Capitalize on the broader market momentum driven by AI and easing rate hike fears by investing in major hyperscalers like Google (GOOGL), Amazon (AMZN), and Meta (META), which continue to aggressively fund infrastructure spending. Avoid buying the recent 27% dip in The Trade Desk (TTD) due to shrinking revenue and severe leadership turnover, but instead target healthier ad-tech alternatives like Magnite (MGNI), Pubmatic (PUBM), and Unity (U). Exercise caution with fast-growing companies that have recently suffered steep pullbacks, such as SanDisk, Applovin, and Sezzle, to ensure you are not overpaying for inflated market expectations. Look for tangible productivity gains by investing in small-cap adoption leaders like Quinn Street (QNST), ISG (III), and GoDaddy (GDDY) that are successfully converting AI investments into real-world business growth. Consider adding Gold (XAU) to your portfolio as a strategic hedge against currency interventions and shifting macroeconomic dynamics leading up to the midterm elections.

S&P 500 Index (SPX) and Nasdaq Index (NDX)

• Reached a new high last week, with the S&P 500 gaining 3.5% and the Nasdaq up 5%
• Propelled upward by easing tensions with Iran, falling oil prices, and weak jobs data, which reduced expectations of a rate hike
• Supported by a solid U.S. earnings season where firms exposed to artificial intelligence and data centers posted blockbuster numbers
• Hyperscalers have not signaled any meaningful slowdown in capital expenditures, keeping AI as the primary driver of the market

Takeaways

• Broad equity markets are performing well, driven heavily by AI momentum and supportive macroeconomic conditions, though long-term valuations appear elevated
• Investors should remain cautious of high valuations and focus on solid businesses priced reasonably as AI euphoria shows signs of slowing

Google, Amazon, and Meta (GOOGL, AMZN, META)

• Classified as hyperscalers within the market
• Have not yet signaled any meaningful slowdown in capital expenditures (CapEx)
• Continue to contribute to the robust earnings season alongside other AI and data center-exposed firms

Takeaways

• These major tech giants remain committed to heavy spending, which continues to fuel the broader artificial intelligence infrastructure boom

SanDisk, Applovin, and Sezzle

• Experienced significant stock price drops recently: SanDisk down 35%, Applovin down 33%, and Sezzle down 34%
• Delivered strong fundamental performance, with SanDisk posting Q4 revenue up 372%, Applovin achieving 50% revenue growth, and Sezzle reporting 52% growth
• The sharp declines were caused by stock prices that had run too far ahead of their underlying fundamentals rather than poor operational performance

Takeaways

• High growth alone is not enough if market expectations are already inflated, emphasizing the importance of not overpaying for even fast-growing companies

The Trade Desk (TTD)

• Shares fell 27% on the week following a slowdown in Q2 revenue growth to 3%
• Management provided a negative outlook, projecting that sales will actually decline 12% next quarter
• Experiencing severe management turnover with the CFO, CMO, CCO, and CBDO all losing their jobs
• Despite the stock looking cheap after the collapse, the business is facing a clearly difficult operational period

Takeaways

• Avoid buying the dip simply because a stock looks cheap after a collapse, especially when fundamental growth is turning negative and executive leadership is unstable

Magnite, Pubmatic, and Unity (MGNI, PUBM, U)

• Operating successfully within the advertising industry despite struggles by specific competitors like The Trade Desk
• Magnite reported strong results with 11% revenue growth and 30% EBITDA growth
• Pubmatic provided positive guidance pointing to 12% growth
• Unity reported that its advertising business had one of its best quarters ever

Takeaways

• Broad industry health can remain strong even when an individual market leader stumbles, offering targeted opportunities in advertising technology

Quinn Street, ISG, and GoDaddy (QNST, III, GDDY)

• Small cap Quinn Street highlighted that AI investments led to 400% productivity gains
• ISG reported accelerating advisory work tied to artificial intelligence
• GoDaddy reported a 5x sequential increase in the usage of its AI web builder

Takeaways

• Companies are beginning to show concrete evidence of benefiting from their AI projects, moving beyond just hype to realized productivity and product adoption

Gold (XAU)

• Gained more than 7% last week
• Benefited from a ripple effect following the U.S. government intervening to buy Japanese yen for the first time in almost 30 years
• This currency and commodity interplay is expected to become an important dynamic to monitor moving toward the midterm elections and 2027

Takeaways

• Consider gold as a potential portfolio hedge or alternative asset as government currency interventions and macroeconomic shifts create new market dynamics