Is it time to buy, or did you Miss the Boat? Should you put more money in your best-performing stock, or cut your losses? In this series, top experts, company analysts, and investors with skin in the game dive into some of the hottest trending stocks, biggest movers, fallen stars, and hidden gems — to help investors decide if they should buy the stock or wish farewell.
On today's segment of Good Buy or Goodbye, Pence Capital Management chief investment officer Dryden Pence joins Yahoo Finance's Julie Hyman to discuss navigating stock picks within the semiconductor sector. Pence shares his perspective on why investors should consider adding Taiwan Semiconductor Manufacturing Co. (TSM) to their portfolios while avoiding Intel (INTC). Pence identifies Taiwan Semiconductor Manufacturing Co. as a buy, highlighting the company's position in the world of artificial intelligence (AI). He explains that Taiwan Semi produces "really high-value" chips, making it an "absolute chokepoint" in the industry. Pence goes so far as to dub the company the "most important" player in this space, as he believes "no one is able to accomplish their long-term mission" without relying on Taiwan Semi's capabilities. This, in turn, grants the company pricing power and the potential for "long-term excess earnings." Additionally, Pence emphasizes Taiwan Semi's technological superiority over its competitors, describing the company as an "essential building block" in the future of AI. In contrast, Pence recommends that investors steer clear of Intel. He notes that the legacy business has "lost its mojo," and with a lack of meaningful innovation efforts Intel's once-dominant foundry business, which accounted for 61% of the market, "has fallen dramatically." With competitors now "years ahead" in terms of innovation, tights supply chains, and surging demand, Pence explains companies are hesitant to "disrupt something that's working," resulting in a decline in Intel's market share. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. Disclosure: Dryden Pence personally owns shares of TSMC. Editor's note: This article was written by Angel Smith
On today's segment of Good Buy or Goodbye, Yahoo Finance's Julie Hyman is joined by Henion & Walsh Chief Investment Officer Kevin Mahn to dissect his stock picks within the cybersecurity sector. Mahn identified CrowdStrike (CRWD) as a stock to buy. He cites several key reasons for this recommendation, acknowledging that "AI can be used for good and AI can be used for bad," particularly in the realm of cybercrime. However, Mahn notes that CrowdStrike is leveraging AI "to help thwart AI-powered cyberattacks." Furthermore, the company's revenue and earnings growth have surpassed expectations, with CrowdStrike hitting the $3 billion revenue mark, and Mahn doesn't "see them stopping." On the other hand, Mahn identifies BlackBerry (BB) as a stock to avoid. He suggests steering clear of this investment due to the company's struggles in successfully transitioning its smartphone business into the cybersecurity realm, stating "this is a tough market to break into." Secondly, Mahn points to BlackBerry's lackluster earnings growth and negative free cash flow as further reasons to avoid purchasing. Catch more of Good Buy or Goodbye here, or watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith
There are a lot of ways to evaluate whether or not an asset is worth adding to your portfolio. One thing to look at is valuation. In Monday's edition of Good Buy or Goodbye, Public Ventures President and Chief Market Strategist Lou Basenese explains why he likes iShares Russell 2000 ETF (IWM) and is avoiding Reddit (RDDT), based in part on their valuations. The iShares Russell 2000 ETF is "a great way to play the whole basket of small-cap stocks," Basenese says. He also likes the ETF's technicals and says the "setup's right" for small caps to see some big gains. Basenese does, however, caution that higher-for-longer interest rates could be bad for small caps if they go on for too long. One stock Basenese is skipping is Reddit. Basenese thinks the company is going to struggle to turn a profit. He also doesn't like that Reddit doesn't really own any patents and he thinks the stock is overvalued. For more expert insight and the latest market action, click here to watch this full episode of Market Domination and here for more Good Buy or Goodbye. Editor's note: This article was written by Stephanie Mikulich.
