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JPMorgan just said Amazon is attractive heading into the new year. The firm cited AWS growth, solid stores growth with margin expansion, and the expectation that free cash flow could double, making AMZN’s valuation attractive.
Bank of America just reiterated a buy rating on Broadcom with a $500 price target. The firm cited AVGO’s high-quality diversified exposure to secular product cycles in the smartphone, cloud data center, telecom, and enterprise storage markets, as noted by CNBC.
Markets are mixed again.
At the moment, Dow futures are pointing to a 102-point open. S&P 500 futures are down about six points, as the Nasdaq sheds 130 points. The SPDR S&P 500 ETF (SPY) is down fractionally.
Leading the markets, Broadcom (NASDAQ: AVGO) posted strong earnings and gave a strong forecast. Unfortunately, the stock is down about 6% in premarket “after the chipmaker warned growing sales of lower-margin custom AI processors were squeezing profitability, sparking worries that the business may be less lucrative,” as noted by Reuters. “The warning on margin impact deepened investor jitters over Big Tech’s AI returns, a day after Oracle fell 10.8%.”
Shares of Lululemon (NASDAQ: LULU) are rocketing higher on news that its CEO will step down at the end of January 2026. While recent earnings did beat estimates, the company’s forecast is nothing to write home about. Hopefully, this change at the top, when LULU does find a replacement, will help significantly reverse the stock from its recent lows.
There may be more room to cut interest rates
Just days after the Federal Reserve cut interest rates by another quarter point, Philadelphia Federal Reserve President Anna Paulson says unemployment is a bigger economic threat than inflation, which could open the door for more interest rate cuts in the new year.
“That’s partly because I see a decent chance that inflation will come down as we go through next year,” the central banker said, as quoted by CNBC.
If that’s the case, investors may want to keep an eye on more upside in gold prices.
Last trading at $4,342.81, some analysts are arguing for $5,000 gold in the new year. And if that’s the case, physical gold, stocks such as Newmont (NYSE: NEM), and gold mining ETFs could explode higher. In fact, some of the top gold ETFs to keep an eye on include:
VanEck Vectors Gold Miners ETF
Not only can you gain access to some of the biggest gold stocks in the world, but you can do so at less cost with the VanEck Vectors Gold Miners ETF (GDX).
The ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals, to name a few.
Even better, shares of mining stocks often outperform the price of gold. That’s because higher gold prices can result in increased profit margins and free cash flow for gold miners. In addition, top gold miners often have limited exposure to riskier mining projects.
Sprott Junior Gold Miners ETF
The Sprott Junior Gold Miners ETF (SGDJ) seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index. The Index aims to track the performance of small-cap gold companies.
Global X Gold Explorers ETF
The Global X Gold Explorers ETF (GOEX) invests in companies involved with gold deposit exploration. Some of its top 50 holdings include Coeur Mining, Lundin Gold, Hecla Mining, New Gold Inc., SSR Mining, and Alamos Gold. GOEX also pays a semi-annual dividend.
President Trump could soon reclassify cannabis
President Trump could reclassify cannabis.
As noted by CNBC, “Trump is expected to tell agencies to reclassify marijuana as a Schedule III drug, The Washington Post reported on Thursday. Such a move would allow cannabis companies to fall under different tax regulations and encourage investment, while placing pot in a class of drugs that includes steroids and Tylenol with codeine.”
The move could also open the door for pharmaceutical companies to seek approval for more cannabis products, which could be marketed with other prescription medications.
The news is having a big impact on stocks, such as Tilray (NASDAQ: TLRY), Canopy Growth (NASDAQ: CGC), and Innovative Industrial Properties (NYSE: IIPR), which yields 14.58%.