Coinbase is preparing to push deeper into tokenized real-world assets, with Brian Armstrong pointing to an offshore rollout of 1:1 backed tokenized stocks and equity-linked products for non-US markets.

TL;DR

• Coinbase is targeting non-US markets with tokenized equities.
• The reported model is based on 1:1 backing, not merely synthetic price exposure.
• US retail availability remains a separate regulatory question.

Brian Armstrong on Coinbase tokenization…

— Brian Armstrong (@brian_armstrong) June 16, 2026

Coinbase Moves Further Into RWA

Tokenized stocks have become one of the clearest battlegrounds in the real-world asset market. The idea is simple enough: let investors trade equity exposure on-chain, around the clock, with settlement and transfer mechanics closer to crypto than traditional brokerage rails. The hard part is making sure the tokens actually represent something legally and economically meaningful.

That is why the 1:1 backing detail matters. The verified source packet says Coinbase is preparing tokenized US equities for offshore, non-US markets, with tokens tied to underlying ownership, dividends and shareholder rights. If delivered as described, that would position the product differently from synthetic instruments that only track stock prices.

Offshore First, Not US Retail

The regulatory caveat is central. Coinbase’s tokenized stock plan is described as offshore and geo-restricted, meaning it should not be framed as a US retail product. Securities rules remain a major barrier in the United States, and the company’s other derivatives permissions should not be confused with approval to offer tokenized equities to US retail investors.

That distinction protects the article from overstating the product. Coinbase may be building toward a broader tokenized capital markets strategy, but the immediate opportunity appears to be international users in markets where the regulatory pathway is clearer or more flexible.

Why This Could Matter For Crypto Markets

For crypto markets, the story is bigger than Coinbase alone. Tokenized equities could bring traditional assets, dividend rights and voting exposure closer to blockchain-based settlement systems. That would also intensify competition between major exchanges, brokerages and stablecoin issuers trying to own the next layer of global market infrastructure.

Coinbase has already spent years positioning itself as a bridge between regulated finance and crypto-native products. A successful tokenized equities rollout would give it another way to compete in the RWA market while adding a new trading category for international users.

What Needs Confirmation

The biggest details to watch are jurisdiction, launch timing, asset coverage and the exact legal structure behind the tokens. The source packet points to an August 2026 target and offshore availability, but any article should keep the final wording cautious until Coinbase publishes fuller product documentation.

The market will also watch how shareholder rights and dividends are actually handled. Those mechanics will determine whether the product is seen as a serious capital markets bridge or just another tokenized wrapper with limited practical rights.

This report is based on information from Brian Armstrong X post

This article was written by the News Desk and edited by Samuel Rae.

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SpaceX’s first week as a public company is starting to look less like a conventional stock-market debut and more like a high-leverage crypto asset.

Shares of Elon Musk-led company, trading under the ticker SPCX, extended their post-IPO rally Tuesday as investors piled into one of the smallest public floats ever attached to a company valued in the trillions of dollars.

The stock rose as much as 13% to $210 in early market trading, according to Yahoo Finance data.

This frenzy has also crossed into digital-asset markets, where SPCX-linked perpetual futures have become one of the busiest contracts across crypto trading platforms.

Tiny float turns demand into momentum

SpaceX’s post-IPO rally has been intensified by the unusually small amount of stock available for public trading.

The company sold 555.6 million shares in its IPO, raising $75 billion. The sale later expanded to 638.9 million shares and about $85.7 billion in proceeds after underwriters exercised their overallotment option.

Even after the additional shares, only a narrow slice of SpaceX’s equity entered the public market. This is because the company has about 13 billion shares outstanding, meaning the IPO released only a small portion of its total stock.

Thus, Musk and other insiders still control most of the company, while lockup agreements limit how much additional supply can reach the market in the near term.

Thierry Borgeat, co-founder of Arvy, said that structure created an exceptionally tight supply setup for a company of SpaceX’s scale, with index funds, retail traders, and momentum buyers all chasing a limited number of tradeable shares.

Crypto analyst Colin Talks Crypto drew a similar comparison to digital-asset markets, arguing that SPCX is behaving like a token with a heavily restricted release schedule.

He said the small liquid float can help drive sharp early gains, but warned that later unlocks could create sell pressure as more shares become available for trading.

That imbalance has made each wave of demand more powerful. With few natural sellers on the other side, buying from retail investors, index-linked funds, and speculative traders can move the stock sharply higher.

CNBC’s Jim Cramer pointed this out, saying the stock was behaving like a meme stock because it had “no sellers.”

As a result, the pressure has helped SpaceX climb more than 50% from its $135 IPO price just days after its record listing.

Crypto platforms turn the rally into a leverage trade

The same supply pressure that has driven SpaceX higher in the stock market has spilled into crypto derivatives, where traders are using leveraged contracts to chase the rally around the clock.

SPCX traded at $222.52 over the past 24 hours, up $48.12, or 27.6%, according to CoinGlass data. Futures volume jumped 501.5% to nearly $9 billion, while open interest climbed to $813 million, signaling a sharp increase in both trading activity and capital committed to the market.

These contracts give traders synthetic exposure to SpaceX’s share price through a crypto-native product that trades continuously and allows leverage. That structure has turned the post-IPO rally into a 24-hour speculation cycle, extending the stock-market frenzy beyond regular trading hours.

For a stock such as SpaceX, where public supply is limited, and social media is helping shape the narrative in real time, that kind of market can intensify price swings.

The leverage has already forced a sharp unwind. CoinGlass data showed more than $30 million in SPCX positions liquidated over 24 hours as price volatility exceeded 35%. Short liquidations accounted for about $19 million of that total, compared with roughly $12 million in long liquidations.

That liquidation profile shows how the rally has fed on itself. When short sellers are forced out, exchanges automatically buy back exposure to close their positions.

That buying can push prices higher, forcing more bearish traders to exit. The same mechanic has fueled violent rallies in Bitcoin, Ethereum, and smaller tokens during crowded positioning events.

For SpaceX, the loop is now clear. A thin public float drives the stock higher. The rising share price pulls more traders into perpetual futures. Short liquidations add more forced buying. The derivative market then reinforces the perception that the rally still has momentum.

Together, those markets have transformed SpaceX’s first week as a public company into a cross-asset momentum trade.

An AI deal gives SPCX’s rally a new catalyst

The rally gained another narrative boost after SpaceX announced an agreement to acquire Anysphere, the software company behind the AI coding tool Cursor, for $60 billion. The transaction is expected to close in the third quarter of 2026.

The firm stated:

“SpaceX has exercised the option to acquire Cursor in an all-stock transaction with the goal of building the world’s most useful AI models. For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.”

Quinn Thompson, chief investment officer of Lekker Capital, described the deal as a clever use of SpaceX’s newly elevated equity value.

He said the company was using a low-float, retail-inflated stock price to buy real businesses before the lockup period expires, calling it a creative way to turn post-IPO momentum into acquisition power.

Moreover, the deal gives investors a fresh reason to treat SpaceX as a broader technology platform rather than a company defined only by rockets and satellites.

Musk has increasingly positioned the business across launch services, Starlink, defense systems, artificial intelligence infrastructure, and enterprise software.

That broader identity helps explain why some investors are willing to support a valuation that appears stretched against current revenue. Bulls are looking beyond today’s sales and betting that SpaceX can become critical infrastructure across several large markets at once.

The Anysphere transaction fits that view. Cursor has become one of the most closely watched AI coding products, competing in a market where OpenAI, Anthropic, Google, and other technology companies are racing to automate software development.

Bringing Cursor into SpaceX would deepen Musk’s exposure to enterprise AI while potentially giving Anysphere access to greater computing resources.

For traders, the immediate effect is simpler. The deal keeps the growth story expanding while the stock is still in its early price-discovery phase.

In a market already driven by scarcity, leverage, and social-media momentum, a major AI acquisition gives buyers another reason to stay involved and short sellers another risk to manage.

Valuation math tests the rally

The harder question now is whether SpaceX can hold its valuation once investors shift from momentum trading to fundamentals.

Henrik Zeberg, a macro strategist at Swissblock, warned that the rally looks more like late-cycle speculation than the start of a durable bull-market advance. He said:

“This is NOT what you see at Bull Market Take-Offs. This is the Final Phases of a Bull Market. And people speculating in SpaceX will lose a lot of money … unfortunately!”

That skepticism is sharpened by the scale of SpaceX’s valuation. Charlie Bilello, chief market strategist at Creative Planning, noted that the company’s market value has climbed above $3 trillion, putting it ahead of Amazon and near Microsoft.

The comparison is striking because those companies generate far more revenue and substantial annual profit, while SpaceX is still producing losses.

In view of this, Bilello stated:

“SpaceX is a great company and will go on to do great things. But a few months from now we will look back at this moment as peak mania. Investors are pricing SpaceX stock as if the future has already happened.”

That leaves investors paying years in advance for execution. If SpaceX keeps growing quickly, wins large contracts and turns its AI push into a meaningful business line, the premium may hold.

But if growth slows, losses persist or locked-up shares begin entering the market, the same structure that powered the rally could start working in reverse.

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Finding high-quality stocks to invest in can be time-consuming, but it is an effective way to outperform the market. The Motley Fool Stock Advisor can help you invest in individual stocks with two new stock picks each month and weekly updates.

My Motley Fool review can help you decide if this stock research platform can help you become a better investor.

Summary

Motley Fool is a well-respected source of stock investing ideas. Stock Advisor is well known for offering two monthly picks to reduce your research time to invest in quality stocks as well as a depth of investment insights. 

Pros

• Two monthly stock picks
• In-depth research
• Full access to all active recommendations

Cons

• Layout can be overwhelming
• Not for short-term stock trades
• Annual fee can be high for some investors

What is Motley Fool?

Brothers Tom and David Gardner launched the Motley Fool in 1993 by researching individual stocks and giving investment ideas to ordinary investors. It provides buy-and-hold investment strategies instead of short-term trading, so you don’t have to constantly make trades to earn potential profits.

While no investment strategy is risk-free, you may appreciate this strategy if you believe that “time in the market is better than timing the market” by buying high-quality stocks.

To help investors achieve this goal, Motley Fool Stock Advisor is the service’s best premium newsletter. It recommends two new stocks each month and has several hands-on research tools. Analysts believe these stock picks can outperform the market for the next three to five years.

I enjoy the Stock Advisor insights as they take a long-term time horizon. Since you hold stocks through bull and bear markets, this investment process isn’t as time-consuming as short-term trading. It can also be potentially less risky, but still requires risk management and sound research.

Stock Advisor is the best fit for most portfolios, whether you’re a new or experienced investor. The service suggests a minimum portfolio balance of $25,000 to maximize your membership and maintain a diversified portfolio.

When you’re ready to buy a stock recommendation, you can buy shares through the best online stock brokerages for trading stocks.

How Does Motley Fool Stock Advisor Work

Stock Advisor launched in February of 2002 and is The Motley Fool’s most popular service due to its budget-friendly cost and numerous stock insights. This service typically costs $99 for new members the first year and provides two new stock picks each month from growth industries.

Current Special: Special $99 Stock Advisor Introductory Offer for New Members– *Billed annually. Introductory price for the first year for new members only. The first year is $99 and renews at $199.

You can also access customizable stock lists to explore the best opportunities among previous recommendations quickly. These lists provide 20 additional investment ideas, and I check them regularly and highly recommend new users do too.

As a multi-year Stock Advisor subscriber, these lists help me invest in more stocks. However, not every investment makes money, and you should only allocate up to 5% of your portfolio per idea.

The service wants investors to strive to hold 15 Motley Fool recommendations initially. Ultimately, Stock Advisor members should own at least 30 stocks.

According to the Motley Fool, the total performance of the Stock Advisor portfolio has been 396% since its launch. The S&P 500 has only returned 115% over the same period (as of March 28, 2023).

This impressive track record is why Motley Fool is so popular, as many active investors lose money in the long term.

To be transparent, not every Stock Advisor suggestion is profitable. For example, multiple active recommendations from 2021 and early 2022 have underperformed the market during the recent bear market.

When comparing stock picks, I read the Fool’s commentary and perform independent research. It’s also essential to decide whether the company fits your investment strategy or if you need more diversification.

Investment Strategy

What makes Motley Fool different than most investing newsletters is its “buy and hold” mindset. Each recommendation has an anticipated holding period of at least three years.

Many other newsletters advise using trailing stops to reduce downside risk. Stock Advisor will hold stocks through sharp corrections if the stock remains a good long-term investment.

You won’t see ETF or mutual fund recommendations in Stock Advisor. However, you will see many investing ideas for stocks in these industries:

• Tech
• Medical
• Banking
• Online shopping
• Alternative energy
• Consumer staples

While not every monthly recommendation makes money, and recommended stocks are naturally more volatile than an index fund, many have relatively low volatility.

You will likely be familiar with many of the names that Stock Advisor recommends. But you will also discover names that might become the next Amazon, Google, or Apple stock.

These stocks are growing and tend to be leaders in their industry. Some earn dividends but are more volatile than a “dividend aristocrat.” Some of the most successful picks include Shopify, Amazon, Netflix, and Tesla.

The recommendations come from a variety of industries, so you can easily maintain a diversified portfolio. Thankfully, many investing apps now offer fractional investing and commission-free trades, so you can nibble on multiple recommendations.

Stock Advisor Portfolio Allocation

Most Stock Advisor recommendations are growth stocks in these sectors:

• Information technology (35%)
• Consumer discretionary (20.5%)
• Communication services (13.4%)
• Health care (9.2%)
• Industrials (8.8%)
• Financials (7.8%)
• Consumer staples (1.8%)
• Materials (1.8%)
• Energy (1.8%)

With its current asset allocation, the Stock Advisor stock picks perform well when tech stock prices are on an uptrend. However, the performance lags when investors prefer safety and companies with less perceived risk.

Sector rotation is cyclical, and a multi-year investment commitment can help you avoid selling early by timing the market. The service issues hold and sell bulletins when a stock is unlikely to outperform in the long run.

One of the best reasons to consider Motley Fool Premium is the ability to track the performance of each active and closed recommendation. Many competing newsletters don’t reveal their performance as transparently.

How Much Does Stock Advisor Cost?

Motley Fool Stock Advisor costs $99 for the first year, including a 30-day risk-free trial period.

After the first year, your subscription renews at $199. This annual cost is competitive with other investing newsletters. However, most Motley Fool alternatives only make one monthly pick.

Stock Advisor is an entry-level newsletter and is the Fool’s cheapest product. It’s the best service for most investors because of its affordable price and balanced risk tolerance. To be clear, it’s my favorite premium product.

More aggressive products cost from $299 to $1,999 per year. You can also read free market commentary articles that may feature stocks the premium services currently recommend.

Key Features

Stock Advisor gives you several ways to find investing ideas.

Starter Stocks

To help you start investing, Stock Advisor provides a list of ten “Starter Stocks.” The stock picking service also refers to them as “Foundational Stocks” and reviews the list quarterly to change the recommendations potentially.

These stocks come from various industries and can be a good addition to your portfolio anytime during the year. They are usually industry dominators and can be less risky than the monthly stock picks.

Motley Fool believes these stocks are a good fit for most new investors ready to buy their first individual stock. The stock-picking service recommends buying some Starter Stocks plus the monthly picks.

When I first joined Stock Advisor, I browsed this list to find investment ideas I could add to my portfolio between the monthly picks. I still refer to it regularly.

Each stock pick receives a risk tolerance level:

• Cautious
• Moderate
• Aggressive

Not many investing newsletters maintain multiple model portfolios. This foundational portfolio is an excellent resource for new and long-time subscribers.

Two Monthly Stock Picks

The new monthly stock picks arrive on the first and third Thursday of the month.

Each stock pick comes with a summary that is easy to understand and can be read in several minutes. You can also watch videos in live chat to discuss the new recommendation.

I like the flexibility, as many investment newsletters only include a written commentary and don’t accept reader-submitted questions that help you learn more about the stock.

The research report includes these details:

• Summary of what the company does
• Key financial stats
• Why Motley Fool likes the stock
• Best reasons to buy the stock now
• Potential business risks

Reading the report gives you a good idea of why you might invest in the monthly stock pick. You can also read the latest earnings call transcripts and other research articles for the Stock Advisor recommendations.

I also appreciate that the Stock Advisor caters to a particular investing style:

• Team Hidden Gems: Stock picks with a lower risk appetite but strong long-term potential. These suggestions are the first pick of the month.
• Team Rule Breakers: Better for investors with a higher risk tolerance, as these companies can have a smaller market cap and be more volatile. These picks are still not as aggressive as the Motley Fool Rule Breakers newsletter thought.

Top-Ranked Stocks

Each month, Stock Advisor updates its “Top-Ranked Stocks” list (previously Best Buys Now) of the ten active recommendations that can be worth buying shares of first. These stocks have the highest conviction rating to beat the stock market over the next five years.

This list contains the best open positions with different investing styles. The report explains the entry price and underlying reasons for buying shares now, so you understand the potential rewards and risks.

The monthly report provides a brief write-up containing these sections:

• What the company does
• What we like now
• Who this stock might be for
• Who this stock may not be for
• What factors is Stock Advisor watching

You can expect the newest picks to make the list for most weeks. However, you can also see recommendations that Stock Advisor suggested over a year ago.

These suggestions can help you get exposure to more companies and industries if the new recommendations are not a good fit or you’re ready to invest in several ideas.

Watchlist

“My Stocks” is an interactive watchlist and portfolio tracker that tracks the performance of previous recommendations and those that your Motley Fool subscription doesn’t currently recommend.

In addition to tracking the stock’s price history, this feature lists any articles and stock rankings where the Motley Fool mentions the company. Reading this content can help you research potential holdings and monitor stocks you own.

You can customize your rankings to display specific data to help evaluate potential investments and existing holdings.

Personally, I don’t invest in every monthly pick for various reasons, but I add certain companies to the watchlist to track their performance. This feature prevents me from overlooking potential investment ideas.

Portfolio Strategies

Receiving multiple stock recommendations can make it challenging to build a diversified portfolio that also fits your risk tolerance. I was overwhelmed at first and wish these GamePlan tools were available then.

The Portfolio Strategies feature is an asset allocator that can help you choose an optimized blend of stocks, ETFs, and cash for your investing style (cautious, moderate, aggressive).

This tool is similar to a stock screener by highlighting Motley Fool stock recommendations that can fit your portfolio well. These picks come from any premium service you subscribe to.

This focused guidance can be more effective than trying to pick the best Starter Stocks and top-rated stocks. Stock Advisor also features index fund ETFs to provide diversification with low fees.

Premium members can interact with other Motley Fool members in the CAPS community. This online discussion board is similar to Bogleheads.

Instead of focusing on index funds, CAPS lets you read and share opinions about specific stock tickers or copy the investment portfolio of other members.

You can also see which stocks are most popular with Fool members. These stocks can differ from what’s in the Stock Advisor portfolio.

I like visiting this forum to see what other subscribers say about the Motley Fool recommendations. You may also see chatter about non-recommended stocks to find companies to invest in or avoid. Yet the best reason to consider a premium subscription is for the two monthly picks.

Investment News

Motley Fool also publishes many free investment news articles each day. Some articles focus on a specific stock, and others discuss an investing theme. If an article mentions a stock you’re watching, you receive a notification when the Fool mentions the ticker.

As a paid member, you also receive exclusive analyst insights. These articles can be good follow-up information after reading the initial buy report. You can also discover new investment ideas for stocks outside the portfolio.

Investing in individual stocks requires more portfolio monitoring than passive investing. Stock Advisor can text and email investing alerts for stocks you’re watching.

Investment Guides

As a new investor, there is a lot to learn about investing and retirement planning. Motley Fool has several resources providing general investing information. You can read guides on how stocks work, asset allocation, and retirement planning.

I like that your Stock Advisor membership includes access to the Rule Your Retirement content to plan for life beyond your working years. Stock Advisor also sends regular emails highlighting sections of the Motley Fool investment philosophy.

Fool Live

Motley Fool offers free and members-only investing podcasts. In addition to reading the stock pick summary, Stock Advisors can listen to an in-depth podcast about the company or general investing topics.

Premium subscribers can also access the Fool Live dashboard, which features live, real-time video programming each day. This service, like CNBC, can help answer your investing questions and inform you about the latest market events.

These podcasts are enjoyable if you’re more productive with listening than reading. For example, you may listen to these while exercising or driving.

Other Motley Fool Newsletters

Motley Fool offers several newsletters in addition to the entry-level Stock Advisor. These other newsletters cost more but provide more insights. You might consider them if you’re an aggressive investor or have plenty of free cash.

Epic

For $499 annually, you get five monthly recommendations for top growth stocks from Motley Fool Rule Breakers that are smaller and more volatile than the Stock Advisor but have more upside potential. You also receive picks from the Hidden Gems and Dividend Investors services.

It’s common for the Rule Breakers service to invest in a stock first. Stock Advisor will recommend the stock after the initial rapid growth and volatility phase passes. This level balances growth, value, and overlooked stocks for more diversity.

Epic Plus

Investment portfolios above $100,000 receive nine monthly recommendations for value, international, and thematic trends. Further, consider this service if you trade options. The annual cost is $1,999.

What Others Are Saying About Motley Fool

Here is the experience that other investors have with Motley Fool.

Trustpilot

This service has a 3.7 out of 5 Trustpilot score with over 8,900 reviews.

“I find that after Buy recommendations, little effort is expended tracking a stock’s progress. Sell recommendations are exceedingly rare, and when they occur, it’s after a significant loss has already occurred.

These comments are based on the last 18 months of membership and have nothing to do with the recent correction. There is a balance between Buy and Hold for 5 years vs. admitting it’s time to pull out of a prior recommendation.” – Leo G.

“I subscribe to the Stock Advisor service and greatly appreciate the investment information I receive. It has been very helpful in my taxable investment portfolio of stocks outside my retirement mutual funds. I often listen to the periodic (~1-2 times/month) additional investment webinars offered. But it does get a little annoying the upselling that occurs for additional services and costs, with numerous emails.” – Potsy

Better Business Bureau

The Motley Fool has a 1.26 out of 5 rating with 80 reviews. The ratings were approximately 3.2 out of 5 stars pre-2024. Common complaints include a string of unsuccessful investments during a bearish period, a potentially high renewal price, and constant promotions to upgrade to higher levels.

“The quality of the recommendations and research is very good and unbiased, and most of it is accessible to those of us not born into any wealth. I like being able to make my investing decisions with no pressure from anyone and doing my own follow-on research.” – Tanya C. 

“I don’t have the time or energy to research companies myself, so I pretty much buy stocks they recommend and usually learn something about most of these companies along the way. Not every stock they have suggested has been a winner for me, but I can’t complain. Overall, I’m very pleased with the results I have gotten.” – Greg G.

Motley Fool Alternatives

These alternatives to Motley Fool Stock Advisor can be a better fit if you want a more active trading strategy or extra freedom to research stocks and funds without a model portfolio.

• Actions Alerts Plus: Has a target holding period from six months to over one year. Receive stock ratings, portfolio guidance, and a monthly call to ask your investing questions.
• Morningstar Investor: You can receive independent analyst ratings and reports for most stocks, ETFs, and mutual funds. There isn’t a model portfolio, but there are many ratings lists.
• Seeking Alpha: Read bullish and bearish reports from independent contributors, get stock ratings and interactive charts, plus track your existing portfolio. Unfortunately, you won’t receive a model portfolio or monthly stock picks.

FAQ’s About Stock Advisor

These questions can help you decide if Motley Fool is worth it.

Summary

Motley Fool is a well-respected source of stock investing ideas. The Stock Advisor newsletter’s two monthly picks reduce your research time to invest in quality stocks you can hold for several years.

You will also find investment ideas from various sectors that you may not have the time to research.

Recommended Reading

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BlackRock chief investment officer Rick Rieder believes that the bull run in US equities will continue, driven by higher earnings estimates.

In a new interview at the CNBC CEO Council Summit, Rieder says the market is in the midst of an “extraordinary period of time” as stock prices rise while earnings multiples fall.

While Rieder mentions a few market risks, he says the earnings growth story is fueling the market’s ascent to new all-time high levels.

“I don’t think we’ve ever seen anything like this in terms of you’ve got a market that’s doing extremely well. The cash keeps coming into these markets. And the multiples, though, when you actually look at it relative to where you were, particularly in tech and semis, are actually lower than where we were if you go back to October.

The earnings growth, I was looking this morning at the projected [one-year forward] earnings growth, talking about 20%-plus earnings growth. That is incredible. So yes, there’s a lot of uncertainty. Yes, there are things to be careful about. I worry about crowding in different markets, not just in overall markets, but in single-name stocks where you see more crowding, more momentum trading than I’ve ever seen before.”

The BlackRock CIO says he’s keeping a close watch on the Magnificent 7 names, highlighting that their valuations are justified due to exceptional earnings growth.

“I was looking at the Mag 7. I mean, you’re talking about a 26x multiple for companies that are throwing off earnings growth of 30%-40%.

So yes, there’s a lot of uncertainty. There’s a tremendous amount of cash. There’s a tremendous amount, even with the IPO calendar, which is large. There is still a tremendous amount of buyback going on. So I think the technicals are good. Listen, I think you’ve got to stay in it. And I think the equity market will probably continue to do okay.”

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The brokerage, investing and financial advisory arm of Wells Fargo is highlighting one market sector that could benefit immensely from growing investments in artificial intelligence (AI) and data centers.

Wells Fargo Advisors says that the current stock market performance is being driven by investments in artificial intelligence (AI) and data centers. According to Wells Fargo Advisors, utilities are one of the key beneficiaries of this burgeoning investment.

“As a key supplier in the data center landscape, the Utilities sector is riding this demand wave and has produced strong returns, a trend we expect to continue.”

Wells Fargo Advisors says that electric utilities are “likely to see the greatest data center benefit” relative to other subsectors.

“As owners of power generation and distribution assets, utilities — electric utilities in particular — stand to benefit from this long-term infrastructure buildout. In fact, many have already raised long-term annual earnings growth outlooks into the high-single- to low-double-digit range. When paired with 2% to 3% dividend yields, this supports attractive total return prospects, in our view.”

Besides electric utilities, Wells Fargo Advisors says other utility subsectors are also going to benefit, but on a reduced scale.

“Electric utilities, however, do not have a monopoly on data center power demand. Natural gas distributors (also utilities), producers (energy companies), and pipeline operators are also benefiting by supplying fuel or building on-site power generation at data center campuses.”

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Hedge fund veteran Dan Ives believes one Mag 7 tech stock is undervalued and will soon print massive gains.

In a new CNBC interview, Ives says that Microsoft (MSFT) could surge by more than 30% from its current value as he expects artificial intelligence (AI) to start generating revenue for the company after large-scale investments in the technology.

“[Microsoft’s] defending their turf. They’re going after developers, and that’s really front and center in this arms race that we’re seeing play out, and I think these are the important steps, not just on Copilot and build, but what ultimately will be Azure, and that’s why I think right now the market is mispricing Microsoft to what I believe is still going to be the monetization phase that’s going to happen in the next six to 12 months.”

Ives believes Microsoft will hit $575, a more than 34% increase from its $427 price per share at time of writing.

Ives also says that AI technology still remains in its early stages and will be transformative for civilization in the coming years.

“It’s my view we’re still in the third inning of AI revolution relative to where this nine inning game is going. We could definitely have ebbs and flows in this market, but when you look where Alphabet’s positioned, they’re front and center, they’re top of the mountain right now. Amazon clearly has narrowed the gap. Microsoft obviously is doing a lot of great things in terms of Azure…

We’re talking about years, we’re talking about fourth industrial revolution in terms of what they’re going after.”

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A Goldman Sachs tech specialist thinks one sector of the market looks particularly exciting amid historic stock gains.

Peter Callahan, a telecom sector specialist, says in a new interview that US internet stocks have lagged software this year and haven’t received enough attention.

“There are ongoing debates about sources of funds, about ongoing investment cycles, about the health of the consumer, and of course, where AI in the consumer world goes over the next couple of years. But as of late, you’re starting to see a little bit more innovation from the product side on US internet companies tied to AI.

The temperature on the consumer seems to be coming down as oil prices have reset off the highs. And so given that backdrop and cleaner positioning, I’ll be watching the US internet sector from here.”

Callahan also outlines what investors should track when looking at semiconductor stocks, which are having their best year in decades.

“I think for semiconductors, listen, it’s been a great start to the year. I think any time a group’s up 80% like it is in five months, there’s of course– you have sort of these momentum dynamics. You have too far, too fast.

You have all that type of stuff that kind of matters over the short term. But I think over the medium term, what really matters is earnings revisions, right? And as long as you are getting earnings revisions for this group, which helps keep multiples in track, I think investors will be comfortable adding to this group on pullbacks or momentum unwinds or different pockets of positioning pressures that can show up, of course, when you have moves like this.

So I think at the end of the day, just keep tracking the earnings growth and I’ll do my best to keep this group informed.”

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Fundstrat’s Tom Lee thinks 2027 and 2028 could represent a one-in-a-lifetime time period for stock gains.

Lee says in a new interview with CNBC that stocks could witness challenges between now and December and encourages investors to remain “vigilant but generally bullish.”

He notes that three potential major initial public offerings and midterm election seasonality could impact stocks. Lee also says the market will likely attempt to “test” Kevin Warsh, the new chairman of the U.S. Federal Reserve.

But the longtime equities bull notes that two big factors are fueling his optimistic outlook on stocks going into 2027.

[3:10] “One is, I think the US economic growth rate is actually starting to step up. In other words, we could grow at 4%. And for the mature, largest economy in the world to start to accelerate growth, that’s pretty astounding. 

The second is the US is one of the biggest exporters of the most important tool in the next 10-15 years, which is AI products. And that means we are essentially a net exporter of a high-value product.

And there’s so much capital I think misallocated today because so much of it is held in private alternatives, but it’s going to move into the public markets. So I do think that, plus the demographic tailwind of millennials and Gen Z adding to the workforce, but then also beginning to inherit generational wealth, I think that is going to set up for after 2026, perhaps over the next two years, some of the biggest gains in the stock market in our lifetime.” 

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Fundstrat technical strategist Mark Newton says the US stock market is poised to broaden beyond semiconductors and memory stocks, warning that tech has gotten “over its skis” after an 18% rally in eight weeks and is likely to consolidate through the summer.

Speaking in a recent interview, Newton identified financials, industrials, consumer discretionary, and healthcare as the sectors best positioned to play catch-up as technology cools. He noted that the XHS healthcare services ETF recently broke to new all-time highs, calling it an encouraging sign that broadening is underway.

“I am optimistic that we can start to broaden out. I do suspect that technology is going to need to consolidate at some point in June and or July. Difficult to see an 18% rally in 8 weeks just continue at the same pace. It’s highly unlikely, and we’re going to need to consolidate.”

Newton said the overall market is not overextended, but many investors have been cautious amid a leadership transition at the Federal Reserve and lingering geopolitical tensions. He noted that investors who lack sufficient exposure to high-weighted semiconductor and memory names have struggled to keep pace with the S&P 500.

Newton said he is not bearish and expects the consolidation in tech between July and October to create buying opportunities heading into the midterm elections.

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