Author: openjargon

The ResMed Inc. (ASX: RMD) share price is having a very disappointing start to the week.

In morning trade, the sleep disorder treatment company’s shares are down 13% to $27.88.

Why is the ResMed share price sinking?

Investors have been rushing to the exits this morning in response to the release of sleep apnoea trial results in the United States.

On Friday, global pharmaceutical giant Eli Lilly And Co (NYSE: LLY) released detailed results from the SURMOUNT-OSA phase 3 clinical trials. These are evaluating tirzepatide injection (10 mg or 15 mg) for the treatment of moderate-to-severe obstructive sleep apnoea (OSA) in adults with obesity, with and without positive airway pressure (PAP) therapy.

Tirzepatide, sold under the brand names Mounjaro and Zepbound, is an antidiabetic medication used for the treatment of type 2 diabetes and for weight loss.

According to the release, in both studies, tirzepatide achieved all primary and key secondary endpoints for both the efficacy and treatment-regimen estimands and demonstrated a mean reduction of up to 62.8% on the apnoea-hypopnea index (AHI), or about 30 fewer events restricting or blocking a person’s airflow per hour of sleep, compared to placebo.

It also notes that in a key secondary endpoint, the efficacy estimand showed that 43% (Study 1) and 51.5% (Study 2) of participants treated with tirzepatide at the highest dose met the criteria for disease resolution.

Management highlights that this means achieving an AHI of fewer than 5 events per hour, or an AHI of 5-14 events per hour and an Epworth Sleepiness Scale (ESS) score of ≤10. It notes that ESS is a standard questionnaire designed to assess excessive daytime sleepiness.

‘A complex disease’

Commenting on the results, Dr Atul Malhotra said:

In the trials, patients with moderate-to-severe obstructive sleep apnea and obesity treated with tirzepatide experienced about 30 fewer disruptive events every hour of sleep and nearly half achieved disease resolution.

Senior vice president, product development, Jeff Emmick, MD, Ph.D, added:

There are currently no pharmaceutical treatment options to address the underlying cause of OSA, a complex disease that disrupts the daily lives of 80 million people in the U.S. alone and is linked to serious health complications. The SURMOUNT-OSA results showed a significant proportion of patients with moderate-to-severe OSA and obesity treated with tirzepatide achieved disease resolution based on predetermined AHI and ESS measures, at which point PAP therapy may not be recommended.

Based on the ResMed share price weakness today, it appears that some investors are concerned that tirzepatide could weigh on the company’s growth in the coming years by reducing its addressable market.

Time will tell if that is the case and whether today’s selling has been yet another overreaction.

The post ResMed share price plunges 13% as weight-loss results reawaken worries appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) travel share Webjet Ltd (ASX: WEB) is in the red today.

The Webjet share price closed on Friday at $8.88. In morning trade on Monday, shares are changing hands for $8.83 apiece, down 0.6%.

For some context, the ASX 200 is down 0.2% at this same time.

This comes after the company updated the market on its demerger plans.

ASX 200 travel share aims to split in two

The Webjet share price is edging lower after the ASX 200 travel share reported that it continues to progress with the potential separation of its two leading travel divisions, WebBeds and Webjet B2C, via a demerger.

The company originally informed investors of its demerger plan on 22 May. At the time, managing director John Guscic said:

Having carefully weighed up the arguments for and against a demerger, the board sees significant value enhancement through a potential separation of our two industry leading businesses and brands.

Our B2C businesses will continue to deliver organic growth through the shift to online, while separation will support our WebBeds business in its relentless focus on achieving scale in all markets, in a post pandemic landscape characterised by a reduced number of smaller competitors.

In pursuing the demerger, the board noted today it expected the process would “strengthen both businesses’ ability to respond to the continuously evolving travel industry, streamline capital allocation decisions and build long-term value for shareholders”.

How will all this work?

If the demerger goes through, Webjet Limited shareholders will receive one Webjet B2C share for every Webjet Limited share they own, and they’ll retain their shareholding in Webjet.

After the demerger, the board expects Webjet Limited (Webjet B2B), will be renamed to match its global bedbanks business, WebBeds.

Should things progress to plan, Webjet B2C will be listed on the ASX alongside Webjet B2B. The two standalone ASX-listed companies will have their own leadership positions within their respective industries.

In line with that, the ASX 200 travel share announced the appointment of Katrina Barry as CEO of Webjet B2C. An experienced technology executive, Barry has served as non-executive director of the company since 2022. She starts in her new role today.

Webjet B2B, comprising the WebBeds business post-demerger, will continue to be led by Roger Sharp as chair and John Guscic as managing director.

Management expects that both Webjet B2B and Webjet B2C will maintain net cash positions, “reflecting capital structures that provide each business with adequate funding flexibility to pursue their respective growth initiatives”.

If it gains the necessary shareholder and regulatory approvals, the company expects to complete the demerger in calendar year 2024.

With today’s intraday moves factored in, the Webjet share price remains up 31%% in 12 months.

The post ASX 200 travel share slips on latest demerger news appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Telstra Group Ltd (ASX: TLS) shares gives investors exposure to the leading telco in Australia. That could be the sort of investment that might appeal to Warren Buffett. But, I’d suggest he would want to analyse the business before deciding to buy.

Warren Buffett is one of the world’s leading investors who has led Berkshire Hathaway to become one of the world’s largest businesses by buying quality companies with long-term growth potential. His investment returns have been an average of around 20% per annum over the decades.

There are a few different things Buffett likes to look for, so I’ll look at a couple of those factors.

Economic moat

Telstra is seen as having the strongest telecommunications network in Australia, with wider coverage, more spectrum and a greater number of subscribers. That could be the kind of economic moat Buffett likes to see.

The company has invested heavily in 5G to ensure that it continues to have the best network. According to Telstra’s FY24 first-half result, the company’s 5G population coverage reached around 87%, with 48% of mobile traffic on 5G.

Telstra’s ownership of spectrum and its vast network reach give it a strong economic moat that Warren Buffett would like, in my opinion.

In the last couple of years, we’ve seen Telstra feel confident enough in the appeal of its network and loyalty of subscribers to increase prices in line with inflation.

I think Buffett would also like the fact that almost every household and business is paying for telecommunication services, making telecommunications a very defensive industry.

Growth

Warren Buffett usually likes to look at businesses that have good long-term potential.

Telstra has a significant market share already, so I wouldn’t say it’s likely to grow its market share a lot.

However, the company is winning a lot of new subscribers. In the HY24 result, it reported its mobile services in operation (SIO) rose 4.6% year over year, which represented an increase of 625,000. If Telstra keeps winning significant numbers of new subscribers, it can deliver good profit growth for shareholders.

Telstra is investing in several areas, including fixed wireless broadband for households, intercity cable infrastructure, cybersecurity, and more.

The HY24 net profit after tax (NPAT) rose by 11.5% to $1 billion, and the areas I mentioned above could help deliver profit growth in the coming years.

Has Warren Buffett invested in US telcos?

While we’ve never heard of Buffett investing in Telstra shares before, he has previously invested in some US telco shares.

However, he chose to dump the AT&T shares quickly after acquiring them, and Verizon didn’t last much longer in the portfolio. But, in the last few years, Buffett has bought T-Mobile shares.

Those previous investments do not guarantee that Buffett would choose to invest in Telstra shares today, but they do show that he could be interested in the sector.

Are Telstra shares trading at a reasonable price?

Warren Buffett hasn’t outlined exactly what valuation metric he likes to focus on when investing within Berkshire Hathaway’s portfolio. It’s also not clear what margin of safety he’d want either when it comes to price.

According to the broker UBS, Telstra shares are valued at 20x FY24’s estimated earnings. Looking ahead to the 2028 financial year, Telstra shares are valued at 13.5x FY28’s estimated earnings.

I think Warren Buffett would be intrigued by Telstra shares after their 15% fall in the past year. However, there’s a fair chance the Omaha investor would prefer an even cheaper price before considering investing.

The post Would Warren Buffett buy Telstra shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Verizon Communications. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Myer Holdings Ltd (ASX: MYR) shares are rocketing higher today.

In morning trade, the department store operator’s shares are up 20% to 77.5 cents.

This follows news that the company has tabled a proposal to fellow retailer and major shareholder Premier Investments Limited (ASX: PMV).

Its shares were up as much as 7% to $32.10 in early trade on the news.

What’s going on with Myer and Premier Investments shares?

This morning, Premier Investments announced that it has received a non-binding, indicative, and conditional proposal from Myer to explore a potential combination of the department store with Premier’s Apparel Brands business. The latter comprises the Just Jeans, Jay Jays, Portmans, Jacqui E and Dotti brand.

According to the release, the combination would see the department store acquire Premier’s Apparel Brands business in exchange for the issue of new Myer shares.

The businesses would be contributed in proportion to their maintainable EBIT and on the same EV/EBIT multiple.

In addition, the Apparel Brands business would be contributed together with sufficient cash to ensure a consistent capital structure for each of the two businesses and to provide Myer with capital to invest in growth initiatives.

The deal would also bring an end to Premier Investments’ shareholding in Myer. It notes that Premier would distribute all of its shares in Myer to shareholders. As a result, Premier would cease to own Myer shares and Premier shareholders would become Myer shareholders directly, whilst also retaining their existing Premier shareholding.

What’s next?

The proposed transaction would require approval by Myer’s board and shareholders, Premier’s board and shareholders, and be subject to ASX, ACCC and ATO engagement.

The good news for Myer is that Premier Investments’ chair, Solomon Lew, appears to be in favour of the transaction. He has indicated that he would be prepared to take an active role as a non-executive director of Myer if the transaction proceeds.

Premier Investments has stated the following in regards to the proposed transaction. It said:

Myer has indicated that it sees significant opportunity from a combination of the businesses and that it wishes to explore whether that opportunity can be realised as part of a current review of Myer’s operations.

Premier also believes that there may be meaningful opportunity for both businesses from the proposal. The proposed combination has the potential to deliver a step change in Myer’s scale and market position, deliver synergies and drive sustainable earnings growth. Premier shareholders would benefit given Premier’s existing shareholding in Myer and because Premier shareholders would become shareholders in Myer.

Premier Investments has stated that it will be considering the proposal. However, it has warned that there is no certainty that the proposal will result in a binding offer or transaction.

In the meantime, it continues to work towards the proposed demerger of Smiggle, and to explore the demerger of Peter Alexander.

The post ASX 200 retailer and Myer shares rocket on ‘significant opportunity’ to combine powers appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech stock Brainchip Holdings Ltd (ASX: BRN) has had a rocky 12 months.

After falling to a 52-week low of $0.14 a share back in October 2023, it traded mostly sideways until February, when it quickly shot up to a 52-week high of $0.54. Since then, it’s pulled back again and is currently trading at just $0.22.

Overall, the Brainchip share price has dropped almost 40% over the past year – but it’s been a wild ride getting here. So, what can Brainchip shareholders now expect from this topsy-turvy stock?

What does Brainchip do?

Brainchip is an Australian artificial intelligence (AI) company that specialises in neuromorphic computing.

The phrase ‘neuromorphic computing’ might sound like something out of a sci-fi novel, but it basically refers to computer systems and processors that are designed to mimic the way the human brain works.

For example, conventional computer processors ingest large amounts of data from many different inputs simultaneously. But, if you think about how the human brain works, it filters out unneeded inputs and focuses just on the most essential. This makes your brain a much more efficient processor of information than a standard computer chip.

Even as you sit rivetted reading this article (as I’m sure you currently are and didn’t drift off at the first mention of ‘neuromorphic computing’), there are any number of different background noises, visual distractions and other sensory inputs that your brain is ignoring – and it’s only once you actively focus on them that your conscious mind becomes aware of them again.

In other words, your brain recognises that the constant background hum of your air conditioner or the sensation of your legs touching the chair you’re sitting on aren’t important inputs for the task you’re currently focussed on.

So it doesn’t need to constantly process them. Instead, your brain alerts you to changes in your surroundings and prioritises these inputs – as these could be events you need to respond to.

This is how Brainchip has designed its flagship product, the Akida ‘neuromorphic’ computer chip. The chip is ‘event-based’, meaning it responds to changes in the environment in much the same way as the human brain does. This makes it significantly more efficient than standard computer chips, because it processes key information faster and reduces unnecessary power consumption.

What has happened to the Brainchip share price over the past year?

Brainchip shares went on a tear back in February, skyrocketing over 200% in a matter of weeks. The massive jump in its share price even prompted a ‘please explain’ notice from the ASX, but Brainchip couldn’t offer a business reason for the sudden interest in its stock.

In truth, the surge in Brainchip shares could have had more to do with events happening overseas than anything Brainchip had actually done. The sudden rise of American AI company NVIDIA Corp (NASDAQ: NVDA) inspired short-term traders to greedily gobble up shares in other AI companies, hoping to latch onto the next ‘big thing’ – even if company valuations didn’t justify the investment.

Unfortunately for Brainchip, by the end of February, its shares were already in freefall again after it reported a net loss of US$28.9 million for 2023 – an even worse result than its 2022 net loss of US$22.1 million.

So, what’s next for Brainchip?

Brainchip is the first company in the world to try to commercialise neuromorphic technology, which comes with both benefits and disadvantages.

On the one hand, Brainchip has a huge addressable market and few viable competitors – which is the ideal scenario for a strong economic moat. If Brainchip can show that neuromorphic technology can be successful, it has the first-mover advantage and can develop a loyal brand following.

On the other hand, it’s trying to convince its customers to buy a piece of highly complex technology that they have probably never heard of before. This is a hard thing to do – regardless of how groundbreaking that technology might be.

So far, its financial performance has been less than convincing. For its part, Brainchip blamed its 2023 net loss on a ‘transitional year’, in which it invested in further developing its technology and expanding its marketing and sales functions. However, it was still hard for investors to look past the whopping 95% year-on-year drop in revenues.

In its 2023 annual report, Brainchip mentioned the ‘strong levels of interest’ it had received from potential customers and the ‘encouraging pipeline’ it had built throughout the year. Investors will need to see that translated into real sales (and quickly!) before they can confidently invest in Brainchip shares.

The post Brainchip share price tumbles 40% in the past year. What’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Metcash Ltd (ASX: MTS) shares are on the move on Monday morning.

In early trade, the ASX 200 stock is down 2% to $3.68.

This follows the release of the wholesale distributor’s FY 2024 results.

ASX 200 drops on FY 2024 results

• Group revenue up 0.7% to $15.9 billion
• Revenue including charge throughs up 0.7% to $18.2 billion
• Underlying EBIT down 0.9% to $496.3 million
• Underlying profit after tax down 8.2% to $282.3 million
• Total dividends down 13.3% to 19.5 cents per share

What happened during the year?

For the 12 months ended 30 April, Metcash reported a modest 0.7% increase in group revenue to $15.9 billion. This reflects growth in the Hardware and Liquor pillars, which offset a small decline in the Food pillar. The latter was driven by lower sales in tobacco.

The company’s group underlying EBIT decreased by 0.9% to $496.3 million in FY 2024. This was due to earnings growth in Food and Liquor being offset by lower earnings in Hardware and increased corporate costs.

Management notes that the Food pillar continued to perform well in an environment of increased value-conscious shopping. It believes this provides further evidence of its shift to a sustainable and resilient business model. Food earnings increased 3% to $210.1 million for the 12 months.

Metcash’s Liquor pillar increased its earnings by 4.9% to $109.2 million. This reflects its diversified customer strategy, the ongoing preference for localised liquor offers, strategic buying, and good cost management.

Things weren’t quite so positive for the Hardware pillar, which reported a 3.8% decline in earnings to $210.9 million. This reflects rapidly slowing builder confidence and reduced market activity, as well as significantly increased competition for the Total Tools business in the second half.

This ultimately led to group underlying profit after tax falling 8.2% to $282.3 million and the Metcash board cutting its fully franked final dividend by approximately 23% to 8.5 cents per share. This brought its total dividends to 21.5 cents per share in FY 2024, which is down 13.3% year on year.

Management commentary

The ASX 200 stock’s CEO, Doug Jones, was pleased with the results. He said:

I am pleased to report that the Company has delivered strong results for FY24, a year in which there was a further decline in the external environment. The results have been underpinned by our strategy, which is clearly working, and the disciplined execution of key initiatives. Operationally, all pillars performed well, in line with their strategic positioning, demonstrating resilience in the current softer market conditions.

Outlook

Total group sales for the first seven weeks of FY 2025 have increased 2.2%. However, this includes the acquisition of Superior Foods. Excluding this business, sales were flat.

Management commented that it believes “Metcash is well positioned with the plans, platform, capabilities and diverse business portfolio for future growth and strong returns through the cycle.”

Following today’s decline, this ASX 200 stock has now dropped into the red on a 12-month basis.

The post Guess which ASX 200 stock just slashed its final dividend by 23% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Star Entertainment Group Ltd (ASX: SGR) shares are under pressure on Monday.

In morning trade, the struggling casino and resorts operator’s shares are down 3% to 47.5 cents.

Why are Star Entertainment shares tumbling today?

Investors have been selling the company’s shares again this morning after it released an update on its profit expectations for FY 2024.

According to the release, trading conditions have remained difficult since its last update in April.

The company notes that this reflects the challenging economic environment and cost of living pressures.

Group revenue for the fourth quarter of FY 2024 is expected to be 4.3% below the previous quarter and 3.3% below the prior corresponding period. This is being driven by revenue from Premium Gaming Rooms (PGRs) continuing to trend downwards, which is offsetting growth from Main Gaming Floor (MGF) revenue.

As a result, management expects group revenue for FY 2024 to be between $1,675 million and $1,685 million. This will be down from $1,868 million in the last financial years.

Unfortunately, it gets worse. Management notes that these conditions, together with elevated operating expenses from ongoing remediation and transformation activities, have had a big impact on its earnings.

Star Entertainment is forecasting FY 2024 normalised group EBITDA to be in the range of $165 million to $180 million. This represents a significant decline on FY 2023’s normalised EBITDA of $317 million.

In response to this new operating environment, Star Entertainment will seek to expedite a range of initiatives to further reduce its operating cost base.

Leadership update

In a separate announcement, Star Entertainment has revealed that David Foster has ceased his executive responsibilities and resigned as a director with effect on 21 June 2024.

The company has progressed its recruitment process for a new permanent group CEO and managing director. It expects to make an announcement in the near term.

As an interim measure, Star Entertainment has appointed current interim group chief financial officer, Neale O’Connell, as acting CEO. This is subject to all requisite regulatory approvals.

This appointment is in addition to Mr O’Connell’s existing duties as group CFO and will remain in place until the appointment of a permanent CEO takes effect.

The company’s chair, Anne Ward, has also assumed additional responsibilities on an interim basis. She will continue performing these additional responsibilities until the appointment of a permanent CEO takes effect.

Star Entertainment shares are now down approximately 49% over the last 12 months.

The post Star Entertainment shares tumble on disappointing earnings guidance appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The right ASX-listed exchange-traded funds (ETFs) can provide investors with a combination of good diversification and (hopefully) excellent returns.

While the Australian share market is weighted towards ASX bank shares and ASX mining shares, the international share market includes many companies with global growth ambitions in exciting sectors like technology.

Some of our ASX ETFs can provide pure exposure to the United States share market, which is home to numerous great businesses. However, it can also be beneficial to have some exposure to the best companies from other countries. That’s why I really like the two exchange-traded funds below.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ETF gives investors exposure to well over 1,000 businesses that are listed across ‘developed’ markets.

The ETF represents the following countries in descending weighting order: the US, Japan, the United Kingdom, France, Canada, Switzerland, Germany, the Netherlands, Denmark, Sweden, Italy, Spain, Hong Kong, Finland, Singapore, Norway, Israel, Belgium, and Austria.

The VGS ETF certainly ticks the box when it comes to geographic diversification.

Technology makes up around a quarter of this ETF’s portfolio, with financials (15%), healthcare (11.8%), industrials (11.2%) and consumer discretionary (10.3%) being the other sectors to provide a double-digit weighting.

Technology companies aren’t guaranteed to always deliver good returns, but that sector is capable of achieving high profit margins and faster revenue growth because of the intangible nature of many of its services.

I think the VGS ETF’s technology exposure is why it has delivered an average return of almost 13% per annum since November 2014. Having said that, a reminder that we can’t know precisely what the future returns will be.

Some of the portfolio’s biggest positions include the world’s strongest businesses: Microsoft, Apple, Nvidia, Alphabet, Amazon, and Meta Platforms.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Investors may wonder if they need exposure to more than 1,000 businesses to achieve an appropriate level of diversification. I’d say probably not, but owning that many shares can help smooth out volatility.

Why not just own the good ones? Well, everyone may have different opinions on which ones are good.

The QLTY ETF takes quality metrics into consideration when deciding which stocks to invest in.

It owns 150 businesses that rank well on return on equity (ROE), debt-to-capital, cash flow generation ability and earnings stability.

Perhaps unsurprisingly, IT makes up an even bigger allocation in this portfolio (at 35%), while the industrial sector was 18.3% of the portfolio and healthcare was 14.9%, as of 31 May 2024.

Looking at the country allocations, the US has a smaller allocation in the QLTY ETF (68.7%) than the VGS ETF (72.2%), which means better geographic diversification. Other countries with a sizeable allocation inside the QLTY ETF include Japan, the Netherlands, France, Denmark, the UK and Switzerland.

Over the past decade, the index the Betashares Global Quality Leaders ETF tracks has achieved an average return per annum of 15.9%, outperforming the global share market by almost 3% per annum.

The quality screening process has led to good returns, though that may not always be the case.

The post 2 top ASX ETFs that offer excellent diversification appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.