Market Overview
The past week saw tech stocks leading the charge, with the Vanguard Information Technology ETF (VGT) outperforming the S&P 500 over the last decade [1]. However, not all tech stocks have been performing well, with PayPal losing 85% of its value over the past five years [2].
Mergers And Acquisitions
J.P. Morgan has suggested that a potential SpaceX-Tesla merger could make strategic sense, although it's unlikely to happen [3]. Meanwhile, SpaceX's share price is predicted to reach $220 by the end of 2026, depending on its future revenue potential [4].
Artificial Intelligence
The AI bubble may be about to burst, with evidence suggesting its greatest value lies in supporting human expertise rather than replacing it [5]. However, some investors remain bullish on AI stocks, with Meta and Alphabet being top holdings in D. E. Shaw's portfolio [10, 13].
Earnings And Outlook
The S&P 500 is set up for disappointment, with Q3 earnings unlikely to provide a boost [8]. Tesla's valuation has also been called into question, with weak auto margins and falling revenue [9]. Meanwhile, Apple and Amazon have seen their shares rise over the past year, with Apple up 48.9% and Amazon up 9.5% [12, 16].