Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

Компания Gartner, Inc. демонстрирует смешанную фундаментальную картину. С одной стороны, мультипликатор P/E на уровне 17.80 ниже медианы отрасли, что может свидетельствовать о недооцененности, однако другие мультипликаторы, такие как цена к книге (P/B) и цена к выручке (P/S), значительно выше медианных значений, указывая на потенциальную переоцененность. Эффективность компании впечатляет: ROE и ROA значительно выше медианных значений, что говорит о хорошем управлении капитальными ресурсами. Тем не менее, высокий уровень долговой нагрузки (debt/equity ratio 4.42) вызывает беспокойство, особенно учитывая его рост по годам. Выручка и прибыль компании также стабильны, что является положительным фактором. Однако отсутствие дивидендов и низкие текущие коэффициенты ликвидности могут сигнализировать о финансовых рисках. Учитывая все эти факторы, целесообразно пересмотреть целевую цену компании, чтобы учесть как её сильные, так и слабые стороны.

Gartner, Inc.

Key Points
Procter & Gamble’s product portfolio consists of goods the world buys over and over, usually without a second thought.
Nice may be an AI company, but its risk profile is considerably different than that of most of the industry’s other stocks.
Contrary to common assumptions, Berkshire Hathaway isn’t just a bunch of Buffett-picked stocks. It wholly owns a bunch of privately-held cash cows, too.
Mostly thanks to overvalued AI equities, the market was already struggling to make any forward progress. With the S&P 500 (SNPINDEX: ^GSPC) making a series of lower highs and lower lows since late January, however, it seems stocks are outright succumbing to worries that the conflict in the Middle East will escalate, threatening the global economy as a result.
The matter isn't quite as black and white as that, though. If you look closely, you'll sense a growing "risk-off" attitude is at work, paired with subtly rekindled interest in safety and certainty.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
With that as the backdrop, although they've not made major gains just yet, here's a rundown of three safe stocks investors could soon flock to as the prevailing mindset shifts away from risk tolerance to risk aversion.
1. Procter & Gamble
It's such a commonly suggested defensive pick that it's almost become a cliché. Nevertheless, Procter & Gamble (NYSE: PG) offers the sort of certainty that could become monumentally important if most everything else continues unraveling.
You've heard of the company, but are you truly aware of how many leading brands are in this consumer staples giant's family of products? Pampers diapers, Tide laundry detergent, Charmin toilet paper, Gillette razors, Dawn dishwashing liquid, and Crest toothpaste are just a small sampling of what's in P&G's portfolio. While Procter must work hard to remain competitive, it's got the advantage of working with many of the best-known brands in several key categories of goods that consumers continue buying regardless of trouble here or abroad.
Yes, this company's fiscal Q2 revenue missed estimates. Although per-share profits of $1.88 were up from the year-ago comparison of $1.78 as well as better than estimates of $1.86 per share, flat revenue of $22.21 billion fell short of the $22.28 billion that analysts were expecting. Investors were caught a bit off guard.
Just don't read too much into last quarter's numbers. As CFO Andre Schulten commented during the earnings conference call, "We've now completed what we fully expect will be the softest quarter of the fiscal year." That's the chief reason PG stock actually rallied immediately following the revenue shortfall.
The recent pullback is mostly just in response to the fresh conflict with Iran. But Procter's household goods are largely unimpacted by this geopolitical tension as it stands right now. This dip simply further de-risks ownership of this name.
2. Nice
Given that it's an artificial intelligence company, it would be easy to assume Nice (NASDAQ: NICE) is one of the names that most investors are looking to avoid now rather than step into. And to be sure, some of this stock's weakness since the middle of last year can be attributed to being in the wrong industry at the wrong time.
If things turn truly troubling for the market, though, investors may finally figure out that this company's business is actually rather resilient.
In simplest terms, Nice provides AI-powered customer service solutions. Its CXOne platform is being used by brands like Visa, Pfizer, American Airlines, Walt Disney, and about 25,000 others, turning a mountain of digital data into a tool that's capable of serving customers and employees alike.
And it's an ideal solution. Technology consulting and industry research outfit Gartner rates Nice's CXOne as the very best option in the contact-center-as-a-service market, while calling Nice's Cognify one of the best in the conversational AI space, alongside Alphabet's Google and above SoundHound AI.
Nice is doing a great job of monetizing this superior solution, too. Last year's revenue of just under $3.0 billion (most of which was recurring revenue) was up 8% year over year, while operating income improved to the tune of 14%, extending long-lived growth trends for both measures. Nice is looking for comparable progress this fiscal year as well. It's a testament to just how much its customers like what it offers, and how willing they are to continue paying for access to this technology once they have it.
This obviously hasn't prevented the stock from easing into a prolonged slump. The market's likely to eventually recognize, however, that this recent weakness is largely the result of broad fatigue of AI stocks in general. Continued growth will fix that soon enough.
3. Berkshire Hathaway
Last but not least, add Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) to your list of safe stocks that could soar if the shift away from higher-risk growth names and toward safer options continues to firm up.
The start to the Greg Abel era has been somewhat frustrating -- to Berkshire shareholders as well as Abel himself. While he's only been at the helm as CEO since the beginning of this year and Berkshire Hathaway today is pretty much the same as it was when Warren Buffett stepped down at the end of last year, Berkshire shares continue to lag the broad market. Abel's decision to tap the company's enormous cash hoard to repurchase shares of itself -- while responsible -- doesn't seem to be what most stakeholders were hoping for.
But if safety becomes a must-have for investors' portfolios in the foreseeable future, Berkshire offers it in a big way. And it's got everything to do with what this conglomerate actually is.
See, you may be most familiar with Berkshire Hathaway as a manager of a large portfolio of stocks. That's hardly the whole story, though. Roughly one-third of its current market cap reflects the value of all the privately held businesses it also owns, like insurer Geico, Duracell batteries, Shaw flooring, railroad BNSF, Pilot Travel Centers, and Dairy Queen, just to name a few. Not only do most of these wholly owned cash cows continue contributing cash flow to their parent regardless of the economic environment, since they're not publicly traded, their value (and therefore Berkshire stock's value) isn't inherently undermined by marketwide weakness.
Should you buy stock in Procter & Gamble right now?
Before you buy stock in Procter & Gamble, 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 Procter & Gamble 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
James Brumley has positions in Alphabet and Procter & Gamble. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, Nice, Pfizer, SoundHound AI, Visa, and Walt Disney. The Motley Fool recommends Gartner. 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.

The Stock Market May Be Shifting From Risky Tech Stocks to Safer Sectors. Here Are 3 Stocks to Buy Before They Soar.

Key Points
Global IT spending is set to surge 10.8% this year as tech companies ramp up their capex.
Nvidia dominates the AI data center hardware market and is set to remain dominant in that space.
Equinix offers access to data centers and the top cloud networks to over 10,000 companies and pays a solid 2% dividend yield.
Gartner forecasts that global information technology (IT) spending will hit $6.15 trillion this year, up 10.8% over 2025 levels.
Many of the top tech companies in the world have announced massive increases in their capital expenditure (capex) for 2026 to pay for data center infrastructure.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Amazon announced it planned to spend $200 billion in 2026, $50 billion more than analysts anticipated. Alphabet, Google's parent company, anticipates its capex to double this year.
The infrastructure these and many other companies need to achieve their artificial intelligence (AI) goals is not cheap.
The following two companies ought to be two of the biggest beneficiaries of the AI spending spree set to happen this year.
King of the hill
It should come as no surprise that Nvidia (NASDAQ: NVDA) is set to profit from a massive boost in IT spending.
According to IOT Analytics, Nvidia controls 92% of the data center graphics processing unit (GPU) market. Its next-largest competitor is Advanced Micro Devices, which controls 4% of the market.
While anything in business is subject to change, right now and for the foreseeable future, Nvidia is the GPU kingpin and all the big AI models from OpenAI, Anthropic, Google, and more need Nvidia's hardware.
Even Alphabet still needs Nvidia hardware, despite its competing tensor processing unit (TPU) that Google Gemini is optimized for.
Nvidia's GPUs are so powerful and so critical to AI that they have become the subject of diplomatic negotiations between global superpowers like the U.S. and China.
It's the Nvidia Blackwell chip in particular that has become a major sticking point in relations between the two countries. The U.S. banned the export of the chip to China but there are indicators that DeepSeek, a Chinese AI start-up, trained its latest model on Nvidia hardware despite that ban.
Whether the report is true and how China got hold of Blackwell hardware is anyone's guess, but it highlights how in-demand Nvidia's products are.
Though, Nvidia's bottom line was already doing a good job showing that.
Per the company's Q4 and full fiscal 2026 results (reported February 25, 2026), Nvidia saw its full-year revenue total a record $215.9 billion, up 65% over its fiscal 2025.
For the quarter, data center revenue came in at $62.3 billion, up 22% over Q3 2026 and 75% over Q4 2025. It also made up the bulk of the $68.1 billion in revenue Nvidia brought in for the quarter.
To top it off, Nvidia runs a net profit margin of 55.6% and has a healthy balance sheet with a debt-to-equity ratio of 0.07.
With numbers like that, I don't see Nvidia's reign coming to an end anytime soon.
Cyberspace for rent
While new data centers are springing up incredibly fast, not every company has Amazon or Alphabet money to build their own, nor does every company need an entire data center.
That's precisely why Equinix (NASDAQ: EQIX) exists. It's a data center real estate investment trust (REIT) that rents space in its 280 data centers in 36 countries around the world to over 10,500 companies, including 310 of the Fortune 500.
And it's the rent Equinix collects that provides the bulk of its revenue. But the company can also facilitate a direct connection between one of its tenants and any of the major cloud networks.
Equinix partners with Microsoft Azure, Amazon's AWS, Google's Cloud, and more. And Equinix's data centers have access to direct hardware connections to all of those clouds.
Using either a physical or virtual connection, any of Equinix's tenants can get a private connection with the network of their choice, offering a faster and more secure way to use cloud infrastructure.
It's a pretty lucrative deal for both Equinix and its investors. As a REIT, Equinix must pay out 90% of its taxable income as a dividend to its shareholders. At present, that dividend yields 2% and the company has increased it for 11 years running.
From 2024 to 2025, it raised the dividend 10% and it's planning to do the same thing in 2026. It's not a particularly tall order as the company's adjusted funds from operations (AFFO) grew 12% year over year in 2025 on the back of 5% revenue growth for the year.
While Nvidia could help you profit from all the companies building their own data centers, Equinix allows you to profit from all those that can't.
Put the two together and you give your portfolio exposure to a good chunk of the $6 trillion in IT spending projected for this year.
Should you buy stock 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
James Hires has positions in Alphabet. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Equinix, Microsoft, and 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.

IT Spending Will Exceed $6 Trillion for the First Time in 2026 Thanks to Artificial Intelligence (AI). Here's How to Invest.

Key Points
Palantir Technologies is currently worth $360 billion, but Shopify and AppLovin could top that figure within five years.
Shopify has added AI features to its platform and integrated merchants' product catalogs into major AI applications like ChatGPT.
AppLovin has developed a powerful recommendation engine that leans on AI and proprietary data to target advertising campaigns.
Palantir Technologies stock has nearly doubled over the past year, bringing its market value to $360 billion. I think Shopify (NASDAQ: SHOP) and AppLovin (NASDAQ: APP) can top that figure within five years. Here's what that would mean for shareholders:
Shopify is currently worth $172 billion. The stock must increase 110% to achieve a market value of $361 billion. If that happens in five years, the implied return is about 16% annually.
AppLovin is currently worth $160 billion. The stock must increase 126% to attain a market value of $361 billion. If that happens in five years, the implied return is about 18% annually.
Here's what investors should know about these artificial intelligence stocks.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Shopify
Shopify develops commerce software that serves as a centralized dashboard from which merchants can manage sales across physical and digital stores, including social media, online marketplaces, and custom websites. The company supplements its core software with adjacent solutions for marketing, payments, and logistics.
Consultancy Gartner recently recognized Shopify as a leader in digital commerce, listing rapid innovation, enterprise-grade reliability, and support for businesses of all sizes as important strengths. Indeed, Shopify is gaining traction with enterprise customers because of its introduction of more sophisticated features such as advanced analytics, deeply customizable storefronts, and wholesale commerce tools.
Shopify is well positioned to benefit from artificial intelligence. The company worked with Alphabet's Google to co-develop the Universal Commerce Protocol, an open standard that integrates merchant product catalogs into AI agents such as Gemini and ChatGPT. Since January 2025, orders from AI search have soared fifteenfold.
Meanwhile, Shopify has also introduced AI features that automate store building, marketing, and back office management. During the three-week period following the last update, the company's AI assistant, Sidekick, generated about 4,000 applications, created more than 29,000 automations, built nearly 355,000 task lists, and edited 1.2 million photos, according to President Harley Finkelstein.
Shopify reported strong financial results in 2025. Sales increased 30% to $11.5 billion, an acceleration from 26% in the previous year, as the company continued to gain market share. Meanwhile, operating income increased 37% to $1.5 billion.
Here's how Shopify could top Palantir's current market value within five years: Wall Street expects earnings to increase at 28% annually through 2027. That makes the current valuation of 91 times earnings look rather expensive. But if Shopify's earnings increase at 28% annually over the next five years, its market value can reach $362 billion while the valuation drops to a more reasonable 56 times earnings.
2. AppLovin
AppLovin develops ad tech software. The company initially focused on the mobile gaming industry, where it helped developers market and monetize applications. But the company recently expanded into web-based advertising with its new self-service platform, which will eventually automate every workflow from campaign creation to optimization.
AppLovin has differentiated itself with Axon, a "best-in-class machine learning ad engine," according to Morgan Stanley. Axon excels at targeting campaigns because AppLovin also owns a mediation platform called Max, which lets publishers sell inventory across multiple ad networks. Data gathered from that process is used to train the artificial intelligence models that power Axon.
Indeed, AppLovin delivers a 45% higher return on ad spending than Meta Platforms, and a 115% higher return on ad spending than secondary platforms such as TikTok, Pinterest, Snap's Snapchat, and Alphabet's YouTube, according to marketing attribution company Northbeam. For that reason, Mark Giarelli at Morningstar says Axon affords AppLovin a durable competitive advantage.
AppLovin reported strong financial results in 2025. Advertising revenue increased 70% to $5.4 billion, and net income from continuing operations (i.e., excluding the mobile gaming unit the company sold in June 2025) increased 116% to $3.4 billion.
Here's how AppLovin could top Palantir's current valuation within five years: Wall Street expects the company's earnings will increase at 44% annually through 2027, which makes the current valuation of 49 times earnings look reasonable. But even if AppLovin's earnings increase at a more conservative pace of 30% annually over the next five years, its market value can reach $365 billion while the valuation falls to 30 times earnings.
Should you buy stock in Shopify right now?
Before you buy stock in Shopify, 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 Shopify 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 $511,735!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,140,464!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 13, 2026.
Trevor Jennewine has positions in Palantir Technologies and Shopify. The Motley Fool has positions in and recommends Alphabet, Palantir Technologies, Pinterest, and Shopify. The Motley Fool recommends Gartner. 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.

Prediction: 2 AI Stocks Will Be Worth More Than Palantir Technologies in 5 Years

ManpowerGroup MAN is benefiting from its specialized workforce solutions and services worldwide. The company’s high-quality global staffing solutions and a strong pricing and cost-control strategy with technological investments are collectively driving top-line growth and improving operational efficiency. Strong liquidity and shareholder-friendly policies are an added advantage.
Meanwhile, weak demand in Europe and North America and vulnerability to foreign currency exchange rate (FX) fluctuations remain significant concerns for the company. Heightened competition within the staffing industry further adds pressure to boost profitability and scalability.
How is MAN Faring?
MAN’s diversified business mix with a comprehensive workforce solution helps organizations with recruitment, training, outsourcing and consulting services. The company’s well-established network of 2,100 offices across 70 countries and territories generates steady revenues and mitigates concentration risks.
The company’s strong pricing, cost control and technology investments increase productivity and operational efficiency. The implementation of front-office systems, cloud-based and mobile applications, and the enhancement of its global technology infrastructure across markets, underscore the company’s effort to digitalize its workforce solution.
MAN consistently puts efforts into creating long-term value for investors by rewarding its shareholders. In 2025, 2024, 2023 and 2022, the company paid dividends of $66.7 million, $145.8 million, $144.3 million and $136.6 million, while repurchasing shares worth $38 million, $140 million, $179.8 million and $270 million, respectively. These moves instill confidence among shareholders and establish the company’s commitment to them.
ManpowerGroup Inc. Dividend Yield (TTM)
MAN had a current ratio (a measure of liquidity) of 1.11 at the end of the fourth quarter of 2025, improving from the preceding quarter's 1. Despite being lower than the industry average of 1.33, this quarter’s current ratio indicates an improvement in the company’s ability to pay off short-term obligations efficiently.
Meanwhile, weak demand in Europe and North America is making companies reluctant to hire, posing significant challenges to revenue growth. Particularly, France’s uncertain political climate is likely to dampen hiring activities.
MAN’s global presence exposes it to vulnerability with foreign currency exchange rate fluctuations. These fluctuations heavily impact the company’s bottom line.
The company also faces significant competition from giants such as Morgan Stanley, The Goldman Sachs Group, BlackRock and Blackstone Inc. within the industry, which affects its profitability and ability to innovate while maintaining cost efficiency. The company faces pricing pressure from these competitors and an increasing trend of clients developing in-house manpower resources through AI-powered tools.
Recently, MAN reported impressive fourth-quarter 2025 results. It earned a profit of 92 cents, which beat the Zacks Consensus Estimate by 10.8%, but decreased 9.8% from the year-ago quarter. Total revenues of $4.71 billion beat the consensus estimate mark by 2.2% and increased 7.1% year over year.
MAN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Earnings Snapshots of Some Other Service Providers
FTI Consulting, Inc. FCN reported impressive results for the fourth quarter of 2025.
FCN’s adjusted earnings per share of $1.78 beat the consensus mark by 39 cents and increased 14.1% from the year-ago quarter. Revenues of $990.7 million beat the Zacks Consensus Estimate of $911.4 million and rose 10.7% from the year-ago quarter.
Gartner, Inc. IT posted impressive fourth-quarter 2025 results.
IT’s adjusted earnings were $3.94 per share, which beat the Zacks Consensus Estimate by 12.6%. The metric decreased 27.7% from the year-ago quarter. Total revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% on a year-over-year basis.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
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
FTI Consulting, Inc. (FCN) : 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.

Strong Strategies & Liquidity Aid ManpowerGroup Amid Stiff Competition

Robert Half Inc.’s RHI top line benefits from its specialized staffing workforce divisions worldwide. The company’s high-quality staffing solutions with a global talent workforce, rising contract talent bill rates and strong profitability position are collectively driving growth and boosting operational efficiency. Strong liquidity and shareholder-friendly policies are an added advantage.
Meanwhile, a weakening U.S. labor market, declining Revenue Per Employee (RPE) and a lack of long-term contracts remain significant concerns for the company. RHI struggles to boost profitability and scalability due to heightened competition within the staffing industry.
How is RHI Faring?
RHI’s diversified business mix, with a comprehensive workforce solution, especially its wholly owned subsidiary, Protiviti, offers organizations access to a high-quality workforce. This global subsidiary offers clients consulting solutions in finance, technology, operations, data, analytics, governance, risk and internal audit, boosting the company’s collective growth in more than 400 locations worldwide.
RHI’s gross margin is further boosted by hikes in its contract talent bill rates. It registered a 3.2% year-over-year increase during the fourth quarter of 2025. This highlights the company’s pivot toward high-skill, non-discretionary roles in the finance, legal and tech sectors, where talent scarcity is common regardless of the macroeconomic status.
RHI’s higher return on equity (ROE) is currently 10.3%, substantially higher than the industry average of 8.5%. This indicates that the company possesses a sustainable competitive advantage in utilizing capital efficiently, leading to higher earnings growth and dividends.
In 2025, 2024, 2023 and 2022, the company paid dividends of $240 million, $220 million, $206 million and $189 million, while repurchasing shares worth $92.1 million, $276 million, $255 million and $320 million, respectively. Such moves underline the company’s confidence in business and boost investors’ confidence in the stock by positively impacting the bottom line.
Robert Half Inc. Dividend Yield (TTM)
RHI had a current ratio (a measure of liquidity) of 1.53 at the end of the fourth quarter of 2025, higher than the industry average of 1.35. A current ratio of more than 1 indicates a company’s ability to pay off short-term obligations efficiently.
Meanwhile, a weakening U.S. labor market is impacting RHI’s business. In January 2026, the U.S. unemployment rate was 4.3%. As per the Job Openings and Labor Turnover Survey, U.S. job openings decreased by 386,000 in December 2025. This lower demand for workers portrays a less favorable environment for the company.
RHI has been witnessing a decrease in RPE since 2023 due to a fall in its top line. Reduced revenues impact the company’s ability to financially support, provide opportunities, and maintain a positive work environment for its skilled workforce.
The company’s staffing services business lacks long-term contracts, enabling clients to enter non-exclusive arrangements with multiple firms, which can be terminated on short notice without paying a penalty and exposing its top line to an unpredictable future.
RHI also faces significant competition within the industry, which affects its profitability and ability to innovate while maintaining cost efficiency. The need to invest in technology and talent to stay ahead of rivals strains resources, increasing the difficulty in balancing growth.
Recently, RHI reported impressive fourth-quarter 2025 results. It announced quarterly EPS of 32 cents, which beat the Zacks Consensus Estimate by 6.7% but declined 39.6% from the year-ago quarter. Total revenues of $1.3 billion marginally beat the consensus estimate but decreased 5.8% year over year.
RHI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Earnings Snapshots of Some Other Service Providers
FTI Consulting, Inc. FCN reported impressive results for the fourth quarter of 2025.
FCN’s adjusted earnings per share of $1.78 beat the consensus mark by 39 cents and increased 14.1% from the year-ago quarter. Revenues of $990.7 million beat the Zacks Consensus Estimate of $911.4 million and rose 10.7% from the year-ago quarter.
Gartner, Inc. IT posted impressive fourth-quarter 2025 results.
IT’s adjusted earnings were $3.94 per share, which beat the Zacks Consensus Estimate by 12.6%. The metric decreased 27.7% from the year-ago quarter. Total revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% on a year-over-year basis.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
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
FTI Consulting, Inc. (FCN) : 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.

Rising Bill Rates & Solid Liquidity Aid Robert Half Amid Stiff Rivalry

Key Points
Soaring memory chip prices are expected to severely hurt PC demand this year.
HP is a big loser in this scenario, with few levers to pull as input costs escalate.
Apple is going on the offensive with a budget MacBook.
There was supposed to be a massive tailwind for the PC market this year. Windows 10 reached end-of-life in late 2025, meaning that somewhere around 1 billion PCs worldwide stopped receiving security updates. This is less of an issue in the consumer PC market, but it's a big deal in the business PC market.
PC OEMs like HP (NYSE: HPQ) were set up for success in 2026, but the AI boom has complicated the situation. Enormous demand for DRAM and NAND chips from the AI infrastructure build-out, coupled with memory chip manufacturers shifting production to server products, has left the PC market with scraps. Memory chip prices have surged, pushing up the bill of materials and forcing price increases.
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Gartner expects PC prices to surge by 17% this year, prompting consumers and businesses to hold onto their current PCs for longer. Budget PCs as a category could essentially disappear, leaving a large swath of consumers in a bind. Gartner expects PC shipments to tumble by 10.4% in 2026.
HP is an obvious loser in this scenario, but there's a surprising winner as well: Apple (NASDAQ: AAPL).
HP will get hit hard
How fast are memory prices rising? HP disclosed in February that memory and storage are expected to account for roughly 35% of its PC bill of materials this year. That's up from 15% to 18% in the previous quarter.
There's not a ton HP can do to mitigate rising memory prices. Long-term supply agreements could help, but they'll leave HP on the hook if memory prices reverse. Shipping PCs with less memory and storage content is an option to keep prices down. HP could also accept lower profit margins to protect its market share.
Personal Systems revenue rose 11% year over year for HP in the first quarter of fiscal 2026, but operating margin declined a bit from the previous quarter. HP's PC revenue could still grow in 2026 if price increases offset volume declines, but the huge surge in input costs will knock down profitability. The company expects its PC operating margins to be below its long-term target for the rest of the year.
HP has no meaningful business that will benefit from the AI boom, unlike other companies that sell both PCs and servers. For HP, soaring demand for AI infrastructure is all downside.
How Apple could win
Apple is also exposed to rising memory chip prices across its entire device business. However, the company is seizing an opportunity to bring Windows PC users into its ecosystem.
Apple announced the MacBook Neo last week. The 13-inch entry-level MacBook starts at $599, a price that PC OEMs like HP will have trouble hitting as memory prices spiral higher. The Neo is powered by the A18 Pro chip, the same SoC used in the iPhone 16 Pro family. Higher-end MacBooks use Apple's M-series chips, but the underlying technology is essentially the same.
Apple has equipped the Neo with 8GB of unified RAM, shared between the CPU and GPU, as well as a 256GB solid-state drive. These are really the bare minimums for a usable PC, but it's enough for a solid entry-level experience. Early reviews have been positive, although full third-party reviews haven't yet arrived ahead of launch.
Apple is playing the long game here. If there was ever a time to launch a budget MacBook, it's right now. With memory prices driving up the cost of Windows PCs, a $599 MacBook should be appealing to budget-conscious consumers. Apple also offers the Neo to the education market for a discounted price of $499.
If Apple can grow its Mac install base and steal away market share from Windows-based PCs, the company will be setting up its Mac business for stronger growth down the road. Once the memory situation normalizes and the macroeconomic environment improves, Apple will have a larger base of Mac users eager to upgrade when the time comes.
Not all good news for Apple
While Apple could win market share in the PC business amid the memory crunch, the company will also have to absorb higher memory prices for its iPhone, iPad, and other devices. Apple certainly has some pricing power, but users can always delay upgrades. Annual iPhone upgrades are largely incremental these days, so the upgrade cycle could get stretched out.
Overall, the memory chip shortage may be a negative for Apple in the near term. However, the company is being aggressive with the MacBook Neo, and it's laying the foundation for a stronger Mac business in the years ahead.
Should you buy stock in Apple right now?
Before you buy stock in Apple, 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 Apple 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 $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 10, 2026.
Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and HP and is short shares of Apple. The Motley Fool recommends Gartner. 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.

The PC Collapse Has a Winner -- and It's Not Who You Think

Key Points
Software stocks have dropped into a bear market over concerns about AI, but Nvidia CEO Jensen Huang says the market’s reaction has been "illogical."
Microsoft’s generative AI copilots are gaining traction with customers and the company is gaining market share in cloud computing.
Datadog is the market leader and top share gainer in observability software, which plays an important role in keep AI applications functional.
The S&P North American Technology Software Index, which tracks 110 software stocks, has fallen 26% from the all-time high it hit in September. The puts the index in bear market territory, and artificial intelligence is the root cause.
Specifically, investors are worried AI code generation tools will reduce demand for existing software products, but Nvidia CEO Jensen Huang is very skeptical. "There's a whole bunch of software companies whose stock prices are under pressure because somehow AI is going to replace them," he said at a recent event. "It is the most illogical thing in the world."
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Indeed, Wall Street thinks Microsoft (NASDAQ: MSFT) and Datadog (NASDAQ: DDOG) are deeply undervalued at current prices.
Among 60 analysts, Microsoft has a median target price of $600 per share. That implies 47% upside from its current share price of $409.
Among 48 analysts, Datadog has a median target price of $180 per share. That implies 42% upside from its current share price of $126.
Here's what investors should know these AI stocks.
Microsoft: 47% upside implied by the median target price
Microsoft enjoys a strong position in enterprise software, particularly in office productivity, enterprise resource planning, business intelligence, and low-code development tools. The company has supercharged its software products with generative AI copilots, which improve productivity by automating work. Paid Microsoft 365 Copilot seats rose 160% in the December quarter, according to CEO Satya Nadella.
Meanwhile, Microsoft Azure is gaining market share in cloud computing. The company accounted for 21% of cloud infrastructure and platform services spending in the December quarter, up from 20% in the September quarter. Market share gains were driven by increased compute capacity and demand for Foundry AI services, which let developers build custom AI agents and applications.
Azure is the only major public cloud that provides access to OpenAI frontier models via application programming interface, which means Microsoft is often the middleman when companies build custom applications with those models. Beyond that, Azure has a distinct competitive advantage in its support for hybrid clouds, according to Morningstar analyst Dan Romanoff.
Microsoft shares currently trade at 26 times adjusted earnings, an attractive valuation for a company whose adjusted earnings increased 24% in the most recent quarter. With the stock down 25% from its high, the current price is a good entry point for patient investors.
Datadog: 42% upside implied by the median target price
Datadog develops observability and security software. Its platform includes two dozen products that help businesses monitor and protect critical IT infrastructure and applications. One particularly interesting feature is Watchdog, an AI engine that automates anomaly detection, incident alerts, and root cause analysis to help teams resolve incidents more quickly.
Artificial intelligence should be a tailwind for Datadog. Forrester Research recently ranked the company as a leader in AI for IT operations, a discipline that aims to improve IT efficiency with machine learning. Additionally, Gartner has recognized its leadership in digital experience monitoring and observability platforms, listing AI insights and support for large language model monitoring as key strengths.
Morgan Stanley analyst Keith Weiss says Datadog's ability to consolidate a broad range of performance monitoring tools on a single platform, something that has become a top priority for many IT departments, has made the company "the top share gainer in its core observability market for several years." He expects that trend to continue as cloud adoption and AI create incremental demand for performance monitoring tools.
Datadog reported solid fourth-quarter financial results. Revenue increased 29% to $953 million and remaining performance obligation increased 52% to $3.4 billion, which hints at strong future revenue growth. Meanwhile, non-GAAP net income increase 20% to $0.59 per diluted share, growing slower than revenue because of heavy R&D spending.
Datadog shares currently trade at 60 times adjusted earnings, an expensive valuation for a company whose adjusted earnings increased 20% in the most recent quarter. But earnings are likely to accelerate in the future as the proliferation AI workloads drives demand for observability software. I think patient investors should consider buying a small position today.
Should you buy stock in Microsoft right now?
Before you buy stock in Microsoft, 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 Microsoft 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 $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 10, 2026.
Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Datadog, Microsoft, and Nvidia. The Motley Fool recommends Gartner. 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.

Software Bear Market: 2 AI Stocks With 42% and 47% Upside to Buy Now, According to Wall Street

Key Points
Wall Street's consensus estimates imply 12% upside in Sandisk stock and 36% upside in Everpure (formerly Pure Storage) stock.
Sandisk has benefited greatly from soaring memory prices caused by a supply shortage, but its valuation will likely fall after the cycle peaks.
Everpure is gaining share in all-flash enterprise storage platforms, and it has been recognized as a technology leader in the space.
Demand for artificial intelligence infrastructure has led to an unprecedented supply shortage in memory chips. Sandisk (NASDAQ: SNDK) has benefited, its share price increasing 1,290% in the past year. But the situation has been a headwind for Everpure (NYSE: PSTG), a company that buys large amounts of NAND flash memory to build data center storage solutions.
The International Data Corp. says memory chip supply shortages could last well into 2027, but production will catch up with demand at some point, causing prices to stabilize (or even fall). When that happens, Sandisk will suffer and Everpure (formerly Pure Storage) will benefit as supply chain pressures ease.
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That may explain why most Wall Street analysts covering the companies rate Everpure as the better buy:
Among 23 analysts, Sandisk has a median target price of $725 per share. That implies 12% upside from its current share price of $649.
Among 23 analysts, Everpure has a median target price of $90 per share. That implies 36% upside from its current share price of $66.
Here's what investors should know about Sandisk and Everpure.
Sandisk: 12% upside implied by Wall Street's median target price
Sandisk develops data storage solutions based on NAND flash technology. Its products include external solid-state drives (SSDs) for data centers and consumers, as well as embedded flash drives for original equipment manufacturers (OEMs), who integrate the hardware into personal computers, automotive systems, mobile devices, and video game consoles.
Sandisk acquires memory wafers at a low cost through its joint venture with Japanese chip manufacturer Kioxia. The companies split capital expenditures and R&D expenses related to equipment, process technology, and memory design (especially 3D stacking). Sandisk then packages wafers into chips, and integrates chips into final products.
NAND flash memory plays an important role in supporting artificial intelligence (AI), and demand for AI infrastructure has created such a profound supply shortage that enterprise SSD prices have roughly tripled in the past year. As a result, Sandisk's earnings increased 404% in the January quarter. But the situation will probably reverse just as quickly at some point in the future.
"Memory cycles can turn on a dime," says William Kerwin at Morningstar. "The moment supply exceeds demand, pricing can crater." Kerwin also says Sandisk lacks a competitive moat because memory chips are commodities without pricing power. In other words, there is nothing particularly unique about Sandisk that gives it a material edge over suppliers like Samsung, SK Hynix, and Micron.
Wall Street expects Sandisk's adjusted earnings to grow at 420% annually through fiscal 2027 (ends in June). That makes the current valuation of 90 times earnings look cheap. But the market will almost certainly afford Sandisk a much cheaper valuation once it becomes clear the memory cycle has peaked, which means the stock could fall sharply at some point in the future.
Everpure: 36% upside implied by Wall Street's median target price
Everpure builds all-flash storage solutions. Its DirectFlash modules offer two to three times the storage density and consume about half the power as the next closest flash memory product on the market. And its Evergreen architecture supports nondisruptive hardware and software upgrades, forming the basis of its subscription portfolio.
Here is the big picture: While Sandisk provides enterprise SSDs and embedded flash drives, Everpure brings together proprietary flash hardware, software, and services to create an unified storage environment. Its platform (the enterprise data cloud) integrates file, block, and object storage across public and private clouds.
Consultancy Gartner recently ranked Everpure as the best enterprise storage platform on the market, listing automation features, data management capabilities, and high customer satisfaction scores as key strengths. Erik Woodring at Morgan Stanley says Everpure has been gaining share because of its differentiated products, and he expects that to continue this year.
Everpure reported encouraging financial results in fiscal 2026 (ended in January). Revenue increased 16% to $3.6 billion, and non-GAAP operating income increased 14% to $635 million, with operating margin contracting only modestly despite increased NAND prices and R&D spending. That means margins could expand once NAND prices stabilize.
Indeed, Everpure gave upbeat guidance that implies margins will expand in fiscal 2027. The company expects revenue growth to accelerate to 18%, while adjusted operating income growth accelerates to 25%. Yet, Wall Street's consensus puts adjusted earnings growth at only 16%. The current valuation of 32 times earnings is reasonable even if that figure is accurate, but Everpure could crush expectations, especially once NAND prices stabilize. That could drive big gains in the stock.
Should you buy stock in Sandisk right now?
Before you buy stock in Sandisk, 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 Sandisk 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 $519,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,086,211!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 2, 2026.
Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Pure Storage. The Motley Fool recommends Gartner. 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.

Sandisk Stock Is Up 1,290% in the Past Year, but This AI Stock Could Soar When Memory Prices Stabilize

Key Points
Billionaire Bill Ackman has 55% of his hedge fund split between Uber, Amazon, Alphabet, and Meta Platforms.
Uber is well positioned to help autonomous driving companies commercialize robotaxis and delivery services.
Amazon is using artificial intelligence to make its cloud computing and retail businesses more profitable.
Billionaire Bill Ackman hopes to re-create Warren Buffett's success by turning Howard Hughes Holdings into a "modern-day version of Berkshire Hathaway." His vision started to take shape in December when Howard Hughes announced plans to acquire specialty insurance and reinsurance company Vantage Group.
Ackman plans to create an insurance-focused investment company, as Buffett did with Berkshire. Whether he achieves that goal remains to be seen, but his hedge fund has an encouraging track record. It beat the S&P 500 by 40 percentage points over the past decade.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Ackman's hedge fund, Pershing Square Capital Management, has 55% of its assets invested in four artificial intelligence stocks:
Uber Technologies (NYSE: UBER) is 16% of the portfolio. Wall Street's median target price of $105 per share implies 46% upside from the current share price of $73.
Amazon (NASDAQ: AMZN) is 14% of the portfolio. Wall Street's median target price of $285 per share implies 36% upside from the current share price of $209.
Alphabet is 14% of the portfolio. Wall Street's median target price of $385 per share implies 23% upside from the current share price of $312.
Meta Platforms is 11% of the portfolio. Wall Street's median target price of $850 per share implies 31% upside from the current share price of $650.
Investors should seriously consider buying all four stocks, but I am going to focus on the two for which Wall Street sees the most upside: Uber and Amazon.
Uber Technologies: 16% of Bill Ackman's portfolio
Here's the investment thesis: Uber runs the largest ridesharing and food delivery platform in the world, which makes it an ideal partner for any company that wants to commercialize autonomous driving technology. Uber hopes to deploy 100,000 robotaxis by 2027 (with help from its partners) and the company thinks it will be the largest facilitator of autonomous vehicle (AV) trips by 2029.
In the U.S., Uber works with Alphabet's Waymo to connect riders with robotaxis in Phoenix, Austin, and Atlanta; and it works with Avride to connect riders with AVs in Dallas. In the Middle East, Uber works with WeRide to connect riders with robotaxis in Abu Dhabi, Dubai, and Riyadh. The companies plan to extend their partnership to 12 more cities by 2030.
Uber also works with Nvidia to provide its partners with data and infrastructure (hardware, software, sensors) they need to develop AVs. The company recently introduced a suite of fleet operations services that address needs like telemetry, remote assistance, field support, and insurance. Uber plans to bring robotaxis to about 10 new markets in the near future, including Los Angeles, San Francisco, and London.
Bill Ackman expects Uber's adjusted earnings to grow at 30%-plus annually for several years. That is slightly more optimistic than the Wall Street consensus, which says earnings will increase at 25% annually over the next three years. However, the current valuation of 15 times earnings looks attractive in either scenario.
Amazon: 14% of Bill Ackman's portfolio
Here's the investment thesis: Amazon has the largest online marketplace in North America and Western Europe, and its retail business is likely to become increasingly profitable as the company leans into artificial intelligence (AI) and robotics. Also, Amazon Web Services (AWS) is the leading provider of cloud infrastructure and platform services, which gives the company a clear path to monetize demand for AI infrastructure.
Amazon has built hundreds of generative AI applications to improve efficiency in its retail operations. Those applications optimize demand forecasting, inventory placement, workforce productivity, and last-mile delivery routes. Amazon is also the largest operator of industrial mobile robots; it has developed an AI model that expedites robot navigation, and it's developing a framework to support natural language commands.
Meanwhile, AWS dominates the cloud infrastructure and platform services space with 41% market share, per Gartner. That alone affords the company a key advantage in monetizing AI. "AWS is where the preponderance of companies' data and workloads reside, and part of why most companies want to run AI on AWS," says CEO Andy Jassy. But AWS has also built custom chips (now a $10 billion business) and it serves as the primary cloud provider for Anthropic.
Some investors are nervous because Amazon is spending a substantial amount of money on AI, but those investments show signs of bearing fruit. In the fourth quarter, operating margin (excluding one-time charges) increased 1.5 percentage points, and AWS revenue increase 24%, the fastest growth since 2022. In addition, the current valuation of 29 times earnings looks attractive for a company whose earnings are expected to increase at 17% annually over the next three years.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, 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 Amazon 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 $445,995!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,198,823!*
Now, it’s worth noting Stock Advisor’s total average return is 927% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of February 27, 2026.
Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Berkshire Hathaway, Howard Hughes, Nvidia, and Uber Technologies. The Motley Fool recommends Gartner. 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 Bill Ackman Could Be the Next Warren Buffett: 55% of His Portfolio Is Invested in 4 AI Stocks

Key Points
Netflix completed a 10-for-1 stock split in November, and ServiceNow completed a 5-for-1 stock split in December.
Netflix stock is down 43% because the company plans to buy Warner Bros. Discovery's streaming and studio assets, but shares look quite attractive at the current price.
ServiceNow stock is down 56% due in part to concerns that AI will disrupt the software industry, but the company's IT products are deeply entrenched across large enterprises.
Netflix (NASDAQ: NFLX) completed a 10-for-1 stock split in November. Shares are currently 43% below the record high. ServiceNow (NYSE: NOW) completed a 5-for-1 stock split in December. Shares are currently 56% below the record high. Most Wall Street analysts think the stocks are undervalued, and certain analysts expect substantial gains.
Vikram Kesavabhotla at Baird values Netflix at $150 per share, implying 95% upside from its current share price of $77. And among 49 analysts who follow the company, the median target price of $111 per share implies 44% upside.
Keith Weiss at Morgan Stanley values ServiceNow at $210 per share, implying 103% upside from the current share price of $103. And among 47 analysts who follow the company, the median target price of $180 per share implies 75% upside.
Investors gravitate toward forward stock splits because they take place after substantial and sustained share price appreciation, which is often a signal of a quality company. Here are the important details about Netflix and ServiceNow.
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Netflix: 95% upside implied by Baird's target price
Netflix is the leading streaming service no matter how you measure popularity: It has more subscribers, more monthly active users, and accounts for a larger percentage of television viewing time (excluding Alphabet's YouTube) than any competitor. That puts the company in a good position because the streaming video market is forecast to grow at 22% annually through 2030, according to Grand View Research.
Netflix has differentiated itself with original content. With more users and viewing time than its competitors, the company has more data to feed machine learning models that inform content development decisions. Consequently, Netflix originals regularly top the charts. In fact, the company made seven of the 10 most popular original streaming series in 2025.
Netflix has made an all-cash bid to buy Warner Bros. Discovery's streaming and studio business for $83 billion when debt is included. The market has punished the stock since the announcement because Netflix would take on a substantial amount of debt to finance the deal, which would reduce cash flow available to fund original content creation.
However, Netflix would also gain rights to franchises like the DC Universe, Game of Thrones, and Harry Potter. The company could use that intellectual property to develop original content that drives growth for decades, according to co-CEO Greg Peters. While the transaction undoubtedly carries risk, I think those risks have been discounted.
Wall Street expects Netflix's earnings to increase at 22% annually over the next three years, which matches Grand View Research's estimate for the broader streaming video industry. That seems reasonable, and it makes the current valuation of 30 times earnings look quite attractive. I doubt Netflix will return 95% in the next year, but the current price is a solid buying opportunity for patient investors.
ServiceNow: 103% upside implied by Morgan Stanley's target price
ServiceNow serves as an enterprise control tower. Its platform integrates and automates workflows across disparate departments, including information technology (IT), finance, human resources, sales, and customer service. Consultancy Gartner recently recognized the company as a leader in business orchestration and automation technologies.
ServiceNow is particularly dominant in IT software, where its applications assist businesses in optimizing infrastructure costs and performance. The company has added generative AI capabilities to its software that summarize content, surface insights, and build workflows. Gartner recently recognized the company as leader in artificial intelligence applications for IT Service Management.
ServiceNow reported solid fourth-quarter financial results. Revenue rose 20% to $3.5 billion and non-GAAP (adjusted) net income increased 26% to $0.92 per diluted share. Management guided for slightly faster sales growth in the first quarter. CEO Bill McDermott commented, "There is no AI company in the enterprise better positioned for sustainable, profitable revenue growth."
ServiceNow stock is down 56% from its high, partly because investors are worried AI code generation tools will disrupt the software industry. But Wall Street expects the company's adjusted earnings to increase 19% in 2026. That makes the current valuation of 29 times earnings look attractive. I doubt ServiceNow will return 103% in the next year, but investors should still consider buying a small position. More than 85% of Fortune 500 companies use ServiceNow, which makes widespread AI-driven displacement unlikely.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, 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 Netflix 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 $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,174,241!*
Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of February 25, 2026.
Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Netflix, ServiceNow, and Warner Bros. Discovery. The Motley Fool recommends Gartner. 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.