This week’s highlights:
You know things are getting hot in tech land when a company founded 40 years ago and best-known for its personal computers sees its stock surge 40% in a single day because of AI demand. For the week, the overall market gained 1.5%, with the tech sector up 4.5%.
While it’s been a remarkable bounce for stocks since the start of the Iran war, it’s been tougher sledding in the bond market, where yields have been rising. Leslie Norton checked in with a pair of top bond fund managers about how they are playing this trend, what it means for investors, and what they think about all that data center debt that has been flooding the corporate bond market.
Back in the stock market, the last few names are reporting their first-quarter earnings. This past week, we had our quarterly screen of stocks with the biggest fair value estimate changes from Morningstar analysts during earnings season. Not too surprisingly, many of the largest raises came for tech stocks. We’ve got the stocks with the 10 biggest valuation increases here. On the flip side, we have the five stocks with the largest valuation cuts, which include a major airline.
This coming week is expected to bring the start of the SpaceX IPO roadshow, as the company and its hordes of investment bankers pitch what will likely be the largest IPO in history. While it seems like there will be overwhelming demand for SpaceX, this past week, we looked at the long list of governance questions surrounding the company and the IPO, and what they could mean for shareholders. We also looked at how the company plans to handle stock sales by pre-IPO holders, and what investors can learn about the economics of AI infrastructure from a deleted section of its IPO filing. And of course, SpaceX is just the first of a series of mega-IPOs that are expected this year. We caught up with the latest in the valuation race between Anthropic and OpenAI.
Lastly, we have an update of our screen for the best AI stocks to buy now. These are names within the Morningstar Global Next Generation Artificial Intelligence Index that Morningstar analysts think are undervalued. Even with the rally of the past two months, some of the biggest names in the tech world are trading at what they think are attractive prices. Check out the list here.
As always, be sure to visit our Markets page for our latest coverage and live stock market updates, along with our full weekly calendar of key upcoming data and events.