My Top 2 Mega-Cap Stocks to Buy After Microsoft's Latest Pullback Microsoft has underperformed the "Magnificent Seven" in 2026, with its stock declining due to slower growth in Azure and rising costs to compete in the AI sector. Despite this, the article argues that megacap stocks remain viable investments, highlighting two tech companies as potential buys. Alphabet, a competitor to Microsoft in cloud computing, is noted for its significant capital expenditures. Last year, the company spent $91 billion on infrastructure and plans to invest $175 billion to $185 billion in 2026. While Alphabet’s Google Gemini AI platform entered the market later than competitors like ChatGPT, it has gained traction with users. The company’s Google Cloud division is growing faster than its digital ad business, suggesting a shift toward AI-driven services. Additionally, Alphabet’s autonomous driving unit, Waymo, is expected to contribute significantly to future revenue. Despite investor skepticism about AI, Alphabet’s stock has remained flat this year. Its P/E ratio of 29 aligns with the S&P 500 average, making it an attractive option for investors seeking growth. The article suggests that Alphabet’s AI investments could drive long-term value. Amazon is also highlighted as a potential buy, despite its high capital spending. The company pledged $200 billion in capex for 2026, following $132 billion in 2025. Rising energy costs for logistics and delivery networks could weigh on Amazon, but the company’s Amazon Web Services division has shown strong growth. AI is already enhancing Amazon’s e-commerce operations, from product recommendations to supply chain efficiency. The company’s stock trades at a 30 P/E ratio, lower than its historical average of over 50, which the article cites as a buying opportunity.#microsoft #alphabet #amazon #waymo #the_motley_fool
Should You Buy the Dip on CoreWeave's Stock? CoreWeave (NASDAQ: CRWV) is an intriguing company that has been rapidly expanding its artificial intelligence-focused cloud computing operations, yet its stock price has dropped 60% from its peak. This discrepancy has led some investors to consider buying the stock at its current price, but the decision is not without risks. The company’s strategy, while promising, faces significant challenges that could determine its long-term viability. CoreWeave operates at a loss, using all available capital to build its infrastructure. Unlike established cloud giants, which had other revenue streams to fund their growth, CoreWeave relies heavily on external financing. Its focus on cutting-edge AI technologies means it must keep pace with Nvidia’s annual product releases. However, the computing equipment installed last year may already be outdated for some clients by this year. Additionally, graphics processing units (GPUs) used in its operations have a limited lifespan of one to three years under heavy use, further complicating its capital expenditure cycle. Despite these challenges, CoreWeave’s growth metrics are impressive. Its Q4 revenue surged 110% year over year to $1.6 billion, with a revenue backlog of nearly $70 billion, up 342% from the previous year. A significant portion of this backlog—42%—is expected to convert to revenue within the next two years, highlighting strong demand for its services. If CoreWeave can sustain this growth and manage its costs effectively, it could establish itself as a major player in the cloud computing industry. However, the company’s ability to balance capital expenditures with operating profits remains a critical unknown. Investors remain uncertain about CoreWeave’s future, which has contributed to its steep stock decline.#nvidia #nasdaq #coreweave #the_motley_fool #stock_advisor
