Key Points

• A speech from Chairman Powell revealed the Fed may soon proceed with rate cuts.

• Lower rates tend to drive crypto and other riskier assets higher.

• 10 stocks we like better than XRP ›

The cryptocurrency XRP (CRYPTO: XRP) is flying higher today, up 7.4% in the last 24 hours as of 3:57 p.m. ET. The jump comes as the S&P 500 jumped 1.5% and the Nasdaq-100 jumped 1.7% on the day.

Federal Reserve Chairman Jerome Powell spoke at the Jackson Hole symposium this morning. While he painted a somewhat mixed picture, he indicated rate cuts would be coming. This sent XRP and other more speculative investments higher.

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Fed rate cut sent XRP soaring

Powell's speech showed that the Fed's decision of whether to begin cutting rates is not an easy one. There are signals of both a slowing economy and heating inflation -- it's not often that you find both happening at the same time. Still, Powell said that overall the economy is showing resilience and that inflation may not be enough of a concern to hold off on further cuts. While he didn't confirm that the Fed would cut rates in September, he seemed to signal that it would be the case.

Lowered rates tend to lead to investments in riskier assets and vice versa. While XRP and crypto have come a long way in how they are viewed by investors, they are definitely still considered more risky than equities, which in turn are considered riskier than bonds or fixed income investments. News that cuts are likely was enough to send XRP higher.

XRP has a massive valuation

I still believe that XRP is overvalued, however. It seems to me that the main value thesis is misunderstood by many investors and that a lot of its current $180 billion market cap is based on pure speculation. I would avoid XRP.

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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

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

Key Points

• Federal Reserve Chair Jay Powell gave a speech at Jackson Hole this morning, citing a balance of risks in the economy.

• With interest rates still "restrictive," that could mean interest rate cuts in the months ahead.

• Lower rates could spur greater demand for Upstart's personal loans, as long as the economy holds up.

• 10 stocks we like better than Upstart ›

Shares of fintech lender Upstart (NASDAQ: UPST) rallied more than 8% to close the day on Friday.

Upstart is a tech-forward originator of personal loans and, to a lesser extent, auto and home loans. While Upstart doesn't hold loans on its balance sheet but rather sells them to third parties, the level of short-term interest rates can affect the buying appetite of those third parties.

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Thus, when Federal Reserve Chair Jay Powell suggested that the Fed may cut interest rates soon, Upstart jumped on the news.

Powell sees "balanced" risks, pointing to potential cuts

The Federal Reserve has a dual mandate, which includes stable prices and full employment. After the pandemic, inflation surged, and the Fed tightened by raising the federal funds rate at the fastest pace in history. While the Fed began easing last year, the central bank has held the FFR at 4.5% since December.

Rate hikes were a disaster for Upstart, which saw its third-party loan buyers flee from its platform. As a result, Upstart's revenue growth reversed to declines, and the company even resorted to holding some loans on its balance sheet, outside its preferred business model.

But in a highly publicized speech today at Jackson Hole, Wyoming, Fed Chair Jay Powell said, "The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance." In other words, a slowing job market means the Fed is as worried about jobs as it is about inflation today. The result could be more interest rate cuts soon.

In a vacuum, rate cuts are good for Upstart, as it lowers the cost of capital for Upstart's loan buyers and generally increases "risk appetite." That usually means more demand for Upstart's high-rate personal loans, so it's no surprise to see Upstart and many fintech stocks rallying big today.

But the speech wasn't an "all-clear"

As I said, rate cuts in a vacuum are good for Upstart. However, if rate cuts are necessary due to job losses, that could affect borrowers' ability to pay back loans and the risk appetite of Upstart's loan buyers. Meanwhile, inflation still remains above the Fed's 2% target, so any acceleration in inflation data in the months ahead could nix any rate cut plans.

In short, while rate cuts would be nice, investors shouldn't get carried away by today's jump. Risks to both the economy and inflation remain.

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

Before you buy stock in Upstart, 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 Upstart 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

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*Stock Advisor returns as of August 18, 2025

Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.

Key Points

• Shiba Inu is rallying in conjunction with bullish momentum for the crypto market connected to a recent speech given by Federal Reserve chair Jerome Powell.

• Powell's comments today suggest the Fed is leaning toward cutting interest rates next month.

• A rate cut would be a strong bullish catalyst for Shiba Inu, but the cryptocurrency is still a high-risk play.

• 10 stocks we like better than Shiba Inu ›

Shiba Inu (CRYPTO: SHIB) is seeing strong strong gains in Friday's trading. The cryptocurrency's price had jumped 7.5% over the previous 24 hours of trading as of 2:45 p.m. ET.

Shiba Inu's big gains over the last day stem from a recent speech given by Federal Reserve chair Jerome Powell. Based on statements from Powell's speech this morning, investors are feeling far more confident that the Fed is on track to cut interest rates substantially this year.

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Is Shiba Inu a buy right now?

Perhaps more than any other factor, the Federal Reserve's interest rate policy is a crucial catalyst for Shiba Inu. Lower interest rates tend to create a much more favorable backdrop for riskier, speculative investments.

Powell noted in his speech today that inflation continued to be sticky, but he also said that weakness in the jobs market had shifted risk considerations in a different direction. In order to increase economic activity and boost the labor market, it now seems likely that the Fed will cut rates next month. As far as near-term bullish indicators for Shiba Inu go, that's about as good as it gets.

On the other hand, investors should keep in mind that Shiba Inu is still a very high-risk investment. As a meme coin, the token's pricing moves are heavily influenced by momentum in the broader crypto market and macroeconomic trends. So while Powell's speech today seemingly represents a key green flag for Shiba Inu's token price to continue moving higher in the near term, the token continues to be a risky play even compared to other big names in the crypto space.

Should you invest $1,000 in Shiba Inu right now?

Before you buy stock in Shiba Inu, 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 Shiba Inu 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Keith Noonan 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

• Apple has reportedly approached Alphabet about using Google Gemini artificial intelligence (AI) to improve its Siri voice assistant.

• Apple had previously announced it would use OpenAI and ChatGPT for this purpose.

• Engineering problems have slowed down Apple's AI efforts with iPhone.

• 10 stocks we like better than Alphabet ›

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) moved higher today -- and well, yes, pretty much everyone is moving higher after Federal Reserve Chairman Powell hinted at the Federal Reserve conference in Jackson Hole, Wyoming, that he's considering lowering interest rates this year -- but Alphabet in particular went on a 3.7% romp that's more than twice as big as today's gain on the Nasdaq Composite (NASDAQINDEX: ^IXIC) generally.

And why?

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Because according to Bloomberg, Apple (NASDAQ: AAPL) is getting ready to hire Alphabet's Google to redesign Siri and give Apple some real artificial intelligence (AI).

Alphabet and Apple: Better together?

As Bloomberg tells it, the impetus for this move came from Apple, which has approached Alphabet about getting the latter's Gemini AI team to "revamp the Siri voice assistant."

Apple, you will recall, was supposed to roll out a much smarter Siri last year, to pair with a new generation of AI-enabled iPhone smartphones. "Engineering setbacks" cropped up, however, and that hasn't happened yet.

In that former project, OpenAI and ChatGPT were supposed to be the brains behind a new and improved Siri. It's not clear whether that part of the plan is still active. But news that Apple is now talking to Alphabet suggests Apple could -- at the very least -- be open to the possibility of switching horses midstream, and giving its business to Google rather than to OpenAI.

Is this good news for Alphabet stock?

What's in this for Alphabet, and is it wise for the company to partner with the archrival of its own Android-software smartphones?

When you consider that Apple still holds dominant smartphone market share worldwide (27.5%), while Google sells few phones, and much of Android's success benefits a different smartphone maker, Samsung (21.6%), Alphabet has little to lose through this tie-up with Apple.

It could have billions in license fees to gain.

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

Before you buy stock in Alphabet, 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 Alphabet 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.

Key Points

• Ethereum jumped about 13% after Jerome Powell's Jackson Hole comments hinted at possible rate relief in September.

• Lower interest rates generally lift risk assets because cheaper capital encourages more speculative trades.

• Investors should expect turbulence, but Ethereum has a bright long-term future.

• 10 stocks we like better than Ethereum ›

Ethereum (CRYPTO: ETH) skyrocketed on Friday. As soon as Federal Reserve Chairman Jerome Powell suggested that interest rates might come down in 2025, Ethereum's price took off on a rocket ride. The coin was up 13% at 2:24 p.m. ET, reaching prices not seen since November 2021.

Powell's hinted rate cuts sent Ethereum higher

Lower interest rates on federal debt papers often inspire strong returns for investors in high-risk assets. If it's easy to find cheap capital, it's easier to risk some money on more speculative trades. Ethereum has seen plenty of these effects play out in 2025, mostly the reverse version with crypto prices going down amid a slower rate-cut policy.

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But this was the bullish version of the rate-cut effect. Powell didn't actually lower federal interest rates in Friday's speech at Jackson Hole, Wyoming, but he suggested that September's Federal Reserve meeting "may warrant" the first interest rate reduction since last December.

The mere suggestion that rates might come down was enough to boost Ethereum's swooning price chart.

Can Ethereum maintain this momentum?

Ethereum ended 2024 near a multiyear high but backed down as much as 63% from that peak by mid-April 2025. The cryptocurrency is quite sensitive to macroeconomic changes and quite volatile in general, with a beta value of 4.7 today. That means Ethereum tends to move in the same direction as the S&P 500 (SNPINDEX: ^GSPC) stock market index, but 4.7 times faster in either direction. By comparison, Bitcoin's beta is a calmer (but still elevated) 2.8.

Will Ethereum maintain its momentum from here? It's hard to say because there are many moving pieces to this puzzle. Will the Fed actually lower rates in September, or will spiking inflation force a different decision? Can the recent trend of companies adding Ethereum to their balance sheets pick up speed? Are consumers around the world ready to embrace Ethereum-based solutions for decentralized finance and blockchain-powered games?

The answers to some of these questions probably won't be favorable to Ethereum investors this year. However, I expect this cryptocurrency to disconnect from its tight macro trend reliance over time and become more valuable in the long run. So whether the Jackson Hole spike has legs or not, I'm a happy long-term investor in Ethereum coins. Just fasten your digital seat belts, because there may be some turbulence in the months ahead.

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

Before you buy stock in Ethereum, 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 Ethereum 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Anders Bylund has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

Key Points

• Federal Reserve Chair Jay Powell suggested that the Fed could resume interest rate cuts soon.

• With a 4.2 times debt-to-EBITDA level, TreeHouse Foods would see some relief from lower rates.

• However, rate cuts are by no means assured, and the company's debt load remains a risk.

• 10 stocks we like better than TreeHouse Foods ›

Shares of private label food manufacturer TreeHouse Foods (NYSE: THS) rallied double digits on Friday, appreciating 10.5% as of 1:21 p.m. ET.

Today, Federal Reserve Chair Jay Powell appeared to hint at interest rate cuts in the months ahead. The prospect of rate cuts led to a bout of buying and short covering in many rate-dependent stocks. As a highly indebted name, TreeHouse was no exception.

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Jay Powell hints rate cuts could be possible

At the end of the pandemic, inflation jumped and the Federal Reserve hiked interest rates at the fastest pace in history. But while the Fed began cutting the federal funds rate last year, the last rate cut was in December. Since then, inflation has remained stubbornly above the Fed's target, causing the central bank to pause those cuts while keeping the funds rate "moderately restrictive" at 4.5%.

Today in a speech at Jackson Hole, Wyoming, Powell said, "the balance of risks appear to be shifting." What that means is that Powell currently sees as much risk to the job market as there is to inflation. That appeared to suggest more rate cuts could be coming in the months ahead, even as inflation remains above-target.

The markets took this hedged message enthusiastically, leading to a big jump in economically sensitive stocks. That included TreeHouse, given its high debt load.

At the end of the second quarter, TreeHouse had about $1.5 billion of debt and little cash, relative to its 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance of $360 million. That's about a 4.2 times leverage ratio, which is somewhat high. The company's interest expense was also $22.2 million last quarter, up 42% from last year.

So, the prospect of lower interest rates on that debt, along with perhaps more consumer spending due to lower rates, could help TreeHouse's financials in the year ahead.

Is TreeHouse a value opportunity?

With its stock down 45% this year and the prospect of lower rates on the horizon, TreeHouse could be an interesting opportunity. Shares trade at about 11 times this year's earnings estimates. And while the company's debt poses a risk, continued debt paydown could lessen that risk and spur a rerating.

That being said, Powell's words were far from an "all-clear," so any disappointing inflation numbers or a lack of follow-through on cuts could cause the stock to fall again.

Should you invest $1,000 in TreeHouse Foods right now?

Before you buy stock in TreeHouse Foods, 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 TreeHouse Foods 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Billy Duberstein and/or his clients have 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

• There is no obvious reason behind the move.

• Most stocks are rallying today after Federal Reserve Chair Jerome Powell hinted at a September interest rate cut in a speech this morning.

• 10 stocks we like better than Palantir Technologies ›

Shares of the artificial intelligence decision-making company Palantir (NASDAQ: PLTR) traded nearly 2.3% higher as of 2:37 p.m. ET today, after being up as much as 4.5% earlier today. There is no obvious reason behind the move, but it is likely being driven by the broader-market rally.

Coming off a big losing streak

Palantir stock has seemingly been invincible. It's up over 1,600% in the past five years and over 110% this year. But the stock has struggled as of late. It was on a six-day losing streak until yesterday when it managed to eke out a marginal gain.

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Today, Palantir appears to be rallying along with the broader market. This morning, Federal Reserve Chair Jerome Powell hinted at the possibility of the Fed lowering interest rates at its upcoming September meeting, igniting a ferocious rally. As of this writing, the Dow Jones Industrial Average had rocketed 850 points higher, while the S&P 500 was up over 1.5%.

Palantir's artificial intelligence data capabilities have gained traction among many government departments and many commercial businesses, but some analysts simply think the stock has run too far too fast. Citron Research's Andrew Left, a famous short-seller, recently said on Fox Business that the stock is way overvalued.

"It's a wonderful company, but if this was the greatest company that was ever created and we gave it the same multiples, let's say Nvidia in 2023, the stock still can get cut by two thirds. And that would be like 35 times sales," he said.

Investors have gotten ahead of themselves

I agree with Left. Palantir is clearly resonating with its customers and has tremendous potential, but every asset has a value. Even after the recent sell-off, Palantir trades at 245 times forward earnings. I would wait for much better entry points.

Should you invest $1,000 in Palantir Technologies right now?

Before you buy stock in Palantir Technologies, 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 Palantir Technologies 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

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

Key Points

• XRP is jumping today following a speech given by Federal Reserve chair Jerome Powell.

• While Powell noted inflationary concerns, he seemed to suggest that the Fed will cut interest rates next month.

• Following risks related to recent inflation-related dynamics and data, Powell's speech today delivered great news for XRP investors.

• 10 stocks we like better than XRP ›

XRP's (CRYPTO: XRP) token price is seeing strong bullish momentum in Friday's trading. The cryptocurrency had gained 5.7% over the last day of trading as of 2 p.m. ET. Meanwhile, Bitcoin was up 4.1%, and Ethereum had surged 13%.

XRP is bounding higher thanks to promising news on the interest rate front. In a speech he gave today, Federal Reserve chair Jerome Powell signaled that the U.S. central banking authority will likely cut interest rates at its meeting next month. That's great news for the crypto market.

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 »

XRP rises with a rate cut seemingly on the horizon

The outlook on the trajectory for the benchmark interest rate has been one of the most important catalysts for the cryptocurrency market this year. While investors have generally been betting that the Fed will issue multiple rate cuts in 2025, some recent developments had threatened the thesis and resulted in sell-offs in the crypto space.

For starters, the Bureau of Labor Statistics' July Producer Price Index report arrived with inflation that was far hotter than the market had expected. Adding to fears that higher inflation will start showing up in the consumer rung of the economy and delay rate cuts, Home Depot and Target gave commentary along with their respective quarterly reports this week that suggested that tariffs are spurring pricing increases and pressuring consumer spending. Despite those dynamics, Powell seemed to confirm that a rate cut is coming soon -- and his comments today have reignited bullish momentum for XRP.

What's next for XRP?

Powell noted in his speech that inflationary pressures have continued to persist, but it looks like other concerns are taking precedence when it comes to shaping the Fed's next interest rate moves. After July's U.S. jobs report arrived with net employment additions that were far weaker than expected and big downward revisions for estimated jobs growth in May and June, weakness in the labor market will seemingly cause the Fed to serve up a rate cut at its meeting in September. While the extent of the cut and the outlook for additional cuts later in the year remain uncertain, one of the biggest recent valuation pressures for the crypto market has seemingly been lifted.

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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.

Key Points

• Citron Research released a note that compared Palantir's valuation to the valuation implied by OpenAI's latest funding round.

• Palantir's stock trades at a P/S ratio of 115, nearly 7 times higher than OpenAI's implied valuation of 17 times sales.

• Palantir's current valuation is disconnected from fundamentals.

• 10 stocks we like better than Palantir Technologies ›

Shares of Palantir (NASDAQ: PLTR) fell this week. The stock is down from last week's close by 9.5% as of 1:59 p.m. ET on Friday. The drop comes as the S&P 500 gained 0.4% and the Nasdaq-100 lost 0.7%.

A favorite of retail traders, Palantir's stock was sliding this week after a short report from a notable short seller compared the company's valuation to the implied valuation of OpenAI after its latest funding round.

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Palantir's sales multiple dwarfs OpenAI's

Citron Research, the short seller behind the GameStop imbroglio, released a note immediately following news that OpenAI was raising another $6 billion at a $500 billion valuation. Citron pointed out that this means OpenAI's implied price-to-sales (P/S) ratio is 17 and that this would make it by far one of the most expensive software-as-a-service (SaaS) stocks ever. In fact, a P/S of 17 gives OpenAI the "highest multiple of any scaled SaaS stock in the world."

Though Palantir's stock price has fallen this week since the short report, it still carries a P/S of 115 -- nearly 7 times that of OpenAI. OpenAI is one of the most influential companies in decades and is growing at a lightning pace -- a pace that far outstrips Palantir's -- yet Palantir's stock is significantly higher.

If Palantir stock traded with the same multiple, 17 times sales, it would be priced at $40 a share -- and it would still be one of the most expensive SaaS stocks on the market. Citron says this is not rational, and I agree.

Palantir is undoubtedly a strong company, but its stock is just too expensive. I would avoid it.

Should you invest $1,000 in Palantir Technologies right now?

Before you buy stock in Palantir Technologies, 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 Palantir Technologies 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 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.

Key Points

• Intuit beat Wall Street expectations for Q4 sales and earnings.

• Despite solid earnings, Intuit's conservative 2026 guidance disappointed investors.

• 10 stocks we like better than Intuit ›

Shares of Intuit (NASDAQ: INTU) are falling today, down 4.1% as of 1:35 p.m. ET. The drop came as the S&P 500 jumped 1.5% and the Nasdaq Composite jumped 1.8%.

Intuit reported relatively strong earnings, topping Wall Street forecasts for both revenue and profit, but guidance for its upcoming quarter disappointed investors.

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Intuit reported a strong quarter but weak guidance

The company behind TurboTax and Credit Karma posted its fiscal fourth-quarter earnings of $2.75 per share on $3.83 billion in sales for the period ended July 31, above Wall Street's expectations. Intuit credited artificial intelligence (AI) for much of the momentum, highlighting how AI tools like Intuit Assist are driving adoption and higher customer spending across its platforms.

Looking ahead, Intuit guided for fiscal 2026 earnings of roughly $23 per share, paired with revenue of roughly $21 billion. The company stressed that its guidance style is intentionally conservative to preserve credibility with investors.

This is being driven primarily by slowing sales from its Mailchimp product, but Intuit's CFO assured investors it was transitory. The company has been reworking how it packages its products, leading to some businesses finding it "a bit harder to use." That should change as users grow accustomed to the new paradigm.

Nonetheless, the weak guidance is sending Intuit shares lower

Intuit's stock was still hit, despite the CFO's comments on the dip being temporary. I think Intuit is in a good position to sustain long-term growth. Its products have a solid moat; the switching costs for a company to change aren't negligible. The stock isn't cheap, but I think it is still a solid pick.

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

Before you buy stock in Intuit, 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 Intuit 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

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

Key Points

• Lucid will proceed with its previously announced plan to reverse-split its shares 10 for 1.

• Lucid's share price, currently about $2, should be closer to $20 after the reverse split.

• The reverse split will prevent Nasdaq from delisting Lucid stock.

• 10 stocks we like better than Lucid Group ›

At first, it seemed Lucid Group (NASDAQ: LCID) investors were in for a very bad day today -- but things are improving.

Last night, the luxury electric car company confirmed it will proceed to reverse-split its shares 10 for 1. The split had already been announced a month ago, but management hadn't yet decided to pull the trigger. Once it did, last night, it set the stage for a sell-off of more than 5% in Lucid stock this morning.

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The good news is that, thanks to Federal Reserve Chairman Jerome Powell and comments he made at the Federal Reserve conference in Wyoming earlier today (to the effect that interest rates might come down in September), the stock market is rallying -- and this rally is pulling up Lucid stock along with it.

Result: As of 1:30 p.m. ET, Lucid stock is down "only" 0.7%.

Lucid's reverse stock split

But let's focus on the reverse stock split. What does this mean if you own Lucid stock?

As the name implies, a reverse split is the opposite of an ordinary stock split. Instead of splitting every share you own into multiple shares, each costing a fraction of the original price, this reverse split will glue together every 10 shares of Lucid you own into one single share -- ideally at a price 10 times what each original share cost.

The goal: To lift Lucid's stock price -- which at $2 a share is dangerously close to the $1 price at which the Nasdaq might delist the stock -- up closer to $20 a share, where it should be safe from delisting.

Is Lucid stock a buy?

Note that the reverse split doesn't change the facts surrounding the company at all. It doesn't change the fact that Lucid is losing $2.3 billion a year, that it's burning more than $3 billion in cash annually, or that at current burn rates, Lucid could run out of money in less than one year.

It also doesn't make Lucid stock any more of a buy.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, 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 Lucid Group 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Rich Smith 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

• Jerome Powell's Jackson Hole speech indicated the Federal Reserve will likely cut interest rates soon.

• Opendoor's performance is particularly tied to interest rates since both its operational costs and customer demand depend heavily on borrowing conditions.

• While Opendoor's stock benefits from meme-stock enthusiasm, there are a lot of challenges for the company that may prove insurmountable.

• 10 stocks we like better than Opendoor Technologies ›

Shares of Opendoor Technologies (NASDAQ: OPEN) are flying higher on Friday, up 24.8% as of 1:15 p.m. ET. The jump comes as the S&P 500 gained 1.4% and the Nasdaq Composite gained 1.7%.

Federal Reserve Chairman Jerome Powell gave a speech this morning that signaled interest rate cuts could be coming. The news sent stocks across the market higher, but the effect was especially large for many riskier stocks like Opendoor's.

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 »

Why Fed rate cuts matter for Opendoor stock

Speaking at the Fed's Jackson Hole symposium, Powell highlighted that the economic picture is mixed with a lot of moving parts complicating the Fed's decision. The Fed chief acknowledged that the economy is showing resilience, but downside risks are increasing. He appeared particularly concerned about tariffs potentially reigniting inflation. Still, he indicated cuts are coming, though he didn't explicitly say so.

Opendoor stock flew higher on the news as more speculative investments like Opendoor tend to do better in low interest rate environments. The effect was even larger for Opendoor, however, because the company's business model is heavily affected by interest rates. Rate cuts could help boost its bottom line.

This meme rally could end for Opendoor stock

While the digital real estate disruptor operates in a massive market with genuine innovation potential, its competitive moat remains questionable. The meme-stock rally has been fueled by the idea that AI can unlock the company's true potential. While the idea is interesting, there's no guarantee it will work.

In the meantime, the company is operating in the red, relies heavily on debt, and the real estate market does not look particularly promising at the moment. I would avoid the stock.

Should you invest $1,000 in Opendoor Technologies right now?

Before you buy stock in Opendoor Technologies, 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 Opendoor Technologies 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 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.

Key Points

• Lower interest rates will help, but the real key to the stock's potential lies elsewhere.

• Today's move might not stick, but Whirlpool stock is attractive anyway.

• 10 stocks we like better than Whirlpool ›

Shares in household appliance maker Whirlpool (NYSE: WHR) have risen by 6.5% as of midday today. The move comes after a high-profile speech by Federal Reserve Chair Jerome Powell gave support to the idea that a rate cut is coming. Discussing the inflation outlook, Powell noted that "with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."

Why it matters to Whirlpool

Lower interest rates could have a significant impact on Whirlpool for three interconnected reasons. First, they would likely improve the housing market by making it more affordable, and that's likely to feed through into more appliance sales.

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Second, they would have an inordinate impact on Whirlpool's higher-margin discretionary (as opposed to replacement) demand, whereby consumers are likely to buy newer models or planned kitchens. Third, lower interest rates would make refinancing Whirlpool's debt easier.

For these reasons, the market usually rewards the stock when the interest rate environment looks more benign.

A stock to buy?

Whirlpool is an attractive stock, but the case for it doesn't rest only on lower interest rates; the underlying case is also based on an improvement in its competitive positioning as a result of President Trump's tariff actions. Lower interest rates will certainly help, but there's no guarantee a rate cut is coming in September or that a Federal Reserve rate cut will lead to a drop in market rates, including mortgage rates, particularly if inflation data isn't complying.

So today's move isn't too much to get excited about, and it may well retract. Still, Whirlpool's long-term growth prospects make it a stock well worth looking at.

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

Before you buy stock in Whirlpool, 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 Whirlpool 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Whirlpool. The Motley Fool has a disclosure policy.

Key Points

• There is no company-specific reason behind the move today.

• In fact, I see more bad news out there than good news for Tesla today.

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

Shares of Tesla (NASDAQ: TSLA) traded roughly 5.2% higher, as of 1 p.m. ET today. There is no obvious reason for the move, although as one of the largest stocks in the market, Tesla appears to be joining in the strong market rally today.

Market enthusiasm

Federal Reserve Chair Jerome Powell ignited a furious rally in the stock market after he hinted about a potential interest rate cut at the Fed's upcoming meeting in September, during a speech made at the Fed's 2025 Jackson Hole Economic Policy Symposium this morning. Lower rates are often viewed as a positive catalyst for stocks.

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 »

Otherwise, I don't see any significant good news regarding Tesla today. In fact, I see more negative news. Yesterday, media outlets reported that the National Highway Traffic Safety Administration (NHTSA) is investigating Tesla over the way the company reports accidents with its vehicles. The NHTSA said on its website they had "identified numerous incident reports" regarding Tesla crashes, which "occurred several months or more before the dates of the reports [to NHTSA]."

Tesla said the issue has to do with the way it was collecting data, and that issue has now been corrected. Still, the investigation comes at a bad time, as Tesla ramps up its autonomous robotaxi fleet, and tries to prove that its full self-driving (FSD) technology not only works, but can scale into a massive new business for the company.

Still overvalued

Given that Tesla seems to be moving in lockstep with the market today, I still view the stock as overvalued, while it trades at close to 200 times forward earnings. Investors, in my view, are baking too much success into future initiatives like robotaxis and humanoid robots that have yet to fully play out, which therefore leaves the stock vulnerable to pullbacks.

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*Stock Advisor returns as of August 18, 2025

Bram Berkowitz 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.

Key Points

• Dogecoin is jumping today following a speech by Federal Reserve chair Jerome Powell.

• Powell's speech seemed to suggest that the Fed will cut interest rates next month.

• The outlook on interest rates is one of the most important performance catalysts for Dogecoin.

• 10 stocks we like better than Dogecoin ›

Dogecoin (CRYPTO: DOGE) is surging in Friday's trading following some bullish macroeconomic news. The cryptocurrency's token price was up 9.4% over the past 24 hours of trading as of 12:45 p.m. ET. At the same point in the day, Bitcoin was up 3.4%, and Ethereum had risen 12.2%.

These cryptocurrencies are rising rapidly today thanks to a speech given by Federal Reserve chair Jerome Powell this morning. In the speech, Powell seemed to indicate that the Fed is on track to cut interest rates next month.

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 »

Dogecoin jumps on interest rate outlook

Inflation concerns roiled the cryptocurrency market earlier this week, but investors got some very good news this morning. At his speech in Jackson Hole, Wyoming, Powell indicated that economic dynamics had shifted in a way that supports cuts for interest rates. While he noted that inflation remained "somewhat elevated," the Fed leader said that risks posed by higher interest rates to employment have recently taken on added weight.

Powell also said that the Fed was doing away with a policy enacted by the central bank five years ago that favored keeping interest rates higher over the long term. All in all, the Fed chair's speech delivered some very encouraging news for Dogecoin and other cryptocurrencies.

What's next for Dogecoin?

Indications that the Fed is poised to deliver an interest rate cut at its September meeting suggest that a major near-term risk factor for Dogecoin could soon be taken off the table. Data published last week showed that U.S. wholesaler inflation wound up being much higher than expected in July, and quarterly reports and commentary issued by Home Depot and Target this week raised fears that inflationary pressures could cause the Fed to be more reticent when it comes to cutting rates.

However, with signs that investors will be getting a long-desired interest rate cut next month, the crypto bull rally could be back on.

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

Before you buy stock in Dogecoin, 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 Dogecoin 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Home Depot, and Target. The Motley Fool has a disclosure policy.

Key Points

• Energy Fuels reported successful production of a rare-earth element at its facility in Utah.

• The company foresees possibly starting production at a rare-earth element separation facility in 2026.

• Because Energy Fuels is still unprofitable, investors should consider buying shares only if they have a high tolerance for risk.

• 10 stocks we like better than Energy Fuels ›

Rebounding from an inauspicious first half of the week, shares of Energy Fuels (NYSEMKT: UUUU) are soaring today. While investors would be right to suspect that the stock's climb has something to do with its nuclear energy business, it turns out that a development regarding the company's rare-earth operations is actually driving shares higher.

As of 12:04 p.m. ET, shares of Energy Fuels are up 8.3%, retreating from their earlier climb of 11.6%.

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 »

News out of the Beehive State is generating a lot of buzz today

Energy Fuels reported yesterday the it has achieved production of its first kilogram of dysprosium oxide -- a heavy rare-earth element -- at its White Mesa Mill in Utah. The company asserted in the related press release its belief that it's the first U.S. company to both produce high-purity dysprosium oxide and publicly disclose actual production volumes and purities.

The company is also exploring production of terbium oxide as it expands production of dysprosium oxide. Should the company continue to achieve favorable results, it plans on developing these elements at commercial scale as well as working on separation of other heavy rare-earth elements at the Utah facility, starting production as soon as fourth quarter 2026.

The domestic production of rare-earth elements is a priority of the Trump administration. The Department of Defense, for example, entered into a major public-private partnership with MP Materials earlier this summer.

Should investors power their portfolios with Energy Fuels now?

With news of the successful production of rare-earth elements, the bullish argument for Energy Fuels is becoming a lot more convincing. It's imperative for prospective investors to recognize, however, that the company is still unprofitable and that development of the rare-earth elements separation facility is a significant capital expenditure, so there is a considerable amount of risk here.

Should you invest $1,000 in Energy Fuels right now?

Before you buy stock in Energy Fuels, 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 Energy Fuels 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.

Key Points

• Cameco is rising on a confluence of factors today. Reason No. 1: The Federal Reserve may lower interest rates.

• Also working in Cameco's favor are two recent price target hikes from Wall Street.

• Finally, uranium prices are on the rise.

• 10 stocks we like better than Cameco ›

Shares of Cameco (NYSE: CCJ), a Canadian uranium mining company, jumped 3.9% through noon ET on Friday -- and the reason is anybody's guess.

That's not to say there's no reason for Cameco stock to be up today. Rather, there are multiple reasons -- and you can take your pick which one you favor.

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Reason 1: The Fed

The biggest reason, and the reason why most stocks are going up today, is glaringly obvious. Out in Wyoming, at the Jackson Hole Federal Reserve conference, Fed Chair Jerome Powell just told investors that because of a weakening economic outlook and tepid job growth, the Fed might decide to lower interest rates in September as investors, and President Donald Trump, have been asking it to do.

Interest rate hikes are generally considered good for stocks and, well, Cameco is a stock.

Reason 2: Wall Street

Two different analysts have raised their price targets for Cameco stock over the past two days. According to StreetInsider.com, Raymond James hiked Cameco stock to 120 Canadian dollars yesterday, and today, National Bank Financial hiked it to CA$115.

Neither bank gave us much of an explanation for hiking, but I think we can guess.

Reason 3: Uranium price

Uranium prices that plummeted in late June have been gradually rising ever since, and are currently up $3 per pound from their July 18 low. This is of course good news for a uranium stock like Cameco.

Is Cameco stock a buy?

Still, both prices and demand have to grow a lot to make this stock a buy. Cameco shares currently cost some 47 times trailing free cash flow, and their price-to-earnings ratio is an astounding 80.

To me, that sounds kind of expensive, but apparently I'm in the minority on that view today.

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

Before you buy stock in Cameco, 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 Cameco 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

Key Points

• Stanley Druckenmiller, who formerly ran Duquesne Capital, is a frequent investor in big tech names.

• Druckenmiller remains disciplined on valuation and is not afraid to sell a stock that he thinks has gotten ahead of its skis.

• Microsoft is really starting to execute on its artificial intelligence playbook.

• 10 stocks we like better than Microsoft ›

Hedge funds recently filed their latest batch of 13F forms with the U.S. Securities and Exchange Commission, divulging what stocks they held at the end of the second quarter. Comparing those forms to the prior set allows investors to see what stocks hedge funds and billionaires have bought and sold in any given quarter.

The market is always curious to see how the leading names in the investing world are allocating capital. Few billionaire investors elicit more interest than Stanley Druckenmiller. A protege of George Soros, Druckenmiller consistently generated some of the highest annual returns out there at Duquesne Capital, which he founded and ran for decades. Now, he operates the Duquesne Family Office, which manages his own billions.

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 »

In the second quarter, Druckenmiller exited his position in Tesla (NASDAQ: TSLA) and piled into another "Magnificent Seven" stock that has crushed the broader stock market this year.

Dumping Tesla

The Duquesne Family Office didn't own its stake in the electric vehicle (EV) maker for too long. The fund initiated its Tesla position in the fourth quarter of 2024 and closed it in the second quarter. Druckenmiller is not afraid to trade in and out of stocks, or to sell a stock if he feels it has become too expensive, as he did in the past with Nvidia.

Unlike many investors in this red-hot market, Druckenmiller has always been a close observer of valuations, and Tesla is certainly one of those names that has for many years traded at meteoric valuations. As of Thursday, the stock was trading at about 190 times expected forward earnings. Meanwhile, Tesla's core EV business has been struggling in recent quarters. With the federal $7,500 EV tax credit set to expire at the end of the third quarter, the EV industry broadly could continue to struggle.

However, many investors seem less concerned about Tesla's EV business and more focused on how the company's other initiatives, such as robotaxis and humanoid robots, could power its results in the future.

Tesla intends for its self-driving robotaxis to form the backbone of a new autonomous ride-hailing fleet, giving it access to a huge market in the personal transport space. Some early analyses indicate that Tesla's approach to autonomous vehicle systems is much cheaper than rivals like Waymo. Tesla has begun to deploy robotaxis (though not its Cybercabs, which it has yet to produce) in Austin and San Francisco. However, while these vehicles are driving autonomously, they have reportedly been geofenced to stay within set boundaries of those cities, and have been operating with humans monitoring them remotely thus far.

Given the short period of time that Druckenmiller held Tesla and the stock's volatility this year, it's likely that he and his team saw a short-term trading opportunity, unless there was a significant change in their thesis recently.

Buying a Magnificent Seven outperformer that has executed this year

Duquesne's second-largest purchase in the second quarter also happened to be the second-largest company in the world by market cap -- Microsoft (NASDAQ: MSFT). In the quarter, Duquesne bought just over 200,000 shares of the tech giant for a value of roughly $100 million as of June 30. Microsoft is now up by about 20% this year, crushing the S&P 500's roughly 8% gain.

I think many investors were initially skeptical about the tech conglomerate's artificial intelligence (AI) investments and whether or not they would pay off. But its latest quarterly results indicate they are starting to. In Q2, revenue from Microsoft's Azure and other cloud services division, which contains a lot of the company's AI-related business, surpassed $75 billion, a 34% increase from the prior-year period. Companies and developers can access large language models from OpenAI through Azure, and can easily integrate generative AI capabilities into workloads.

"Enterprises are beginning to move from proof of concepts to enterprisewide deployments to unlock the full ROI [return on investment] of AI," Microsoft CEO Satya Nadella said on the company's second-quarter earnings call. "And our AI business has now surpassed an annual revenue run rate of $13 billion, up 175% year over year."

Microsoft currently trades at a forward price-to-earnings ratio of almost 33, which is close to its five-year average of slightly below 32. It's executing on AI and is also one of the only companies with a higher credit rating on its debt than the U.S. government. With all of those advantages, I see Microsoft as one tech stock that investors can buy and hold forever.

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

Before you buy stock in Microsoft, 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 Microsoft 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Tesla. 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

• Ubiquiti absolutely crushed its fiscal-fourth-quarter earnings estimates.

• The company has successfully paid down a large portion of the debt it took on in the wake of the pandemic.

• With a restored balance sheet, management raised the dividend and announced a new repurchase program for the first time in years.

• 10 stocks we like better than Ubiquiti ›

Shares of Ubiquiti (NYSE: UI) had rocketed 25.7% on Friday as of 11:47 AM ET.

The company, which makes a variety of wireless broadband equipment and access points, reported fourth-quarter earnings this morning. Results crushed analysts' expectations, thereby appearing to justify Ubiquiti's high valuation.

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Ubiquiti quietly goes about its business

Ubiquiti doesn't disclose much beyond what it has to and doesn't host earnings calls with sell-side analysts anymore, given that founder and CEO Robert Pera owns some 93% of the company's shares outstanding.

Still, the numbers the company did disclose this morning were impressive. Revenue rose 49.6% to $759.2 million, while adjusted (non-GAAP) earnings per share surged 103.4% to $3.54 per share. Both figures absolutely crushed analysts' expectations.

Some may have been skeptical that Ubiquiti could justify its valuation, which now sits around 43 times earnings based on the fiscal year that just ended. However, these kinds of growth numbers could justify such a valuation if the company can keep it up.

Additionally, Ubiquiti just capped off its fiscal year in which it generated about $628 million in free cash flow, which allowed the company to pay down a significant amount of its debt. Ubiquiti decided to take on debt to buy up inventory after the shortages it experienced during the pandemic, but demand moderated afterward amid high inflation and interest rates. So Ubiquiti had stopped repurchases and dividend increases over the past couple of years as it directed cash to pay down that significant pandemic-era debt.

Fortunately, it appears net debt is now down enough that the company felt comfortable announcing a 33% increase in its quarterly dividend to $0.80, along with a new $500 million share repurchase program, in conjunction with earnings today.

Ubiquiti is expensive, but its low float makes it interesting

While Ubiquiti's stock isn't "cheap" by any means, there is an interesting dynamic here with Robert Pera owning so much of the company. Since the public float is only about 7% of all shares outstanding, if Ubiquiti continues repurchasing stock, that could create upward pressure on the share price merely due to a lack of sellers. The dynamic could eventually interest meme stock traders.

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

Before you buy stock in Ubiquiti, 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 Ubiquiti 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 182% 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 August 18, 2025

Billy Duberstein and/or his clients have positions in Ubiquiti. The Motley Fool recommends Ubiquiti. The Motley Fool has a disclosure policy.

Key Points

• A reduction in the price of electric vehicles has a much larger impact than the same reduction in price of a conventional vehicle.

• Nio's development of a more affordable car lays a marker down for what Tesla should do.

• 10 stocks we like better than Nio ›

Shares in Chinese electric vehicle (EV) automaker Nio (NYSE: NIO) soared by more than 14% by 11:30 a.m. ET today. The rise follows the launch of its new premium sport utility vehicle (SUV). Nio is primarily a player in the domestic market in China, and this latest model, which comes with a near 26% discount if bought on a battery-as-a-service (BaaS) basis, is seen as offering EV buyers a more affordable way to purchase a premium SUV.

Price matters for electric vehicles

There's an interesting comparison to be made with Tesla here, in that the market is rewarding an EV maker when it releases a lower-cost model, and particularly an SUV. Tesla's SUV Model Y's sales are declining this year in the face of aggressive competition, and the company is responding by releasing a lower-cost Y model later in the year.

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The issue of cost is critical to companies like Nio and Tesla, because EVs tend to have higher upfront costs, but much lower maintenance and fueling costs than internal combustion engines (ICE). As such, a reduction in the upfront cost to the consumer of an EV has a disproportionate impact on the long-term value of the car compared to the same cost reduction on an ICE car.

What Tesla needs to do

This understanding is why Nio is being rewarded today and why Tesla could also be rewarded if it continues cutting its cost per vehicle, thereby enabling production of more affordable cars. It also explains why the robotaxi concept is an integral part of the case for Tesla and EVs. Simply put, high upfront costs and low running costs mean the optimal use of an EV is as a highly driven vehicle.

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Lee Samaha 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.