is plenty of reason to believe Huang's original timeline for the latter.

And given the enormous market capitalizations of these quantum stocks, including Quantum Computing, the technology must be transformative. I think we are still a very long way from a quantum computer that is robust, powerful, and stable enough to generate a return on the current level of investment. I would stay away from Quantum Computing stock for the time being.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Why Newsmax Stock Is Sinking Today

Shares of Newsmax (NYSE: NMAX) are plunging on Thursday. The media company's stock lost 9% as of 3:50 p.m. ET. The steep decline comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 0.3% and 0.8%, respectively.

There isn't a direct catalyst today, so here's a quick analysis of the company's stock.

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Newsmax saw its stock skyrocket nearly 1,800% in the first two days following its recent initial public offering (IPO), before falling roughly 90% over the next week. The conservative media company's viewership has been spiking, leading to the intense excitement around its stock. Newsmax's Q1 viewership jumped 50% year over year, and it is now one of the five most-watched channels in all of cable and the fourth-most-watched cable news channel. Along with its viewership, its revenue has grown considerably as well. The company's revenue jumped 26.4% from 2023 to 2024.

The shadow of a bear looking at a person wearing a suit.

Image source: Getty Images.

There are plenty of reasons to be wary

That's about where the good news ends. The company is operating deep in the red, losing more than $17 million in the first quarter of 2025. Its viewership numbers are also less impressive when you consider that most cable news channels saw comparable major growth over the same period and that its biggest competitor, Fox News, is still miles ahead. All 15 of the most-watched shows on cable appear on Fox. And that 15th-ranked show has 3 times as many viewers as Newsmax's top-ranked program.

Despite this disparity, Newsmax stock carries a price-to-sales ratio more than 8 times that of Fox News' parent company. This seems divorced from reality to me. And if that weren't reason enough to stay away from this stock, Newsmax is facing massive litigation over its false statements regarding the 2020 election. The penalty it could face would potentially bankrupt the company.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Palantir Stock Is Sinking Today

Shares of Palantir Technologies (NASDAQ: PLTR) dropped on Thursday, falling 5.9% as of 2:48 p.m. ET. The move down comes as the S&P 500 lost 0.2% and the Nasdaq Composite fell 0.4%.

A report last week from The New York Times asserted, among other things, that Palantir, which leverages artificial intelligence (AI) to analyze massive data sets and help clients make better decisions, has gained incredible access to data across the federal government, which could give President Donald Trump "untold surveillance power."

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Karp says there is no surveillance

Ethical concerns notwithstanding, investors took the report as further proof that Palantir's bottom line will continue to grow as it becomes further embedded in the operation of the federal government. However, in an interview with CNBC on Thursday, CEO Alex Karp was adamant that his company is "not surveilling Americans," leading to the stock's decline today.

A person looks straight ahead while digital metrics appear around one eye.

Image source: Getty Images.

Even if what Karp says is true, however, the company is still deeply embedded in the federal government, and that relationship appears to be growing.

Beware Palantir's valuation

Despite this increasingly cozy relationship, I still think this stock is just too expensive. I don't doubt Palantir's ability to win new government contracts, but I don't think it can grow enough to justify its incredible valuation. Its price-to-earnings ratio (P/E) of 560 is wildly high and, in my opinion, divorced from reality. There is no doubt that Palantir, by and large, is executing at a very high level, but a valuation this high means it must execute perfectly.

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*Stock Advisor returns as of June 2, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

CoreWeave Stock Is Sinking Today -- Here's What Investors Need To Know

Shares of CoreWeave (NASDAQ: CRWV) are falling on Thursday, down 16.2% as of 2:13 p.m. ET. The large drop comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell by 0.3% and 0.1%, respectively.

CoreWeave stock's sharp drop isn't really being driven by specific news from today; rather, it's a retreat from the stock's recent massive run-up. The stock was up nearly 50% this week before today's fall after the company announced several catalysts.

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CoreWeave inks a key deal

CoreWeave, which provides cloud computing services to artificial intelligence (AI) companies like Nvidia and Microsoft, announced earlier this week that it has entered into a deal with Applied Digital to lease 250 megawatts of computing power for the next 15 years. The deal greatly expands CoreWeave's total capacity and ability to serve its customers.

CoreWeave appoints a new executive

On Wednesday, the company announced it has appointed Ernie Rogers as chief architect of strategic financing. Rogers will help CoreWeave continue to finance its rapid expansion. Michael Intrator, co-founder and CEO, explained in a statement that his "deep understanding of our business makes him uniquely qualified to help drive our next phase of growth."

There are reasons to be cautious

A busy city from above.

Image source: Getty Images.

CoreWeave's growth has been impressive, but I'm not sold on the stock. The company is highly leveraged and, with the recent appointment of Rogers, appears to be looking to add to this debt. This makes the company highly vulnerable to any disruptions in its growth.

This would already be cause for concern, but considering that CoreWeave's revenue is entirely dependent on just a handful of companies, the risk is greater. After all, its largest client, Microsoft, is a cloud provider itself. It's more than possible that CoreWeave sees a major disruption in sales that could handicap the company as it grows. Therefore, I would avoid CoreWeave stock.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.

Why Abercrombie & Fitch Stock Is Soaring Today

Shares of Abercrombie & Fitch (NYSE: ANF) are flying higher on Wednesday. The company's stock had gained 15% as of 2:36 p.m. ET. The jump came as the S&P 500 and the Nasdaq Composite were mostly flat.

The clothing retailer reported its first-quarter numbers before the market opened on Wednesday, beating Wall Street targets.

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A positive quarter despite tariffs

Abercrombie released its Q1 earnings, revealing a strong quarter and guidance even in the face of tariff uncertainty. The company delivered earnings per share (EPS) of $1.59 on sales of $1.10 billion for the quarter, beating consensus expectations of $1.39 on $1.07 billion in sales.

The top- and bottom-line beat sent the company's stock soaring. Investors appeared willing to look past the company's downward adjustments to its forecast of earnings and margins for the full year. The company was projecting EPS between $10.40 and $11.40, but now expects between $9.50 and $10.50. Operating margins guidance was also cut, from 14%-15% to 12.5%-13.5%.

The company cited President Donald Trump's tariffs, especially those on goods imported from Chinese, as the main driver in lowering its guidance.

A couple shopping for clothes.

Image source: Getty Images.

Still, the results were impressive. As CEO Fran Horowitz explained, the results were "above our expectations and were supported by broad-based growth across our three regions." She attributed the success to the Hollister brand, saying that it "led the performance with growth of 22%, achieving its best ever first quarter net sales" and adding that "Abercrombie brands net sales were down 4% against 31% sales growth in 2024."

Abercrombie, which has reimagined itself for a new generation, continues to show exceptional growth at a time when many clothing retailers are struggling. I think it is a solid pick.

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*Stock Advisor returns as of May 19, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Joby Aviation Stock Is Soaring Today

Shares of Joby Aviation (NYSE: JOBY) are flying higher on Wednesday. The company's stock spiked 30.2% as of 2:21 p.m. ET. The jump comes as the S&P 500 and the Nasdaq Composite were mostly flat.

The company, which develops electric vertical take-off and landing (eVTOL) aircraft, announced yesterday after the market closed that it has received $250 million from Toyota, the first tranche in $500 million of previously announced funding.

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Toyota releases its first payment

While the funding was not unexpected -- the total $500 million strategic investment had already been announced -- actually receiving it sparked renewed enthusiasm for the company and its relationship with the storied vehicle maker.

The funds will be used to help Joby attain certification for its eVTOL aircraft as well as to advance its manufacturing and production capabilities. Joby leadership is hoping the relationship will progress, saying that the release of the $250 million "puts the two companies a step closer toward a strategic manufacturing alliance."

The sun rising over the Earth from space with a view of Africa and the Arabian Peninsula.

Image source: Getty Images,

JoeBen Bevirt, founder and CEO of Joby, added that, "We're already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimizing design. This is an important next step in our alliance with Toyota to scale the promise of electric flight."

Joby looks promising

The news comes on the heels of a damning report on its closest competitor, Archer Aviation, that alleges Archer is misleading investors regarding its development timeline and aircraft capabilities. If these allegations prove true, it would give a massive leg up to Joby in the race to commercial operations. Given Toyota's commitment to quality and reliability and its relationship with Joby, I would be surprised if the company faces similar allegations.

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Before you buy stock in Joby Aviation, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,492!*

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*Stock Advisor returns as of May 19, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

A Cathie Wood Favorite Is Falling: Why Tempus AI Stock Is Imploding Today

Shares of Tempus AI (NASDAQ: TEM) are falling on Wednesday. One of Cathie Wood's largest holdings, the company's stock plummeted 18.7% as of 2:15 p.m. ET. The collapse comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) were mostly flat.

Tempus, a "precision medicine" company that leverages artificial intelligence (AI) to better treat patients, was the target of a short report from short-seller Spruce Point Capital Management that alleges the stock has as much as a 60% downside.

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Tempus faces significant allegations

The report, released as the market opened today, outlines Spruce's allegations. The most damning of these include a history of company leadership, especially founder Eric Lefkofsky, creating advanced technology companies that make bold claims they often fail to back up. The report says that the leadership exits the companies, having made millions, early, leaving shareholders with losses or "lackluster" returns.

The report also alleges that Lefkofsky and Tempus leadership are misleading the public as to their use of AI. The report states that just before the company IPO'd, as AI hype was peaking, the company rebranded from Tempus Labs to Tempus AI. Despite its centrality in the company's new name, branding, and public statements, only 2% of its 2024 revenue came from AI applications. The report alleges that Tempus' actual ability to utilize AI is vastly overstated.

The synapses of a brain.

Image source: Getty Images.

There is reason to be skeptical

While there are many more allegations -- like accounting irregularities and weakening relationships with core customers like AstraZeneca -- it's important to take it with a grain of salt. The short-seller has a financial stake in seeing Tempus' stock price decline. Still, the report is convincing, and even if most of the allegations prove untrue, I agree with its final assessment that the stock is already overpriced. I would stay away from Tempus, even if it is one of Cathie Wood's favorites.

Should you invest $1,000 in Tempus Ai right now?

Before you buy stock in Tempus Ai, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tempus Ai wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,492!*

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*Stock Advisor returns as of May 19, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool recommends AstraZeneca Plc. The Motley Fool has a disclosure policy.

Why Navitas Semiconductor Is Skyrocketing Today (Hint: Nvidia Has a New Partner)

Shares of Navitas Semiconductor (NASDAQ: NVTS) are skyrocketing on Thursday. The company's stock soared an incredible 156% as of 1:57 p.m. ET, and as much as 161.8% earlier in the day's trading. The remarkable gain comes as the S&P 500 (SNPINDEX: ^GSPC) gained 0.2% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) jumped 0.6%.

The semiconductor company announced a new partnership with artificial intelligence (AI) chip giant Nvidia after the market closed yesterday.

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A massive partnership

Navitas announced Wednesday that Nvidia has selected the company to help power its next-generation AI data center systems that will include the much anticipated Rubin chips, the upcoming successor to its current, industry-leading Blackwell chips.

Navitas says its gallium nitride (GaN) and silicon carbide (SiC) technologies will help Nvidia solve key scaling issues with its power supply for the incredibly powerful AI-enabling chips. The technologies create "high-efficiency, scalable power delivery for next-generation AI workloads, ensuring greater reliability, efficiency, and reduced infrastructure complexity."

The back of a data center server rack.

Image source: Getty Images.

A major validation

The deal is important not just because it will bring in significant revenue, but because in partnering with the world's leading AI chipmaker, Navitas' technology is validated to the entire industry.

Gene Sheridan, CEO of Navitas, said, "We are proud to be selected by Nvidia to collaborate on their 800 HVDC architecture initiative," adding, "Our latest innovations... have created new inflections into markets such as AI data centers and electric vehicles."

I think Navitas stock is worth owning; this seal of approval from Nvidia is a game changer, and the company's balance sheet is solid, with minimal debt.

Should you invest $1,000 in Navitas Semiconductor right now?

Before you buy stock in Navitas Semiconductor, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Bitcoin Tops $111,000. Why President Trump's Bill Is Moving Crypto.

Bitcoin (CRYPTO: BTC) set a new all-time high today, topping $111,000 for the first time ever. After reaching a previous all-time high in December 2024, Bitcoin declined roughly 30%, leading many to believe the bull run that saw it nearly double from September through December was over. However, in the last month, Bitcoin is up nearly 50%.

As is common, many altcoins have followed suit, with Ethereum (CRYPTO: ETH) up more than 68% in a month and Dogecoin (CRYPTO: DOGE) up nearly 50% since April.

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This growth has been largely fueled by easing trade tensions with China, and more recently, a downgrade of U.S. debt and the advancement of the crypto-friendly GENIUS Act. Today's move is directly related to the U.S. House of Representatives vote to advance President Trump's tax bill and "driven by a mix of positive momentum, growing optimism around U.S. crypto regulation, and continued interest from institutional buyers," as James Butterfill, head of research for crypto-focused asset manager CoinShares, told CNBC.

GENIUS Act passes the Senate

The Senate advanced the GENIUS Act on a bipartisan 66-32 vote Monday. The bill would establish the first regulatory framework for stablecoins -- crypto tokens pegged to fiat currencies like the U.S. dollar, which could greatly advance their adoption in mainstream finance. The move was big news across crypto markets, but Ethereum saw a particular boost, as many of the most prominent stablecoins operate on its blockchain.

The fact that the bill passed with bipartisan support -- 16 Democrats joined the majority of Republicans -- was taken as an especially positive sign that more crypto-friendly bills could be coming.

Institutional buy-in is growing

Jamie Dimon, CEO of JPMorgan Chase and a longtime crypto skeptic, announced earlier this week that the asset management firm will allow clients to purchase Bitcoin. While the company won't hold it itself, it marks a major milestone, given JPMorgan's influence and Dimon's years of opposition to Bitcoin.

This comes as Bitcoin ETFs have seen consistent inflows and steady growth. So far in May, only two days have seen more money flow out of them than in. Often using these ETFs, public companies have greatly expanded their Bitcoin ownership this year: Ownership of the cryptocurrency by public companies is up 31% this year alone.

Economic fears are driving investment

Today's move in particular appears driven by the advancement of Trump's "Big Beautiful Bill." The House voted to advance the massive bill that would see a significant increase in the federal government's revenue shortfall. While there are spending cuts, the massive tax cuts will amount to a $3.8 trillion addition to the national debt, according to the non-partisan Congressional Budget Office (CBO). This has spooked Wall Street and sent bond yields higher, with the 30-year Treasury yield at its highest level since October 2023. Bond yields rise as faith in the health of the economy falls.

Person stands on the trading floor of a stock exchange with hands on head.

Image source: Getty Images.

Bitcoin has long been held by its proponents to be a "safe haven," an alternative to the U.S. dollar and more traditional assets that are tied to the health of the economy. This hasn't always borne out. However, that is exactly what appears to be happening today. Investors are moving money from traditional assets into Bitcoin as a hedge, believing that if the broader economy worsens, Bitcoin will not move down with it.

I think both Bitcoin and Ethereum are solid investments that can help diversify your portfolio and make it more resilient during downturns. However, they are still relatively speculative and carry a decent amount of risk. Dogecoin is a meme coin, and I would caution investors to stay away from it.

Should you invest $1,000 in Bitcoin right now?

Before you buy stock in Bitcoin, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

Now, it’s worth noting Stock Advisor’s total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of May 19, 2025

JPMorgan Chase is an advertising partner of Motley Fool Money. Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and JPMorgan Chase. The Motley Fool has a disclosure policy.

Here Are the 2 Best Artificial Intelligence Stocks to Buy in May and 1 to Avoid

If the promises of some of artificial intelligence's (AI) biggest champions come true, the technology will fundamentally reshape our world; nothing will be the same. Maybe this won't come to pass. Maybe the tech evangelists have oversold a technology's power once again. The thing is, it doesn't have to live up to the full extent of the hype to still have a massive economic impact.

And it's not just tech CEOs making bold claims. The International Monetary Fund believes 40% of global employment will be affected by AI -- and 60% in "advanced economies" like the U.S. One of the Big Four accounting firms, PwC, believes AI will add $15.7 trillion to the global economy by 2030.

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But just because a company is involved in AI doesn't make it a good pick. Past technological revolutions have made it clear that when the dust settles, many of what seemed like promising companies get left behind. So, here are my two favorite AI picks in May -- and one to stay away from.

Meta has a unique advantage

Meta Platforms (NASDAQ: META), the parent company of Facebook and Instagram, is uniquely positioned to harness the power of AI. Why? A massive, highly engaged audience that is unmatched. Across its "family of apps," Meta reported more than 3.4 billion daily active users this quarter -- up 6% year over year. That sort of audience of captive users means Meta can focus on refining its AI features rather than building an audience from scratch.

It's also what makes Meta's core business -- advertising, accounting for 99% of its revenue -- incredibly valuable. The company's top line has grown at a double-digit pace in four of the past five years, and now it's using AI to take that growth further. Meta is deploying the technology to both improve ad targeting and give advertisers creative tools that make their ads more effective and cheaper to produce. In the latest quarter, Meta said these efforts lifted conversion rates by 5% -- a figure that's likely to improve as its AI models mature.

Looking ahead, Meta is betting on AI to define the future of how people interact with computing. The company says its Meta Glasses are the "ideal form factor" for AI and is developing a voice-based assistant with low latency to power them. If successful, I could see these smart glasses moving from novelty to necessity, even replacing smartphones for many users.

Finally, Meta stock happens to be one of the most attractively priced among its big tech peers, trading at 23 times earnings. While that's not necessarily cheap, by tech standards, it's more than reasonable.

Neon colored letters AI on top of a computer chip.

Image source: Getty Images.

Nvidia is still the champ

No company dominates the AI GPU market like Nvidia (NASDAQ: NVDA), and the rewards have been massive. Fueled by surging chip sales and continued demand, Nvidia has maintained and even expanded its impressive margins over the last few years -- although these do seem to have found an upper limit in the mid-50s. Its chips are still miles ahead of those from its closest competitors, and its incredible free cash flow means it can spend lavishly on research and development to maintain its edge.

Beyond its hardware edge, however, Nvidia's most significant edge may be on the software side. Its CUDA platform, a software layer that allows developers to program GPUs for complex tasks beyond the simple graphics they were created for, is what enables GPUs to be used for AI today. While other software like it exists, CUDA is ubiquitous throughout the industry.

Most AI software is designed to work on top of CUDA, making it extremely costly and complex for customers to switch to another hardware provider. They would need to rework their own software to work with that company's CUDA equivalent, likely even needing to hire entirely new developers. That is extremely expensive. This "stickiness" ensures that clients remain loyal and willing to pay a premium, reinforcing Nvidia's dominant position in the AI chip market.

There are real hurdles ahead, but I think Nvidia has proven its ability to innovate and adapt, and with its stock trading at one of its lowest price-to-earnings ratios (P/E) in many years, I think Nvidia is still a great pick.

Palantir's business is promising, but its stock is just too expensive

Palantir Technologies (NASDAQ: PLTR), an AI-powered intelligence and analytics company, is a great company in almost every way from an investing perspective. It is an innovative company delivering consistent double-digit growth and expanding margins, and the demand for its services remains very high. The value it provides to its clients is undeniable.

However, its stock is just too expensive -- and that's putting it lightly. Palantir shares carry a P/E of nearly 500. That's more than 12 times the P/E of Nvidia, which is growing its top and bottom lines at a faster clip. Its valuation is simply divorced from reality, and I would caution you to stay away unless the stock falls significantly.

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  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $304,370!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,442!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $617,181!*

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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. Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.

Is the Cryptocurrency XRP (Ripple) a Millionaire-Maker?

It's been a wild ride for cryptocurrency investors during the past few months -- and that's saying something. Bitcoin surpassed the $100,000 mark, reaching more than $109,000 just 16 years after its creation. While the price has retreated to about $102,000 amid broader uncertainty, investors still appear optimistic that Bitcoin will continue to grow.

That optimism has spilled over into so-called altcoins looking to repeat the extreme successes of the original crypto. XRP (CRYPTO: XRP), in particular, has garnered a loyal following. The crypto token aimed at revolutionizing the banking industry has seen its price rise more than 300% during the past six months alone. Could XRP repeat the success of Bitcoin? Could it be a millionaire-maker?

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XRP basics

Let's step back for a moment and explore what XRP is and why it provides value. The crypto token is designed to act as a bridge between banks and other financial institutions. It helps facilitate international money transfers efficiently and lets banks settle transactions nearly instantaneously. Traditional methods can take days or even weeks, are often complex, expensive, and can involve third parties that complicate the issue further. XRP's core advantages over legacy systems are speed and minimal cost.

The fact that XRP provides real-world value and a record of use by the industry it is targeting makes it stand out in a market flooded by meme coins. Still, we have to try to quantify that value. Is it enough to justify the enormous $135 billion market capitalization XRP has already amassed?

Understanding XRP's value

It's difficult to come up with a direct comparison, but I think Visa is a good start. The company operates a vast global payment network that is not completely unlike XRP. Yes, there are fundamental differences, but I think it's still useful. How do the networks compare? Visa handles more than 640 million transactions per day. XRP's blockchain processes just 1 million per day.

Despite this disparity, Visa's market cap is only about five times more than XRP's. Does that seem proportional? It seems to me that either Visa is severely undervalued or XRP is severely overvalued. My money is on the latter.

A digital representation of the blockchain with glowing interconnected blocks.

Image source: Getty Images.

Maybe this isn't a fair comparison; let's try another way to think about it. The claim is often echoed that if XRP is widely adopted, it will capture a significant portion of the hundreds of billions of dollars banks pay in transaction fees each year. The flaw, as I see it, is that the only reason XRP is attractive to banks in the first place is because its cost is minuscule -- orders of magnitude less than traditional methods. Then it follows that even if it managed to handle transactions for the whole market, the fees it would collect would be in the hundreds of millions of dollars or low billions. That doesn't seem to justify the current market cap.

The question at hand

XRP may be faster and cheaper than traditional banking methods, but that doesn't guarantee adoption, and it certainly doesn't guarantee returns. Although there has been a surge in interest in XRP during the past few months, I'm skeptical of the token's long-term viability. It seems to me that XRP's price today already bakes in a ton of its future growth.

Although I fully admit that valuing crypto is difficult and often defies a lot of traditional thinking, I don't see XRP growing in the way it needs to make a good investment, let alone qualify it as a millionaire-maker, even by the most generous standards. I would also caution readers from getting too caught up in this sort of thinking and, instead, adopt a diversified approach, focusing on the long term.

Should you invest $1,000 in XRP right now?

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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $719,371!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of May 5, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Visa, and XRP. The Motley Fool has a disclosure policy.

Why Tesla Stock Is Surging Today

Shares of Tesla (NASDAQ: TSLA) are climbing on Thursday. The electric vehicle (EV) maker's stock gained 4.1% as of 3:20 p.m. ET and was up as much as 4.9% earlier in the day. The rise comes as the S&P 500 gained 1.1% and the Nasdaq Composite rose 1.8%.

The company's stock is seeing a boost after President Donald Trump announced a trade agreement with the United Kingdom.

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The first deal

Tesla shares climbed after Trump unveiled the broad outline of a trade agreement with the United Kingdom. This is the first major deal his administration has been able to put together after Trump imposed sweeping tariffs in April. It's important to note that many specifics remain unclear, and nothing was formally signed. "The final details are being written up," Trump said. "In the coming weeks, we'll have it all very conclusive."

And while optimism is high following the announcement, the tentative deal as of yet does not include the lowering of the U.K.'s 10% tariff on U.S. automobiles. Still, it left the door open for these to be lowered as well as capping the number of vehicles the country can effectively sell into the U.S. This appeared to be enough for investors to send shares higher.

The US and UK flags on a white background.

Image source: Getty Images.

The future is uncertain

The announcement comes at a critical time for Tesla. The company has seen its sales plummet across key markets -- including the U.K. -- even as EV sales at large are on the rise. In the company's recent earnings call, Tesla chief Elon Musk said he would devote more time to his duties as CEO after investor discontent grew from his role in the Trump administration. Despite Musk's return, I continue to think the stock is overvalued.

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  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $303,566!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,207!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $623,103!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

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*Stock Advisor returns as of May 5, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Why Rigetti Stock Is Skyrocketing Today: It's More Than Trump's Trade Deal

Shares of Rigetti Computing (NASDAQ: RGTI) are skyrocketing on Thursday. The quantum computing start-up's stock surged 10.5% as of 2:50 p.m. ET and was up as much as 12.3% earlier in the day. The rise comes as the S&P 500 gained 1.3% and the Nasdaq Composite rose 1.8%.

The quantum computing company is rallying after its industry peer reported positive earnings Thursday. The stock is also seeing a boost from President Donald Trump's U.K. trade deal.

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D-Wave's record quarter lifts all quantum boats

D-Wave Quantum reported strong quarterly results, beating expectations. The company announced revenue of $15 million for its first quarter of 2025, a 509% increase from the $2.5 million reported in the same period last year.

D-Wave's CEO, Alan Baratz, called it "arguably the most significant [quarter] in D-Wave's history," highlighting that the company had demonstrated "quantum supremacy" over classical computing on a useful real-world problem -- a significant milestone for the industry at large.

Trump trade deal boosts optimism

Adding to the positive momentum, Trump unveiled the outline of a trade deal with the United Kingdom on Thursday. While much of it focused on traditional industries like agriculture, the deal includes provisions related to intellectual property protection that could benefit Rigetti and other quantum stocks.

Two hands shake in front of American and British flags.

Image source: Getty Images.

There's a long way to go

Despite the positive news from D-Wave and its demonstration of "quantum supremacy," it was extremely limited in its scope. It will be a long time before quantum technology matures to the point where it delivers major economic benefits.

If you are an investor with a particularly high risk tolerance and the ability to possibly wait a decade or more for your investment to pay off, Rigetti is one of the better quantum stocks on the market. However, I would strongly suggest spreading your investment around many quantum stocks, as there is no way to tell at this point which company's approach will work in the long run.

Should you invest $1,000 in Rigetti Computing right now?

Before you buy stock in Rigetti Computing, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,471!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of May 5, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why XRP (Ripple) Is Soaring Today: President Trump's Tariff Deal and More

XRP (CRYPTO: XRP) is surging on Thursday. The price has risen 6% in the last 24 hours as of 2:17 p.m. ET. The move comes as the S&P 500 (SNPINDEX: ^GSPC) gained 1.1% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 1.7%.

Multiple positive developments are driving Ripple's token higher.

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Trump trade deal boosts market sentiment

President Trump announced today that a trade deal has been reached with the U.K., the first since Trump's sweeping tariffs were announced in April. Investors across the market reacted positively. The details are light, and the deal has yet to be finalized, but the move indicates a resolution to the trade war could be coming. The uncertainty sparked by Trump's tariffs has hit speculative assets like XRP especially hard, so investors were pleased to see positive movement.

Bitcoin milestone fuels market-wide euphoria

Likely as part of the renewed optimism following the trade deal news, Bitcoin crossed the $100,000 threshold once again. The six-figure mark is a psychological barrier, and its crossing sparked a rally across crypto. As it often does, XRP followed closely behind Bitcoin's movements.

A Bitcoin and a bull racing across the screen.

Image source: Getty Images.

Coinbase makes a huge purchase

In the meantime, Coinbase announced today it will acquire Deribit, the world's largest cryptocurrency derivatives platform. The approximately $2.9 billion deal was viewed across the market as positive for crypto at large and a sign of the growing maturation of the industry, sending XRP and other cryptos higher.

XRP is overvalued

While the positive news across the market helped boost XRP, I have my doubts. To be sure, it is a crypto with real-world utility already in widespread use, and in a world of meme coins, that is worth something. The SEC could also soon grant issuers the green light to begin offering a spot XRP ETF, no doubt a positive catalyst.

Regardless, with a market capitalization of over $130 billion, I believe it is overvalued.

Should you invest $1,000 in XRP right now?

Before you buy stock in XRP, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,471!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and XRP. The Motley Fool has a disclosure policy.

Palantir Stock Is Soaring Today. Here's Why.

Shares of Palantir Technologies (NASDAQ: PLTR) are surging on Thursday. The artificial intelligence (AI)-powered data analytics company's stock gained 8.1% as of 1 p.m. ET and was up as much as 9% earlier in the day. The jump comes as the S&P 500 (SNPINDEX: ^GSPC) gained 1.5% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 2%.

The government-focused software provider is rallying after President Trump announced a trade agreement with the United Kingdom.

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Investors are hoping it's the first deal of many

Palantir shares climbed as President Donald Trump unveiled the broad outline of a trade agreement with the United Kingdom. This is the first major deal his administration has been able to put together after Trump imposed sweeping tariffs in April.

While optimism was high following the announcement, it's important to note that many specifics remain unclear, and nothing was formally signed. "The final details are being written up," Trump said. "In the coming weeks, we'll have it all very conclusive."

A boost for Palantir

While the news boosted stocks across the market, Palantir investors appeared especially optimistic, as some of the limited specifics mentioned could benefit the company specifically. The White House fact sheet released as part of the announcement mentions the deal will "close loopholes and increase U.S. firms' competitiveness in the U.K.'s procurement market." This could mean Palantir has an easier time winning new contracts with the U.K. government.

Two people in a room full of screens.

Image source: Getty Images.

Palantir is still overvalued

With a price-to-earnings ratio (P/E) of nearly 500, Palantir's valuation is out of touch with reality. There is no doubt that the company is executing at a very high level, but with a valuation this high, a level of perfection is required that I don't think is possible to sustain long term. I would stay away from Palantir stock.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

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