Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It operates through Institutional Securities, Wealth Management, and Investment Management segments. The Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity, and other securities, as well as advice on mergers and acquisitions, restructurings, real estate, and project finance. This segment also provides equity and fixed income products comprising sales, financing, prime brokerage, and market-making services; foreign exchange and commodities; corporate and commercial real estate loans, commercial mortgage and secured lending facilities, and financing for sales and trading customers, and asset-backed and mortgage lending; and wealth management services, investment, and research services. The Wealth Management segment offers financial advisor-led brokerage, custody, administrative, and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; annuity and insurance products; securities-based lending, residential real estate loans, and other lending products; banking; and retirement plan services to individual investors and small to medium-sized businesses and institutions. The Investment Management segment provides equity, fixed income, alternatives and solutions, and liquidity and overlay services to benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors, corporations, and individuals through institutional and intermediary channels. The company was founded in 1924 and is headquartered in New York, New York.

Morgan Stanley appears to be a high-quality bank, but no longer cheap, with strong profitability and a noticeable valuation premium to the industry. A P/E of 17.0 and P/S of 2.55 are above the sector median, while a P/B of 2.88 is especially high and indicates a substantial premium to book value. At the same time, earnings and margin momentum support the valuation: revenue, operating profit, net income, EBITDA, and margins are all rising steadily year over year. ROE of 17.1%, ROTE of 21.4%, and a net profit margin of 23.8% look very strong and confirm the high quality of the business. On the other hand, ROI is below the industry median, which slightly tempers the picture of capital efficiency. The balance sheet remains large and stable in scale, but the debt burden is high: debt/equity of 3.34 and long-term debt continue to rise, while the current ratio is below 1 and the quick ratio is zero, which for a financial company requires caution in interpreting liquidity. The cash position is very large, but on its own it does not offset premium multiples if the market starts demanding a lower valuation for risk. Dividend yield is currently absent, whereas it was positive before, removing one of the traditional supporting factors for the stock. Overall, the fundamentals rather justify a premium to the sector, but not strongly enough to raise the target price aggressively. For an investor, this is a story of strong operating efficiency and growth, but with limited upside due to an already high valuation and elevated leverage. Therefore, the adjustment should be moderately negative and reflect caution toward the current price rather than doubt about the quality of the business.

Morgan Stanley

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, значительно вырос. Рынок на стороне быков.

Medium index, significantly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

Strong profitability and growth support Morgan Stanley, but the high P/B and P/E premium, as well as rising debt, limit revaluation potential.

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Morgan Stanley (Symbol: MS), where a total of 50,492 contracts have traded so far, representing approximately 5.0 million underlying shares. That amounts to about 84% of MS's average daily trading volume over the past month of 6.0 million shares. Particularly high volume was seen for the $195 strike call option expiring October 23, 2026, with 24,981 contracts trading so far today, representing approximately 2.5 million underlying shares of MS. Below is a chart showing MS's trailing twelve month trading history, with the $195 strike highlighted in orange:
Space Exploration Technologies Corp (Symbol: SPCX) saw options trading volume of 678,342 contracts, representing approximately 67.8 million underlying shares or approximately 83.1% of SPCX's average daily trading volume over the past month, of 81.7 million shares. Particularly high volume was seen for the $125 strike put option expiring November 20, 2026, with 31,513 contracts trading so far today, representing approximately 3.2 million underlying shares of SPCX. Below is a chart showing SPCX's trailing twelve month trading history, with the $125 strike highlighted in orange:
And Trump Media & Technology Group Corp (Symbol: DJT) saw options trading volume of 28,920 contracts, representing approximately 2.9 million underlying shares or approximately 76.8% of DJT's average daily trading volume over the past month, of 3.8 million shares. Especially high volume was seen for the $15 strike put option expiring January 15, 2027, with 8,962 contracts trading so far today, representing approximately 896,200 underlying shares of DJT. Below is a chart showing DJT's trailing twelve month trading history, with the $15 strike highlighted in orange:
For the various different available expirations for MS options, SPCX options, or DJT options, visit StockOptionsChannel.com.
Further MS Research:

Noteworthy Tuesday Option Activity: MS, SPCX, DJT

Key Points
Morgan Stanley has been growing its dividend aggressively, most recently with a 15% increase.
Its stock has also been a powerful performer.
My top dividend growth stock for income-seeking long-term investors to consider is the financial services giant Morgan Stanley (NYSE: MS). It had been off my radar until recently, when I noticed some of its very attractive characteristics.
For starters, it's a solid dividend payer, recently yielding 2.5%. That may not seem like a lot, but that payout has been growing robustly. The recent total annual payout of $4.60 per share is up from $2.95 in 2022 and $1.10 in 2018. Its last increase, this year, was from a quarterly payment of $1 to $1.15 -- a hefty 15% hike.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The company also rewards shareholders by buying back (and, essentially, retiring) lots of stock. That leaves the remaining shares worth more. (Imagine a pizza being cut into six pieces instead of eight; each piece will be bigger.) The stock's total yield, incorporating the effect of buybacks, was recently 4.8%.
Meanwhile, there's its share price performance:
Time
Average Annual Gain
1 year
19.52%
3 years
35.36%
5 years
14.52%
10 years
20.40%
15 years
19.01%
See? Impressive!
Don't jump into Morgan Stanley without learning more about it, though. For starters, know that whereas it used to be primarily an investment bank, it's been broadening its scope, doing more wealth and investment management.
It's been succeeding in its plans, too. In its recently reported third quarter:
Revenue was up 11% year over year, to $20.3 billion.
Wealth management delivered nearly half of revenue, $9 billion, up 10% year over year.
Earnings per share grew 8%.
The company repurchased $1.5 billion of its stock in the quarter, as part of a $20 billion stock-buyback authorization.
In other news, Morgan Stanley is expanding its footprint via a major expansion in Dallas.
If you're seeking growing dividend income, take a closer look at Morgan Stanley and see what you think. It's poised to pay long-term investors well over time.
Should you buy stock in Morgan Stanley right now?
Before you buy stock in Morgan Stanley, 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 Morgan Stanley 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 $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% 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 October 18, 2026.
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

My Top Dividend Growth Stock to Buy in October and Hold Forever

Key Points
Morgan Stanley assigns less than 3% of its $300 SpaceX price target to external launches.
Starlink generates strong operating profits, while AI accounts for 86% of SpaceX's capital spending.
Massive financing needs and uncertain AI cash flows help explain Wall Street's widely differing price targets.
Space Exploration Technologies (NASDAQ: SPCX), also known as SpaceX, is famous for its rockets. But those launches explain surprisingly little about how Wall Street values the company. The 35 analysts tracked by TipRanks have 12-month price targets ranging from $75 to $450. The average consensus estimate of $217 is nearly 50% above the stock's price as of this writing.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
The wide range reflects more than differing expectations for rocket launches. Analysts are assigning very different values to Starlink's future profits, SpaceX's artificial intelligence (AI) ambitions, and the enormous capital required to turn those opportunities into sustainable cash flow.
Rockets contribute surprisingly little direct value
Morgan Stanley analyst Adam Jonas has a $300 price target on SpaceX. Yet the investment bank reportedly assigns just $8 per share, or less than 3% of that target, to its external launch business. The investment bank attributes $118 per share to the Starlink-powered connectivity business and $165 per share to the enterprise AI business.
SpaceX's financials help explain why. The company's revenue reached $7.81 billion in the second quarter, but its Space segment contributed just $962 million. In the Space segment, external launch services generated only $648 million, or roughly 8% of total revenue.
The Space segment recorded a $542 million operating loss in Q2. SpaceX has also spent approximately $1.08 billion on research and development in this segment, largely associated with the next-generation rocket launch system Starship.
Much of SpaceX's launch capacity also supports its own businesses. Of the 38 launches completed during Q2, 28 were internal missions, including Starlink deployments and development tests. SpaceX doesn't recognize launch revenue when deploying its own Starlink satellites. Instead, it includes those costs in the value of its satellite assets.
Hence, rocket launchers are not merely products SpaceX sells. They are infrastructure that could reduce the cost of deploying and replacing satellites. If Starship eventually makes launches substantially cheaper, much of the benefit could accrue to Starlink's economics rather than to its rocket revenue.
Hence, rockets may have relatively little stand-alone valuation while remaining essential to SpaceX's biggest growth opportunities.
Starlink earns profits, while AI consumes capital
SpaceX's Connectivity segment generated $4.29 billion in Q2 revenue and $1.66 billion in operating income, representing an impressive operating margin of nearly 39%. Starlink's subscribers doubled year over year to 12 million at the end of Q2. However, average monthly revenue per subscriber fell from $85 to $66 year over year as SpaceX expanded into lower-priced markets.
Despite this decline, Connectivity's operating income was up 79% year over year in Q2, partly driven by the more than doubling of enterprise and government revenues. This suggests that SpaceX can improve the profitability of its connectivity business, even as average subscriber revenue declines.
SpaceX is also focusing on mobile connectivity. The company recently agreed to acquire Grain Management's 800-megahertz spectrum portfolio for a reported $8 billion. This could enable Starlink Mobile to provide connectivity through both satellite and ground-based networks. However, the transaction requires regulatory approval from the Federal Communications Commission. Competing with traditional carriers could also involve substantial additional infrastructure spending.
AI presents an even bigger opportunity, but with much greater financial uncertainty. SpaceX's AI revenue surged nearly 247% year over year to $2.56 billion in Q2, driven largely by cloud computing agreements. Yet the segment recorded a $1.26 billion operating loss. While management has reported positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.15 billion for the AI business, that figure excludes approximately $1.89 billion in depreciation and amortization. These expenses matter because expensive computing equipment eventually needs replacement. AI also accounted for $15.83 billion, or 86%, of SpaceX's quarterly capital expenditures.
Why analysts disagree so sharply
SpaceX's AI contracts demonstrate strong demand, but not necessarily durable revenue.
One customer accounted for 19.5% of consolidated Q2 revenue, entirely within AI. This accounts for nearly 60% of the AI segment's revenue, highlighting excessive reliance on a single client.
SpaceX's cloud agreements generally allow termination with 90 days' notice after an initial capacity-ramp period. This creates a major risk. Computing equipment may require years of profitable use to recover its costs, while some customer commitments can end much sooner.
Morgan Stanley's original July 2026 model, which established its $300 price target, projected $2.6 trillion in annual AI revenue by 2040. However, the same model also estimated roughly $670 billion in external financing needs between 2027 and 2034. Phillip Securities has set a price target of $75 and expects approximately $90 billion in cumulative negative free cash flow through 2030.
SpaceX's financing needs are already substantial. Reuters reports that the company is seeking $40 billion in debt financing to purchase Nvidia chips. SpaceX has also completed the $60 billion acquisition of Cursor, which involved issuing approximately 391 million shares. This highlights how SpaceX's expansion can also dilute existing shareholders.
The valuation leaves little room for disappointment. SpaceX is trading at nearly 93.7 times trailing revenue (as of Oct. 15, 2026). This premium valuation reflects enormous expectations for future growth and profitability, even as SpaceX continues investing heavily in AI infrastructure.
SpaceX also plans to deploy AI computing infrastructure in orbit, potentially using solar-powered satellites to process data in space. However, this opportunity remains commercially unproven. A U.S. Government Accountability Office report highlights major challenges involving power, cooling, communications, and hardware durability. If SpaceX overcomes these obstacles, orbital computing must still become cost-competitive with data centers on Earth to generate sustainable profits.
SpaceX's rockets are critical to its growth ambitions. However, its multi-trillion-dollar valuation ultimately depends on whether Starlink and AI can generate enough sustainable cash flow to justify their enormous infrastructure investments. Successful launches alone cannot establish that value.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, 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 Space Exploration Technologies 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 $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% 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 October 17, 2026.
Manali Pradhan, CFA 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.

35 Analysts Cover SpaceX. Here's Why Their Price Targets Have Almost Nothing to Do With Rockets.

Key Points
SpaceX is primarily known for launching rockets.
SpaceX is evolving through targeted moves in artificial intelligence (AI), internet connectivity, and telecommunications.
As SpaceX's platform grows, the stock could appreciate materially compared to today's levels.
Since its historic initial public offering (IPO) in June, Elon Musk's Space Exploration Technologies (NASDAQ: SPCX) has become one of the most closely watched stocks on Wall Street. SpaceX isn't simply a rocket company anymore. Musk is evolving the space exploration business into a more diversified technology platform spanning satellite internet, artificial intelligence (AI), and software.
With so much going on at the company, investors are naturally curious about what SpaceX could look like over the next several years. Let's explore what a $3,000 investment in SpaceX stock could turn into by 2030.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
SpaceX has more going for it than just rockets
SpaceX operates across three business segments: space, connectivity, and AI. The space segment provides launch services for commercial customers and government agencies. While this remains central to SpaceX's identity, it is actually the company's smallest revenue generator.
At the moment, the largest contributor to sales and profits belongs to connectivity, which is primarily driven by Starlink. Starlink provides satellite internet services to consumers and enterprise businesses worldwide.
During the second quarter, Starlink generated $4.3 billion in revenue, an increase of 66% year over year. More importantly, the connectivity segment produced $1.7 billion in operating income, making it SpaceX's only source of consistent profitability.
Starlink's opportunity could be on the verge of becoming much larger. SpaceX is making significant investments in direct-to-cell satellite technology, which could eventually allow ordinary smartphones to connect directly to its satellites.
There's another segment growing even faster than Starlink, and that's what Wall Street is paying close attention to.
SpaceXAI could be a hidden gem
Following its combination with xAI and acquisition of Cursor, SpaceX has built a unique AI ecosystem. The company's SpaceXAI division brings together Grok, AI-powered software development tools, and computing infrastructure.
Grok competes in the intense market for generative AI assistants like ChatGPT and Claude, while Cursor provides SpaceX with exposure to demand for AI coding tools. Meanwhile, SpaceX's AI infrastructure supports the deployment of new models. This vertically integrated approach creates several new revenue opportunities, including subscriptions, enterprise software, and AI capacity services.
During Q2, SpaceX's AI segment generated $2.6 billion in revenue, representing nearly 247% growth year over year. This makes AI SpaceX's fastest-growing business. However, this growth is yet to translate into immediate profitability. SpaceX's AI infrastructure is operating at a loss as the company invests billions of dollars in accelerated computing infrastructure.
What could SpaceX stock be worth by 2030?
SpaceX's market capitalization hovers around $2 trillion. According to Wall Street's consensus estimates, SpaceX could generate $116 billion in revenue next year. Based on its current valuation, that implies a forward price-to-sales (P/S) ratio of roughly 17.
That's a hefty premium given the company's cash burn and uncertainty around the trajectory of the space exploration and AI businesses. Nevertheless, I think Starlink should continue to add millions of subscribers while expanding its relationships with wireless carriers between now and 2030. Meanwhile, SpaceXAI should also benefit from increasing capital expenditures (capex) from AI hyperscalers.
Goldman Sachs and Morgan Stanley forecast SpaceX could generate more than $300 billion in annual revenue by 2030. If that materializes, I think a market capitalization of $5 trillion is a realistic outcome. If SpaceX's valuation expands from $2 trillion today to $5 trillion by December 2030, its market capitalization increases by 150%. This means a $3,000 investment would grow to $7,500.
Although its valuation leaves little room for disappointment, I think a modest investment in SpaceX stock could become a multibagger by 2030. For investors with a long-term time horizon and who can stomach volatility, SpaceX is an intriguing opportunity.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, 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 Space Exploration Technologies 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 $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,780!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% 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 October 16, 2026.
Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.

Prediction: $3,000 Invested in SpaceX Will Be Worth This Much by 2030

In trading on Monday, shares of Morgan Stanley's 5.850% SHARE OF FIXED-TO-FLOATING RATE NON-CUMULATIVE PREFERRED STOCK, SERIES K (Symbol: MS.PRK) were yielding above the 7% mark based on its quarterly dividend (annualized to $1.4625), with shares changing hands as low as $20.64 on the day. This compares to an average yield of 7.11% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, MS.PRK was trading at a 16.28% discount to its liquidation preference amount, versus the average discount of 16.72% in the "Financial" category. Investors should keep in mind that the shares are not cumulative, meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend.
Below is a dividend history chart for MS.PRK, showing historical dividend payments on Morgan Stanley's 5.850% SHARE OF FIXED-TO-FLOATING RATE NON-CUMULATIVE PREFERRED STOCK, SERIES K:
Further MS.PRK Research:

Morgan Stanley's PREFERRED STOCK, SERIES K Yield Pushes Past 7%

Key Points
Rivian is attempting to scale production of its first affordable vehicle.
Robotaxi exposure creates sizable long-term upside potential.
Analysts at Cantor Fitzgerald reiterated their "neutral" rating on Rivian (NASDAQ: RIVN) stock on Sept. 28. Curiously, however, the firm also reiterated its $19 price target, which implies more than 20% upside.
In many ways, Cantor Fitzgerald's seemingly contradictory stance makes a lot of sense. Rivian does have plenty of growth potential. But there is also plenty of risk.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Even if you're not traditionally interested in EV stocks, it looks wise to take a deeper dive into Rivian as an investment opportunity. Share price upside for Rivian could easily surpass Cantor Fitzgerald's price target in the years to come.
Here's why Rivian stock could easily surpass $19 per share
At today's stock price of around $15, Rivian is valued at roughly $22 billion. At $19 per share, Rivian would be valued at nearly $28 billion. To put that into perspective, fellow EV maker Tesla is valued at more than $1.4 trillion.
Rivian, of course, is no Tesla. Last quarter, Rivian generated just 5.9% of Tesla's sales. From a deliveries perspective, Rivian totaled just 2.5% of Tesla's deliveries last quarter. That mostly reflects an average higher price point for Rivian's vehicles.
Yet Rivian's valuation is just 1.5% of Tesla's market cap. Even at $19 per share, Rivian would be just 1.9% the size of Tesla. That's strange considering Rivian arguably has several growth runways that could allow it to ramp sales and gross profits aggressively in the years to come.
Tesla's gross margins, for example, currently hover around 19%. Rivian's gross margins, meanwhile, remain around 2%, only recently turning positive. A big reason for Tesla's superior margins is its production capabilities. In other words, Tesla has benefited from economies of scale, mostly stemming from the mass success of low-price models, including the Model Y and Model 3. Rivian began deliveries of its first low-priced model -- its R2 SUV, with a base price of $48,000 -- earlier this year. The launch not only has the potential to accelerate Rivian's sales growth, but also to narrow its gross margin gap with Tesla as economies of scale take root.
Rivian's biggest long-term growth driver, however, is the same as Tesla's: robotaxis. Morgan Stanley sees robotaxis becoming a $1 trillion market by 2040. Other analysts are even more bullish. Cathie Wood -- the CEO of Ark Invest, a longtime Tesla shareholder -- sees robotaxis eventually becoming an $8 trillion to $10 trillion market.
Tesla plans to benefit from this market by producing its own EVs, selling or leasing them to independent robotaxi fleet operators, and taking a cut of every ride booked through its Tesla ridesharing app.
Rivian is taking a different approach, opting to sell its vehicles to robotaxi fleet operators regardless of which ridesharing platforms they intend to use. Uber Technologies, for instance, recently agreed to buy up to 50,000 Rivian R2 SUVs to help scale its robotaxi efforts.
These two different approaches will generate different sales potential and margins. But both could ultimately succeed. Tesla can compete aggressively as a vertically integrated platform. Rivian, meanwhile, is positioning itself as a core supplier to robotaxi operators that lack internal manufacturing capabilities.
The market seems very bullish on Tesla's approach, yet strangely dismissive of Rivian's opportunity. Given Rivian's potential to scale vehicle sales, improve margins, and sell into the robotaxi market, a long-term market cap well above $30 billion certainly seems possible.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, 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 Rivian Automotive 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 $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% 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 September 30, 2026.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Rivian Stock Is Going to $19 According to This Wall Street Analyst. Here's Why They May Be Right.

Key Points
Getting started investing is one of the most important investing decisions you'll make.
Investing in index funds like those that track the S&P 500 is an easy way to get started.
If you're looking for individual stocks, Viking Holdings has a lot of strengths.
Investing in the stock market is one of the best ways, if not the best, to build long-term wealth, and starting to invest is an excellent decision. The S&P 500 (SNPINDEX: ^GSPC), the closely watched index that tracks 500 of the biggest U.S. stocks, has historically returned an average of 9% per year, easily outpacing inflation and other asset classes like bonds and real estate.
For new investors, it's important to understand that that 9% gain is an average, and investing in the stock market comes with a lot of volatility. That means that the index doesn't just steadily gain 9% each year. You might have one year where you gain 30%, but then lose 25% the next year. That is normal, and investors must understand that the best way to make the stock market work for you is to invest over the long term, which means a time horizon of at least five years.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Now, let's review some of the basics to get started investing.
How to start investing
If you're ready to start investing, the first thing you'll need is a brokerage account. You can get one through a number of platforms, including Robinhood, E*TRADE from Morgan Stanley, Interactive Brokers, Charles Schwab, Fidelity, and others.
You can set up a taxable brokerage account, or an individual retirement account (IRA), which offers tax-saving benefits if you're investing to save for retirement, or you can have both.
Once you have an account you've funded with money you're planning to invest, you must decide what to invest in. An easy choice, especially for beginning investors, is to invest in an index fund. This is an exchange-traded fund, meaning you can buy and sell it like a stock, that holds all of the stocks in a certain index, like the S&P 500. In fact, some of the most popular index funds are S&P 500 funds like the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF. Investors who are more interested in tech stocks may want to buy shares of the Invesco QQQ Trust, an index fund that tracks the Nasdaq-100, which holds the 100 biggest companies in the Nasdaq, and is dominated by tech stocks.
One growth stock I'd buy now
You can also invest in individual stocks, which generally carry more upside potential than an ETF, but also greater risk.
One growth stock that I find particularly attractive right now is Viking Holdings (NYSE: VIK), the parent of Viking Cruises.
Viking went public in 2024 and has delivered a string of results showing solid growth and profits. The company also has a number of competitive advantages. Its cruises are differentiated from the offerings of larger cruise lines like Carnival. Viking predominantly focuses on Europe, while most cruise vacations sail around the Caribbean. Viking also aims for a more relaxed, sophisticated experience, as it doesn't allow children, and avoids some of the typical cruise activities like casinos and art auctions. Instead, Viking offers more intellectual activities like lectures and cooking classes. Additionally, all of its rooms have windows, another reason its cruises tend to get high reviews from passengers.
Viking is well-positioned to benefit from ongoing growth in the travel market, and since it caters to an older audience, primarily baby boomers, it's more cushioned from inflation and other consumer pressures.
Viking is also fairly valued, trading at a similar valuation to the S&P 500. Overall, the company combines solid growth and profits with long-term potential at a reasonable price, and it has a business model any investor can understand.
It's a good choice for anyone starting out investing or who's looking for an outperformer.
Should you buy stock in Viking right now?
Before you buy stock in Viking, 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 Viking 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 $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% 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 September 30, 2026.
Charles Schwab is an advertising partner of Motley Fool Money. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group, Vanguard S&P 500 ETF, and Viking. The Motley Fool recommends Carnival Corp. and Charles Schwab and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.

How to Start Investing in 2026: The Growth Stock I'm Buying Before Year-End

Key Points
Morgan Stanley projects capex at the five largest U.S. tech companies to reach $1.4 trillion in 2028.
Iren has the assets to become a leading AI cloud provider, with analysts projecting a massive jump in profitability in three years.
Vertiv sees revenue growing at least 20% annually through 2030, with analysts expecting 38% annualized earnings growth.
Some of the largest tech companies are investing heavily in building data centers to meet the insatiable demand for artificial intelligence (AI) services. Morgan Stanley expects capital spending by the top hyperscalers to reach $1.4 trillion by 2028.
Investors can still find attractively valued stocks that could soar over the next several years. Two data center stocks that appear reasonably priced relative to their growth potential are Iren (NASDAQ: IREN) and Vertiv (NYSE: VRT).
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
1. Iren: A vertically integrated AI cloud
Shares of Iren have surged more than 1,000% over the past three years, and it's not hard to see the stock continuing to push to new highs. Iren is building an artificial intelligence (AI) cloud platform from the ground up: It owns the land, controls the power, and uses in-house construction and engineering teams to build its facilities. These assets are hard to replicate. Iren also recently completed the acquisition of Mirantis, adding software capabilities to complement its data center hardware.
Iren isn't just building data centers. The Mirantis deal shows Iren is positioning to become a leading AI cloud infrastructure provider over the long term -- and that ambition still isn't reflected in the stock's $19 billion market value.
The company is currently at $1 billion in annualized revenue, with management guiding to $4 billion by the end of 2026. Contract pricing for capacity is also moving higher. Recent three-year contracts have cleared more than $20 million of revenue per IT megawatt, with current discussions pointing to $25 million per megawatt.
Iren has a pipeline of more than 5 gigawatts, which translates into tens of billions in long-term revenue potential. It just delivered the first of four 50-megawatt liquid-cooled units to Microsoft as part of a previously announced five-year, $9.7 billion deal from October 2025. The next deployments are expected in the fourth quarter of 2026.
That first delivery validates Iren's ability to execute complex projects -- a must-have capability in today's market. It also reinforces the strength of Iren's vertically integrated approach, which could help it build faster, hit timelines, and win more large-scale contracts.
Wall Street analysts expect adjusted operating profit to reach $10.7 billion by fiscal 2029. Against an enterprise value (market cap plus net debt) of about $19 billion, the stock looks cheap. Investors who are able to hold through near-term volatility could be rewarded.
2. Vertiv: A leader in power management and cooling
Vertiv helps data centers manage power usage and keep chips running efficiently with advanced cooling systems, including liquid cooling. The company's revenue growth has strengthened over the past three years, pushing the stock up 596%.
As server racks draw more power and generate more heat, Vertiv can sell more equipment to each data center. Over time, that can translate into higher revenue per build-out -- and stronger margins as demand shifts toward more complex, higher-value systems.
In the recent quarter, revenue grew 24% year over year, with adjusted operating profit margin above 22%. Management is seeing a strong data center market that's expanding geographically, with smaller frontier AI labs maturing into larger customers with bigger spending budgets. These trends support Vertiv's growth outlook.
That backdrop is why management now guides for long-term annualized revenue growth of 20% to 22% through 2030, up from its prior 12% to 14% outlook. It also expects adjusted operating margin to improve to at least 27%, which would drive faster earnings growth.
Management's confidence reflects broad demand -- from individual products like switchgear to full-system designs through offerings like OneCore and SmartRun. That end-to-end footprint can deepen customer relationships and increase long-term stickiness.
Wall Street expects long-term earnings growth of 38% annually. If that plays out, investors could see strong returns even with the stock trading at around a forward price-to-earnings multiple of 37.
Should you buy stock in Iren right now?
Before you buy stock in Iren, 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 Iren 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 $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% 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 September 26, 2026.
John Ballard has positions in Iren. The Motley Fool has positions in and recommends Microsoft and Vertiv. The Motley Fool has a disclosure policy.
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2 Data Center Stocks That Could Help Make You a Fortune

Key Points
Stocks of companies in the electric vertical takeoff and landing business are burning cash as profit expectations are pushed further into the future.
Both Joby and Archer aimed for commercial operations in 2025, but neither achieved that goal.
It's no secret that this has been a brutal year for electric vertical takeoff and landing (eVTOL) investors, with stocks of all the leading players, including Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR), down sharply. Here's a look at why, and what could lead eVTOL stocks to come back into favor.
A difficult 2026 for eVTOL stocks
Without a doubt, the key to regaining some of the ground lost in the chart below is Federal Aviation Administration certification, followed by the launch of commercial operations. I will return to this point in a moment, but first, it's worth noting that the disappointing share price performance this year isn't solely due to FAA certification.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Certification in itself is critical, but any further delay in profitability may increase cash-burn rates for money-losing companies, which may well have to raise capital amid rising interest rates, with investor appetite waning.
Not just a certification issue
In addition, expectations for the commercial viability of a key part of eVTOL's business model, providing passenger transportation to airports, were called into question.
Delta Air Lines has partnered with Joby Aviation, and United Airlines has partnered with Archer Aviation. As such, investors were disappointed in March when United's chief executive officer, Scott Kirby, reportedly made negative remarks about the potential for eVTOLs to fly into congested airports.
The subject matter came up again recently at the Morgan Stanley Annual Laguna Conference, where, according to S&P Global Market Intelligence, United Airlines Chief Financial Officer Michael Leskinen noted that "air traffic control is a really difficult problem," particularly at the kind of congested airports where eVTOL passengers will get the most utility. However, he said United would continue to work toward solutions on the matter, noting: "How we evolve that into congested airspace is something that's going to take a few more years."
This kind of commentary is a concern because airport shuttles are widely believed to be relatively easy and early revenue generators for eVTOL companies.
FAA certification timelines
To be sure, there's still a powerful case for eVTOL stocks, and the sell-off is arguably creating a good buying opportunity. That case will inevitably be strengthened should Joby or Archer achieve certification for their eVTOLs, because profit timelines appear to have been pushed back.
For example, in February 2024, Joby's CEO JoeBen Bevirt said the company's accomplishments "kept us moving steadily toward our goal of launching commercial passenger operations in 2025." To be fair, that assumption included a potential launch in Dubai. However, Joby does not yet have a commercial passenger operation in service in the U.S. or Dubai, let alone FAA certification.
Archer's management told investors that "the goal of the company is to commence commercial operations in 2025" at a Barclays investor conference in May 2024. Like Joby, Archer doesn't yet have a commercial passenger service in operation.
To be clear, neither company is responsible for making decisions on behalf of the FAA or other regulatory bodies, and delays are part and parcel of the aviation world. Still, if investors have priced commercial operations into their assumptions, then they would likely have been disappointed by events.
Why FAA certification matters
Achieving FAA certification is likely to change the narrative around the companies, shifting them from unprofitable, cash-burning, speculative investments operating under regulatory uncertainty to growth companies on the cusp of scaling operations and production in line with end-market growth.
Certification will also de-risk their business models, create order opportunities, and increase their ability to raise capital if necessary. It's the one major catalyst both Joby and Archer Aviation can deliver on, and the good news is they are both making progress to that end.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, 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 Joby Aviation 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 $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,657!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% 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 September 25, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc and Delta Air Lines. The Motley Fool has a disclosure policy.

The eVTOL Trade Has Been Deflating for Months. Here's the 1 Catalyst That Could Reverse It.

Key Points
SpaceX is chasing a $28.5 trillion market opportunity in the near term.
Long term, the markets it plans to pursue could be considerably larger.
SpaceX (NASDAQ: SPCX) is one of the most intriguing companies to ever go public, and its upside potential could be big. Led by Elon Musk, the company is looking to disrupt industries and create entirely new ones.
While Musk is a polarizing figure, one thing is undeniable: He is a visionary. And he has huge ambitions for SpaceX, saying the company will eventually be worth more than Earth itself.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Chasing a $28.5 trillion opportunity
In its IPO prospectus, SpaceX said it is chasing a current $28.5 trillion opportunity, which it called the largest in human history. While its opportunities in the space ($370 billion), the broadband ($870 billion), and mobile ($740 billion) connectivity markets with Starlink are sizable, most of its total addressable market (TAM) is centered around artificial intelligence (AI).
Within AI, it sees digital advertising as a $600 billion market, with subscriptions adding another $760 billion to its TAM. Meanwhile, it views AI infrastructure as a $2.4 trillion market opportunity. The bulk of its TAM, though, is in the $22.7 trillion enterprise applications market. This figure comes from the Digital Cooperation Organization's estimate of the total digital economy in 2026 and covers areas such as AI automation, AI agents, cloud computing, cybersecurity, and enterprise applications.
Within its TAM, SpaceX's biggest near-term growth drivers appear to be satellite internet service through Starlink, AI infrastructure, and AI coding following its $60 billion acquisition of Cursor. Starlink is a recurring revenue subscription business that is growing quickly. Its number of subscribers doubled year over year last quarter to 12 million, while its connectivity revenue surged 66%. The company is seeing strength both in the enterprise & government space (108% revenue growth) and consumer segment (44% revenue growth).
Its AI segment has been its fastest-growing, led by AI infrastructure, while Cursor will add a fast-growing AI coding platform. In Q2, its AI solutions & infrastructure skyrocketed to $2.19 billion, up from $475 million in Q1 and $311 million a year ago. The company is adding compute capacity quickly and recently announced that it signed a $1.1 billion a month AI hosting deal.
Acting largely as a short-term rental option for compute capacity, SpaceX is seeing exceptionally strong economics in a compute capacity-constrained environment. It said it is seeing a payback within a year on its AI infrastructure investments, which is considerably shorter than the two- to three-year payback period cloud leader Amazon has discussed.
Longer term, SpaceX has big ambitions that include putting data centers in space, point-to-point terrestrial travel, asteroid mining, energy production and manufacturing on the moon and Mars, and even space tourism. However, they are unlikely to contribute any significant revenue in the next five years.
What a $1,000 investment could be worth in five years
Based on the current consensus, analysts see SpaceX's revenue surging to close to $852 billion by 2031. That is below Musk's claim that the company could hit $1 trillion in revenue by 2030. It is also worth noting that this comes from only four analyst forecasts and that the range is quite wide, going from a $493 billion estimate to slightly over $1 trillion.
Musk's other company, Tesla, meanwhile, settled into a price-to-sales (P/S) ratio of approximately 5 times about five years after its market debut. Using the low and high ends of analyst revenue projections would value SpaceX at a market cap between $2.47 trillion and $5 trillion, with the stock valued at $4.26 trillion at consensus.
Given SpaceX's future heavy capex spending, you'll have to assume share dilution, and Morgan Stanley initially modeled its diluted share count rising to nearly 13 billion. That would value its stock price between $190 and $384, with the consensus at $328.
That's more than double its current price, turning a $1,000 investment into more than $2,000. However, given the nature of the company, there is a wide range of outcomes going forward.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, 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 Space Exploration Technologies 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 $389,154!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,303!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 214% 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 September 24, 2026.
Geoffrey Seiler has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool has a disclosure policy.

Indicator	Mar 26	Apr 26	Jun 26	Jul 26	Aug 26	TTM	Median
P/E	14.75	—	16.81	17.01	—	17.01	12.91
Price/Sales	2.09	4.11	2.55	—	—	2.55	2.16
P/B	2.23	2.73	2.78	2.88	—	2.88	1.22
P/FCF	0.00	0.00	0.00	—	0.00	0.00	10.38

Indicator	Mar 26	Apr 26	Jun 26	Jul 26	Aug 26	TTM	Median
ROE	15.62	—	17.13	—	—	17.13	11.06
ROA	1.22	—	1.29	—	—	1.29	1.27
ROI	3.83	—	4.11	—	—	4.11	7.63
Net Worth	256.56	300.37	326.19	330.15	334.70	334.70	1.01
Quick Ratio	0.00	—	0.00	—	—	0.00	1.42
Current Ratio	0.77	—	0.79	—	—	0.79	0.98

Indicator	Mar 26	Apr 26	Jun 26	Jul 26	Aug 26	TTM	Median
Net Profit Margin	23.82	—	—	—	—	23.82	17.62
Operating Margin	31.87	—	33.50	—	—	33.50	25.00
Gross Margin	93.59	—	93.61	—	—	93.61	71.98
Return on tangible equity	19.62	—	21.43	—	—	21.43	12.85

Indicator	Mar 26	Apr 26	Jun 26	Jul 26	Aug 26	TTM	Median
EPS	3.43	3.43	3.46	3.46	—	3.46	0.71
EPS Forecast	3.06	3.06	2.89	2.89	—	2.89	0.73
Revenue	20.58B	—	21.35B	—	—	21.35B	90.00M
Gross Profit	19.32B	—	19.88B	—	—	19.88B	—
EBITDA	7.73B	—	8.55B	—	—	8.55B	—

Morgan Stanley

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