Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.

Microsoft looks like a high-quality but already expensive business: operating profitability and overall profitability remain outstanding, but the market valuation is clearly ahead of the sector. P/E is below the sector median, but P/S, P/B, and especially P/FCF are significantly higher, which suggests that investors are already pricing in a high level of sustainable growth and monetization. At the same time, the net profit margin of around 40%, operating margin of nearly 47%, ROE above 33%, and ROA of about 19% confirm exceptional capital efficiency. The year-by-year trends in revenue, gross profit, EBITDA, and operating income are generally positive, supporting the company’s fundamental valuation. The balance sheet looks strong: debt-to-equity is very low, long-term debt is moderate, and equity and assets are growing. On the other hand, liquidity is not ideal: the current ratio and quick ratio are below industry benchmarks, and the cash position has declined compared with previous periods. This does not look like stress, but it does limit the margin of safety compared with more liquid companies. Dividend yield is almost zero, so the dividend factor does not provide meaningful support to the valuation. Overall, the fundamentals justify a premium to the market for quality, but current multiples already reflect most of the business’s strengths. For an investor, this means that upside from re-rating is limited, and a moderate revision of expectations is more likely than a substantial increase in the target price. The strengths are high margins, profit growth, and very low leverage; the weaknesses are expensive multiples and less-than-ideal short-term liquidity.

Microsoft Corporation

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Сильный индекс, без изменений. Медведи в растерянности.

Strong index, flat. The bears are confused.

Средний индекс, значительно вырос. Рынок на стороне быков.

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

Средний индекс, значительно упал. Рынок не поддерживает медведей.

Medium index, significantly down. The market does not support the bears.

Средний индекс, значительно упал. Отток средств из лонгов резко увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased sharply and is at a high level.

Средний индекс, значительно вырос. Приток средств в шорты увеличился и находится на высоком уровне.

Medium index, significantly up. The inflow of funds into shorts has increased and is at a high level.

Microsoft demonstrates strong profitability and low debt, but trades at a high premium on P/S, P/B, and P/FCF, so the potential for valuation upside is limited.

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in NVIDIA Corp (Symbol: NVDA), where a total of 1.7 million contracts have traded so far, representing approximately 171.1 million underlying shares. That amounts to about 161.8% of NVDA's average daily trading volume over the past month of 105.8 million shares. Particularly high volume was seen for the $215 strike call option expiring October 23, 2026, with 229,507 contracts trading so far today, representing approximately 23.0 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $215 strike highlighted in orange:
Microsoft Corporation (Symbol: MSFT) saw options trading volume of 262,544 contracts, representing approximately 26.3 million underlying shares or approximately 122.6% of MSFT's average daily trading volume over the past month, of 21.4 million shares. Especially high volume was seen for the $525 strike call option expiring October 23, 2026, with 33,376 contracts trading so far today, representing approximately 3.3 million underlying shares of MSFT. Below is a chart showing MSFT's trailing twelve month trading history, with the $525 strike highlighted in orange:
And Vertiv Holdings Co (Symbol: VRT) options are showing a volume of 53,970 contracts thus far today. That number of contracts represents approximately 5.4 million underlying shares, working out to a sizeable 100.3% of VRT's average daily trading volume over the past month, of 5.4 million shares. Especially high volume was seen for the $185 strike put option expiring November 20, 2026, with 10,851 contracts trading so far today, representing approximately 1.1 million underlying shares of VRT. Below is a chart showing VRT's trailing twelve month trading history, with the $185 strike highlighted in orange:
For the various different available expirations for NVDA options, MSFT options, or VRT options, visit StockOptionsChannel.com.
Further NVDA Research:

Notable Friday Option Activity: NVDA, MSFT, VRT

Key Points
Nuclear energy is experiencing a global revival, driven by energy security, decarbonization efforts, and soaring electricity demand.
Uranium supplies are struggling to keep pace as inventories shrink and utilities compete to secure long-term fuel contracts.
Uranium prices could remain near $100 per pound, benefiting producers such as Cameco and Uranium Energy.
The nuclear revival is gaining momentum. Governments worldwide are turning to nuclear energy to strengthen energy security. Meanwhile, hyperscalers need reliable, around-the-clock power to support surging electricity demand. Nuclear energy stands out for its emission-free, 24/7 baseload power, unlike intermittent renewables.
That combination is strengthening the outlook for nuclear energy and its essential fuel, benefiting uranium miners like Cameco (NYSE: CCJ) and Uranium Energy (NYSEMKT: UEC). With spot prices near $90 per pound and approaching historic highs, investors are asking a crucial question: Where does uranium go from here? Here's what I predict will happen to uranium next.
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 »
New nuclear reactors are coming online at a rapid rate
In the mid-2000s, nuclear energy was enjoying a resurgence. However, economic shifts, project delays, and the 2011 Fukushima disaster derailed this momentum and delivered a final blow to the industry for a decade.
However, things have shifted recently. At COP28 in 2023, over 20 nations, including the U.S., U.K., Japan, Canada, South Korea, and France, pledged to triple global nuclear energy capacity by 2050. The driving force behind this pledge was net-zero carbon-emission goals, which would be nearly impossible without nuclear energy.
China is leading the charge, with 38 commercial reactors under construction. The country aims to approve 10 to 15 gigawatts (GW) of new capacity annually and hopes to surpass the U.S. in nuclear generation by the end of the decade. In Japan, reactor restarts are working through regulatory approval. Meanwhile, in the U.S., power purchase agreements are bringing decommissioned plants, such as Three Mile Island Unit 1 and Palisades, back online.
In addition, President Donald Trump's administration wants to quadruple nuclear energy capacity by 2050. As part of this, policymakers want to have 10 new large-scale commercial nuclear reactors under construction by 2030. The Department of Energy is also fast-tracking testing of advanced nuclear reactors through its Reactor Pilot Program.
Uranium faces structural shortages as demand surges
Nuclear fuel procurement differs from oil and gas. Nuclear fuel accounts for no more than 10% of a plant's operating expense, so utility fuel buyers are price-insensitive and lock in long-term supplies. After Fukushima, utilities could secure cheap secondary supplies and rely on the spot market for uranium. However, buyers are now looking to secure fuel commitments for the next decade.
Uranium markets are reaching an inflection point. Inventories have dwindled, so buyers must rely on the primary mine supply. The market is facing bottlenecks. For example, in Kazakhstan, which accounts for 40% of global output, in situ recovery (ISR) mining operations have been hampered by shortages of sulfuric acid.
On top of that, energy demand is booming. Rising artificial intelligence (AI) workloads and growing data center infrastructure are driving incredibly strong demand for power. Total data center power consumption is projected to double by 2030, while total U.S. electricity demand is estimated to expand 25% by 2030.
Technology companies are making deals left and right to secure energy. Constellation Energy (NASDAQ: CEG), which owns and operates the largest nuclear energy fleet in the U.S., has signed long-term power purchase agreements with Alphabet, Amazon, Microsoft, and Walmart.
As part of this, Constellation, Vistra, and other power providers are using power uprates to extend the life of their nuclear plants and bring decommissioned plants back online.
What's next for uranium prices
Uranium prices are around $90 per pound, but supplies are likely to remain tight over the next decade. Utilities face a widening uncommitted supply gap, with cumulative uncommitted uranium requirements estimated to exceed 800 million pounds of triuranium octoxide, also called yellowcake, through 2035.
Spot uranium prices will likely remain elevated around $100 per pound for the next few years, as demand surges amid the deficit, with some experts arguing this is necessary to justify the investments needed to finance the next generation of underground and open-pit mines. Bank of America projects uranium could jump to $130 per pound by next year, a nearly 44% increase over today's spot price.
Global energy demand is growing, and nuclear energy is poised to play a crucial role in filling those gaps, benefiting uranium miners. Cameco uses long-term contracts and has agreements to deliver 28 million pounds of yellowcake annually over the next five years. Meanwhile, Uranium Energy is completely unhedged, giving investors exposure to rising spot prices but also adding volatility if spot prices decline meaningfully.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. If you’d invested $5,000 then, you’d be sitting on $2,885,382 today.*
Now, for the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. It’s a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.
*Stock Advisor returns as of October 22, 2026.
Courtney Carlsen has positions in Alphabet, Cameco, Constellation Energy, Microsoft, and Vistra. The Motley Fool has positions in and recommends Alphabet, Amazon, Cameco, Constellation Energy, Microsoft, Vistra, and Walmart. The Motley Fool has a disclosure policy.

Uranium Is Near $90 a Pound. Here's My Prediction for What's Ahead for the Fuel.

Key Points
Anthropic and OpenAI helped kickstart the artificial intelligence (AI) revolution with their generative models, Claude and ChatGPT, respectively.
Both companies are valued near $1 trillion ahead of their rumored initial public offerings.
Alphabet is a savvy way to gain exposure to OpenAI and Anthropic at a much lower cost.
The artificial intelligence (AI) revolution has produced two of the fastest-growing start-ups in history. OpenAI burst onto the scene in late 2022 when it launched ChatGPT, introducing consumers around the world to generative AI. Meanwhile, Anthropic has emerged as a formidable competitor with its Claude models.
Both companies' growth has been extraordinary. Following a $122 billion funding round in March, OpenAI reached a valuation of $852 billion, while Anthropic was valued at $965 billion after its Series H round in May. Naturally, AI investors are eager to know when they can buy shares.
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 »
Anthropic confidentially filed for an initial public offering (IPO) in June and could make its public debut as soon as next month. OpenAI has also explored going public, although its timing remains uncertain.
Here's an interesting alternative: Rather than waiting for either company to go public at a valuation approaching the trillion-dollar milestone, investors can buy Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) instead. Alphabet stands to benefit regardless of which AI developer ultimately wins. Read on to learn why.
Google Cloud already benefits from OpenAI and Anthropic
One of Alphabet's quiet advantages is that it doesn't need its Gemini AI models to beat ChatGPT or Claude. That reason is Google Cloud provides compute infrastructure to its competitors. In May 2025, OpenAI agreed to use Google Cloud's capacity to train and deploy its AI models.
This relationship is particularly interesting because up to that point, OpenAI was primarily tied to Microsoft Azure. Adding Google provided OpenAI with an alternative source of AI compute while giving Alphabet a hyperscaler customer whose infrastructure requirements are enormous.
Anthropic's relationship with Google runs even deeper. In October 2025, Anthropic announced its use of Google's custom silicon, called Tensor Processing Units (TPUs). In April, this relationship was expanded to include multiple gigawatts of TPU capacity expected to come online in 2027.
These arrangements create an attractive business model for Alphabet because the company can develop AI products for consumers while simultaneously supplying infrastructure that competing enterprises need.
The strategy is already producing impressive results. During the second quarter, Google Cloud revenue surged 82% year over year to $24.8 billion. While not all of that growth came from OpenAI and Anthropic, their expanding infrastructure commitments underscore why Google Cloud should remain a major beneficiary of the AI boom.
Alphabet is sitting on a generational multibagger
Alphabet isn't just an infrastructure partner to Anthropic. It's also one of the company's largest investors. Google initially invested in Anthropic in 2023. But by early 2026, Alphabet had invested roughly $3 billion in Anthropic and owned an estimated 14% equity stake. In April, Google announced plans to invest up to another $40 billion. The deal was structured to include an initial $10 billion commitment, with an additional $30 billion contingent on Anthropic meeting certain performance milestones.
Why is Google investing so heavily in a company whose generative models compete directly with Gemini?
The answer is simple: Alphabet is positioned to benefit from Anthropic's success in multiple ways. First, its equity investment will appreciate as Anthropic's valuation increases. Additionally, Anthropic is a major customer for Google's cloud infrastructure and custom AI chips. Third, Google's tie-up with Anthropic gives it exposure to an alternative AI ecosystem, reducing its dependence on Gemini emerging as the industry's go-to model.
This is an unusually versatile position to be in. If Anthropic goes public at its reported $2 trillion valuation, a hypothetical 14% stake would be worth $280 billion. This shows how Alphabet can participate in one of the largest IPOs in history without investors needing to lift a finger and buy Anthropic stock directly.
Alphabet is less speculative than an IPO stock
OpenAI's valuation of $852 billion represents approximately 17 times its reported $50 billion annualized revenue run rate. Meanwhile, Anthropic's $965 billion valuation represents 14 times its Q3 annualized revenue run rate of $67.2 billion. At a $2 trillion IPO valuation, Anthropic would trade at nearly 30 times its current revenue run rate.
These are enormous premiums, especially considering the capital expenditures required to develop advanced AI. Moreover, OpenAI remains unprofitable while Anthropic recently reported a small profit on an adjusted operating basis.
Alphabet offers a much different financial profile. During Q2, the company generated $120 billion in revenue and roughly $40.8 billion in operating income. Alphabet stock trades around a 23 times forward price-to-earnings (P/E) ratio -- a relatively reasonable valuation considering its established and highly profitable advertising and cloud businesses.
While OpenAI and Anthropic could become respected public companies, their anticipated valuations already reflect high expectations. Alphabet offers investors exposure to both AI developers through Google Cloud, an existing equity stake in Anthropic, and its own growing AI ecosystem. Combined with its AI-driven revenue and robust profitability, I see Alphabet as the more compelling AI stock to buy and hold ahead of these anticipated mega-IPOs.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, 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 Alphabet 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 20, 2026.
Adam Spatacco has positions in Alphabet and Microsoft. The Motley Fool has positions in and recommends Alphabet and Microsoft. The Motley Fool has a disclosure policy.

Not Anthropic. Not OpenAI. This Is the Artificial Intelligence (AI) Stock I'd Buy Before the Next Mega-IPO.

The S&P 500 Index ($SPX) (SPY) is up by +0.57% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.11%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.52%. December E-mini S&P futures (ESZ26) are up +0.58%, and December E-mini Nasdaq futures (NQZ26) are up +1.51%.
Stock indexes are mostly higher today, with chipmakers and AI-infrastructure stocks leading the broader market higher after last week’s selloff. Earnings optimism is lifting stocks ahead of this week's earnings results from Meta Platforms, Tesla, and Netflix. Also, weaker crude oil prices today have improved market sentiment and are supportive of stocks.
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On the downside, homebuilders are under pressure after today’s US economic news showed the Oct NAHB housing market index fell 3 points to a 14-year low of 29, below expectations of 31.
Mostly better-than-expected Chinese economic news is positive for global growth prospects and stocks. China Q3 GDP rose +1.2% q/q and +4.5% y/y, stronger than expectations of +1.0% q/q and +4.4% y/y. Also, China's Sep industrial production rose +5.5% y/y, right on expectations and the largest increase in 6 months. In addition, China's Sep retail sales rose +1.1% y/y, stronger than expectations of +0.5% y/y and the largest increase in 6 months. Finally, China's Sep surveyed jobless rate unexpectedly fell -0.1 to 5.2%, below the expected 5.3% and signaling a stronger labor market. On the downside, China's Sep new home prices fell -0.14% m/m, the fortieth consecutive month of declines.
Stocks have support from the prospect of solid quarterly earnings results. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of today, 45 of the S&P 500 companies have reported results, with 80% beating estimates.
Nov WTI crude oil prices (CLX26) are moving lower today on some profit-taking after last week's rally to a 5-week high. US Energy Secretary Wright said Persian Gulf oil flows have recovered to about 80% of their pre-war level, though refined-product shipments remain constrained. Crude oil prices have underlying support from concerns about disruptions to Middle Eastern energy supplies after Houthi rebels in Yemen targeted Yanbu in Saudi Arabia, a significant Red Sea port for Saudi oil exports that avoids the Strait of Hormuz, with missiles and drones. Also, the UK Maritime Trade Operations reported that two tankers were attacked in the Persian Gulf near Saudi Arabia's port city of Jubail over the weekend.
Markets are discounting a 17% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell to a 1-week low today and is down -1.18%. China's Shanghai Composite closed up +0.39%. Japan's Nikkei-225 Stock Average fell to a 1-month low and closed down -0.62%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -4 ticks. The 10-year T-note yield is up +3.2 bp to 5.127%. Today’s stock rally has reduced safe-haven demand for government debt, weighing on T-notes. Losses in T-notes are limited amid some safe-haven buying due to the social unrest in France. Weaker WTI crude oil prices today are also lowering inflation expectations and supporting T-notes.
European government bond yields are moving higher today. The 10-year German bund yield is up +3.6 bp to 3.462%. The 10-year UK gilt yield is up +5.7 bp to 5.430%.
The German Bundesbank said in a report today that "inflation risks in the Eurozone are clearly tilted to the upside."
Markets are discounting an 8% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks are moving higher today, recovering some of last week’s rout. The iShares Semiconductor ETF (SOXX) is up more than +2%. SanDisk (SNDK) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100, and Western Digital (WDC) is up more than +6%. Also, Marvell Technology (MRVL) is up more than +5%, and Intel (INTC), Seagate Technology Holdings Plc (STX), Lam Research (LRCX), and Micron Technology (MU) are up more than +4%. In addition, Advanced Micro Devices (AMD) and Applied Materials (AMAT) are up more than +3%, and Analog Devices (ADI), KLA Corp (KLAC), Broadcom (AVGO), and Qualcomm (QCOM) are up more than +2%.
The Magnificent Seven stocks, excluding Meta, are up today, supporting broader market gains. Amazon.com (AMZN) is up more than +4% to lead gainers in the Dow Jones Industrials, and Tesla (TSLA) is up more than +3%. Also, Nvidia (NVDA), Alphabet (GOOGL), and Microsoft (MSFT) are up more than +1%. In addition, Apple (AAPL) is up +0.14%. Conversely, Meta Platforms (META) is down -0.87%.
Cloud infrastructure stocks are climbing today. Applied Digital (APLD) is up more than +8%, and Nebius Group NV (NBIS) and Lumentum Holdings (LITE) are up more than +3%. Also, CoreWeave (CRWV) and Arista Networks (ANET) aew up more than +2%, and Oracle (ORCL) is up more than +1%.
Home builders and building supplies are slipping today after the US Oct NAHB housing market index fell more than expected to a 14-year low. DR Horton (DHI) and Pulte Group (PHM) are down more than -2%, and Lennar (LEN), KB Home (KBH), Toll Brothers (TOL), and Builders Firstsource (BLDR) are down more than -1%.
Disc Medicine (IRON) is up more than +39% after announcing that its investigational drug bitopertin met all primary and secondary endpoints in a Phase 3 Apollo trial in adults and adolescents with erythropoietic protoporphyria.
Cleveland Cliffs (CLF) is up more than +13% after reporting Q3 adjusted Ebitda of $612 million, above the consensus of $591.5 million.
Datadog (DDOG) is up more than +5% after Bernstein upgraded the stock to outperform from market perform with a price target of $350.
NRG Energy (NRG) is down more than -5% to lead losers in the S&P 500 after Jeffries cut its price target on the stock to $131 from $160.
Ameriprise Financial (AMP) is down more than -3% after Bank of America Global Research double-downgraded the stock to underperform from buy with a price target of $445.
Earnings Reports (10/19/2026)
AGNC Investment Corp (AGNC), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Fifth Third Bancorp (FITB), FNB Corp/PA (FNB), RLI Corp (RLI), Steel Dynamics Inc (STLD), W R Berkley Corp (WRB), Western Alliance Bancorp (WAL), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Strength in Chipmakers and AI-Infrastructure Stocks Lead the Broader Market Higher

Key Points
The S&P 500 has consistently outperformed most stocks and actively managed funds.
It’s still a safe place to park any cash you don’t need right away.
The S&P 500 (SNPINDEX: ^GSPC) has generated an average annual total return of about 10% since its inception in 1957. However, the index has also gone through some wild swings over the past seven decades -- and those downturns shook out many long-term investors.
Over the past 12 months, the S&P 500 has risen 15% and trades just 2% below its all-time high. It also trades at 21 times forward earnings, compared to its average forward multiple of 17 for the past 25 years. Those numbers suggest it might not be the best time to invest in the S&P 500 via an exchange-traded fund (ETF) such as Vanguard's S&P 500 ETF (NYSEMKT: VOO).
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 »
However, the S&P 500 has also consistently rewarded investors who simply tuned out the near-term noise, stayed invested through downturns, and focused on the long-term gains. So should you invest in the S&P 500 today, even though it looks historically expensive?
Why is the S&P 500 such a resilient investment?
The S&P 500 includes the 500 largest companies in the United States. To join that elite club, they must have a market cap of at least $22.7 billion, have been profitable for at least the past four quarters, and have adequate liquidity and trading volume.
A company can't join the index until 12 months after its IPO, and at least 10% of its shares must be publicly traded. It also excludes certain companies -- including master limited partnerships (MLPs), business development companies (BDCs), and closed-end funds (CEFs) -- which don't issue common stock.
The S&P 500 rebalances itself quarterly to add rising stars and prune its laggards, and adjusts their weights based on their market caps. Over the long term, most actively managed funds struggle to outperform the S&P 500's automated indexing strategy.
That's why Vanguard's founder, John Bogle, advised investors to simply "buy the haystack" instead of searching for individual needles. Today, the S&P 500's biggest components include Nvidia (8.4% of the index), Apple (7.4%), Microsoft (5.8%), Amazon (3.7%), and Alphabet (3.1%). That makes it an easy way to gain instant exposure to the country's top companies without having to do too much homework on each stock.
But is there a "right" time to invest in the S&P 500?
The S&P 500 is a balanced investment for long-term investors, but they must be able to withstand double-digit drawdowns without panicking. Over the past two decades, the S&P 500 experienced peak-to-trough declines of 57% from Oct. 2007 to March 2009, 34% from Feb. to March 2020, and 25% from Jan. 2022 to Oct. 2022.
However, the S&P 500 has generated a total return of 686% (including reinvested dividends) since its first trading day in 2007, and a total return of 162% since the first day of 2020. Even if you had invested in VOO on Jan. 3, 2022 -- the day the S&P 500 peaked before the Fed's interest rate hikes crashed the market throughout most of the year -- you'd still be sitting on a total return of 71%. Therefore, investors who sold their stocks during the nadir of each of those downturns are probably kicking themselves for leaving so much money on the table.
So if you plan to stay invested for at least a few more years, you shouldn't worry about timing the perfect entry point. Instead, it's smart to start a position in the S&P 500 today, commit to investing more every month, and let dollar-cost averaging smooth out your long-term gains.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, 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 S&P 500 Index 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.
Leo Sun has positions in Amazon and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

Should You Invest in the S&P 500 Right Now or Wait? There's 1 Clear Answer

Key Points
The Vanguard Information Technology ETF (VGT) has delivered impressive annualized returns of 24.7% for the past 10 years, outperforming the high-flying Nasdaq-100 index.
VGT does not own certain well-known tech names because of their sector classification.
Nvidia, Apple, Microsoft, and Broadcom are four of the five largest holdings in VGT, making up about 49% of the fund’s assets.
When investing in tech exchange-traded funds (ETFs), sometimes it's a good idea to peek under the hood and see what you're really buying within each fund's portfolio. Sometimes there is a lot of overlap from one tech ETF to another. This can make it easier to choose the best tech ETF for your goals, based on which fund holds which mix of stocks and sectors.
The Vanguard Information Technology ETF (NYSEMKT: VGT) is a popular tech fund that holds 318 stocks. It represents a wide range of companies in the electronics and computer industries, including semiconductors, software, hardware, and tech-related services and components. And VGT is a passive index fund, so it doesn't pick stocks -- it just tracks the performance of its tech sector benchmark.
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 »
When you buy VGT, you're going to get a strong concentration of major tech names that are also top holdings in the S&P 500 index (SNPINDEX: ^GSPC) and Nasdaq-100 index. But how much of VGT is just a few major tech stocks that you can buy in other ETFs?
A large percentage of assets of the Vanguard Information Technology ETF is made up of only four big-name tech tickers: Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Broadcom (NASDAQ: AVGO). As of Sept. 30, those four stocks represented about 49% of the VGT fund's assets.
If you feel like VGT is getting too top-heavy with just these four tech names, or you want to own a different mix of stocks, this could affect your investment choices. Let's take a closer look at VGT and its concentration of tech majors NVDA, AAPL, MSFT, and AVGO.
Vanguard Information Technology ETF (VGT): 22 years of 15% annualized returns
The Vanguard Information Technology ETF has delivered strong returns for investors, with average annual returns of 15.03% since the fund's inception in January 2004. It's done even better in the past few years, with about 24.7% annualized returns in the past 10 years, 20.9% in the past five years, 35% in the past three years, and about 35.2% in the past year.
Unlike many popular tech ETFs, VGT is somewhat unique for some of the well-known "Magnificent Seven" tech stocks that it does not own. For example, the VGT fund does not hold Alphabet, Amazon, Meta Platforms, or Tesla. That's because although these companies are frequently described as "tech stocks," they are not technically part of the information technology sector as defined by the MSCI US IMI Information Technology 25/50 Index, which is the benchmark that VGT follows.
But the mix of growth stocks in VGT has been pretty successful. VGT has strongly outperformed the Nasdaq-100 during the past 10 years.
VGT: Concentration of NVDA, AAPL, MSFT, and AVGO (49% of the fund)
The U.S. stock market has become top-heavy with tech stocks in recent years due to major gains from the artificial intelligence (AI) boom. The Vanguard Information Technology ETF is no exception to that trend. But if you're concerned about making too concentrated an investment in just four stocks, this could be worth paying attention to.
Let's look at the top holdings and weights of VGT and see how they compare to typical S&P 500 and Nasdaq-100 index funds.
Stock ETF:
Vanguard Information Technology ETF (VGT)
Vanguard S&P 500 ETF (VOO)
Invesco Nasdaq-100 ETF (QQQM)
Top 10 stock holdings by weight (% of fund)
1. Nvidia: 17.6%
2. Apple: 15.9%
3. Microsoft: 11.2%
4. Micron: 4.45%
5. Broadcom: 4.1%
6. Advanced Micro Devices: 3.7%
7. Intel: 1.98%
8. Cisco: 1.6%
9. Lam Research Group: 1.55%
10. Palantir: 1.55%
(as of Sept. 30)
1. Nvidia: 8.4%
2. Apple: 7.4%
3. Microsoft: 5.8%
4. Alphabet: 5.5% (Class A and Class C shares, combined)
5. Amazon: 3.7%
6. Broadcom: 2.5%
7. Meta Platforms: 2.4%
8. Micron: 1.8%
9. Tesla: 1.5%
10. Advanced Micro Devices: 1.5%
(as of Sept. 30)
1. Nvidia: 8.2%
2. Apple: 7.7%
3. Microsoft: 6.10%
4. Alphabet: 6.06 (Class A and Class C shares, combined)
5. Micron: 4.4%
6. Amazon: 4.2%
7. Advanced Micro Devices: 3.96%
8. Meta Platforms: 3.4%
9. Tesla: 2.97%
10. Space Exploration Technologies: 2.8%
11. Broadcom: 2.54%
(as of Oct. 14)
Combined weight of NVDA, AAPL, MSFT, and AVGO
48.8%
24.1%
24.5%
Expense ratio
0.09%
0.03%
0.15%
Who this fund is good for:
Investors who want a tech ETF that has beaten the Nasdaq-100 for 10 years -- although it's more concentrated in these four stocks.
Investors who want to own the S&P 500 index of the 500 largest publicly traded companies in the U.S. -- including non-tech stocks.
Investors who want to own a tech-heavy ETF of the 100 largest non-financial stocks in the Nasdaq, including some stocks that VGT doesn't own.
If you like the mix of stocks in the Vanguard Information Technology ETF and you're impressed by its long-term track record of beating the Nasdaq-100 index, then VGT could be a good choice. But if you're concerned that VGT is too concentrated in just four stocks (NVDA, AAPL, MSFT, and AVGO), you could own those four stocks with broader diversification just by buying an S&P 500 ETF or a Nasdaq-100 ETF.
Missed AI’s "Act 1"? Act 2 Could Be 14x 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, a massive technology build-out that Google’s CEO says could be more profound than fire or electricity.
While everyone watches the chip designers, one "backbone" company provides the critical technology that Nvidia and AMD literally cannot function without. We’ve detailed this under-the-radar player in our new AI Playbook.
Ben Gran has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Broadcom, Cisco Systems, Intel, Lam Research, Meta Platforms, Micron Technology, Microsoft, Nvidia, Palantir Technologies, Tesla, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

Own VGT? Here's How Much of It Is Really Nvidia, Apple, Microsoft, and Broadcom.

Key Points
QQQ has beaten the market over the past decade.
It provides instant exposure to the Nasdaq-100 for a low fee.
The growth of the cloud and AI markets will drive it even higher.
As interest rates and Treasury yields rise, more investors will likely sell their stocks to buy CDs, T-bills, and other low-risk fixed-income investments. That shift could cause many tech stocks, which were lifted higher by AI tailwinds over the past few years, to pull back sharply.
If that tech sell-off happens, investors should consider buying an exchange-traded fund (ETF) that tracks all of the top tech stocks rather than betting on a single stock's recovery. One of those top ETFs is the Invesco QQQ Trust (NASDAQ: QQQ), which passively tracks the Nasdaq-100. Let's see why it's still a compelling ETF to buy if the market pulls back this year.
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 »
What does QQQ track?
The Nasdaq-100 comprises the 100 largest non-financial stocks in the Nasdaq Composite Index (NASDAQINDEX: ^IXIC). It intentionally excludes financial stocks, which account for roughly 3% of the index, because they're more dependent on interest rate cycles than on innovative new products or organic growth. The index is rebalanced quarterly and reconstituted annually, so it constantly prunes the weaker companies while adding higher-growth ones.
QQQ's top holdings currently include Nvidia (8.1% of its portfolio), Apple (7.7%), Microsoft (6.2%), Micron (4.5%), and AMD (4.2%). Those are also the S&P 500's (SNPINDEX: ^GSPC) biggest non-financial stocks, but QQQ allocates larger slices of its portfolio to each high-growth stock. The QQQ also doesn't include most of the S&P 500's slower-growth blue chip stocks.
Since QQQ is passively managed, it charges only a 0.18% expense ratio. That's much lower than the average expense ratio of 0.44% for actively managed ETFs.
Why will QQQ keep growing?
QQQ's top holdings are all exposed to the secular expansion of the cloud and AI markets. Those tailwinds won't dissipate anytime soon.
According to Grand View Research, the cloud computing and AI markets could grow at CAGRs of 16% and 30.6%, respectively, from 2026 to 2033. If you want to capitalize on those trends but don't have the time to research individual AI chipmakers, cloud infrastructure providers, and AI software makers, it's a good idea to simply buy a basket of the top 100 companies.
Past performance never guarantees future gains, but QQQ has delivered an impressive total return of 549% over the past ten years, beating the S&P 500's total return of 324%. So if you can withstand some near-term volatility and don't plan to withdraw your money from the market for at least a few more years, it's a great idea to accumulate QQQ if the market crashes.
Should you buy stock in Invesco QQQ Trust right now?
Before you buy stock in Invesco QQQ Trust, 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 Invesco QQQ Trust 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.
Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Tech Stock Sell-Off: 1 Unstoppable ETF to Buy on the Dip in 2026

Key Points
Microsoft is devoting about $175 billion to capital expenditures this year.
Its hyperscaler peers are spending even more on their data center build-outs.
Microsoft (NASDAQ: MSFT) is among the big three cloud computing infrastructure providers and is always included in any list of AI hyperscalers. It's heavily pursuing a massive amount of AI computing power for its internal service, Copilot, while also powering other products like OpenAI's ChatGPT through its cloud computing platform, Azure.
To support this growth, Microsoft is investing heavily in data centers. This year alone, it expects its capital expenditures to hit $175 billion, with most of that going toward constructing and equipping data centers. That is leading to strong growth, but what if this growth is actually hurting its business?
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 »
While it may sound odd, Microsoft's business is actually being harmed by the heavy pursuit of its cloud computing empire. Here's why.
Microsoft is spending big
At first, you may imagine that the reason that these capital expenditures are hurting Microsoft is that it could be spending that $175 billion in ways that generate a more direct return for shareholders, such as on share buybacks or dividends. But that's not what I'm talking about. In fact, I'm OK with Microsoft spending big on AI because it needs to evolve its business to adapt to the AI age or risk being left behind.
Moreover, Microsoft's spending is resulting in strong growth. Azure saw its revenue rise 43% during its latest quarter, passing a $100 billion annual run rate. Additionally, Copilot reached 30 million paid seats, indicating strong adoption of the proprietary AI platform. Overall, Microsoft's revenue rose 18% last quarter.
While that's impressive for a company that's as large as Microsoft, there's a major caveat.
Azure's operating margin likely isn't as good as the rest of Microsoft's business
Unfortunately for investors, Microsoft doesn't publicly break out detailed statistics for its individual segments, such as Azure's operating margins. However, Azure's chief competitors, Amazon Web Services (AWS) (NASDAQ: AMZN) and Google Cloud from Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), freely share that information. It's unlikely that Microsoft Azure's margins are much different from theirs, since they operate using essentially the same business model. During the most recent quarter, Google Cloud's operating margin was 36% while AWS' was 39%. So, I think it's highly likely that Azure's operating margins are in the high-30% range.
The problem? Microsoft's operating margin as a whole is well above that range.
So, what does this mean? The more Microsoft invests in its Azure cloud computing business, the more downward pressure this business unit will apply to Microsoft's overall operating margin picture. Investing $175 billion into AI computing capacity may sound like a smart idea, but it will fundamentally shift how Microsoft's operating picture looks five years from now.
Not all growth is created equal, and this lower-margin growth may cause its profits to grow more slowly than revenue.
However, all of this assumes that Azure's operating margins are in line with those of its industry peers, rather than a higher figure like 45%, which would be on par with its overall business. If this is the case, then all of this spending on data centers makes a lot of sense. But if its margins are similar to those of its peers, then it's hurting Microsoft's business.
Regardless, Microsoft needs to spend this money to keep up; otherwise, its cloud business could lose substantial ground to AWS, Google Cloud, and the other players investing heavily in new compute capacity. This puts Microsoft in a bit of a pickle, and it's why I prefer investing in Amazon and Alphabet instead. This could also help explain why No. 2 cloud player Microsoft is a bit more reserved in its spending, with $175 billion budgeted for capital expenditures this year versus No. 3 Alphabet's $200 billion or No. 1 Amazon's $220 billion.
While Microsoft is still a solid AI pick, AI won't have nearly as much of a positive impact on its business as it will on Alphabet and Amazon. I'd rather own those two.
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 $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.
Keithen Drury has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy.

Here's How Microsoft's $175 Billion in Capital Expenditures Is Hurting Its Business

The S&P 500 Index ($SPX) (SPY) closed down by -1.09% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.50%. December E-mini S&P futures (ESZ26) fell -1.14%, and December E-mini Nasdaq futures (NQZ26) fell -2.51%.
Stock indexes sold off sharply on Friday, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 1-month low. Selling in chipmakers and AI-infrastructure stocks led the market lower on Friday, driven by concerns about whether companies will see returns on their huge investments in the AI infrastructure buildout. Also, CoreWeave sank more than -11% to weigh on cloud infrastructure stocks as concerns about the company’s credit risk linger.
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Stock losses accelerated Friday afternoon as crude oil prices soared more than 3% to a 1-month high, raising inflation expectations and fueling fears the Fed will keep raising interest rates to contain inflation.
Higher bond yields undercut stocks after Fed Chair Warsh made no remarks on monetary policy or his outlook for the US economy late Thursday evening at the IMF annual meeting in Bangkok. The 10-year T-note yield rose +1 bp to 5.09%.
Friday’s US economic news was mixed for stocks. The Sep import price index ex-petroleum rose +0.8% m/m, stronger than expectations of +0.6% m/m, the largest increase in 5 months and a sign of price pressures. However, Sep manufacturing production rose +0.3% m/m, right on expectations.
Stocks have support from the prospect of solid quarterly earnings results that began this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of Friday, 40 of the S&P 500 companies have reported results, with 78% beating estimates.
Nov WTI crude oil prices (CLX26) surged more than +3% on Friday to a 1-month high. Crude prices rallied on Friday amid a weaker dollar and concerns that escalating Middle East hostilities could disrupt regional energy supplies. Prices race to their highs Friday afternoon after US lawmakers introduced a bill to block President Trump’s deal with Russia to release several hundred million barrels of diesel fuel.
Markets are discounting a 17% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled higher on Friday. The Euro Stoxx 50 closed up +0.58%. China's Shanghai Composite closed up +0.24%. Japan's Nikkei-225 Stock Average closed up +1.39%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down -2.5 ticks on Friday. The 10-year T-note yield rose +2.7 bp to 5.085%. Dec T-notes were under pressure Friday after Fed Chair Warsh's lack of guidance at the annual IMF meeting in Bangkok weighed on T-notes. Also, Friday’s +3% surge in WTI crude oil to a 1-month high raised inflation expectations and weighed on T-notes. Friday’s stock plunge sparked safe-haven buying of government debt and limited T-note losses.
European government bond yields were mixed on Friday. The 10-year German bund yield rose +1.3 bp to 3.426%. The 10-year UK gilt yield fell -0.2 bp to 5.373%.
ECB Governing Council member and Bundesbank President Joachim Nagel said. "The ECB has raised interest rates twice, and if the situation remains as it is, we don't rule out the possibility that we may have to take further action."
Markets are discounting a 10% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks continued their week-long slide on Friday, weighing on the broader market. Seagate Technology Holdings Plc (STX) closed down more than -7%, and Western Digital (WDC), SanDisk (SNDK), and ARM Holdings Plc (ARM) closed down more than -6%. Also, Advanced Micro Devices (AMD), Micron Technology (MU), Intel (INTC), and Marvell Technology (MRVL) closed down more than -5%, and Lam Research (LRCX), KLA Corp (KLAC), Applied Materials (AMAT), and Broadcom (AVGO) closed down more than -4%. In addition,
CoreWeave (CRWV) closed down more than -11% to weigh on cloud infrastructure stocks as debt concerns linger after swaps priced in more than a 50% chance the company will default on its debt within five years. Also, Nebius Group NV (NBIS) closed down more than -12% to lead losers in the Nasdaq 100, and Applied Digital (APLD) closed down more than -11%. In addition, Lumentum Holdings (LITE) closed down more than -5%, and Oracle (ORCL) and Arista Networks (ANET) closed down more than -4%.
The Magnificent Seven stocks, excluding Apple, fell on Friday and weighed on the overall market. Meta Platforms (META) closed down more than -3%, and Alphabet (GOOGL) closed down more than -2% to lead losers in the Dow Jones Industrials. Also, Tesla (TSLA) closed down more than -2%, and Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA) closed down more than -1%. Apple (AAPL) bucked the trend and closed up +0.43%.
Cybersecurity stocks retreated on Friday. Okta (OKTA) closed down more than -10%, and SentinelOne (S), Fortinet (FTNT), Crowdstrike Holdings (CRWD), and Palo Alto Networks (PANW) closed down more than -7%. Also, Cloudflare (NET) closed down more than -6%, Zscaler (ZS) closed down more than -5%, and Gen Digital (GEN) closed down more than -2%.
Energy producers and service providers rallied on Friday after WTI crude oil rose more than +3% to a 1-month high. APA Corp (APA) closed up more than +4%, and Diamondback Energy (FANG) closed up more than +4% to lead gainers in the Nasdaq 100. Also, ConocoPhillips (COP) and Devon Energy (DVN) closed up more than +3%, and Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones industrials. In addition, Baker Hughes (BKR), ExxonMobil Holdings (XOM), Occidental Petroleum (OXY), and SLB Ltd (SLB) closed up more than +2%, and Halliburton (HAL) and Phillips 66 (PSX) closed up more than +1%.
Defense contractors rose on Friday as the companies are set to benefit from increased defense spending. Northrop Grumman (NOC) closed up more than +4%, and Lockheed Martin (LMT), RTX Corp (RTX), and L3Harris Technologies (LHX) closed up more than +3%. Also, General Dynamics (GD) closed up more than +2%, and Huntington Ingalls Industries (HII) closed up more than +1%.
Defensive food producers moved higher on Friday amid the slump in the broader market. Kraft Heinz Co (KHC), McCormick & Co (MKC), J M Smucker (SJM), Hershey Co (HSY), Hormel Foods (HRL), and Mondelez International (MDLZ) closed up more than +1%.
Omeros (OMER) closed down more than -14% after the European Medicines Agency issued a negative opinion on the company’s application for its narsoplimab therapy.
Earnings Reports (10/19/2026)
AGNC Investment Corp (AGNC), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Fifth Third Bancorp (FITB), FNB Corp/PA (FNB), RLI Corp (RLI), Steel Dynamics Inc (STLD), W R Berkley Corp (WRB), Western Alliance Bancorp (WAL), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stock Indexes Finish Sharply Lower as Tech Stocks Plunge

Key Points
Oracle's remaining performance obligations hit $664 billion, up $209 billion year over year, giving it a long runway for AI cloud growth.
A database foundation and a multicloud strategy let customers add AI to the systems they already use without a disruptive migration.
Heavy data center spending has pushed free cash flow negative, and investors are watching whether Oracle can turn its backlog into profits.
When investors think about cloud computing, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) are often the first names that come to mind. But Oracle (NYSE: ORCL) is also making a strong push into AI infrastructure, and its rapidly growing cloud business offers another way to ride the AI boom.
With $5,000 to put to work today, investors may find Oracle a more compelling cloud choice than either of those giants. The reason starts with how fast its cloud business is growing.
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 »
This database giant is becoming a major force in AI cloud
Oracle may be best known for its database software, which businesses use to store and manage critical information. These days, that established business is laying the foundation for a much bigger opportunity: supplying the cloud infrastructure that other companies need to develop and run AI models.
Oracle's cloud infrastructure business is already seeing solid growth, with revenue climbing 121% to $7.4 billion in its most recent quarter. That suggests its cloud business is becoming an important growth engine rather than simply an extension of its traditional software business.
Its massive backlog, meanwhile, provides a longer runway for growth. Oracle's remaining performance obligations (RPO) reached a record $664 billion, up $209 billion year over year. RPO represents contracted revenue that has not yet been recognized, giving investors a clearer view of the company's future revenue.
That means Oracle is seeing surging demand from customers that need cloud capacity for AI training, applications, and inference. Still, that demand isn't limited to one type of customer, and Oracle is positioning itself to capture several parts of that market.
But with competition picking up, the next question is how Oracle is setting itself apart from the biggest names in the cloud business.
Oracle has a different advantage from its larger cloud rivals
Microsoft Azure and Alphabet's Google Cloud compete across broad cloud ecosystems. However, Oracle's opportunity is somewhat different: it has the luxury of combining its established database business with cloud infrastructure designed for demanding enterprise workflows.
That matters because companies wouldn't want to rebuild their IT systems every time a new AI model arrives. Oracle's database expertise helps here, allowing companies to integrate AI into the systems and data they already rely on without disrupting operations.
Its multicloud strategy also allows customers to access Oracle database services through major cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud. Instead of requiring customers to migrate everything to Oracle's cloud, it can meet businesses where their existing systems reside.
On top of that, Oracle's established software business provides a source of recurring revenue. Its cloud applications include enterprise resource planning, human resources, and supply chain tools that businesses use to run their daily operations.
That combination of AI-driven growth and recurring software revenue gives the company multiple avenues to expand, which only strengthens the bull case for Oracle.
Still, even a strong bull case needs a reasonable price point and manageable risks.
Is Oracle stock a buy after its recent pullback?
A consensus rating for Oracle among 42 analysts is a strong buy, with target prices indicating between 87% (average) and 206% (highest) upside over the next 12 months. Plus, at about 20 times earnings, Oracle doesn't look too expensive, especially considering its rapid cloud growth.
That said, Oracle is spending heavily to build the data centers needed to serve its customers. And that investment is already weighing on its free cash flow, which means Oracle is spending more than its operations generate. Overspending is a real risk, as the concern is whether Oracle can convert its customer commitments into sufficient revenue to deliver a decent return on those investments.
Looking ahead, if Oracle can turn its massive backlog into lasting profits, today's pullback could be an attractive entry point for long-term investors.
Oracle may not get the same attention as Alphabet or Microsoft, but its growing cloud business and expansion into AI make it worth a closer look. With $5,000, investors can gain meaningful exposure to that opportunity.
Should you buy stock in Oracle right now?
Before you buy stock in Oracle, 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 Oracle 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.
Rick Orford has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Oracle. The Motley Fool has a disclosure policy.

Indicator	May 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
P/E	—	20.74	25.89	—	28.57	28.57	33.34
Price/Sales	10.13	8.37	10.44	—	—	10.44	2.86
P/B	7.88	6.26	7.80	—	—	7.80	3.01
P/FCF	—	41.42	51.71	—	—	51.71	23.04

Indicator	May 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
ROE	—	33.22	—	—	—	33.22	14.14
ROA	—	19.42	—	—	—	19.42	6.67
ROI	—	30.68	—	—	—	30.68	10.08
Net Worth	3.09K	2.77K	3.46K	3.82K	—	3.82K	1.02
Quick Ratio	—	—	—	—	—	1.27	1.59
Current Ratio	—	1.23	—	—	—	1.23	1.86

Indicator	May 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
Net Profit Margin	—	40.31	—	—	—	40.31	10.12
Operating Margin	—	46.78	—	—	—	46.78	10.80
Gross Margin	—	67.94	—	—	—	67.94	50.00
Return on tangible equity	—	50.82	—	—	—	50.82	26.05

Indicator	May 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
EPS	4.27	4.74	4.74	—	—	4.74	0.36
EPS Forecast	4.07	4.21	4.21	—	—	4.21	0.25
Revenue	—	90.01B	—	—	—	90.01B	66.00M
Gross Profit	—	60.48B	—	—	—	60.48B	—
EBITDA	—	51.63B	—	—	—	51.63B	—

Microsoft Corporation

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue