The reality is there are plenty of other cybersecurity stocks out there, and one of them doesn’t compete head on with these three market leaders at all. Instead, it focuses on vulnerability detection. Think of vulnerability detection as hiring a highly trained security inspector to walk around your house every single day with a clipboard, aggressively checking for weaknesses before a burglar finds them. In an AI era where hacking grows more powerful by the month, and AI use keeps proliferating, vulnerability detection only becomes more important. Companies and organizations need to find their own weak points before malicious actors using AI find them first. The takeaway for the market was blunt. AI powered hacking had arrived, and established cybersecurity business models suddenly looked o
Moonshot AI’s Kimi K3 is the next Chinese name to make a splash in Western media. It ranks alongside the frontier models from Claude and ChatGPT, and that alone is a feat. The naysayers say it was achieved through distillation and the like. Maybe. But if it were that easy, every lab would be doing it and every model would be frontier class.Being frontier is one thing. Cost is another. Claude is known to be expensive. ChatGPT has managed to bring its costs down. Kimi K3 still comes in more than 50% cheaper than ChatGPT. As good as the West, at a fraction of the price. For cost conscious users, that is reason enough to switch.It also remains a few years behind its U.S. and Korean peers technologically. Strict export controls mean it cannot easily acquire extreme ultraviolet lithography equip
SpaceX is a lottery ticket kind of stock. It defies almost every principle of sound fundamental investing. First, the valuation is always a stretch. Same story with Tesla, priced wildly above its competitors. I accept that a market leader deserves a premium, but the gap suggests something more than that. There is an Elon Musk premium embedded in the share price, and it is substantial. Second, much of what you are buying sits in the future. Colonising Mars or the Moon, data centres in space, humanoid robots. None of it is commercialised. Yet it is priced today as though it already is. That is not valuation. That is buying into a vision. So if you want to invest in Musk’s companies, you cannot use the conventional lens. Which is exactly why these stocks are so divisive. On one side, the nays
SpaceX’s fall has dragged the rest of the space sector down with it. A handful of these names are down more than 20%. No surprise there.With both stocks sliding, Musk has lost his trillionaire status. Over $300 billion gone in about a month. That is more than the entire net worth of second placed Larry Page. It wasn’t just SpaceX. Tesla fell hard after earnings and is now down 29% year to date. The culprit was negative free cash flow of $1.09 billion in Q2 2026, as Tesla spends big on AI, on top of robotaxi and Optimus. Investors have turned sensitive towards heavy capex spenders, and Tesla has just joined that group. The selling is consistent with how the market is treating everyoneSpaceX closed at $201.80 on 16 June 2026. It has since tumbled 43% to $115.07, which also puts it 15% below
Today, Warren Buffett is one of the richest people in the world - a $149 billion net worth. He built that fortune by compounding Berkshire Hathaway at a 19.9% rate a year for the last 60 years. That’s nearly double the return of the S&P 500 Index.Warren Buffett was doing what most people aren’t doing today: Value investing. And Buffett's secret to achieving such enormous gains was to pick companies that could greatly grow their earnings without spending much additional capital. For most of his career, he had a mentor, a coach and a close friend, Charlie Munger whom he could bounce ideas off of (yes, having a mentor and partners are important). Together, they looked for wonderful stock ideas to accumulate. Think about the big entrepreneurs on Forbes who sold software, ran furniture comp
DeepSeek shook the semiconductor industry and the stock market with the release of its R1 reasoning model. R1 matched top-tier models like OpenAI’s o1, yet it was reportedly trained for a fraction of the cost, around $6 million.The good news is that AI stocks recovered, and then some. They surged to record highs as Western models kept improving and held their lead, quashing fears that cheaper Chinese models could catch up. For a while, that justified the massive capital expenditure the West had committed to. Most AI models are judged on how well they answer a question, write a Python script, or pass an exam. Chip design is a different beast. It is a gruelling, multi-step engineering process. By completing all of it autonomously over 48 hours with no human intervention, Impressive as it is,
For the past month, the market has been whispering that the AI trade is done. Memory stocks took the brunt of it, on the belief that chip prices had peaked. Their share prices fell hard. Alphabet’s guidance says otherwise. Higher capex and a shortage of AI cloud compute mean the spending cycle is still running. Alphabet has stopped its share buyback because it needs the cash for AI, while it continues to issue stock to raise funds and to reward employees with options. Share count is up 1.2% in six months. That is dilution, and it is new. Previously the buybacks more than offset the issuance. On top of that, Alphabet took on $19.1B of mandatory convertible preferred shares and $56.2B of debt. And the fundraising is not ending soon. Roughly $106B of securities are expected to be issued over
Oil prices rose and the energy sector did well as a result. For years the AI trade has lifted technology, and just this past month we saw financials and healthcare take their turn. So there is no single sector that wins forever. But there is always at least one sector that is working. That is the basis for a rotation strategy. You move capital into the sectors that are doing well, or that you expect to do well. The method varies. It can be driven by macro, by fundamentals, or by momentum. Sector rotation is the established idea. Factor rotation is the newer cousin, and many investors are not even familiar with factors to begin with.Factors are characteristics of stocks with evidence of outperformance. Value, quality, momentum, size and low volatility are the foremost ones. Factors rotate t
will AI AI stocks will crash. ? It’s just a matter of time, though no one knows exactly when, or how much higher they’ll climb before gravity catches up. That makes them poor long-term holdings Let’s take a break from AI stocks, especially since we’re starting to see a sector rotation underway. We might be better off looking for investment ideas built for the long haul. The difference is that you buy AI stocks because they are moving fast. You buy long-term stocks because they last. Many investors conflate the two and get into trouble.example beats McDonald’s. It’s a place where parents bring their kids, and one day those kids bring their own. It’s intergenerational and never goes out of style. Compare that to a fashion label tagged to an older generation and shunned by the next. Thi