Key Points

• Joby Aviation announced that it will double the size of its existing California production facility.

• The company is also expanding its test fleet.

• Mounting losses and a steep valuation suggest caution is warranted.

• 10 stocks we like better than Joby Aviation ›

Shares of Joby Aviation (NYSE: JOBY) were flying high Tuesday, soaring as much as 10.3%. As of 3:12 p.m. ET, the stock was still up 9.1%.

The catalyst that sent the electric vertical takeoff and landing (eVTOL) aircraft specialist higher was an announcement that the company is expanding its manufacturing capacity.

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Image source: Joby Aviation.

Ready to take flight

In a press release on Tuesday, Joby announced plans to increase the size of its Marina, California, manufacturing facility to 435,500 square feet of total space. This will effectively double the production capacity at that location and support the scale-up of the company's commercial operations. Joby is also ramping up manufacturing capacity at its newly renovated Dayton, Ohio, plant, which will be tasked with manufacturing and testing aircraft components.

Joby is also expanding its flight test program, adding a new aircraft to its growing test fleet.

Is Joby a buy?

It's important to remember that Joby isn't yet generating much revenue, and the company's losses are piling up. As such, a lot will have to go right for Joby to succeed, and the stock is exorbitantly expensive, currently trading for 179 times next year's expected sales.

To be clear, Joby is a high-risk, high-reward investment, which could lead to something of a binary outcome. If the eVTOL specialist can win certification from the Federal Aviation Administration (FAA) -- the process in ongoing -- and manufacture its aircraft at scale, the stock could fly much higher. On the other hand, if Joby isn't successful in either of these areas, the highflier could crash and burn.

With that in mind, investors should size their positions with their risk tolerance in mind.

Should you invest $1,000 in Joby Aviation right now?

Before you buy stock in Joby Aviation, 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 Joby Aviation 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 $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*

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*Stock Advisor returns as of July 15, 2025

Danny Vena 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.

Key Points

• Baidu is joining forces with Uber to deploy its Apollo Go autonomous vehicles worldwide.

• The partnership could represent a significant opportunity for the Chinese tech giant.

• 10 stocks we like better than Baidu ›

Shares of Baidu (NASDAQ: BIDU) charged sharply higher on Tuesday, surging as much as 9%. As of 12:46 p.m. ET, the stock was still up 8.5%.

The catalyst that sent the Chinese tech giant higher was a high-profile partnership for its self-driving car platform.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Baidu.

A foot in the door of a worldwide market

In a joint press release, Baidu revealed that it had joined forces with Uber (NYSE: UBER) to accelerate the deployment of autonomous vehicles worldwide. The pair announced a "multi-year strategic partnership to deploy thousands of Baidu's Apollo Go autonomous vehicles (AVs) on the Uber platform across multiple global markets outside of the U.S. and mainland China." The press release went on to say that the focus would be on "increasing the supply of affordable and reliable ridesharing options."

A partnership of this magnitude could be a huge catalyst for Baidu. Uber is widely recognized as the world's leading ride-hailing and delivery platform. For context, the company facilitated 3 billion rides in the first quarter, with more than 170 million monthly active platform customers. Furthermore, the number of both rides and riders continue to increase at a healthy double-digit clip.

Baidu's Apollo Go fleet already numbers more than 1,000 driverless vehicles globally, earning it the title of the world's leading autonomous ride-hailing service.

The first vehicle deployments of the partnership are expected to occur in Asia and the Middle East later this year. "After launch, if a rider requests a qualifying Uber trip, they may be presented with the option to have their trip fulfilled by a fully driverless Apollo Go autonomous vehicle," according to the press release.

Baidu is often called "the Google of China," and search is the company's core business. Baidu has expanded beyond its original mandate into streaming video, artificial intelligence (AI), cloud services, and more, but its stock has been stuck in neutral in recent years. If the partnership with Uber bears fruit, it could mark the next big thing for Baidu.

Like any company based in China, Baidu carries an element of additional risk. That said, at just 9 times trailing-12-month earnings, the stock is attractively priced given the breadth of the opportunity.

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

Before you buy stock in Baidu, 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 Baidu 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 $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*

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See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Danny Vena has positions in Baidu. The Motley Fool has positions in and recommends Baidu and Uber Technologies. The Motley Fool has a disclosure policy.

Key Points

• The Trade Desk has been admitted to the S&P 500 index, one of just six companies to make the cut so far in 2025.

• The company is the largest independent programmatic advertising platform and a pioneer in the field.

• Despite a rare misstep late last year, Wall Street still believes the stock is a buy.

• These 10 stocks could mint the next wave of millionaires ›

The S&P 500 is well regarded as the best overall gauge of the U.S. stock market and includes the 500 leading publicly traded companies in the country. Given the breadth of businesses that make up the index, it is widely regarded as the most reliable benchmark of overall stock market performance. To be considered for entrance into the S&P 500, a company must meet the following criteria:

• Must be a U.S.-based company
• Must have a market cap of at least $20.5 billion
• Must be highly liquid
• At least 50% of its outstanding shares must be available for trading
• Must be profitable on a generally accepted accounting principles (GAAP) basis in the most recent quarter
• Must be profitable during the preceding four quarters in aggregate

The Trade Desk (NASDAQ: TTD) is the latest addition to the S&P 500, scheduled to join the benchmark on July 18. That makes it one of only six companies to make the cut thus far in 2025. Since its IPO in late 2016, The Trade Desk has easily outperformed the broader market, generating gains of 2,410% compared to just 190% for the S&P 500 (as of market close on Monday). The stock price gains have been driven higher by solid fundamentals, as its revenue has soared 1,930% and net income has jumped 567%.

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Despite the stock's impressive rise and the programmatic advertiser's strong track record of growth, many believe the best days are still ahead for The Trade Desk. Let's take a look at the opportunity ahead and why Wall Street believes the stock is still a buy, despite sporting something of a premium valuation.

Image source: Getty Images.

A changing landscape

There's a paradigm shift taking place in the world of advertising, and The Trade Desk gets much of the credit. The company has built the world's largest independent platform for ad buyers, thanks to the vision of CEO Jeff Green. In 2003, the chief executive founded the world's first online advertising exchange, AdECN, which was acquired by Microsoft in 2007. Taking what he learned, he set out to revolutionize programmatic advertising, co-founding The Trade Desk in 2009.

The company takes a different approach to digital advertising, partnering with the major ad agencies rather than competing against them. The Trade Desk also has a long track record of innovation. The company's Unified ID (UID) 2.0 is the industry standard and heir apparent to cookies -- those annoying bits of computer code that track users across the internet. UID uses encrypted consumer data to target and measure the success of ad campaigns, ensuring that advertisers succeed without sacrificing the security of user data.

The Trade Desk recently introduced Kokai, its state-of-the-art platform, which "brings the full power of AI to digital marketing," according to the company. Kokai can review 13 million advertising impressions every second, which ensures advertisers reach the right audience with the right ad at the best time.

For full disclosure, The Trade Desk suffered a rare misstep in Q4 of last year, missing its own guidance for the first time in 33 quarters as it worked to transition customers to Kokai. Since then, however, the company has done an amazing about-face, quickly righting the ship and reaccelerating its growth.

The numbers paint a picture

Don't take my word for it. The Trade Desk's recent results are compelling. In the first quarter, revenue of $616 million grew 25% year over year, resulting in adjusted earnings per share of $0.10, rising 27%.

The Trade Desk has been consistently profitable since 2013 and has a rock-solid balance sheet, with more than $1.74 billion in cash and marketable securities -- and no debt.

Providing advertisers with an alternative to walled gardens like Meta Platforms and Alphabet's Google makes The Trade Desk an attractive choice and has helped the company maintain its long track record of growth and helped usher in its admittance to the S&P 500.

Wall Street is bullish

Despite The Trade Desk's rare misstep late last year, Wall Street remains bullish. Of the 40 analysts that offered an opinion so far in July, 27 rate it a buy or strong buy and none recommend selling.

Analysts at Susquehanna are among the most bullish, maintaining a buy rating and $135 price target on the stock, representing potential gains of 79% for investors compared to the stock's closing price on Monday. The analysts point to the company's "spectacular" track record of growth and near "flawless" execution, believing the issues that cropped up late last year have been resolved.

The Trade Desk is currently selling for just 34 times next year's earnings, and 11 times next year's sales. While that's certainly a premium, I'd argue it's a reasonable price to pay given its strong history of growth.

Furthermore, the most commonly used valuation metrics tend to struggle measuring high-growth companies, and The Trade Desk certainly qualifies. When measured using the more appropriate price/earnings to growth (PEG) ratio, the multiple clocks in at 0.87, when any number less than 1 is the standard for an undervalued stock.

Given its long track record of success, technological edge, and the support of Wall Street, I would submit that The Trade Desk is a buy.

Don’t miss this second chance at a potentially lucrative opportunity

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On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $425,505!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $39,604!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $680,559!*

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*Stock Advisor returns as of July 14, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. 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. Danny Vena has positions in Alphabet, Meta Platforms, Microsoft, and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, and The Trade Desk. 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.

Key Points

• The Trade Desk is a leader in the digital advertising field.

• It boasts a long track record of growth.

• The stock will be joining the S&P 500 index on Friday.

• These 10 stocks could mint the next wave of millionaires ›

Shares of The Trade Desk (NASDAQ: TTD) charged higher by as much as 14% on Tuesday morning. As of 11:45 a.m. ET, the stock was still up by 9.6%.

The catalyst that sent the digital advertising stock surging was the announcement that the company would be joining one of the premier stock market indexes.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Meet the newest member of the S&P 500

After the market closed on Monday, S&P Global revealed that The Trade Desk would be joining the S&P 500. The stock will be replacing ANSYS before the market opens on Friday. In the press release that provided details of the reshuffling, S&P Global noted, "S&P constituent Synopsys will acquire ANSYS in a deal expected to be complete on July 17."

Stocks often rise when they initially join a benchmark index because mutual funds and exchange-traded funds based on that index must buy shares of the new component to keep their holdings aligned with it.

Should investors buy The Trade Desk now?

In isolation, the fact that The Trade Desk is joining the S&P 500 is no reason to buy the stock, but there are plenty of other reasons to be bullish about the programmatic advertising leader.

The Trade Desk has a long track record of innovation, as evidenced by the release of Kokai, a platform infused with artificial intelligence (AI) designed to facilitate digital ad buying. That system can access more than 13 million ad impressions each second, providing actionable insights for advertisers within milliseconds.

A rare misstep in transitioning customers to Kokai in the fourth quarter of 2024 caused the company to miss its guidance for the first time in 33 quarters, which sent the stock careening lower. However, the company has since returned to form, generating robust growth in 2025's first quarter.

Trading at 34 times next year's expected earnings, The Trade Desk is significantly discounted relative to its average multiple of 46 over the past three years.

Its ascension to the S&P 500 only solidifies the opportunity, as evidenced by its long track record of growth, industry-leading technology, and discounted price tag. That's why The Trade Desk is a buy.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $425,505!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $39,604!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $680,559!*

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.

See the 3 stocks »

*Stock Advisor returns as of July 14, 2025

Danny Vena has positions in The Trade Desk. The Motley Fool has positions in and recommends Synopsys and The Trade Desk. The Motley Fool recommends Ansys. The Motley Fool has a disclosure policy.

Key Points

• Nvidia investors have been concerned about the loss of sales to an important market.

• The company announced it would resume AI chip sales to China after a pending approval from the Trump administration.

• A number of Wall Street analysts boosted their price targets on the chipmaker in response.

• 10 stocks we like better than Nvidia ›

Shares of Nvidia (NASDAQ: NVDA) were off to the races on Tuesday, climbing as much as 5%. As of 10:27 a.m. ET, the stock was still up 4.6%.

The catalyst that sent the artificial intelligence (AI) chipmaker higher was news that the company could regain access to one of its most important markets, which sent Wall Street analysts scrambling to update their price targets.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Nvidia.

Chips ahoy

In a blog post published after the market close on Monday, Nvidia announced that it would resume sales of its H20 chips to China. The processors were designed to meet the stringent export requirements for Chinese customers. U.S. officials had voiced concerns that the AI-centric processors could be used by the military in China, prompting the creation of these specially designed chips for that market.

The Trump administration had temporarily banned the sale of the previously approved chips, but the company noted, "The U.S. government has assured Nvidia that licenses [to sell the chips in China] will be granted, and Nvidia hopes to start deliveries soon."

In response to the announcement, Wall Street analysts were working feverishly to update their models, resulting in numerous price target increases. Melius Research was among the most bullish, maintaining its buy rating and increasing its price target to $235, up from $205. That represents potential upside of 43% compared to Monday's closing price. The analysts cited a more positive outlook on potential sales and the company's strategic growth initiatives.

Time to buy?

Investors were worried that strict export controls on the sale of graphics processing units (GPUs) to companies in China would hurt Nvidia's results, and those concerns were justified. In its fiscal first quarter (ended April 27), the company took a $4.5 billion write-off related to its H20 chips. The company had already made $4.6 billion in sales, suggesting there was roughly $9 billion at stake during the quarter. That overhang is now lifted.

And at just 30 times next year's expected earnings, the stock is attractively priced, which is why Nvidia is a buy.

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

Before you buy stock in Nvidia, 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 Nvidia 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 $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*

Now, it’s worth noting Stock Advisor’s total average return is 1,053% — a market-crushing outperformance compared to 180% 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 July 15, 2025

Danny Vena has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Key Points

• Datadog is set to join the S&P 500 next week.

• The cloud monitoring and security specialist is already at the top of its field.

• Artificial intelligence (AI) represents another vast opportunity for Datadog.

Shares of Datadog (NASDAQ: DDOG) charged sharply higher Thursday. As of 10:53 a.m. ET, the stock was up 13.1%.

The catalyst that sent the cloud monitoring, analytics, and security company soaring was the revelation that the stock will be joining the most widely followed stock market index in the U.S.

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Image source: Getty Images.

An important nod

In a press release that dropped after the market closed on Wednesday, S&P Dow Jones Indices announced that Datadog would be added to the S&P 500 (SNPINDEX: ^GSPC) before the start of trading on July 9. The stock will be replacing Juniper Networks on the storied index, as the company was recently acquired by Hewlett Packard Enterprise.

This represents an important validation for Datadog, as many in the investing community had expected either AppLovin or Robinhood Markets to make the cut.

The S&P 500 is the most widely followed benchmark in the U.S. and is regarded as the most reliable benchmark of stock market performance in the country. To be admitted to the index, companies must meet important market cap, liquidity, and profitability criteria. The fact that Datadog was chosen over these other investor-favorite stocks suggests the company has earned the respect of Wall Street.

It's well known that stocks that join an index like the S&P often experience the "index effect," a short-term price bump, as index funds and exchange-traded funds that track the index buy shares of the stock to match its composition. However, history shows that the impact is short-lived, and more important considerations like revenue growth, profits, and cash generation take center stage.

What's next for Datadog?

Datadog is at the top of its game, as evidenced by its selection as a Leader in the "2024 Magic Quadrant" by Gartner for observability platforms. The company pivoted quickly to include tools to monitor large language models (LLMs) and other artificial intelligence (AI) systems. This move was prescient, as these tools currently represent roughly 9% of annual recurring revenue.

Given the company's growth trajectory and AI tailwinds, investors might want to consider taking Datadog for a walk.

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

Before you buy stock in Datadog, 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 Datadog 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 $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $963,866!*

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*Stock Advisor returns as of June 30, 2025

Danny Vena has positions in Datadog. The Motley Fool has positions in and recommends AppLovin and Datadog. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.

There's no denying that the emergence of generative artificial intelligence (AI) was the spark that lifted Nvidia (NASDAQ: NVDA) stock to new heights. In recent months, however, the future has been less certain. Concerns about how AI models will evolve and whether they will need the latest and greatest chips sent some investors to the sidelines. In fact, earlier this year, Nvidia stock plunged 37% on fears the company's best days were behind it.

It turns out the sky isn't falling after all. Nvidia has delivered two successive quarters of high-double-digit revenue growth, as demand for AI remains robust. Indeed, the stock is within striking distance of a new all-time high after notching gains of 50% over the past two months.

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Let's take a step back and review the opportunity, Nvidia's place in the AI ecosystem, and whether it's too late to buy the stock.

Image source: Getty Images.

Nvidia is still the gold standard

Nvidia's original claim to fame is developing the graphics processing units (GPUs) that generate lifelike images in video games. However, it was the adapting of that technology to train and run AI systems that catapulted the chipmaker to new heights. The popular narrative is that its rivals are on the verge of a better solution, but thus far anyway, none has been forthcoming.

The company established a beachhead in AI as early as 2013, giving Nvidia more than a decade-long head start on the competition. After developing processors focused on machine learning -- an earlier branch of AI -- Nvidia quickly became the gold standard, controlling as much as 95% of the market, according to CB Insights (via BBC News). That existing expertise gave Nvidia the advantage in the data center GPU space, where it currently controls an estimated 92% of the market, according to IoT Analytics.

The buildout of data centers to meet the growing demand of AI continues, which bodes well for Nvidia.

Nvidia's growth is (still) off the charts

While Nvidia's growth has inevitably slowed from the triple-digit pace it managed last year, it still runs circles around the competition. For its fiscal 2026 first quarter (ended April 27), the company generated record revenue of $44.1 billion, which surged 69% year over year. Adjusted earnings per share (EPS) of $0.81 climbed 33% -- but that was after a $4.5 billion hit related to export controls for H20 chips originally destined for China. If not for that one-time charge, EPS would have grown 57%.

Management expects the company's robust growth to continue. For its fiscal 2026 second quarter, Nvidia is guiding for record revenue of $45 billion, which would represent growth of 50%. This helps illustrate that despite tough triple-digit comps, Nvidia continues to grow at a remarkable pace.

Is Nvidia stock too expensive?

The stock's rebound over the past few months has come with a commensurate increase in its valuation, which begs the question: Has Nvidia stock gotten too expensive?

Investors might be surprised to learn that simply isn't the case. Nvidia stock is selling for roughly 33 times forward earnings (as of this writing), which is an attractive valuation for a company that's expected to grow its profits by 50% in the coming quarter.

Furthermore, when measured using the price/earnings-to-growth ratio (PEG ratio), Nvidia has a multiple of 0.56, when any number less than 1 is the standard for an undervalued stock.

It's still early innings

Despite the rapid run over the past two years, it's important to remember it's still early days for the adoption of generative AI. These groundbreaking systems have only been around for a little more than two years, and many believe the adoption cycle will continue for much of the next decade.

Estimates vary wildly regarding the potential size of the AI market but they can still give context regarding the size of the opportunity. The generative AI market could be worth between $2.6 trillion and $4.4 trillion annually in the coming years, according to global management consulting firm McKinsey & Company.

Given Nvidia's market-leading position, deeply entrenched technology, the magnitude of the opportunity, and its attractive valuation, I would argue it isn't too late to buy Nvidia stock. These aren't empty words: I added to my Nvidia position as recently as April.

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

Before you buy stock in Nvidia, 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 Nvidia 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 $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $869,841!*

Now, it’s worth noting Stock Advisor’s total average return is 789% — a market-crushing outperformance compared to 172% 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 June 2, 2025

Danny Vena has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

The past few months have been fraught with uncertainty for investors in The Trade Desk (NASDAQ: TTD). The programmatic advertiser delivered an unbroken track record of beating its own guidance for 32 consecutive quarters as it closed out 2024. Then, to the surprise of Wall Street and Main Street alike, The Trade Desk stumbled, missing analysts' consensus estimates and its own forecast. In the wake of its disappointing quarter, the stock went into freefall and shed more than 60% of its value as fair-weather investors headed for the exits.

It isn't surprising, then, that shareholders were sitting on the edge of their seats when the company released its quarterly financial results after the market close on Thursday. Indeed, those who took a long-term view had their faith rewarded as The Trade Desk returned to form and looked to put its troubles behind it.

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Image source: Getty Images.

A stark about-face

The Trade Desk's first-quarter results went a long way in assuring investors that the company's best days are still ahead. Revenue of $616 million grew 25% year over year, accelerating from 22% growth in Q4. The results were reflected in the bottom line, with adjusted earnings per share (EPS) of $0.33, representing an increase of 27%.

To give the numbers some context, analysts' consensus estimates were calling for revenue of $575.3 million and adjusted EPS of $0.25.

Helping drive the results was the increased adoption of The Trade Desk's artificial intelligence (AI)-infused Kokai platform. The new, advanced media buying platform features enhanced decision-making and ad campaign measurement tools. Kokai can access more than 13 million advertising impressions every second, helping distill the complexity of those choices into actionable intelligence within milliseconds. The Trade Desk says the platform helps "advertisers buy the right ad impressions, at the right price, to reach the target audience, at the best time.

The company stumbled in the fourth quarter as it faced logistical issues transitioning existing customers from its legacy Solimar platform to Kokai. The Trade Desk immediately embarked on a reorganization to make the company more nimble, while better positioning it to capture emerging opportunities, including connected TV (CTV), retail media, and audio.

"We're encouraged by the early impact of the strategic upgrades at the company we implemented in Q4, which contributed to our outperformance," said co-founder and CEO Jeff Green. "As we build on this momentum, we're optimistic about our ability to continue to outpace the market and deliver increasing value to marketers who prioritize objective, transparent, and data-driven media buying on the open internet."

The Trade Desk also cited its strong customer retention, which remained above 95% during the quarter, a track record that goes back 11 consecutive years.

What the future holds

Some investors were justifiably concerned after The Trade Desk's precipitous fall from grace, but its rapid recovery bodes well for the future. Furthermore, the tone of management's commentary and its outlook suggest the best is yet to come.

For the second quarter, The Trade Desk is guiding for revenue of at least $682 million, which would represent growth of about 17% year over year. It's worth noting that management has a tendency to issue conservative guidance. Its track record (with that one notable exception) shows the results are typically higher.

The Trade Desk stock is currently selling for 34 times forward earnings. While that's something of a premium, the average multiple over the past three years has been closer to 55, so the stock is trading at a significant discount to its historical price.

Don't expect that bargain to last for long. In the wake of its blockbuster financial report, investors have bid the stock up more than 11% in after-hours trading.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• 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

Danny Vena has positions in The Trade Desk. The Motley Fool has positions in and recommends The Trade Desk. The Motley Fool has a disclosure policy.

Shares of MercadoLibre (NASDAQ: MELI) charged sharply higher on Thursday, gaining as much as 10.6%. As of 2:32 p.m. ET, the stock was still up 6.7%.

The catalyst that sent the online retail and fintech specialist higher was its quarterly financial report, which far exceeded expectations.

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Image source: Getty Images.

A virtual dynamo

For the first quarter, MercadoLibre generated revenue of $5.9 billion, representing an impressive 64% year-over-year increase in local currencies. The results were fueled by e-commerce revenue that grew 57% and fintech revenue that surged 73%. The company also generated operating income of $763 million, up 45%, and quarterly net income of $494 million. This resulted in earnings per share (EPS) of $9.74, which jumped 44%.

To put those numbers in context, analysts' consensus estimates were calling for revenue of $5.52 billion and EPS of $8.27, so MercadoLibre easily surpassed expectations.

The company continued to deliver strong results across its ecosystem of products and services. Gross merchandise volume (the total value of products sold on its digital retail platform) was $13.3 billion, up 40% year over year in local currencies, fueled by 66.6 million unique buyers. Total payment volume (TPV) of $58.3 billion climbed 72%.

MercadoLibre doesn't provide quarterly guidance, in keeping with its focus on the long term. On the conference call to discuss the results, the company noted that it notched all-time high brand preference metrics in its major markets, including Brazil, Argentina, Mexico, and Chile. The company continues to focus on increasing its credit portfolio and fintech offerings, as well as expanding its same- and next-day delivery offerings, which have helped fuel its extraordinary growth.

Is MercadoLibre a buy?

At 48 times forward earnings and 4 times forward sales, MercadoLibre might seem expensive, but that needs to be viewed through the lens of its stellar execution. Given its consistent strong results, I would suggest the premium is well deserved.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• 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.

See the 3 stocks »

*Stock Advisor returns as of May 5, 2025

Danny Vena has positions in MercadoLibre. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool has a disclosure policy.

Shares of Pony AI (NASDAQ: PONY) charged sharply higher on Wednesday, surging as much as 36.8%. As of 11:53 a.m. ET, the stock was still up 26%. The catalyst that propelled the Chinese autonomous mobility specialist higher was news of the company's next-generation robotaxi platform and ambitious plans for mass production.

Just months away

At the Shanghai Auto Show, Pony AI introduced the seventh generation of its robotaxi platform. The company's automotive-grade driving kit (ADK) features a number of enhancements that could bode well for the future.

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Pony AI revealed that a number of "design optimizations" reduced the total components cost by 70% compared to its previous generation. Furthermore, this resulted in an 80% decrease in the autonomous driving computations necessary, while also resulting in a 68% reduction in solid state light detection and ranging (LiDAR). Pony AI also announced plans to begin mass production by mid-2025.

The company unveiled three new robotaxi models that were developed in partnerships with major automakers -- Toyota, Beijing Automotive Group, and Guangzhou Automobile Group. The announcement comes just weeks after the company was granted a robotaxi testing permit in Luxembourg and expanded its fully driverless commercial robotaxi service in Shenzhen, China.

This steady string of positive announcements has fueled enthusiasm, but investors would be well-advised to step back and look at the big picture. It's been less than six months since Pony AI went public, and its results help tell the tale. Its fourth quarter revenue of $35 million slumped 30% year over year, resulting in a net loss of $181 million, which increased eightfold. Furthermore, the stock is selling for more than 12 times sales, a high valuation for a company that isn't yet profitable.

Even after today's significant move higher Pony AI stock is still down 55% since its initial public offering in November, and 77% off its peak in February. While the stock represents an intriguing opportunity, investors would do well to keep the risks in mind and size their position accordingly.

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

Before you buy stock in Pony 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 Pony 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 $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% 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 April 21, 2025

Danny Vena 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.

The uncertainty that has gripped the market recently has been palpable. Concerns about the on-again, off-again tariffs, a high-profile spat between the White House and the Federal Reserve Bank, and the ongoing trade war with China have raised concerns about the impact on the broader economy and led to historic volatility. However, a double dose of good news overnight sparked a broad-based market rally, which helped drive semiconductor and artificial intelligence (AI) stocks higher.

With that as a backdrop, chipmaker Advanced Micro Devices (NASDAQ: AMD) jumped 6.6%, semiconductor giant Broadcom (NASDAQ: AVGO) climbed 5.1%, and foundry Taiwan Semiconductor Manufacturing (NYSE: TSM) rallied 4.5%, as of 1:56 p.m. ET on Wednesday. A check of all the usual suspects -- earnings reports, regulatory filings, and analyst commentary -- revealed no company-specific news that was driving these stocks higher. This suggests that broader macroeconomic and geopolitical factors are at play.

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Image source: Getty Images.

It's all about the tariffs

Make no mistake, the primary catalyst that helped drive stocks higher were comments from President Donald Trump that suggested he was making headway on the tariff front, particularly regarding the ongoing trade war with China. In a press conference in the Oval Office, Trump said tariffs on products from China will "come down substantially, but it won't be zero." He went on to say: "145% is very high and it won't be that high. It won't be anywhere near that high."

The comments came less than 24 hours after U.S. Treasury Secretary Scott Bessent made comments at an investor conference that suggested there was progress being made in the trade talks. He said he expected "there will be a de-escalation" in the rhetoric between China and the U.S in the "very near future."

Many have feared that wide-ranging tariffs could raise prices, boost inflation, and potentially spark a recession. Investors welcomed signs that progress is being made.

Feud with the Fed

There was more good news. It appears the high-profile feud between the Trump administration and Federal Reserve Bank Chair Jerome Powell may be on the mend. Trump has been vocal in his desire for lower interest rates, a move the Central Bank fears will reignite inflation. Last week, markets slumped when Trump said he can fire Powell if he wants to, and that his "termination cannot come fast enough," despite the Fed's historical independence from the executive branch.

When asked if he would resign under pressure from the White House, Powell said the law doesn't allow a president to fire the sitting Fed chair, except under the most egregious circumstances, a position supported by most legal scholars.

Trump's position appeared to soften late yesterday, when he said, "I have no intention of firing [Powell]."

Investors had feared the high-profile spat could escalate into a bruising legal battle, and the U.S. economy would be the ultimate victim of the clash.

Why it matters

Over the past couple of years, rapid advances in AI have sparked a wave of innovation, resulting in state-of-the-art AI models powered by the most advanced semiconductors. Many of the biggest names in technology have benefited from the AI revolution, with this trio of stocks leading the pack:

• AMD is a leading provider of some of the leading-edge chips needed to bring AI to life.
• Broadcom supplies many of the semiconductors and ancillary products used by data centers to power AI.
• Taiwan Semiconductor Manufacturing is the world's largest foundry, providing the most advanced semiconductors, particularly those used for AI.

Big tech companies have announced plans to spend an estimated $315 billion on capital expenditures in 2025, primarily on the data centers and servers needed to augment AI.

However, the threat of widespread tariffs could hamstring the semiconductor industry, significantly increasing the cost of semiconductors and associated products, bringing the AI revolution to a standstill. The prospect of improvements on the tariff front buoyed the markets, sending AI and chip stocks higher.

These three semiconductor stocks have been among the primary beneficiaries of accelerating adoption of AI, supplying the AI and semiconductor know-how that is supporting the buildout of AI. Given the magnitude of the opportunity, Broadcom, AMD, and Taiwan Semiconductor remain attractively priced, selling for 27 times, 21 times, and 17 times forward earnings, respectively.

Should you invest $1,000 in Advanced Micro Devices right now?

Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices 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 $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% 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 April 21, 2025

Danny Vena has positions in Broadcom. The Motley Fool has positions in and recommends Advanced Micro Devices and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.