The Finance Class

Business and stocks, explained in simple words.

Tag: investing

  • What Is Dividend Investing? How Companies Pay You to Own Them

    What Is Dividend Investing? How Companies Pay You to Own Them

    Introduction

    Some companies pay you just for owning them. That sounds strange. It is real. It is called a dividend. This post explains it in simple words.

    What It Is

    Stock means a small piece of a company. A share is one piece. A dividend is a small payment from a company to its owners. Profit means money left after costs. When a company makes profit, it can keep it. Or it can share some of it with owners. That shared money is a dividend. Dividend investing means buying shares in companies that pay dividends on a regular basis.

    How It Works

    First, you own shares in a company. Then the company says it will pay a dividend. It sets an amount for each share. It also sets a date. If you own shares on that date, you get the payment. Payments often come four times a year. That is once every three months. Some companies pay once a month. Some pay once a year. You do not need to sell your shares to get a dividend. You keep the shares. You also get the payment. Some people use the payment as cash. Others use it to buy more shares. Buying more shares with dividends is called reinvesting.

    A company can also cut its dividend. It can stop paying it. Dividends are not promised forever. They depend on the company doing well. That is why it is smart to check the company, not just the payment.

    An Example With Numbers

    Imagine a company called Sunny Lemonade. It pays $1 for each share, four times a year. That is $4 per share in one year. You own 10 shares. Each payment is $10. That is 10 shares times $1. In one year, you get $40. That is 4 payments times $10. You still own your 10 shares. The share price can still go up or down. The dividend is separate from the price. This is just an example. Real companies pay different amounts. Some pay nothing at all.

    Common Mistakes

    First, chasing the biggest payment. A very high dividend can be a warning sign. The company may be in trouble. It may cut the payment soon. Second, putting all your money in one company. If that company struggles, you lose two ways. The price can fall. The dividend can stop. Third, thinking dividends are free money. They are not free. The company earned that money. You own a piece of the company. That is why you get a share. Fourth, forgetting about taxes. In many places, dividends can be taxed. Tax means money paid to the government. Rules are different in each country. Fifth, buying just before a payment without checking the company. A good company matters more than one payment.

    Final Thoughts

    Dividend investing is slow and steady. It is like a shop that shares a little profit with its owners. It can give you regular payments. It can also help your money grow if you reinvest. But no payment is sure. Always learn how the company makes money first. If you are new to shares, start with our post on how the stock market works.

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: Investopedia, “Dividend Investing” explainer, https://www.investopedia.com/terms/d/dividendinvesting.asp ; U.S. Securities and Exchange Commission, Investor.gov, “Dividend”, https://www.investor.gov/introduction-investing/investing-basics/glossary/dividend

  • Wall Street’s Fear Index Acted Strange as Stocks Fell

    Wall Street’s Fear Index Acted Strange as Stocks Fell

    Introduction
    Stocks fell hard on Friday, October 30, 2026. That was strange in one way. Wall Street’s fear index did not jump as much as people might expect. The fear index is called the VIX. It is a number that shows how worried traders are about big price moves.

    What Happened
    The S&P 500 fell nearly 2 percent on Friday. The S&P 500 is a list of 500 large US companies. Its fall was part of its worst week since June. At the same time, the VIX rose, but only by 2.2 points. It touched its highest level during the day since April. But its rise was small for such a big stock fall.

    Traders did not rush to buy protection. Protection here means bets that pay off if stocks fall more. One expert, Zed Francis from EP Wealth, said traders did not pile into options. Options are deals that give a right to buy or sell at a set price later. People often buy them when they fear a fall. This time, they did not buy as many as expected.

    Why It Happened
    Big investors had already sold a lot before Friday. Morgan Stanley said there was massive selling by large funds. Selling means they got out of stocks early. So when Friday came, fewer people needed to rush for protection. They had already made their move.

    Also, many traders may have seen the fall as a short bump, not a long crash. A crash is a fast and big fall. A bump is a short drop that may soon end. If traders think a fall will not last, they may not pay a lot for protection.

    Why It Matters
    The VIX is watched like a weather gauge for the market. When it is low, traders feel calm. When it is high, traders feel scared. A small VIX rise during a big fall can mean two things. It can mean traders are not panicking. Or it can mean they are not ready for more falls. Both ideas matter for small investors.

    For a young learner, the lesson is simple. Do not judge a market by one number alone. Look at the fall, the fear gauge, and what traders are doing. Together, they tell a fuller story.

    Key Figures

    • S&P 500 fall on Friday, October 30: nearly 2 percent.
    • That week: the worst week for the S&P 500 since June.
    • VIX rise on Friday: only 2.2 points.
    • VIX daytime high: the highest since April.
    • What traders did not do: pile into options for protection.

    What Happens Next
    Traders will watch the VIX this week. If it stays low, they may feel the fall is over. If it jumps later, they may feel more fear is coming. The next big test will be new company reports and new economic data. Those numbers can change the mood fast.

    Final Thoughts
    A fear index that stays calm during a fall is a puzzle. It does not mean the market is safe. It means traders had already acted, or they did not fear a longer fall. Watch what traders do next, not just what the number says today.

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: CNBC, https://www.cnbc.com/2026/11/02/wall-streets-fear-index-is-doing-something-strange-heres-what-it-means-for-stocks.html ; Investrade, https://investrade.com/market-review-october-30-2026/

  • Apollo Launches an $11 Billion Lending Platform for Europe

    Apollo Launches an $11 Billion Lending Platform for Europe

    Apollo is a big money company. It manages money for other people and companies. On Monday, November 2, Apollo launched a new platform in Europe. A platform here means a new business set up to do one job.
    The new business is called European Credit Company. Short name: ECC. It will lend money to companies in Europe.
    A loan is money you borrow and pay back later, often with extra money called interest. Private credit means lending done by private firms, not by normal banks. It is a fast-growing part of the money world.
    What Happened
    ECC starts with more than 10 billion euros of lending power. That is about $11.2 billion. That is a very large sum. It will lend to big and mid-sized companies. Mid-sized means not small, but not huge either.
    ECC will do two main kinds of lending. First, corporate lending. That means lending money to companies for their daily work and growth. Second, asset-backed lending. An asset is something valuable, like a building or a machine. Asset-backed lending means the loan is tied to such a valuable thing.
    ECC will also lend to owners of real assets. Real assets are things you can touch, like roads, power lines, and buildings. That includes infrastructure and real estate. Infrastructure means the big systems a country needs, like power and transport.
    Who Is Behind It
    Giacomo Petrobelli is the chief executive of ECC. That means he runs it day to day. Christian Meissner is the chairman. He helps guide the big choices.
    ECC has strong backers. A backer is someone who puts money and trust behind a new business. The backers include the Abu Dhabi Investment Council. That is a fund linked to Abu Dhabi. Other partners are Athora, a European insurer, Norinchukin Bank from Japan, Standard Chartered, and Aranda Principal Strategies from the United States.
    ECC will have offices in Frankfurt, Jersey, London, Luxembourg City, and Milan. That shows it plans to work across all of Europe.
    Why It Happened
    Europe needs a lot of money right now. It needs money for defence, energy, and new infrastructure. Defence means the army and tools that keep a country safe. Energy means power, like electricity and fuel.
    Banks used to do much of this lending. Now banks lend less in some areas. Private firms like Apollo are stepping in to fill the gap. That is why private credit is growing fast.
    Experts at Moody’s, a ratings firm, say private credit worldwide is worth more than $2 trillion in 2026. They think it could reach close to $4 trillion by 2030. A trillion is one thousand billion. So this is a huge market.
    Why It Matters
    This launch shows how big private credit has become. One new platform alone can lend more than $11 billion. It also shows Abu Dhabi’s growing role in world finance. Just one week earlier, Apollo agreed to buy a nearly 10% stake in Mubadala Capital. A stake means a small piece of a company. Mubadala Capital is part of Abu Dhabi’s sovereign fund Mubadala. So Apollo and Abu Dhabi are now close partners.
    What Happens Next
    ECC will start lending to companies across Europe. Apollo says it wants ECC to become a leading credit platform in Europe. It will focus only on Europe. We will watch which companies borrow from it first, and how fast it grows.
    Key figures:

    • More than 10 billion euros in lending power, about $11.2 billion
    • 5 offices: Frankfurt, Jersey, London, Luxembourg City, and Milan
    • Nearly 10%: Apollo’s agreed stake in Mubadala Capital one week earlier
      Final Thoughts
      Lending may sound dull. But it is how big projects get built. Roads, power lines, and factories all need money first. Apollo’s new platform will help fund some of that work in Europe. That is why this story matters, even if you never borrow from ECC yourself.
      Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.
      Sources: CNBC, https://www.cnbc.com/2026/11/02/apollo-private-credit-abu-dhabi.html ; Reuters via Financial News, https://www.financial-news.co.uk/apollo-launches-e10bn-european-credit-company/
  • What Is a TFSA? A Simple Guide for Canadian Students

    What Is a TFSA? A Simple Guide for Canadian Students

    Introduction

    If you are a student in Canada and you keep hearing about a TFSA, you are not alone. It sounds like another complicated finance product, but the basic idea is simple. A TFSA is a special account where your money can grow without you paying tax on that growth.

    It is one of the most useful accounts for students, because you can start small, you do not need a high income, and you can use it for saving or for investing.

    What It Is

    TFSA stands for Tax-Free Savings Account. The name is a little confusing, because a TFSA is not one single investment. It is a type of account. Inside it, you can hold cash savings, a guaranteed investment certificate (GIC), stocks, exchange-traded funds (ETFs), and other eligible investments, depending on the provider you choose.

    The main benefit is the tax part. Interest, dividends, and capital gains earned inside a TFSA are generally not taxed in Canada, and withdrawals are also tax-free. That is different from a regular savings or investing account, where growth is usually taxed.

    Contributions to a TFSA are not tax-deductible. That means putting money in does not lower your taxable income for that year, unlike an RRSP. The tax break comes later, when you take money out and do not pay tax on it.

    How It Works

    To open a TFSA, you generally need to be 18 or older, a resident of Canada, and have a valid Social Insurance Number. You do not need a job or a minimum income to open one.

    Each year, the government sets a TFSA contribution limit. For 2026, that limit is $7,000. That is the amount of new room added for the year, not a lifetime cap.

    Unused room carries forward. If you do not use all your room one year, it stays available in later years. For example, someone who has been eligible since the TFSA started in 2009 and has never contributed would have $109,000 of total room by 2026. Most students will have much less room, because their room only starts building from the year they turn 18.

    Withdrawals work differently from many other accounts. You can withdraw money from a TFSA at any time, and you do not pay tax on the withdrawal. But the room from a withdrawal does not come back right away. It is added back on January 1 of the following year, along with that year’s new room.

    Your limit also applies across all your TFSAs combined. If you have two TFSAs, you cannot put $7,000 into each one in the same year and call it $7,000 total. The Canada Revenue Agency (CRA) counts them together, so always check your own room in CRA My Account before making a large contribution.

    An Example With Numbers

    Imagine a student named Maya who turned 18 in 2023. Her TFSA room builds up like this: $6,500 for 2023, plus $7,000 for 2024, plus $7,000 for 2025, plus $7,000 for 2026. That is $27,500 of total room by 2026, if she has never contributed before.

    Suppose Maya puts in $100 a month. After 12 months, she has contributed $1,200. That is well under her room, so she still has plenty left.

    Now suppose she later withdraws $500 in June to cover an unexpected cost. She cannot put that same $500 back in July without using other available room. The $500 of withdrawn room comes back on January 1 of the next year. This rule trips up a lot of people, so it is worth remembering.

    The example above is only about contributions and room. It does not promise any investment return. If Maya keeps her money in cash, it will earn whatever interest her account pays. If she invests it, the value can go up or down.

    Common Mistakes

    The first mistake is thinking $7,000 is all you can ever put in. For most people, it is just one year’s new room. Unused room from past years still counts.

    The second mistake is withdrawing money and putting it straight back in the same year. Unless you still have unused room, that can create an over-contribution. Over-contributions can be charged a penalty of 1% per month on the excess amount, so it is better to wait until the room comes back.

    The third mistake is forgetting that the limit is combined. Opening a second TFSA does not give you a second limit.

    The fourth mistake is confusing a TFSA with an RRSP. A TFSA contribution does not reduce your taxes now. Its benefit is tax-free growth and tax-free withdrawals later.

    The fifth mistake is taking too much risk with money you will need soon. A TFSA can hold investments, but investments can fall in value. Money for next month’s rent or an emergency is usually safer in cash inside the TFSA, or in a regular savings account, than in stocks.

    Final Thoughts

    A TFSA is a good first account for many Canadian students because it is flexible and simple to understand once you know the room rules. You do not need to max it out. Starting with a small, regular amount — even $25 or $50 a month — builds a habit, and your unused room does not disappear.

    Before you contribute a large amount, check your room in CRA My Account, keep a simple record of what you put in and take out, and remember the January 1 rule for withdrawals. Used carefully, a TFSA can be a quiet, long-term tool for saving and investing, not a get-rich-quick account.

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: Canada Revenue Agency / Canada.ca — Tax-Free Savings Account; Scotiabank — TFSA contribution limit guide.

  • How Tuesday’s Election Could Reshape the Municipal Bond Market

    How Tuesday’s Election Could Reshape the Municipal Bond Market

    Introduction

    On Tuesday, November 3, 2026, Americans vote in the midterm election. Most market coverage will focus on who controls Congress. For municipal bonds, though, experts say the state ballot measures may matter more in the short term.

    That is because municipal bonds, often called munis, are closely tied to state taxes and to how much new debt states and cities issue. A change in either can change how valuable these bonds look to investors.

    What Happened

    A municipal bond is a loan an investor makes to a state, city, school district, or other local government. In return, the government pays interest, usually twice a year, and repays the loan when the bond matures.

    What makes munis special is tax. Interest from most municipal bonds is generally free of federal income tax. It is also usually free of state tax if you live in the state that issued the bond. That tax break is the main reason many investors buy them.

    Key figures:

    • Midterm election: Tuesday, November 3, 2026
    • Municipal bonds issued year to date through September: $473.8 billion, up 7.8% year over year
    • Municipal bonds issued in 2025: $587.3 billion, up 14.3% from 2024
    • Share of the broad muni index rated AAA or AA: about 70%
    • Tax bracket where experts quoted call munis especially attractive: 24% or above

    The supply figures come from SIFMA, a trade group for the securities industry, as cited by CNBC. Strong supply matters because when more bonds are available, prices can fall unless demand keeps up.

    Why It Happened

    Two state measures show why taxes matter so much.

    In California, Proposition 40 is a proposed one-time 5% tax on certain taxpayers with at least $1 billion in assets. California also has a measure to make permanent a tax on individuals earning over $371,000, currently set to expire in 2031. If taxes rise, the value of a tax-free return rises too. In simple terms, avoiding tax becomes worth more when the tax rate is higher, so experts quoted say higher taxes could push muni prices higher.

    Florida offers a different example. Its proposal would raise the non-school homestead exemption — the part of a home’s value shielded from some property taxes — to $150,000 in 2027 and $250,000 by 2028. That is property-tax relief for homeowners. It does not directly change muni tax treatment, but it shows how state ballot measures can reshape local finances and, over time, local borrowing.

    For investors in higher tax brackets, the math is straightforward. A muni that pays, say, 4% tax-free can be worth more than a taxable bond paying a higher headline rate, once tax is taken off the taxable bond. That is why experts quoted call munis attractive now, especially for taxpayers in the 24% bracket or above. This is analysis from those experts, not a guarantee of returns.

    Why It Matters

    Municipal bonds are often seen as steady, lower-risk investments. About 70% of the broad muni index is rated AAA or AA, the top two credit ratings. Ratings are opinions about how likely a borrower is to repay, and they are not a promise.

    Still, munis are not risk-free. Their prices can fall if interest rates rise, if a state or city runs into money trouble, or if a large amount of new bonds floods the market. That is why supply matters: $473.8 billion issued through September is a lot of new bonds to absorb.

    Elections add another layer. State measures can change tax revenue, spending, and borrowing plans. Federal policy matters too, but the next Congress would mainly affect tax and affordability policy in early 2027, rather than changing muni tax treatment overnight.

    For everyday investors, the key point is to understand what you are buying. A muni is not the same as a savings account. Its price moves, its tax benefit depends on your own tax situation, and its safety depends on the finances of the government behind it.

    What Happens Next

    After Tuesday, investors will watch which ballot measures pass and how states respond. If California voters approve higher taxes, demand for California munis could rise, because the tax exemption would become more valuable for affected taxpayers. If Florida voters approve property-tax relief, local governments there may need to adjust budgets, which could affect future borrowing.

    Investors will also watch new bond supply in the months ahead. If supply stays high, prices may stay under pressure even if demand is solid. And they will watch early 2027, when a new Congress could take up tax and affordability policy that affects household budgets and, indirectly, the bond market.

    Related reading on this blog: I Bond Rate Jumps 5.51 Percent in November 2026, which explains another government-backed option for savers.

    Final Thoughts

    Tuesday’s election is not just about Washington. For the municipal bond market, the state votes may be the more immediate story.

    Taxes change the value of a tax-free return, and new bond supply changes the balance between buyers and sellers. Both will be in play this week, and both are worth watching before making any investment decision.

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: CNBC and Inc.

  • Companies Are Finally Putting a Number on AI Gains — Santander Says €194 Million

    Companies Are Finally Putting a Number on AI Gains — Santander Says €194 Million

    Introduction

    For two years, companies have promised that artificial intelligence will make them more efficient and more profitable. Investors kept asking the same question: show me the money.

    In this earnings season, some companies are finally starting to answer — with numbers, even if those numbers are still rough.

    What Happened

    Spanish bank Santander said its AI initiatives generated €194 million (about $216 million) in business value in the first nine months of 2026. The bank reported the figure alongside record underlying profit of €11.18 billion for the same period, up 16% from a year earlier.

    Other companies pointed in the same direction without giving an AI-specific total. Drug maker Novartis reported third-quarter core operating income of $6.04 billion, up 10% at constant currencies, and said AI had begun to improve its bottom line. Standard Chartered reported third-quarter operating income growth of 14% at constant currency, excluding notable items, and said AI tools were helping it scale more efficiently.

    Key figures

    • Santander AI business value, first nine months of 2026: €194 million (about $216 million)
    • Santander underlying profit, same period: €11.18 billion, up 16%
    • Novartis Q3 core operating income: $6.04 billion, up 10% at constant currencies
    • Standard Chartered Q3 operating income growth: 14% at constant currency, excluding notable items
    • Global corporate AI investment in 2025: $581.7 billion, up 130% from the prior year (Stanford HAI 2026 AI Index)

    Why It Happened

    Santander’s chief financial officer, José García Cantera, said AI is helping the bank cut low-value tasks so employees can focus on higher-value work. That affects both revenue and costs, he said — the first quarter, in his words, where the bank could directly link a positive contribution to AI.

    But there is an important warning attached to the number. Santander’s €194 million is a company-defined measure, not a standard accounting figure. It combines extra revenue, cost savings and lower loan-loss provisions from its data and AI programmes, and it was not audited as a separate measure. In other words, it is the bank’s own best estimate, not a figure every company calculates the same way.

    That is why comparisons are tricky. Meta linked AI to stronger advertising growth but gave no AI-only revenue figure. Alphabet’s Google Cloud revenue jumped 103% to $30.71 billion, helped by AI demand, but that is a whole business line, not an AI profit number. And not every company is seeing gains yet: brewer Carlsberg said this week it is not seeing AI benefits at scale, even though the technology has affected costs, pricing and marketing.

    Why It Matters

    The €194 million matters less as a precise profit count and more as a sign of a shift. Companies are moving from talking about AI pilots to trying to measure AI in their accounts. Investors have been worried that AI spending — $581.7 billion globally in 2025 alone — is growing faster than AI returns. Even small, honest numbers help answer that worry.

    At the same time, the different yardsticks are a reason to stay careful. When every company measures AI differently, a big number from one firm cannot be directly compared with a vague claim from another.

    What Happens Next

    Expect more companies to publish AI numbers in the next few earnings seasons, and expect analysts to push them on how those numbers are calculated. The useful question is not just ‘how much did AI add?’ but ‘how did you count it, and would another company count it the same way?’

    Santander itself has set a bigger target: its chair has said AI should help grow annual revenue by about €300 million and cut costs by about €700 million by 2028. That gives investors something concrete to check against in future reports.

    Final Thoughts

    AI is starting to show up in earnings, not just in presentations. Santander’s €194 million is a first step, not a final proof. The companies that win trust will be the ones that explain their numbers clearly — and keep reporting them, good quarter or bad.

    Related: Anthropic IPO, Nasdaq and AI spending worries

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: CNBC, https://www.cnbc.com/2026/11/01/ai-investments-company-earnings.html; Santander results as reported by Kalkine, https://kalkine.com/news/announcements/santander-posts-112bn-underlying-profit-for-first-nine-months-of-2026; AI gains summary as reported by Political.org, https://political.org/2026/10/31/santander-novartis-cite-first-measurable-ai-gains-in-third-quarter-earnings-as-investors-demand-returns/

  • Top Analysts Are Bullish on These 3 Stocks for the Long Haul: Datadog, Nvidia and SpaceX

    Top Analysts Are Bullish on These 3 Stocks for the Long Haul: Datadog, Nvidia and SpaceX

    Introduction

    After a brutal week for tech stocks, it is easy to focus only on what fell. But some of Wall Street’s best-rated analysts are still backing three well-known names for the long term: Datadog, Nvidia and SpaceX. Their picks come from a CNBC report based on TipRanks, a platform that ranks analysts by how well their past calls performed.

    Analyst picks are opinions, not guarantees. Still, looking at why professionals like a stock can help everyday investors understand a business better. Here is each pick, in plain language.

    Datadog: Riding the AI Software Wave

    Datadog is a software company that helps businesses monitor their apps and computer systems. Think of it as a health tracker for a company’s technology: it watches for problems, flags them early, and helps fix them before customers notice. Demand is growing because companies are moving more work to the cloud and building AI tools that need constant monitoring.

    Bank of America analyst Koji Ikeda has reiterated a buy rating on Datadog and raised his price target to $335 from $305. He called Datadog one of his top picks, saying companies that can show AI is helping their growth could see their stock prices recover even at high valuations. He also thinks the market is underestimating Datadog’s security products.

    Datadog reports third-quarter results on November 4, so investors will not wait long for a test. Ikeda estimates revenue growth of 28.7% for the quarter, slightly below the Street’s consensus of 29.1%. He did flag one risk: the company depends on some very large customers, and losing one would hurt.

    Ikeda ranks No. 673 among more than 12,500 analysts tracked by TipRanks. His ratings have been successful 55% of the time, with an average return of 10.9%.

    Nvidia: Still the Top Pick in Chips

    Nvidia needs little introduction. Its chips power most of the world’s AI systems, and demand is still outrunning supply. After attending Nvidia’s GTC conference in Berlin, Morgan Stanley analyst Joseph Moore reaffirmed a buy rating with a price target of $300, calling Nvidia his top pick among chip stocks.

    Moore said the conference backed his view that Nvidia is handling its supply-chain bottlenecks well. He described land, power, computer shells and funding as challenges that Nvidia is turning into opportunities, saying he is “convinced that all 3 aspects are opportunities for NVDA.” He also noted that Vera Rubin, Nvidia’s next chip platform, is gaining momentum, although details on next year’s Rubin Ultra were lighter than expected.

    The biggest supply challenge, in Moore’s view, remains TSMC’s 3-nanometer chip wafers, but he expects that constraint to ease over time. With demand still above supply, the focus is on closing the gap through deals on substrates, packaging and testing.

    Moore ranks No. 142 among more than 12,500 analysts tracked by TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 23.4%.

    SpaceX: A Surprising Earnings Beat

    SpaceX is the most surprising name on the list. The aerospace company recently reported strong third-quarter results, with total revenue up 161% from a year earlier. Its AI revenue surged to $7.56 billion, up from $813 million in the same quarter last year, a jump of 195.2% from the previous quarter, helped by wholesale computing deals.

    Needham analyst Ryan Koontz reiterated a buy rating on SpaceX stock with a price target of $250. He said the results beat expectations by a wide margin and showed that the company’s vertically integrated model, building most things itself rather than buying them in, is driving massive scale.

    The Connectivity business, which sells internet service through satellites, grew revenue 69.5% and generated $2.37 billion in operating income, with subscribers rising to 13.6 million. Koontz also pointed to management’s plan to add 10 gigawatts of computing capacity during 2027, and said growing confidence in reusing its Starship rockets led him to raise his estimates.

    Koontz ranks No. 357 among more than 12,500 analysts tracked by TipRanks. His ratings have been profitable 42% of the time, delivering an average return of 23.7%.

    Why It Matters

    StockAnalystRating and targetWhy they like it
    DatadogKoji Ikeda, Bank of AmericaBuy, $335 (raised from $305)AI driving demand for monitoring software; security growth underestimated
    NvidiaJoseph Moore, Morgan StanleyBuy, $300AI chip demand outpacing supply; Rubin platform gaining momentum
    SpaceXRyan Koontz, NeedhamBuy, $250Revenue up 161%; AI revenue surging; satellite internet scaling fast

    These three picks share a theme: analysts are betting that AI spending, for all the recent market fear about it, is still creating real revenue for the companies best placed to serve it. That is the opposite of the panic that drove last week’s sell-off, and it is a useful counterweight for investors trying to think long term.

    What Happens Next

    Datadog’s earnings on November 4 are the nearest test. If growth comes in near Ikeda’s estimate, the bull case holds. A miss would give the skeptics fresh ammunition. For Nvidia, the story runs into 2027, when the Rubin platform rolls out more fully and supply constraints are expected to ease. For SpaceX, investors will watch whether the AI revenue surge continues and whether the planned capacity expansion stays on schedule.

    Final Thoughts

    It is worth remembering what these ratings are and are not. A buy rating is one analyst’s judgment, and even the best analysts on this list are right only a little more than half the time. The value of a list like this is not a shopping list of stocks to buy blindly. It is a starting point for research: three businesses, three reasons professionals still believe in them, and three sets of numbers you can check for yourself as results come in.

    Related reading: JPMorgan Turns Bullish on Palantir With a $262 Target Ahead of Earnings

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: CNBC’s report on top analysts’ long-term stock picks, based on TipRanks data (November 1, 2026), as syndicated by FXNEWS24; TipRanks analyst rankings cited in that report.

  • Berkshire Hathaway Ends October at Record Highs as Investors Flee Tech Stocks

    Berkshire Hathaway Ends October at Record Highs as Investors Flee Tech Stocks

    While tech stocks had their worst month in more than a year, Berkshire Hathaway quietly finished October at record highs. The company run by Greg Abel, who took over as chief executive after Warren Buffett, gained 8.9% in October — while the S&P 500 fell 0.9% and the Nasdaq dropped 5.3%.

    That gap tells the story of October in one line: money moved out of fast-growing, high-spending tech companies and into steadier, cash-rich businesses.

    What Happened

    Berkshire’s Class A shares closed Monday at a record $821,931. They ended the week at $815,600, up 0.3% for the week. During Friday’s trading they briefly reached $822,929, just below the intraday record of $824,765 set the previous Thursday.

    The more widely held Class B shares also set records. They closed Monday at $548.56, a record close, and reached a new intraday high of $550.47 on Friday, just above the previous session’s $549.96.

    For the month as a whole, Berkshire rose 8.9%. That may not sound dramatic, but in a month when the Nasdaq fell 5.3%, it was one of the best performances among large companies.

    Why It Happened

    Investors rotated, which is a simple idea: they sold one kind of stock and bought another. In October, they sold AI-heavy tech stocks because they worried about how much those companies are spending on data centres and chips, and whether the spending will pay off soon enough.

    Berkshire was on the receiving end of that rotation. It is a conglomerate — a company that owns many different businesses, including insurance, railroads, energy and manufacturing — plus a huge stock portfolio. It also holds an enormous pile of cash. When markets get nervous, that mix looks safer than a company betting hundreds of billions on one trend.

    Berkshire’s own portfolio moves also caught attention. The company sold $69 million of DaVita shares on Tuesday, leaving it with 28.3 million shares worth $5.3 billion. That sale was needed to keep its stake at or below 45% as DaVita buys back its own shares.

    At the same time, the value of Berkshire’s Alphabet stake fell. It had reached a third-quarter high of $40 billion in early August, but dropped to $29.6 billion by Friday after Alphabet shares plunged nearly 13%. That made Coca-Cola, worth $37.6 billion in Berkshire’s portfolio, its third-largest holding again.

    Why It Matters

    Berkshire’s record matters for two reasons. First, it shows confidence in the company after its leadership change. Buffett announced in May 2025 that Abel would succeed him, and the stock fell sharply afterwards. It has now recovered all of that ground and more, which suggests investors are comfortable with Abel in charge.

    Second, it shows how quickly market leadership can change. For much of the past few years, a handful of tech giants drove most of the market’s gains. In October, the leaders were different: steady earners, insurers, energy companies and Berkshire itself. That does not mean tech is finished — these rotations happen often — but it is a reminder that no single trade works forever.

    What Happens Next

    Berkshire reports third-quarter results on November 7, according to market reports. That report will show how its operating businesses performed and whether it bought back more of its own stock, which it resumed doing in 2026 after buying back nothing in 2025.

    Investors will also watch whether the rotation lasts. If tech stocks stabilise and their AI spending starts to show clearer returns, money could flow back. If worries about spending continue, steadier stocks like Berkshire could keep attracting buyers.

    Final Thoughts

    Berkshire’s October is a useful lesson for ordinary investors. You do not have to own the hottest stock of the moment to do well. Sometimes, owning a diversified business that earns steady cash, holds plenty of reserves and does not bet everything on one idea is exactly what works when the market mood changes. The trick, as always, is that nobody rings a bell when the mood is about to change back.

    Key figures:

    • Berkshire Class A: record close $821,931 on Monday; week-end close $815,600, up 0.3% for the week
    • Berkshire Class A intraday record: $824,765 (previous Thursday)
    • Berkshire Class B: record close $548.56 on Monday; new intraday high $550.47 on Friday
    • October performance: Berkshire +8.9%, S&P 500 -0.9%, Nasdaq -5.3%
    • DaVita sale: $69 million on Tuesday; 28.3 million shares left, worth $5.3 billion, stake kept at or below 45%
    • Alphabet stake: $40 billion at its third-quarter high in early August, down to $29.6 billion by Friday

    Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

    Sources: CNBC’s Warren Buffett Watch newsletter on Berkshire’s October records (October 31, 2026, summarised at https://biztoc.com/x/7c147d1a09b6c183); TradersUnion report on Berkshire’s October records (https://tradersunion.com/news/stocks/show/4046324-berkshire-hathaway-october-records/)

    Related: Coca-Cola Raises Its Outlook Again as Global Sales Grow, but US Demand Stays Flat

Is this your new site? Log in to activate admin features and dismiss this message
Log In