Latest news with #FOMO
CNN
2 days ago
- Politics
- CNN
Why Fareed Zakaria thinks Trump has ‘FOMO' foreign policy
Why Fareed Zakaria thinks Trump has 'FOMO' foreign policy CNN's Fareed Zakaria analyzes what may be motivating President Trump's foreign policy: a fear of missing out. 00:44 - Source: CNN Automated CNN Shorts 11 videos Why Fareed Zakaria thinks Trump has 'FOMO' foreign policy CNN's Fareed Zakaria analyzes what may be motivating President Trump's foreign policy: a fear of missing out. 00:44 - Source: CNN Collins on one of the 'most striking' lines from Trump CNN's Kaitlan Collins points out one of the most notable moments in President Donald Trump's address to Congress. 01:09 - Source: CNN Border patrol agents arrest US citizen standing up for detained maintenance worker A US citizen has been arrested after a physical altercation with immigration agents after they detained a maintenance worker at a shopping center in Pico Rivera, California. 01:33 - Source: CNN Sen. Smith reveals what she told Sen. Lee over post Sen. Tina Smith (D-MN) revealed to Kaitlan Collins what she told Sen. Mike Lee (R-UT) over his incendiary social media post. 02:28 - Source: CNN Why Trump rebuked his own intel chief CNN's Kristen Holmes reports on how Tulsi Gabbard's standing inside the Trump administration has diminished in recent weeks. President Donald Trump has come to see the director of national intelligence as "off message" when it comes to the conflict in the Middle East, according to one senior White House advisor. 02:04 - Source: CNN Inside the room of the Geneva-Iran talks Talks between European and Iranian officials in Geneva, Switzerland were "very tense" at first, but then became much more positive. CNN's Matthew Chance takes us inside the room where these talks took place. 02:04 - Source: CNN Trump says his intel chief Tulsi Gabbard is 'wrong' about Iran President Donald Trump took direct aim at his director of national intelligence, saying that Tulsi Gabbard 'is wrong' about Iran's efforts toward obtaining a nuclear weapon, as CNN has reported that Gabbard's standing inside the Trump administration has diminished. 00:21 - Source: CNN Why aren't tariffs causing inflation? For the past year, many economists warned that tariffs would increase prices, but inflation is lower today than when President Trump took office. CNN's Matt Egan breaks down why this might be the case and how economists expect that to change in the coming months. 01:09 - Source: CNN What is a heat dome? The hottest temperatures of the year so far will soon reach the eastern half of the United States as a brutal heat dome starts to build over the weekend. Dangerous, record-breaking heat will impact millions next week. CNN's Tyler Mauldin explains. 00:52 - Source: CNN Could there be radioactive fallout in Iran? Laura Holgate, Former US Ambassador to the United Nations International Organizations in Vienna weighs in on the likelihood of nuclear fallout if the US strikes the Fordow nuclear enrichment plant in Iran. 02:34 - Source: CNN Trump vowed to make Juneteenth a holiday. This year he ignored it President Donald Trump took to Truth Social on Juneteenth this year to criticize the number of 'non-working holidays.' CNN's Abby Phillip talks about the notable change from when the president vowed to make it a holiday. 01:07 - Source: CNN
Yahoo
15-06-2025
- Business
- Yahoo
Statistically and Historically Speaking, 2 of Wall Street's Highest-Flying Stocks Are in Epic Bubbles That I Fully Expect to Burst
Although nothing is guaranteed on Wall Street, select historical and statistical events have a knack for predicting the future. One of the market's preeminent artificial intelligence (AI) stocks is running on borrowed time. Meanwhile, a company undertaking a unique operating strategy is rife with red flags. 10 stocks we like better than Palantir Technologies › For well over a century, Wall Street has been a stomping ground for wealth creation. Although getting from Point A to Point B involves everything but a straight line, no asset class has come particularly close to matching the annualized return of stocks for more than 100 years. While patience is often rewarded, it doesn't stop investors from occasionally chasing after the market's highest-flying stocks in the hope of snagging game-changing returns over a shorter time frame. Though we often think about emotion-driven investing impacting equities when the stock market's major indexes are taking the elevator lower, we can see this fear of missing out, also known as "FOMO," take place when select stocks are delivering jaw-dropping gains. To preface the following discussion, calling for a top in any stock or major stock index lies somewhere between difficult and impossible. If there were a metric or correlative event that could, with 100% accuracy, guarantee directional moves in the broader market or specific stocks, everyone would be using it. Nevertheless, certain data points and events have strongly correlated with moves higher or lower in the major stock indexes or select sectors, industries, or major companies throughout history. What follows are two of Wall Street's highest-flying stocks that, statistically and historically speaking, are running on borrowed time before their epic bubbles burst. The first seemingly unstoppable stock in a monumental bubble that's eventually going to burst is artificial intelligence (AI) goliath Palantir Technologies (NASDAQ: PLTR), whose shares have gained more than 2,000% since the beginning of 2023. To be upfront, just because I believe Palantir is in an epic bubble, it doesn't mean I don't appreciate the company. Palantir can be viewed as a fantastic business that happens to have a historically unsustainable valuation. One of the prime reasons investors have gravitated to Palantir stock is its sustainable competitive advantage. Its AI- and machine learning-inspired operating platforms, Gotham and Foundry, lack one-for-one replacements at scale. This means Palantir doesn't have to look over its proverbial shoulder and worry about its customers being taken away or jumping ship to a rival. This cash-flow predictability is what helped push Palantir to recurring profitability well ahead of Wall Street's expectations. Palantir is also generating consistent double-digit annual sales growth from Gotham, which collects and analyzes data for the U.S. government and helps with military mission planning and execution. Having the federal government as a customer ensures the bills are being paid. While Palantir's business is profitable and it offers a sustainable moat, there are two historical/statistical issues that can't be overlooked or swept under the rug. To begin with, every game-changing technology or innovation for more than 30 years has navigated its way through a bubble-bursting event early in its expansion. The simple fact that most businesses haven't optimized their AI solutions and/or aren't generating a positive return on their AI investments all but confirms that investors have, yet again, overestimated the early-stage utility and broad-based early adoption of a next-big-thing trend. If there's a bright spot for Palantir, it's that Gotham lands multiyear government contracts and Foundry is a subscription-based, enterprise-focused service. In short, sales won't fall off a cliff if the AI bubble bursts. However, investor sentiment would almost certainly weigh heavily on Palantir stock. The other issue is Palantir's valuation -- specifically its price-to-sales (P/S) ratio. Megacap stocks on the leading edge of previous next-big-thing innovations peaked at P/S ratios ranging from 30 to 43. As of the closing bell on June 12, Palantir was trading at 108 times its trailing-12-month sales. To put this into perspective, Palantir stock could trade sideways for the next five years, and its P/S ratio would still likely fall within the aforementioned range where previous bubbles popped for companies on the cutting edge of a next-big-thing investment. That's how far above the statistical norm Palantir's valuation currently sits, and it's why I believe the company's share price will inevitably tumble. The second high-flying, widely owned stock that, based on history and statistics, is headed for disaster is Strategy (NASDAQ: MSTR) (the company formerly known as MicroStrategy). Since 2023 began, shares of Strategy have skyrocketed by almost 2,600%. The tailwind has been CEO Michael Saylor going all-in on Bitcoin (CRYPTO: BTC), the world's largest cryptocurrency by market cap. Saylor's company became the first self-proclaimed "Bitcoin Treasury Company," with the goal of acquiring and holding this digital gold perpetually. This approach has lured investors because of Bitcoin's perceived competitive advantages, which include being the largest and most well-known digital currency, as well as its perceived scarcity. Only 21 million tokens are slated to be mined. Based on an 8-K filed with the Securities and Exchange Commission (SEC) on June 9, Strategy has spent approximately $40.8 billion to purchase its 582,000 Bitcoin, which works out to an average cost per token of $70,086. Put another way, Saylor's company owns 2.77% of all Bitcoin that will be mined. While this approach has thus far proven naysayers wrong, I believe it's historically and statistically destined to fail. From a historical standpoint, we've witnessed leverage-driven scenarios like Strategy's Bitcoin approach play out before -- and they've ended with tears for investors. One of the more memorable examples was that of banks securitizing loans, including subprime loans, which was one of the catalysts that led to the subprime mortgage crisis and near-financial meltdown during the Great Recession. Though a case can be made that Strategy hasn't gone overboard with its usage of traditional debt instruments, it is leveraging its preferred and common stock through a steady stream of issuances to fund all its Bitcoin purchases and, concurrently, prop up the spot price of the world's leading digital currency. History tells us this isn't sustainable. Since it began trading in the early 2010s, Bitcoin has navigated its way through over a half-dozen declines of at least 50%. Even though its peaks have decisively surpassed its troughs, Strategy's own SEC filings note the possibility of potentially being forced to sell its Bitcoin holdings at a disadvantageous price if it can't meet its debt obligations. In other words, steep bear markets are a built-in norm for Bitcoin and crypto, and Saylor's heavily levered model hasn't been tested for such an event. Statistically, Strategy's valuation also fails the sniff test relative to the net asset value (NAV) of its digital holdings. The 582,000 Bitcoin it holds equate to a NAV of $60.45 billion, based on a Bitcoin price of $103,868, as of this writing in the late evening of June 12. However, Strategy's market cap ended June 12 at $106.1 billion. Backing out a generous valuation of $1 billion for the company's money-losing software operations leaves a $44.65 billion premium (73.9%) to NAV. Instead of buying Bitcoin on an exchange at $103,868, investors are ponying up $180,588 to own Bitcoin via Strategy, which makes absolutely no sense and is unsustainable. The icing on the cake is that virtually all of Bitcoin's first-mover and competitive advantages are gone or misperceived. It failed the real-world utility test in El Salvador, isn't the fastest or cheapest blockchain network by a long shot, and its scarcity is held in place by computer code that, technically, can be changed by developer consensus. It wouldn't be a surprise if the next inevitable crypto winter decimates Strategy's highly levered and dilutive operating model. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Palantir Technologies. The Motley Fool has a disclosure policy. Statistically and Historically Speaking, 2 of Wall Street's Highest-Flying Stocks Are in Epic Bubbles That I Fully Expect to Burst was originally published by The Motley Fool
Entrepreneur
05-06-2025
- Business
- Entrepreneur
NVIDIA Regains Top Spot; FOMO Is Why It Will Continue to Rise
NVIDIA's market is returning to a simmer and could boil over with the drop of a headline as FOMO rips through it; a robust upside is indicated. This story originally appeared on MarketBeat [content-module:CompanyOverview|NASDAQ:NVDA] NVIDIA's (NASDAQ: NVDA) stock price has risen more than 60% from its April low in early June and is likely to continue growing, potentially much higher due to the forces driving it. Fundamental and technical factors aside, the rebound is helping NVIDIA regain its position in terms of market cap and stock size, bringing another factor into play: FOMO. FOMO, or the fear of missing out, is the anxiety caused by thoughts that something might be happening that you could be missing. In this case, investors could be missing substantial capital gains and higher share prices. The potential for higher share prices is significant. Analysts have been raising targets since the FQ1 earnings report and are leading to the high-end range, a move to $200 to $220, or about 20% at the consensus of $171 and nearly 60% at the top end. A move to the top end could happen quickly, as news headlines accelerate a positive feedback loop in which higher prices underscore the gains that average investors are missing and the potential still present in the market. NVIDIA's News Cycle Fuels FOMO in June Among those factors is the news cycle. Not only is NVIDIA's market cap garnering attention, increasing general market anxiety, but the news cycle is robust. There has been a steady series of bullish news events since the Q1 release, including business advancement and analysts' commentary. The business advancements include plans to build a new supercomputer for the Department of Energy. Slated for 2026, it will be built on the next-generation Rubin platform and is expected to compress research time from years to days. Other advancements include CoreWeave's launch of what is now the largest, most powerful NVIDIA GPU cluster ever benchmarked, as well as the expected impact of the Stargate project. Analysts at UBS see NVIDIA as the primary beneficiary of what was announced as a $500 billion project. The driver for NVIDIA will be the compute needs as OpenAI scales up. The benefit could top $25 billion, including networking and ancillary costs, depending on the total size and GPU/CPU mix. As it stands, the first Stargate data center is forecasted to require 400,000 NVIDIA GB200 GPUs. Upcoming catalysts for NVIDIA's stock price are the expected launch of NVLink Fusion silicon for semi-custom AI infrastructure and the deal with Saudi Arabia's HUMAIN. The NVLink Fusion system creates an ecosphere in which NVIDIA chips are linked with third-party CPUs and ASICs with the NVLink system. NVLink enables NVIDIA GPUs, CPUs, and ASICs to interconnect with each other, increasing efficiency and reducing latency typically found in other CPU and ASIC configurations. Regarding HUMAIN, the deal is worth several hundred thousand NVIDIA Grace Blackwell GPUs and upcoming Rubin GPUs, including hardware and software to maximize their use. It has yet to appear in the results or guidance and is expected to inject billions into the results annually. NVIDIA's Stock Price Is Near a Critical Pivot Point [content-module:Forecast|NASDAQ:NVDA] NVIDIA's price action is rising in early June and approaching the critical pivot point of the all-time high. A move above or even to the all-time high would intensify FOMO in the market and likely lead to an influx of money. The influx could gain momentum and sustain an upward lift due to the impact of indexing. The S&P 500 and most indices and ETFs pegged to it are market-cap weighted, which means as NVIDIA's stock price rises and its market capitalization grows, its influence on the index will increase, and the indices and ETFs pegged to it will have to buy more to keep up. The chart technicals are favorable. The rise in share prices is accompanied by bullish MACD, a bullish crossover in stochastic and the moving averages, which are pointing higher. The indication is for a retest of critical resistance by early summer, with a chance of new highs in late June or early July. The risk is that resistance in the range of $150 will cap gains and keep this market in check until later in the year when subsequent earnings reports may provide a catalyst. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
South China Morning Post
05-06-2025
- Business
- South China Morning Post
Why Taco trade is no laughing matter for the global economy
Everyone loves a catchy acronym. In financial markets, investment analysts spend a lot of time trying to come up with initialisms that encapsulate a popular theme or trend. A good example is FOMO, or fear of missing out , especially when it comes to stock market rallies. Another one is Brics, first coined in 2001 by former Goldman Sachs economist Jim O'Neill to draw attention to opportunities in Brazil, Russia, India and China. However, it is not often that a journalist coins an acronym that takes markets by storm. Last month, Financial Times commentator Robert Armstrong came up with Taco – which stands for ' Trump always chickens out ' – to describe the recent rally in global markets. He attributed the rally to investors 'realising that [US President Donald Trump] does not have a very high tolerance for market and economic pressure and will be quick to back off when [his trade] tariffs cause pain'. The Taco trade took hold on April 9, the day Trump suspended the 'reciprocal' tariffs he imposed on nearly all America's trading partners a week earlier. Since then, Trump has made a series of partial climbdowns that have convinced many investors that his bark is worse than his bite. Having threatened to fire US Federal Reserve chair Jerome Powell, Trump backed down and said he had no intention of seeking his ouster despite continuing to pressure the Fed to lower interest rates.
Forbes
04-06-2025
- Business
- Forbes
Do Not Buy This Discounted iPhone 16 Pro Max—Here's Why
Do not buy this discounted Phone. Getty Images It should be obvious — but it isn't. That's the latest warning for any shoppers chasing this or any other too good to be true deals. 'Whether it's a new iPhone drop, Taylor Swift's Eras Tour or a major sporting event, The Fear of Missing Out (FOMO) can push users to click on unverified links promising early access or exclusive deals.' The warning comes courtesy of Kaspersky's Threat Research team and is aimed at Gen Z, 'the most internet-savvy generation yet, known for their digital fluency and trendsetting influence… But as they navigate a world of hyperconnectivity, social media and online shopping, cyber threats are evolving just as rapidly.' Kaspersky warns that cybercriminals exploit the need for immediacy, crafting a sense of urgency that's catnip for this powerful generation of shoppers in particular, and leaves them at risk. Clickbait phishing schemes 'lead users to malicious sites that steal login credentials or distribute malware. Fake event tickets, pre-order scams and leaked' insider information are just some of the tactics used to manipulate this fear.' We saw this with Kaspersky's other recent Gen Z warning — the dangers lurking behind fake downloads for new movies, exclusive scenes and episodes, and other viral content. While cheaper than retail iPhones will always tempt clicks, the threat extends to nostalgic and retro products, driven by TikTok and Instagram posts. 'The Sims 2, Barbie Fashion Designer and Bratz Rock Angelz evoke nostalgia, [but] searching for unofficial downloads often leads users to malware-infested sites." Without any warning, the trip down memory lane leads to compromised devices or stolen data." The threat also extends to fast fashion, Kaspersky says, which has such a fast product turnaround and headline pricing that a gift to cybercriminals. 'Brands like Shein, ASOS and Fashion Nova deliver affordability and instant gratification, making them staples for this generation. However, the allure of these brands comes with a dark side. Fake shopping websites, hoax promocodes and phishing ads capitalize." Kaspersky's advice is simple: 'Start by taking control: verify links and websites before engaging, use strong, unique passwords and enable two-factor authentication for an extra layer of security. Be mindful of what you share online — and most importantly, remember that staying informed is your best defense.' As the FBI has warned, 'criminals often offer too-good-to-be-true deals via phishing emails, text messages, and fake advertisements on social media… Bottom line: if a deal looks too good to be true, it probably is! Stay clear of unfamiliar sites offering unrealistic discounts on brand-name merchandise. Scammers frequently prey on bargain hunters by advertising 'One-Day Only' promotions for recognizable brands.' You have been warned.
