Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, non-interest and interest-bearing checking accounts, and investment accounts and products; credit and debit cards; residential mortgages, and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research, and certain market-based services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.

Bank of America Corporation

Key Points
Apple and Bank of America remain 21.4% and 9.6% of Berkshire Hathaway's portfolio, respectively.
Berkshire purchased Alphabet shares for the first time in the third quarter.
Alphabet achieved its first-ever $100 billion quarter in the third quarter.
After leading Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) for 60 years, Warren Buffett is stepping down as CEO at the end of this year at the age of 95. During that span, Berkshire Hathaway has become the poster child for conglomerate holding companies and has been a routine market-beating stock for its investors.
Leading up to Buffett's departure, Berkshire has been making moves, primarily on the selling side. Notably, it reduced its stake in Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC) quite significantly in the past couple of years.
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As of the end of the third quarter, Berkshire Hathaway has reduced its Apple shares to just over 238 million, representing 21.4% of its stock portfolio. It has reduced its Bank of America shares to just over 568 million, making up 9.6% of its stock portfolio.
Arguably more notable than Berkshire Hathaway's recent sales, though, is a recent investment made in Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) because the company has historically steered clear of high-growth tech companies. Now, as Buffett nears the end of his time as CEO, the company owns around 17.8 million shares of the tech giant.
Why the reduction in Apple and Bank of America shares?
Berkshire Hathaway hasn't released an official "this is why we made these moves" statement, but there are two main reasons they make sense. In Apple's case, its valuation relative to projected earnings growth is starting to look a little disconnected.
Apple is trading at 33.6 times its projected earnings over the next 12 months, which is higher than the other "Magnificent Seven" stocks except Tesla and Nvidia. That's a high premium for a company whose earnings have been relatively modest in recent quarters.
In Bank of America's case, this was likely a time to take profits from a stock that Berkshire has made tens of billions of dollars from. Buffett's company began its significant stake in Bank of America in 2011, and since then, the stock is up markedly.
Selling those shares now is a chance to lock in huge profits at a favorable corporate tax rate, which is likely to be higher if (or rather when) it's adjusted. With the profits from both sales, Berkshire Hathaway has increased its large stake in U.S. Treasury bills, which now stands at over $320 billion.
Berkshire Hathaway's entrance into the AI world
Buffett has publicly said that he regrets not investing in Alphabet years ago after noticing that insurance company Geico (a Berkshire Hathaway subsidiary) was paying Alphabet $10 per click on its Google ads. But you know what they say: Better late than never.
Alphabet is one of the few tech companies in Berkshire Hathaway's portfolio, but there's a case that it could be the most promising, especially as it solidifies its position as a key player in artificial intelligence (AI).
It has pioneered key AI research, is creating chips that should challenge Nvidia's current stronghold, owns a network of data centers, and has consumer-facing apps like its generative AI tool Gemini, which is receiving regular praise as a top-of-the-line option.
I don't think Berkshire Hathaway made this investment solely because of AI, but I imagine it helped seal the deal with the direction the technology is going.
When in doubt, follow the cash
Buffett and his managers have always been fans of cash-flow-heavy businesses, which isn't always the case with high-growth tech stocks. However, when it comes to Alphabet, it's most definitely the case. In the third quarter, it achieved its first-ever $100 billion quarter ($102.3 billion, to be precise) and generated nearly $24.5 billion in free cash flow.
Revenue is important, but free cash flow is more noteworthy in some cases because it's money Alphabet can use for things like expanding its business, making acquisitions, buying back shares, and paying dividends. It also helps that the company ended the third quarter with nearly $98.5 billion of cash, cash equivalents, and marketable securities, giving it a lot of leeway to invest aggressively in its business.
Alphabet has a strong balance sheet, a competitive moat in Google Search, and recently began paying a dividend. Those are three boxes the company checks that could further explain why Berkshire Hathaway chose to make the move now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warren Buffett Is Dumping Apple and Bank of America Shares and Buying This Red-Hot AI Stock to End 2025

For Immediate Release
Chicago, IL – December 10, 2025 – Today, Zacks Investment Ideas feature highlights Carvana CVNA, Lennar LEN, Bank of America BAC, Newmont Mining NEM and the Russell 2000 Index ETF IWM.
December FOMC Preview: Rate Cut Priced In, but Tone Is Everything
If there’s one economic event investors should follow, it’s the action of central banks. Legendary billionaire investor Stanley Druckenmiller, who has never suffered a down year in more than 30 years on Wall Street, said it best when he said:
“Earnings don’t move the overall market; it’s the Federal Reserve Board…focus on the central banks, and focus on the movement of liquidity… most people in the market are looking for earnings and conventional measures. It’s liquidity that moves markets.”
The Federal Open Market Committee (FOMC) will announce the latest interest rate decision on Wednesday, December 12th at 2:00 pm EST. A half hour later, Federal Reserve Chair Jerome Powell will provide comments and take questions from the media.
Recent Fed Funds Effective Rate History
Between 2022 and 2023, Jerome Powell and the U.S. Federal Reserve Board raised interest rates aggressively to stave off high inflation, the highest that occurred in over 40 years. By late 2023, the Fed finally brought down inflation and paused any rate action. Finally, in September, the Fed cut interest rates for the first time in nearly three years, kicking off the current easing cycle.
December FOMC: What to Expect
The options market implies a post-FOMC move of +/- 1% in the S&P 500 Index. According to the betting market Polymarket, there is a 95% chance that the Fed will cut interest rates by 25 basis points.
Meanwhile, the CME FedWatch Tool, which uses the 30-day Fed Funds futures prices to predict the next Fed move, predicts an 89.20% chance of a quarter-point interest rate cut.
Powell Commentary: What to Look For
With a 25-bps interest rate cut all but priced in, Wall Street investors will shift their focus to Fed Chair Powell’s press conference. Currently, there are a handful of crosscurrents that Powell will likely discuss, including a softening jobs market, how tariffs are impacting inflation, and strong GDP.
The key for investors will be to decipher whether Fed Chair Powell delivers a “dovish” or “hawkish” interest rate cut. In other words, will investors expect more interest rate cuts in early 2026? Finally, another important variable for investors to track is how the recent government shutdown will impact monetary policy moving forward.
Following FOMC, investors should monitor how rate-sensitive stocks such as Carvana, Lennar, Bank of America, Newmont Mining and the Russell 2000 Index ETF perform.
Bottom Line
On Wednesday, the Federal Reserve will take center stage. With a rate cut widely expected, the real story will be expectations for 2026 and how the Fed balances softening employment data with ongoing economic strength.
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Zacks Investment Ideas feature highlights: Carvana, Lennar, Bank of America, Newmont Mining and the Russell 2000 Index ETF

Key Points
Berkshire Hathaway's consolidated cash flow statements show the Oracle of Omaha has overseen net stock selling activity for three straight years.
A stock market valuation tool that Warren Buffett once proclaimed is "probably the best single measure of where valuations stand at any given moment" is sounding a warning to Wall Street.
Although Buffett's actions and touted investment philosophies don't always align, he'd never bet against the American economy or stocks over the long run.
In roughly three weeks, one of Wall Street's most revered investors will hang up his work coat and ride off into the proverbial sunset. Billionaire CEO Warren Buffett, who's spent the last 60 years at the helm of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has overseen a greater than 6,107,000% cumulative return in his company's Class A shares (BRK.A), as of the closing bell on Dec. 5.
What investors might miss even more than the Oracle of Omaha's outsize returns is his candidness when discussing his investment philosophy, the U.S. economy, and, on rare occasions, some of the individual companies Berkshire has positions in. Buffett's name has become practically synonymous with long-term investing.
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However, the actions of Berkshire Hathaway's billionaire boss and the investment philosophies he's stood behind for decades aren't always in alignment. Despite having one foot out the door, it's almost impossible to ignore the 184 billion reasons Buffett has given investors to be fearful in the new year.
The time to be fearful when others are greedy has arrived
Lengthy books have been written detailing the quotes and nuggets of wisdom for which Warren Buffett is famous. But there may not be a quote that sums up his investing style better than, "be fearful when others are greedy, and greedy when others are fearful."
To be abundantly clear, this quote by Buffett doesn't signal he'd be pessimistic on the U.S. economy or stocks in instances when "others are greedy." The Oracle of Omaha has repeatedly opined that he wouldn't bet against America (or its stock market). However, this doesn't mean he has to be a buyer of stocks when valuations no longer make sense.
According to Berkshire Hathaway's consolidated cash flow statements, Warren Buffett has sold more stocks than he's purchased for 12 consecutive quarters (Oct. 1, 2022 – Sept. 30, 2025):
Q4 2022: $14.64 billion in net-equity sales
Q1 2023: $10.41 billion
Q2 2023: $7.981 billion
Q3 2023: $5.253 billion
Q4 2023: $0.525 billion
Q1 2024: $17.281 billion
Q2 2024: $75.536 billion
Q3 2024: $34.592 billion
Q4 2024: $6.713 billion
Q1 2025: $1.494 billion
Q2 2025: $3.006 billion
Q3 2025: $6.099 billion
In aggregate, $183.53 billion more in stocks have been sold than purchased under Buffett's watch over the last three years. It's as direct a message as you'll get from Berkshire's billionaire chief that the time to be fearful when others are greedy has arrived.
Finding value is becoming increasingly difficult amid a historically pricey stock market
To be transparent, not all of this $184 billion in net selling activity is necessarily nefarious.
During Berkshire Hathaway's 2024 annual shareholder meeting, Buffett spoke of the possibility of corporate income tax rates rising in the future. He intimated that selling shares of Apple (NASDAQ: AAPL) when corporate income tax rates are advantageously low would, in hindsight, be beneficial to Berkshire and its shareholders. Therefore, some of the selling activity overseen by Berkshire's CEO might, genuinely, be nothing more than strategic profit-taking.
But there's also the strong likelihood that there's more behind this selling activity.
Warren Buffett Indicator hits a new all-time high of 223%, the most expensive stock market valuation in history 🚨🚨 pic.twitter.com/p14CI3VXGu
-- Barchart (@Barchart) October 26, 2025
In an interview with Fortune magazine in 2001, Buffett referred to the market-cap-to-GDP ratio as "probably the best single measure of where valuations stand at any given moment." This valuation tool, which adds up the market value of all publicly traded companies and divides it by U.S. gross domestic product (GDP), has come to be known as the Buffett indicator.
When back-tested to 1970, the Buffett indicator has averaged a reading of approximately 85%. This is to say that the cumulative value of all public companies equates to 85% of U.S. GDP in a given year. As of the closing bell on Dec. 5, the Buffett indicator clocked in at nearly 225%!
In addition to the stock market being historically pricey, certain stocks are no longer the bargains they once were.
When Buffett initiated a position in Apple during the first quarter of 2016, shares were trading at a forward earnings multiple of 10 to 15. Currently, Apple's trailing-12-month price-to-earnings (P/E) ratio is north of 37! This is an especially aggressive valuation, considering that Apple's physical device growth engine, including the iPhone, completely stalled for three years.
Finding value on Wall Street has become challenging, which is why we've witnessed Buffett's actions (i.e., his persistent selling activity) speak louder than his words.
The Oracle of Omaha's track record demonstrates the value of patience when investing
Although Buffett's actions give investors reason to be fearful of a potentially sizable stock market correction in the new year, there's also cause for hope.
As noted earlier, Berkshire Hathaway's outgoing boss has overseen a cumulative gain in his company's Class A shares of more than 6,107,000% and nearly doubled the average annual total return, including dividends, of the S&P 500 over 60 years. While investors might not be thrilled with his decision to sit on his hands and wait for price dislocations, this strategy has worked wonders for decades. In other words, corrections, bear markets, and even crashes can be generational opportunities for Berkshire and its shareholders to make money.
One of the best examples of the Oracle of Omaha being patient and letting valuations come into his wheelhouse occurred shortly after the trough of the financial crisis. In August 2011, Buffett helped shore up Bank of America's (NYSE: BAC) balance sheet by supplying the company with $5 billion in capital. In return, Berkshire netted $5 billion of preferred stock in BofA that was yielding 6% annually.
However, the real treasure of this deal was the warrants to purchase 700 million shares of Bank of America stock at $7.14 per share. Buffett exercised these warrants in full during the summer of 2017 for an instant profit windfall of $12 billion. Shares of BofA have gone on to more than double since the summer of 2017.
While price dislocations can be few and far between on Wall Street, the nearly $382 billion in combined cash, cash equivalents, and U.S. Treasuries Berkshire Hathaway has on its balance sheet (as of Sept. 30) will allow Warren Buffett's successor, Greg Abel, and his team, to pounce when the opportunity is right, and valuations make sense.
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Bank of America is an advertising partner of Motley Fool Money. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Billionaire Warren Buffett Offers 184 Billion Reasons for Investors to Be Fearful in the New Year

If there’s one economic event investors should follow, it’s the action of central banks. Legendary billionaire investor Stanley Druckenmiller, who has never suffered a down year in more than 30 years on Wall Street, said it best when he said:
“Earnings don’t move the overall market; it’s the Federal Reserve Board…focus on the central banks, and focus on the movement of liquidity… most people in the market are looking for earnings and conventional measures. It’s liquidity that moves markets.”
The Federal Open Market Committee (FOMC) will announce the latest interest rate decision on Wednesday, December 12th at 2:00 pm EST. A half hour later, Federal Reserve Chair Jerome Powell will provide comments and take questions from the media.
Recent Fed Funds Effective Rate History
Between 2022 and 2023, Jerome Powell and the U.S. Federal Reserve Board raised interest rates aggressively to stave off high inflation, the highest that occurred in over 40 years. By late 2023, the Fed finally brought down inflation and paused any rate action. Finally, in September, the Fed cut interest rates for the first time in nearly three years, kicking off the current easing cycle.
Image Source: Zacks Investment Research
December FOMC: What to Expect
The options market implies a post-FOMC move of +/- 1% in the S&P 500 Index. According to the betting market Polymarket, there is a 95% chance that the Fed will cut interest rates by 25 basis points.
Image Source: Zacks Investment Research
Meanwhile, the CME FedWatch Tool, which uses the 30-day Fed Funds futures prices to predict the next Fed move, predicts an 89.20% chance of a quarter-point interest rate cut.
Image Source: Zacks Investment Research
Powell Commentary: What to Look for
With a 25-bps interest rate cut all but priced in, Wall Street investors will shift their focus to Fed Chair Powell’s press conference. Currently, there are a handful of crosscurrents that Powell will likely discuss, including a softening jobs market, how tariffs are impacting inflation, and strong GDP. The key for investors will be to decipher whether Fed Chair Powell delivers a “dovish” or “hawkish” interest rate cut. In other words, will investors expect more interest rate cuts in early 2026? Finally, another important variable for investors to track is how the recent government shutdown will impact monetary policy moving forward.
Following FOMC, investors should monitor how rate-sensitive stocks such as Carvana (CVNA), Lennar (LEN), Bank of America (BAC), Newmont Mining (NEM), and the Russell 2000 Index ETF (IWM) perform.
Bottom Line
On Wednesday, the Federal Reserve will take center stage. With a rate cut widely expected, the real story will be expectations for 2026 and how the Fed balances softening employment data with ongoing economic strength.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

December FOMC Preview: Rate Cut Priced in but Tone is Everything

Key Points
Last week, Netflix agreed to buy the studio and streaming businesses from Warner Bros. Discovery in a deal valued at $72 billion.
Paramount Skydance announced a hostile takeover bid for Warner Bros. Discovery for $77.9 billion, but it isn't an apples-to-apples comparison.
There's still a long road ahead before any deal is consummated.
Netflix (NASDAQ: NFLX) surprised Wall Street and Main Street alike last week when the streaming giant announced its intention to acquire the studio and streaming businesses from Warner Bros. Discovery (NASDAQ: WBD) in a cash-and-stock deal valued at $72 billion. The long-rumored agreement capped off weeks of negotiations and would create a global multimedia and entertainment powerhouse.
All that remained was for the deal to receive regulatory approval, with many industry watchers predicting a heightened level of scrutiny.
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However, the proposed deal hit a snag when Paramount Skydance (NASDAQ: PSKY) announced a hostile takeover bid for Warner Bros. Discovery, ramping up the drama and casting doubt on the existing agreement.
Going directly to shareholders
In a press release that dropped Monday morning, Paramount Skydance sidestepped the negotiation process, appealing directly to shareholders with an all-cash offer of $77.9 billion or $30 per share. Paramount argued that its "strategically and financially compelling" deal was a "superior alternative" to the existing Netflix offer, citing the potential for regulatory scrutiny and a higher per-share price.
It's important to note that this is not an apples-to-apples comparison. Paramount suggests its deal "provides shareholders $18 billion more in cash" than the Netflix's acquisition bid. While technically true, the devil is in the details, and the claim needs context.
Paramount is offering $30 per share for the entire company. Netflix's bid of $27.75 -- which included $23.25 in cash and $4.50 in Netflix stock -- was just for the acquisition of the company's film and television studios, as well as HBO and HBO Max.
The deal with Netflix did not include Warner Bros. Discovery's sizable suite of cable channels, which includes CNN, TNT, TBS, truTV, Travel Channel, Animal Planet, Food Network, Cartoon Network, and more. Warner Bros. had previously announced plans to spin off its cable assets, which Netflix argues will be worth several dollars per share, making its bid superior. Warner Bros.' board of directors seemingly came to the same conclusion when they accepted Netflix's bid over Paramount's.
The worst of both worlds
This could be bad news for Netflix. A hostile takeover bid after negotiations are complete could result in several unfavorable outcomes for the streaming giant. If Warner Bros. Discovery shareholders accept the deal from Parmount, Netflix could ultimately lose its prize. There's also the possibility that this could turn into a messy and protracted bidding war, which could drive up the final cost to acquire Warner Bros. Indeed, the stock surged Monday morning as the emergence of a motivated suitor could increase the stakes for any potential deal.
Paramount CEO David Ellison apparently had this in mind and has already lined up a laundry list of backers to secure the deal. The roster includes not only the considerable resources of the Ellison family and private equity firm RedBird Capital, but also debt commitments from Citi, Bank of America, and Apollo Global Management.
On the other hand, with its industry-leading recommendation engine and a treasure trove of data two decades in the making, I would argue that Netflix knows what Warner Bros. Discovery's content is worth, so it's unlikely to overpay for it.
Lies, damned lies, and statistics
Both Netflix and Paramount are painting themselves as the company most likely to pass regulatory muster.
In an interview with CNBC, Ellison made his case directly to the investing public, saying, "When you fundamentally look at the marketplace, allowing the No. 1 streaming service (Netflix) to combine with the No. 3 streaming service (HBO) is anticompetitive."
Netflix argues a similar point, but is using different statistics. According to TV rating provider Nielsen, Paramount controls 8.2% of total TV viewing time, compared to 8% for Netflix. For context, Netflix is sixth on the list, behind Alphabet's No. 1 YouTube and No. 2 Disney, which suggests robust competition exists.
Ultimately, it will be up to regulators to decide which measurement more accurately reflects reality.
What's next?
Netflix and Warner Bros. have a lot at stake if the agreement falls apart. If Netflix walks away or regulators quash the deal, the company would owe a $5.8 billion breakup fee to Warner Bros. Discovery. On the other hand, if Warner Bros. accepts a competing proposal or otherwise violates the agreement, it will be on the hook for a $2.8 billion payment to Netflix.
Recent developments suggest this drama is far from over. Any marriage will still require regulatory approval, and how that will play out -- and in whose favor -- is still anyone's guess.
For now, investors should sit tight and watch while the story unfolds.
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Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Danny Vena, CPA has positions in Alphabet, Netflix, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is the Netflix Deal to Buy Warner Bros. Already in Trouble?

For Immediate Release
Chicago, IL – December 8, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Bank of America Corp. BAC, Salesforce, Inc. CRM, PepsiCo, Inc. PEP, United Homes Group, Inc. UHG and AmeriServ Financial, Inc. ASRV.
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Top Research Reports for Bank of America, Salesforce and Pepsi
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bank of America Corp., Salesforce, Inc. and PepsiCo, Inc., as well as two micro-cap stocks United Homes Group, Inc. and AmeriServ Financial, Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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You can read today's AWS here >>> Netflix to Buy Warner Brothers for $72 Billion, PCE Data Delayed
Today's Featured Research Reports
Shares of Bank of America have gained +18.9% over the past year against the Zacks Financial - Investment Bank industry’s gain of +30.6%. Despite rate cuts, the company's net interest income (NII) will likely be aided by decent loan growth. We expect NII to see a CAGR of 5.7% by 2027. Plans to open financial centers in new and existing markets, and improve digital capabilities will support the top line. The Zacks analyst project total revenues to grow 6.9% in 2025.
Yet, the volatile nature of the capital markets makes growth in trading revenues uncertain. Despite a robust trading performance since 2022, growth may normalize going forward. While the Zacks analyst expect sales and trading revenues to increase in 2025, the metric will likely decline in 2026.
Elevated expenses due to steady investments in franchise will likely hurt bottom-line growth. The Zacks analyst expect expenses to rise 4.3% in 2025. Weak asset quality is another headwind.
(You can read the full research report on Bank of America here >>>)
Salesforce’s have underperformed the Zacks Computer - Software industry over the past year (-28.7% vs. +2.9%). The company is facing stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties may hurt its growth prospects.
Nevertheless, Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line. Continued deal wins in the international market are another growth driver.
The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing compared to Microsoft Teams. Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space.
(You can read the full research report on Salesforce here >>>)
Shares of Pepsi have underperformed the Zacks Beverages - Soft drinks industry over the past year (-5.1% vs. +7.7%). The company’s shares prices reflect concerns about PFNA softness, weak margins, and persistent cost and tariff pressures. Ongoing currency headwinds further weigh on results.
However, PepsiCo’s third-quarter 2025 results highlight a steady improvement in business fundamentals across its global portfolio. The international segment remained a key strength, supported by broad-based growth in beverages and convenient foods. In North America, the beverages business performed well, aided by strong brand execution and rising demand for functional offerings.
Quaker Foods also showed signs of recovery as innovation and improved availability supported better marketplace performance. With ongoing productivity gains and digital transformation efforts, PepsiCo is positioned for sustained long-term growth.
(You can read the full research report on Pepsi here >>>)
United Homes’ shares have underperformed the Zacks Real Estate - Development industry over the past year (-75.6% vs. -2.8%). This microcap company with a market capitalization of $69.99 million has weak operating leverage amid declining revenue, soft orders and a thin backlog. Backlog rose to 264 pre-sold homes, boosting visibility, but higher cancellations threaten near-term durability. Margin recovery is fragile as incentives weigh on pricing power.
Earnings quality is clouded by derivative volatility, and governance turnover elevates strategic uncertainty. Liquidity is adequate but pressured by rising inventory and leverage. Valuation signals market skepticism, offering contrarian upside if execution stabilizes, but pricing-in high risk today.
Nevertheless, UHG’s refreshed product mix and re-bid cost savings support structurally higher margins, offsetting discounting and demand softness. Southeast market exposure provides favorable long-term demographic tailwinds, while a growing community base and a land-light model enhance capital efficiency.
(You can read the full research report on United Homes here >>>)
Shares of AmeriServ Financial have outperformed the Zacks Banks - Northeast industry over the past year (+14.1% vs. +1.5%). This microcap company with a market capitalization of $50.89 million is demonstrating strong earnings momentum, with YTD net income up 54% and EPS rising to 25 cents, driven by an 18% increase in net interest income and disciplined expense control.
Liquidity surged to $53.8 million, eliminating short-term borrowings and highlighting a shift to stable, deposit-funded growth. Capital levels improved with equity rising to $114.6 million, aided by retained earnings and narrowing unrealized losses. The bank operates a high-quality securities portfolio, 76% rated AA or better, with manageable duration, providing resilience in varied rate environments.
Despite these positives, rising credit losses, increased NPAs and CRE exposure raise asset quality concerns. A $12 million loan book contraction and declining non-interest income, notably in wealth management, point to growth headwinds. The stock trades at just 0.44X P/B vs. a 1.07X industry average.
(You can read the full research report on AmeriServ Financial here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Bank of America, Salesforce, PepsiCo, United Homes and AmeriServ Financial

Key Points
Stocks, in general, tend to perform well near the end of the year.
However, Nvidia's December track record is a mixed bag, at best.
Buying Nvidia stock hand over fist could be a smart move -- over the long term, but not necessarily the near term.
Nvidia (NASDAQ: NVDA) appears to be about to do it again. The chipmaker has delivered big gains in all but two years since 2014. Its shares are up more than 35% year-to-date, with only three and a half weeks remaining in 2025.
Should you buy Nvidia stock hand over fist before the end of the year? Here's what history suggests.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Happy holidays?
Stocks, in general, tend to perform well near the end of the year. December ranks as the third-best month for the S&P 500 (SNPINDEX: ^GSPC) since 1950. Only April and November have higher historical average returns.
There's also a phenomenon called the Santa Claus rally. These stock market surges occur during the last five trading days of December and the first two trading days in January. Santa Claus rallies have occurred in roughly four out of every five years.
Why does the holiday season bring cheer to investors so often? One potential explanation is that tax-loss harvesting typically wraps up by mid-December. The theory is that once this selling pressure eases, stocks are more likely to rise.
Another suggestion is that institutional investors often take vacations in late December. This allows retail investors to have a greater impact on stock moves. Additionally, some retail investors have more money to buy stocks thanks to year-end bonuses.
Nvidia's December track record
Has Nvidia typically participated in the late-year festivities? I examined the chipmaker's December performance since its IPO in 1999 to find out.
As the chart below shows, there has been no clear pattern in how Nvidia's stock performed during December in past years. The average historical gain for the month has been 3.2%, while the median gain is a little lower at 2.6%.
You might have noticed that most of the years when Nvidia delivered its biggest gains during December all occurred before 2010. Some of the stock's greatest losses also happened during this period.
However, if we limit the lookback period to the last 10 years, the likelihood of a year-end surge for Nvidia is even less encouraging. The GPU stock fell half the time, including two years with double-digit percentage losses in December. Nvidia's average return during the last 10 years was a loss of 1.7%. Its median loss during the period was 2.7%. As it turns out, December ranks as Nvidia's worst month over the last decade.
Is there a simple explanation for why Nvidia's December performance has been sub-par? Maybe. It's possible that investors took profits off the table. After all, Nvidia has typically been a big winner in recent years.
This could also explain a broader pattern. Bank of America (NYSE: BAC) found that the tech sector has historically delivered some of the lowest returns of any sector during the month of December, despite generating the greatest gains during most full-year periods.
Think bigger
History suggests that Nvidia won't be a big winner before the end of 2025. Does that mean you shouldn't buy the stock hand over fist? Not necessarily.
It's not a good idea to focus solely on a single month when buying any stock. Think bigger than that. Focus on the stock's long-term prospects.
In Nvidia's case, those long-term prospects look quite promising. The skyrocketing demand for artificial intelligence (AI) applications continues to drive growth in the data center market. This serves as a huge tailwind for Nvidia, with the company's GPUs remaining the top alternative for developers building, training, and deploying AI models.
We're still in the early innings of AI adoption. Agentic AI is only beginning to hit its stride. Multiple companies are working to develop artificial general intelligence (AGI) and AI superintelligence (ASI). Mass-market AI-powered humanoid robots could be on the way.
Nvidia should benefit from all of these trends. Buying the stock hand over fist could be a smart move, but there's no urgent reason to do it before the end of 2025.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia 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 $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 1, 2025
Bank of America is an advertising partner of Motley Fool Money. Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Nvidia Stock Hand Over Fist Before the End of 2025? Here's What History Suggests.

Key Points
Revenue is jumping for Credo Technology, sending the stock price higher.
Credo's active cables link GPUs and CPUs in data centers more efficiently than copper cables.
Credo Technology (NASDAQ: CRDO) continues to deliver for investors. The stock made several new all-time highs this year and just vaulted to another one after posting record-setting numbers for the second quarter of its 2026 fiscal year.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Credo stock is now up more than 180% so far this year, demonstrating that there are outstanding opportunities for investors as artificial intelligence (AI) continues to take center stage in the stock market.
About Credo Technology stock
Based in San Jose, California, Credo is a technology company that provides high-performance connectivity for data centers, 5G carriers, AI, and high-performance computing markets.
The stock was valued at less than $50 per share until late 2024 when the market began to recognize the massive opportunity for data center and AI growth. Grand View Research estimates that the overall AI market opportunity will rise from $279 billion to $3.5 trillion by 2033, and the data center market will expand from $347.6 billion to $652 billion by 2030. Both opportunities are massive tailwinds for Credo, which is why investors started running the stock price up.
Credo has several products for AI workloads that perhaps fly under the radar when you're thinking about the most dynamic products for AI development. For instance, Credo's Active Electrical Cables (AECs) are considered superior to copper cables in connecting clusters of graphics processing units (GPUs) and central processing units (CPUs) in data centers. AECs use signal processors within the wiring to help move the data faster and more efficiently.
Its OmniConnect next-generation architecture is designed to overcome memory bottlenecks and improve AI inference scalability. And the ZeroFlap optical transceivers provide network stability and improved efficiency for AI workloads.
Earnings for fiscal 2026's second quarter (ended Nov. 1, 2025) brought revenue of $268 million, up 272% from a year ago and up 20.2% from Q1. Gross margins were a whopping 67.5%, with operating expenses of $102.4 million and net income of $86.2 million. On the bottom line, Credo reported earnings per share of $0.44 and ended the quarter with a cash balance of $813.6 million.
"These are the strongest quarterly results in Credo's history, and they reflect the continued build-out of the world's largest AI training and inference clusters," CEO Bill Brennan said.
Management issued guidance for Q3 revenue in the range of $335 million and $345 million, which at the midpoint would be a jump of 151% from a year ago. Gross margins are projected to be in a range of 63.8% to 65.8%.
The valuation is eye-watering
Any stock that sees gains like Credo enjoyed in the last year is going to have a crazy valuation. For Credo, that means a price-to-earnings (P/E) ratio of 276 and a forward P/E of 90. That's not nearly as high as a company like Palantir Technologies, which is infamous for its valuation. But it's higher than a competitor like Vertiv Holdings, which also makes data center infrastructure.
But is that OK? That's up to the risk tolerance of individual investors. Analysts at MarketWatch appear to be unfazed by the valuation, as they overwhelmingly have buy ratings with a median price target of $230 -- a 21% jump from current levels.
Analysts at Mizuho raised its price target to $225 following Credo's strong earnings report, and Bank of America analysts boosted their target from $165 to $240. https://www.investing.com/news/analyst-ratings/credo-technology-stock-price-target-raised-to-240-from-165-at-bofa-93CH-4385399
Why Credo is a pick-and-shovel AI stock
AI stocks, such as Nvidia, Broadcom, Advanced Micro Devices, and Taiwan Semiconductor, will always grab the headlines. But it's also important to remember that their high-end chips and foundry services don't amount to much if the clusters of chips can't talk to each other.
That's where Credo comes in, and that's where it's seizing an opportunity to become an important company as data centers continue to grow around the globe.
Definitely keep this on your radar and look for opportunities to buy on the dip during any downturns.
Should you invest $1,000 in Credo Technology Group right now?
Before you buy stock in Credo Technology Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Credo Technology Group 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 $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 1, 2025
Bank of America is an advertising partner of Motley Fool Money. Patrick Sanders has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Credo Technology Just Proved It's an AI "Picks-and-Shovels" Stock Worth Watching

Friday, December 5, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Bank of America Corp. (BAC), Salesforce, Inc. (CRM) and PepsiCo, Inc. (PEP), as well as two micro-cap stocks United Homes Group, Inc. (UHG) and AmeriServ Financial, Inc. (ASRV). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Netflix to Buy Warner Brothers for $72 Billion, PCE Data Delayed
Today's Featured Research Reports
Shares of Bank of America have gained +18.9% over the past year against the Zacks Financial - Investment Bank industry’s gain of +30.6%. Despite rate cuts, the company's net interest income (NII) will likely be aided by decent loan growth. We expect NII to see a CAGR of 5.7% by 2027. Plans to open financial centers in new and existing markets, and improve digital capabilities will support the top line. The Zacks analyst project total revenues to grow 6.9% in 2025.
Yet, the volatile nature of the capital markets makes growth in trading revenues uncertain. Despite a robust trading performance since 2022, growth may normalize going forward. While the Zacks analyst expect sales and trading revenues to increase in 2025, the metric will likely decline in 2026.
Elevated expenses due to steady investments in franchise will likely hurt bottom-line growth. The Zacks analyst expect expenses to rise 4.3% in 2025. Weak asset quality is another headwind.
(You can read the full research report on Bank of America here >>>)
Salesforce’s have underperformed the Zacks Computer - Software industry over the past year (-28.7% vs. +2.9%). The company is facing stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties may hurt its growth prospects.
Nevertheless, Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line. Continued deal wins in the international market are another growth driver.
The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing compared to Microsoft Teams. Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space.
(You can read the full research report on Salesforce here >>>)
Shares of Pepsi have underperformed the Zacks Beverages - Soft drinks industry over the past year (-5.1% vs. +7.7%). The company’s shares prices reflect concerns about PFNA softness, weak margins, and persistent cost and tariff pressures. Ongoing currency headwinds further weigh on results.
However, PepsiCo’s third-quarter 2025 results highlight a steady improvement in business fundamentals across its global portfolio. The international segment remained a key strength, supported by broad-based growth in beverages and convenient foods. In North America, the beverages business performed well, aided by strong brand execution and rising demand for functional offerings.
Quaker Foods also showed signs of recovery as innovation and improved availability supported better marketplace performance. With ongoing productivity gains and digital transformation efforts, PepsiCo is positioned for sustained long-term growth.
(You can read the full research report on Pepsi here >>>)
United Homes’ shares have underperformed the Zacks Real Estate - Development industry over the past year (-75.6% vs. -2.8%). This microcap company with a market capitalization of $69.99 million has weak operating leverage amid declining revenue, soft orders and a thin backlog. Backlog rose to 264 pre-sold homes, boosting visibility, but higher cancellations threaten near-term durability. Margin recovery is fragile as incentives weigh on pricing power.
Earnings quality is clouded by derivative volatility, and governance turnover elevates strategic uncertainty. Liquidity is adequate but pressured by rising inventory and leverage. Valuation signals market skepticism, offering contrarian upside if execution stabilizes, but pricing-in high risk today.
Nevertheless, UHG’s refreshed product mix and re-bid cost savings support structurally higher margins, offsetting discounting and demand softness. Southeast market exposure provides favorable long-term demographic tailwinds, while a growing community base and a land-light model enhance capital efficiency.
(You can read the full research report on United Homes here >>>)
Shares of AmeriServ Financial have outperformed the Zacks Banks - Northeast industry over the past year (+14.1% vs. +1.5%). This microcap company with a market capitalization of $50.89 million is demonstrating strong earnings momentum, with YTD net income up 54% and EPS rising to 25 cents, driven by an 18% increase in net interest income and disciplined expense control.
Liquidity surged to $53.8 million, eliminating short-term borrowings and highlighting a shift to stable, deposit-funded growth. Capital levels improved with equity rising to $114.6 million, aided by retained earnings and narrowing unrealized losses. The bank operates a high-quality securities portfolio, 76% rated AA or better, with manageable duration, providing resilience in varied rate environments.
Despite these positives, rising credit losses, increased NPAs and CRE exposure raise asset quality concerns. A $12 million loan book contraction and declining non-interest income, notably in wealth management, point to growth headwinds. The stock trades at just 0.44X P/B vs. a 1.07X industry average.
(You can read the full research report on AmeriServ Financial here >>>)
Other noteworthy reports we are featuring today include Agnico Eagle Mines Ltd. (AEM), Lennar Corp. (LEN) and Fox Corp. (FOXA).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Sales Driving Business Plans Aid Lennar (LEN), Housing Weakness Hurts
Per the Zacks analyst, Lennar is gaining from its focus on the tech-enabled manufacturing platform and asset-light land strategy. However, ongoing housing weakness and macro risks are concerning.
Robust Adoption of Fox News and Sports Aids Fox (FOXA) Prospects
Per the Zacks analyst, Fox is benefiting from robust adoption of Fox News and Fox Sports. Strong demand for live programming is aiding ad revenue growth.
Smart Investments and Infrastructure Upgrades Aid NiSource (NI)
Per the Zacks analyst, NiSource will benefit from its long-term capital expenditure plan. The company's focus on clean energy will further boost its performance.
Strong Briumvi Sales Aid TG Therapeutics (TGTX) Amid Competition
Per the Zacks analyst, TG Therapeutics' sole drug, Briumvi, approved for relapsing forms of multiple sclerosis, is driving the top line. However, sole dependence on Briumvi for revenues is a woe.
OCS Strength Aids TransMedics (TMDX) as Policy and Legal Risks Rise
Per the Zacks analyst, TransMedics benefits from its OCS technology and expanding NOP logistics network. However, policy shifts and ongoing legal challenges may pressure volumes and margins.
High-Growth Basin Presence Aids USA Compression (USAC)
The Zacks analyst believes USA Compression Partners' strong presence in fast-growing basins positions it well to capture additional demand as production activity continues to rise.
Strong Subscriber Momentum Boosts Iridium (IRDM) Amid Tough Rivalry
Per the Zacks analyst, Iridium is gaining from higher subscribers, led by the growing uptake of its services in various sectors. Management remains wary of increasing rivalry in the satellite space.
New Upgrades
Growth Projects, Kirkland Buyout Aid Agnico Eagle (AEM)
Per the Zacks analyst, the company will benefit from investment in growth projects to expand output. The Kirkland Gold acquisition has also provided an extensive pipeline of exploration projects.
Growing Occupancy Level and Pricing Aid Universal Health (UHS)
Per the Zacks analyst, continued growth in occupancy will boost Universal Health's top line. Moreover, stronger managed care contracts will improve pricing and margins.
Strength in Energy Systems Segment to Benefit EnerSys (ENS)
Per the Zacks analyst, EnerSys' Energy Systems segment is driven by expansion of U.S. communications networks, fueled by AI-driven data demand. Its shareholder friendly measures are encouraging.
New Downgrades
Competition and Nil Dividend Payout Ails Clean Harbors (CLH)
Per the Zacks analyst, intense competition lowers Clean Harbors' pricing power, increases operational expenses, and reduces market share. A Nil dividend payout discourages dividend-seeking investors.
Pricing Pressure and Integration Risk Weigh on FactSet (FDS)
Per the Zacks analyst, pricing pressure acts as a major headwind for FactSet, lowering its top line and losing market share. Integration risk rises as it pursues a buyout as its growth strategy.
Helen of Troy (HELE) Remains Troubled by Reduced Demand
Per the Zacks analyst, Helen of Troy is facing challenges due to weakening consumer demand, tighter retailer inventory and ongoing inflationary pressures, which continue to pressure its sales.
Quantum Computing Stocks Set To Soar
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Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Research Reports for Bank of America, Salesforce & Pepsi

The year 2025 can easily be credited the rise of cryptocurrencies. Bitcoin surpassed the mark of $1,26,000 to hit an all-time high in October. However, the rally couldn’t last long and the Bitcoin slumped to the level of $91,881 at the time of writing. So far this year, Bitcoin is now down by 1.7%.
The rally in initial phase of 2025 has been fueled by supportive regulations from the Trump administration, solid spot Bitcoin ETF inflows and rising demand from institutional investors. In fact, many started to view Bitcoin as a safe asset amid heightened trade tensions earlier in the year 2025.
Inside the Performance of Other Cryptocurrencies
Ethereum has lost 5.3% in the year-to-date frame. Ethereum price has topped a $4,830-level in August and tried to hit highs on several occasions in subsequent months, though in vain. Solana price has lost 26.9% in the year-to-date frame. Solana price has hit a yearly high of $261.78 in January and $247.62 in September. Meanwhile, Ripple is flat for the year and has hit an all-time high of $3.56 in July.
What’s Behind the Recent Slump?
Sentiment weakened lately after the People’s Bank of China issued a statement Saturday, cautioning against illegal digital currency activities, as quoted on CNBC. Muted trading volumes on both centralized and decentralized exchanges hint at subdued risk appetite across the crypto market, as mentioned on CNBC.
A rise of risk-off sentiments amid tepid economic conditions, and profit-booking probably led to the year-end of slump in the crypto market. Trade tensions have eased a lot now, and investors have likely begun shifting their focus toward global equities and away from cryptocurrencies (unlike what it was in early 2025), as global economic, corporate, and trade conditions are now far more certain than they were at the start of 2025.
What Lies Ahead of 2026?
Against this backdrop, let’s find out what could be the setup for cryptocurrencies in 2026.
Are Latest Price Swings Normal?
Bitcoin’s more than 30% slide from its record high is a reminder of the dramatic price swings that define the cryptocurrency market. However, historical patterns suggest that such moves are not only typical but often follow major rallies, according to CoinDesk Data shared with CNBC.
Note that the Bitcoin market cycle has seen a 32.7% drop (Mar–Aug 2024) and a 31.7% decline (Jan–Apr 2025). CoinDesk analyst Jacob Joseph noted that such corrections align with long-term trends, as quoted on CNBC. Hence, the latest correction may not be seen as erratic.
The CNBC article went on to highlight that during the 2017-cycle, there were slumps of around 40% twice that year and then a 29% fall in November before bitcoin reached a new record high in December. In 2021, there were slides of 31.2% and 26%, followed by a 55% plunge during China’s mining ban, before surging to new highs in November that year.
How Low Bitcoin Go Now?
Some pessimistic analysts warn — if macroeconomic stress or institutional exits gain momentum — a crash below $50,000 can’t be ruled out by 2026, as quoted on Economic Times. In “crypto winter,” Bitcoin has tended to go 70% to 80% below its all-time high, as quoted on CNBC.
Any Silver Linings?
Rate Cuts Could Favor Risk-On Assets Like Bitcoin
The Fed enacted two rate cuts so far this year, with the first one enacted in September. The central bank is expected cut more in the coming days to restore a weakening labor market. Lower rates normally favor risk-on assets like Bitcoin by reducing the opportunity cost of holding non-yielding assets.
Bitcoin Miners Focusing on AI Infrastructure
Bitcoin miners are evolving fast. Originally focused on mining, they are now leveraging their power-dense data centers to tap into the booming AI infrastructure market. By mid-2025, dozens of former Bitcoin mining companies started redirecting their infrastructure into AI data centers, converting their GPU-heavy, energy-intensive setups into rentable compute farms for training, inference, and high-performance computing, as quoted on datacenters.com.
Some Investment Firms Suggest 1% to 4% Crypto Exposure
Bank of America BAC advises its wealth management clients to consider adding a small amount of cryptocurrency to their portfolios. The firm recommends a 1-4% allocation to digital assets for clients of Merrill, Bank of America Private Bank and Merrill Edge, as quoted on Yahoo Finance.
In an early October note, Morgan Stanley suggested that 2-4% of a portfolio should be in crypto, describing it as a "speculative but increasingly popular asset class that many investors, but not all, will seek to explore," as mentioned on a Yahoo Finance article.
Outlook
With regulatory clarity improving and demand rising, we believe the crypto bull cycle may still have room to run. However, risks are also there as cryptos are volatile and still have less mainstream acceptance. However, a small allocation of your portfolio toward cryptocurrencies may be a good idea.
Investors can play Bitcoin ETFs like Bitwise Bitcoin ETF BITB, Fidelity's Wise Origin Bitcoin Fund FBTC, Grayscale's Bitcoin Mini Trust BTC, and BlackRock's iShares Bitcoin Trust IBIT as well as Ethereum ETFs like iShares Ethereum Trust ETF ETHA, Grayscale Ethereum Trust ETF ETHE and Fidelity Ethereum Fund ETF FETH.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence		—
Support		—
Cash flows		—

	S/L 5%RUB 51.83	S/L 10%RUB 49.10	S/L 15%RUB 46.38
Day	0.02%	0.00%	0.00%
Week	9.01%	0.05%	0.00%
Month	40.82%	8.93%	0.88%

Bank of America Corporation

Market sentiment

Overall assessment

Share of longs and shorts

Long

Short

Momentum

Protective stop levels