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an hour ago
- Business
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Commercial Building Products Stocks Q1 Earnings: Insteel (NYSE:IIIN) Best of the Bunch
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the commercial building products industry, including Insteel (NYSE:IIIN) and its peers. Commercial building products companies, which often serve more complicated projects, can supplement their core business with higher-margin installation and consulting services revenues. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of commercial construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of commercial building products companies. The 5 commercial building products stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 1.9% while next quarter's revenue guidance was 1.6% above. Luckily, commercial building products stocks have performed well with share prices up 11% on average since the latest earnings results. Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE:IIIN) provides steel wire reinforcing products for concrete. Insteel reported revenues of $160.7 million, up 26.1% year on year. This print exceeded analysts' expectations by 7.2%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Insteel pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 30.7% since reporting and currently trades at $34.86. Is now the time to buy Insteel? Access our full analysis of the earnings results here, it's free. Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions. Janus reported revenues of $210.5 million, down 17.3% year on year, outperforming analysts' expectations by 2%. The business had a very strong quarter with a solid beat of analysts' adjusted operating income estimates and an impressive beat of analysts' EPS estimates. The market seems happy with the results as the stock is up 10.4% since reporting. It currently trades at $7.89. Is now the time to buy Janus? Access our full analysis of the earnings results here, it's free. Responsible for projects like nuclear facilities, AZZ (NYSE:AZZ) is a provider of metal coating and power infrastructure solutions. AZZ reported revenues of $351.9 million, down 4% year on year, falling short of analysts' expectations by 4.3%. It was a slower quarter as it posted a miss of analysts' EBITDA estimates and full-year revenue guidance meeting analysts' expectations. AZZ delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 15% since the results and currently trades at $89.40. Read our full analysis of AZZ's results here. Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ:APOG) sells architectural products and services such as high-performance glass for commercial buildings. Apogee reported revenues of $345.7 million, down 4.5% year on year. This print topped analysts' expectations by 4.2%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts' EBITDA estimates and full-year revenue guidance beating analysts' expectations. Apogee delivered the highest full-year guidance raise among its peers. The stock is down 18.1% since reporting and currently trades at $37.58. Read our full, actionable report on Apogee here, it's free. Founded after patenting the electric room thermostat, Johnson Controls (NYSE:JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage. Johnson Controls reported revenues of $5.68 billion, up 1.4% year on year. This result beat analysts' expectations by 0.7%. It was a strong quarter as it also produced a solid beat of analysts' organic revenue estimates and an impressive beat of analysts' adjusted operating income estimates. The stock is up 17.1% since reporting and currently trades at $103.97. Read our full, actionable report on Johnson Controls here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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15 hours ago
- Business
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5 Must-Read Analyst Questions From Celsius's Q1 Earnings Call
Celsius' first quarter results drew a positive market reaction despite falling short of Wall Street's top- and bottom-line expectations. Management attributed the revenue decline primarily to slower product velocity, shifts in the timing and structure of distributor incentives, and increased retail promotional activity. CEO John Fieldly highlighted that the company was facing difficult comparisons to the prior year, which included the nationwide launch of CELSIUS ESSENTIALS and elevated retail promotions. Fieldly noted, 'We saw business fundamentals strengthen through the quarter and are encouraged by the positive momentum heading into Q2.' Is now the time to buy CELH? Find out in our full research report (it's free). Revenue: $329.3 million vs analyst estimates of $342.3 million (7.4% year-on-year decline, 3.8% miss) Adjusted EPS: $0.18 vs analyst expectations of $0.19 (5.9% miss) Adjusted EBITDA: $69.69 million vs analyst estimates of $72.12 million (21.2% margin, 3.4% miss) Operating Margin: 15.8%, down from 23.4% in the same quarter last year Market Capitalization: $11.38 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kaumil Gajrawala (Jefferies) asked about the continued strength of the energy drink category and drivers behind velocity. CEO John Fieldly described health and wellness trends and category innovation as key factors. Peter Grom (UBS) inquired about the drivers of first quarter sales decline in North America. Fieldly and CFO Jarrod Langhans explained that slower velocity, distributor incentives, and promotional timing were the primary contributors. Kevin Grundy (BNP Paribas) questioned Celsius' pricing strategy amid mixed industry dynamics. Fieldly said the company took price in Q4 but remains cautious about further increases due to shifting consumer purchase behaviors. Jon Andersen (William Blair) asked for details on shelf space expansion and the impact for both Celsius and Alani Nu. Fieldly cited gains in secondary placements and excitement about Alani Nu's distribution momentum, particularly among female consumers. Andrea Teixeira (JPMorgan) sought clarification on Costco performance and the impact of allowances and destocking. Langhans stated that scanner data for Costco was up, with timing and promotional allowances impacting reported revenue, but no major destocking was observed. In the coming quarters, our analysts will closely track (1) the integration progress and performance of Alani Nu within Celsius' broader portfolio, (2) the effectiveness of new marketing campaigns and their impact on product velocity, and (3) ongoing shelf space expansion efforts, including secondary placements and foodservice channel growth. The trajectory of gross margins and adaptability to potential cost pressures will also be key indicators of future execution. Celsius currently trades at $44.44, up from $33.95 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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16 hours ago
- Automotive
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NIO Stock Presents a Mixed Outlook as Strong Growth is Offset by Persistent Losses
Chinese EV-maker NIO (NIO) continues to test the patience of its shareholders. In Q1, as reported on June 6, the company missed both top and bottom-line estimates by a wide margin, and once again disappointed when it came to losses. On the bright side, deliveries and sales have been growing at a solid pace, with its affordable Onvo-branded models showing promising momentum. However, high expenses continue to weigh heavily, reflecting an ongoing and significant cash burn. Earnings per share fell short of expectations, with NIO reporting a loss of $0.42 per share. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter That said, with the ADR still trading at depressed levels, some investors might feel like it can't get much cheaper. While I partly agree with that sentiment, I think going long on NIO only makes sense once we see clear signs that the losses are stabilizing and that a path to a sustainable bottom line is in sight. Until then, I believe NIO is a Hold. While NIO has made some solid progress in terms of vehicle deliveries and volume, the Chinese EV makers' financial performance tells a different story. In Q1 2025, NIO delivered 42,100 vehicles—a 40% increase compared to the same period last year. The issue is that this jump in deliveries didn't translate into a similar increase in revenue, not even half. Vehicle sales revenue grew by just 18.6%, mainly due to the growing contribution of its more affordable models (its Onvo brand), which aligns with NIO's strategy to capture broader market segments. However, the primary concern remains that the company still falls short in terms of overall profitability. Operating losses increased to $884 million, up from $740 million, a year earlier—even though total revenue rose to $1.66 billion. Looking at vehicle margins, there was a year-over-year increase to 10.2%, but a drop from 13.1% in the previous quarter, which reflects growing pricing pressure in China's EV market. All of this continues to intensify pressure on NIO's liquidity, making the need to raise fresh capital more urgent, likely through further shareholder dilution. In fact, back in March, NIO raised around HKD 4.03 billion (~US$510 million) through a share issuance in Hong Kong. To clarify, since NIO is a foreign company listed on the NYSE via American Depositary Receipts (ADRs), it follows International Financial Reporting Standards (IFRS) accounting standards. That means it doesn't publish full quarterly cash flow statements—only annual ones. Based on 2024 figures, NIO reported a negative operating cash flow of $1.57 billion. Comparing that to the $3.6 billion in cash and short-term investments currently on hand, the company has a cash runway of just about 2.3 years, not even accounting for 2025's results yet. This indicates that NIO, although not exhibiting any immediate liquidity red flags, is navigating a fine line with limited financial flexibility. The pressure is mounting for NIO, as CEO and founder William Li has set an ambitious goal to reach breakeven by the fourth quarter of this year. However, a troubling 18% rise in Q1 operating losses suggests the company is currently moving in the opposite direction. To course-correct, NIO is emphasizing cost efficiency, aiming to cut R&D spending by 20–25% year-over-year and keep non-GAAP SG&A expenses under 10% of revenue. In the near term, NIO expects to deliver 72,000 to 75,000 vehicles in Q2, representing a 25% to 31% increase. If even a portion of that growth translates into more substantial revenue, it could help improve operating cash flow and begin to narrow losses. With tighter cost controls and improving deliveries, breakeven within the next three quarters remains a challenging but plausible target. But here's the catch: it's going to require flawless execution—something that, so far, has been elusive for NIO and many of its peers in China's EV sector. Even with sales increasing every few quarters, the drop in vehicle margins (from 13.1% to 10.2% in Q1) highlights just how much the ongoing price war in China is eroding profitability. And that's a factor largely out of NIO's control, which adds even more pressure on management to hit their ambitious targets. The post-Q1 bearish reaction appears to reflect investor frustration that improvements to the bottom line have still not materialized and have now been pushed back to at least the next quarter. For now, R&D expenses were actually 11% higher than in the same period last year, and SG&A costs accounted for a staggering 46% of sales revenue, entirely at odds with the cost-cutting targets management has been promising. Given that, I think we'll need to see clearer evidence of progress in the direction the leadership team has been forecasting before fully buying into their efficiency narrative. On the product side, though, things look more promising. The new models launched in April—such as the ET9 and Firefly—have reportedly secured a solid market share in the premium executive and high-end segments. Demand for the Onvo L60 is also on the rise, and in late May, deliveries began for the updated ES6, EC6, ET5, and ET5T, all of which feature significant upgrades. These are all encouraging inputs that could help turn NIO into a more efficient, financially sustainable company, though that's clearly not the reality today. To me, the question is more about when NIO will arrive, rather than how, primarily since the ongoing pricing pressure is being driven by an ultra-competitive electric vehicle landscape in China. Until profitability shows real signs of improvement, the need for fresh funding—and the risk of further shareholder dilution—remains on the table. And that just adds to the cycle of value erosion we've been seeing in NIO's ADRs. Most analysts remain cautious on NIO for the time being. Of the ten analysts covering the stock, eight rate it as a Hold, with only two Buy ratings and one Sell. Still, the consensus price target of $4.51 implies a potential upside of approximately 31% from the current share price, suggesting some optimism remains despite the neutral stance. NIO's delivery and revenue growth demonstrate its ability to remain competitive in China's crowded EV market. However, the more pressing issue is its persistent bottom-line losses—and how long the investment case can hold without visible progress toward profitability, even if breakeven is theoretically achievable within the next three quarters. Q1 offered little reassurance on operational efficiency, with no apparent signs of improvement. For now, investors are relying on management's commitment to reduce expenses and curb cash burn before further dilution becomes necessary. Until those goals are met, a low valuation alone isn't enough to shift sentiment. Given the current trajectory, I maintain a Hold rating on NIO. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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19 hours ago
- Business
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Q1 Earnings Highs And Lows: Hillman (NASDAQ:HLMN) Vs The Rest Of The Professional Tools and Equipment Stocks
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Hillman (NASDAQ:HLMN) and the best and worst performers in the professional tools and equipment industry. Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 10 professional tools and equipment stocks we track reported a mixed Q1. As a group, revenues missed analysts' consensus estimates by 0.6% while next quarter's revenue guidance was 1.1% above. In light of this news, share prices of the companies have held steady as they are up 1.5% on average since the latest earnings results. Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors. Hillman reported revenues of $359.3 million, up 2.6% year on year. This print fell short of analysts' expectations by 0.5%, but it was still a strong quarter for the company with a solid beat of analysts' adjusted operating income estimates. "We got off to a good start during 2025, posting both top and bottom line growth which was driven by contributions from Intex DIY, which we acquired in August of 2024, and new business wins," commented Jon Michael Adinolfi, President and CEO of Hillman. Hillman delivered the weakest full-year guidance update of the whole group. The stock is down 12.1% since reporting and currently trades at $6.65. Is now the time to buy Hillman? Access our full analysis of the earnings results here, it's free. Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries. ESAB reported revenues of $678.1 million, down 1.7% year on year, outperforming analysts' expectations by 2.2%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates. The market seems unhappy with the results as the stock is down 1.6% since reporting. It currently trades at $118.18. Is now the time to buy ESAB? Access our full analysis of the earnings results here, it's free. Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military. Snap-on reported revenues of $1.24 billion, down 3% year on year, falling short of analysts' expectations by 4.1%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. Snap-on delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7.6% since the results and currently trades at $306.82. Read our full analysis of Snap-on's results here. With an iconic 'STANLEY' logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry. Stanley Black & Decker reported revenues of $3.74 billion, down 3.2% year on year. This print beat analysts' expectations by 1.7%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts' EPS estimates but a miss of analysts' adjusted operating income estimates. The stock is up 6.3% since reporting and currently trades at $65.01. Read our full, actionable report on Stanley Black & Decker here, it's free. Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors. Hyster-Yale Materials Handling reported revenues of $910.4 million, down 13.8% year on year. This result lagged analysts' expectations by 3.9%. It was a disappointing quarter as it also produced a significant miss of analysts' EBITDA estimates and EPS estimates. Hyster-Yale Materials Handling had the slowest revenue growth among its peers. The stock is down 5% since reporting and currently trades at $38.52. Read our full, actionable report on Hyster-Yale Materials Handling here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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a day ago
- Business
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Billionaire Investors Are Buying These 3 Artificial Intelligence (AI) Stocks Hand Over Fist
Several billionaire hedge fund managers loaded up on Alphabet stock in Q1. George Soros was a big buyer of Amazon, perhaps because of the company's rapidly increasing profits. Steve Cohen gobbled up shares of Meta in Q1, which could reflect a big bet on the company's AI smart glasses. 10 stocks we like better than Meta Platforms › If you follow the world's wealthiest investors, you'll see a wide range of investing styles. Some focus on valuation. Others prioritize growth potential. A few look for arbitrage opportunities. But there's at least one common denominator among many ultrarich investors these days: They like artificial intelligence (AI) stocks. Billionaires are buying these three AI stocks hand over fist. Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stands out as a top pick for several billionaire investors. Izzy Englander might be the most bullish about the tech stock. His Millennium Management hedge fund upped its position in Alphabet by 150.8% in the first quarter of 2025. Ken Griffin is another billionaire hedge fund manager who's enthusiastic about Alphabet stock. His Citadel Advisors increased its stake in the tech giant by 55.7% in Q1. Appaloosa's David Tepper also bought over 128,000 additional shares of Alphabet, bumping up his holding in the stock by 6.8%. What do these billionaire investors like about Alphabet? Its valuation is probably near the top of the list. The stock trades at a forward price-to-earnings ratio below 19. None of the other so-called "Magnificent Seven" stocks comes anywhere close to such an attractive valuation. Alphabet has also been showing that it's playing to win in the AI space. The company's Google Gemini 2.5 Pro ranks No. 1 overall on the LMArena leaderboard. Google Cloud continues to be the fastest-growing of the top three cloud service providers. There isn't as much of a consensus among billionaire investors when it comes to Amazon (NASDAQ: AMZN). Chase Coleman's Tiger Global Management upped its stake in the e-commerce and cloud service giant by 2.7% in Q1 and Englander's Millennium Management boosted its position in Amazon by 5.3%. However, Griffin's Citadel Advisors reduced its Amazon holding by 43.5%. Tepper's Appaloosa trimmed its position in Amazon by 3.5%. But one billionaire loaded up on Amazon stock in the first quarter. George Soros bought more than 101,000 shares, increasing his hedge fund's stake in Amazon by 30.5%. Amazon is now the 11th largest holding in Soros Fund Management's $5.61 billion portfolio. Soros probably likes Amazon's bottom-line improvement. In Q1, the company's earnings soared 64% year over year to $17.1 billion. Amazon has been laser-focused on improving profitability -- and its efforts are clearly paying off. Amazon has also flexed its AI muscle. The company's Amazon Web Services unit still commands the largest market share in cloud services, thanks in part to its Amazon Bedrock platform that supports multiple AI models. Amazon recently introduced Alexa+, its next-generation AI assistant. Meta Platforms (NASDAQ: META) elicits different views among billionaire investors as well. It's still the largest holding for Coleman's Tiger Global, but the hedge fund didn't buy or sell shares of Meta in Q1. Englander and Griffin seemed to sour on Meta somewhat, though, slashing their positions in the stock by 38.9% and 44.2%, respectively. However, Tepper increased Appaloosa's stake in Meta by 12.2%, making it his portfolio's fifth largest holding. Steve Cohen, though, stood out as the biggest Meta bull in Q1. His Point 72 Asset Management increased its position in the Facebook and Instagram parent by a whopping 585%. What might Cohen find so appealing about Meta? It could simply be the company's continued strength in the advertising market. A staggering 3.43 billion people used Meta's family of apps daily in Q1. The average price per ad shown to those users increased by 10% year over year. I suspect that Cohen is enthusiastic about Meta's AI initiatives as well. Meta AI now has nearly 1 billion monthly active users. The company is also a leader in AI-powered smart glasses. CEO Mark Zuckerberg believes that glasses are "the ideal form factor" for AI. Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Meta Platforms 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — 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 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, and Meta Platforms. The Motley Fool has a disclosure policy. Billionaire Investors Are Buying These 3 Artificial Intelligence (AI) Stocks Hand Over Fist was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
