Archives May 2025

Lyft (LYFT) shares soared Friday, a day after the ridesharing company topped first-quarter gross bookings estimates and boosted its stock buyback program.

Shares were up over 23% in recent trading, hitting their highest price since December earlier in the session at $16.14.

The company said after the bell Thursday that its board approved a new $750 million buyback plan, and expects to use $500 million of it over the next 12 months.

Analysts from UBS, Oppenheimer, and JPMorgan each lifted their price targets by $2 to $14, $17, and $16, respectively, following the report. JPMorgan analysts said they were “encouraged by some of Lyft’s underlying progress, with all-time highs across many metrics” like faster arrival times and the “highest frequency riders in 5 years.”

Gross Bookings, Profits Top Estimates

Lyft reported $1.45 billion in first-quarter revenue, up 14% year-over-year but just below the $1.47 billion analyst consensus compiled by Visible Alpha. Gross bookings and earnings per share topped estimates at $4.16 billion and $0.01, respectively.

Activist investor Engine Capital said Friday it would halt its campaign and revoke its nominees for Lyft’s board as they said the new buyback plan comes after a “series of productive conversations.”

Lyft forecast gross bookings of $4.41 billion to $4.57 billion for the second quarter, in line with the analyst consensus. CEO David Risher told CNBC Friday morning that the company hasn’t seen “anything to worry about” regarding consumer behavior so far this year.

Shares of Affirm Holdings (AFRM) are tumbling 13% Friday, a day after the provider of buy now, pay later (BNPL) loans issued a disappointing current-quarter revenue outlook.

Affirm sees fiscal fourth-quarter revenue between $815 million and $845 million, with the midpoint below the Visible Alpha consensus estimate of $843.9 million.

The San Francisco-based company’s third-quarter revenue of $783.1 million also came up short. However, Affirm reported profit of a penny per share when a loss of 2 cents per share was expected, and gross merchandise volume that soared 36% year-over-year to $8.6 billion also surpassed projections.

Asked in a CNBC interview Friday morning about the strength of the consumer, Affirm CEO Max Levchin said, “It’s pretty good. I think there’s a real inconsistency in the vibe, where people are stressed out about the economy yet they’re shopping, they’re buying, and they’re paying their bills—at least they’re paying their bills back to us on time.”

Affirm shares have lost nearly a quarter of their value this year.

^{Source: The Federal Reserve’s “Survey of Consumer Finances” (2022), median transaction account balances by age group. Transaction accounts include checking, savings, money market, and brokerage cash accounts, and prepaid debit cards.}

In addition to what’s in bank accounts, the median saver under age 35 has these assets:

With the $5,400 in the bank, these amounts total $39,200. Additionally, this age group has a median retirement account balance of $18,880.

Regardless of these numbers, it’s important to note that there’s no universally correct amount to save. 

“Don’t compare yourself to others,” said Chloé Moore, CFP and founder of Financial Staples, a financial planning and investment management firm. “Just focus on yourself and make sure that you set good, intentional goals for yourself and that you work toward achieving those goals.”

How To Set—and Meet—Savings Goals by Age 35

To achieve a savings goal, you need to set one. A good way to start is by knowing what you are spending. Tracking your income and expenses for a few months can be eye-opening and may help you determine what you’re doing well and what you’d like to change—and what a reasonable savings goal might be. Speaking with a financial advisor can also be a great step toward developing a goal, plus the plans for achieving it.

Moore generally recommends saving at least six months of take-home pay for an emergency fund, for example, but that varies based on personal circumstances. Instead of suggesting specific dollar amounts, she offers guidelines for her clients, many of whom are young tech professionals and first-generation wealth builders. 

She offers some tips to boost your savings habit:

• Start small: If saving six or 12 months of expenses sounds intimidating, she said, start by trying to save one month of living expenses. “Review your cash flow and just see if there are places where you can essentially save a little bit more each month,” Moore said.
• Add income: If you have valuable things or other possessions that you don’t need, Moore suggested that you consider selling them or look into getting a side hustle to generate more income if you can’t lower your expenses. 
• Have a plan: If you receive a lump sum of cash, whether it’s unexpected or something like a tax refund or bonus, know what you are going to do with it. “Try to have a plan for those before you receive them and not just think of it as free money that you can just spend,” Moore said. 

How To Boost Your Savings Balances With Top-Earning Accounts

Another way to maximize your savings is to choose accounts that will earn money for you. Two options are high-yield savings accounts and CDs. 

For high-yield savings accounts, check out those with the highest savings account APYs available. More than a dozen high-yield savings accounts currently pay between 4.40% and 5.00% APY. In addition to the rates, look at the features of the accounts you’re considering. One feature that Moore likes is the ability to earmark savings for different goals. “There are some accounts where you can set up an emergency fund bucket or a travel bucket or a down payment bucket,” she said.

If you have some money you can save without touching it, a CD can be a good additional option. CDs can earn higher rates than savings accounts in exchange for leaving your money for a set time period—usually anywhere from 3 months to 10 years. One key benefit of a CD is that the rate is fixed, so regardless of what happens with rates elsewhere, the amount you’ll earn when your CD matures is guaranteed. The top CDs pay as much as 4.50% now, making this a good time to consider opening one. 

If you open a CD with some of your money, you’ll want to use a hybrid strategy and keep some of your cash in a top high-yield savings account where it’s easy to access. If you have an unexpected need for your money, you can access the savings account funds first and possibly avoid cashing out your CD before maturity, which would trigger an early withdrawal penalty. 

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.

Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

This weekend could be a turning point for the trade dispute between the world’s two largest economies.

U.S. and Chinese officials are scheduled to meet in Switzerland starting on Saturday, and investors are optimistic about what could result. A thawing of the relationship between the two trading partners could provide some relief for businesses and consumers who have been bracing for higher prices and empty shelves.

While the U.S. and China are being careful with what they say ahead of the talks, here’s what we know about the discussions.

What’s the Status of the Trade Relationship?

The U.S. and China have been in a tit-for-tat trade dispute in recent weeks, resulting in high tariffs levied on both countries.

President Donald Trump has pushed tariffs on Chinese goods coming into the U.S. to 145%. In response, China’s government ratcheted up import taxes on U.S. goods coming to their country to 125%. Economists have said that duties that more than double the price of goods essentially amount to a trade embargo.

China is the U.S.’s third-largest trading partner, according to the most recent data available from the Census Bureau. America has brought in more than three times the amount of goods from China than it exported there so far this year.

Who Is Involved in the Trade Talks?

Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will negotiate on the U.S.’s behalf.

Bessent has been vocal about the trade spat between the two countries, saying that the current tariff levels are “unsustainable” and that de-escalation was likely in the cards. In a press release announcing his trip to Switzerland, Greer said he would be “negotiating with countries to rebalance our trade relations to achieve reciprocity.”

For China, Vice Premier He Lifeng will spearhead the discussions. He is reportedly close to Chinese President Xi Jinping and is expected to toe the government’s official line. China’s Ministry of Commerce has said, “whether through confrontation or negotiation, China’s determination to safeguard its development interests will not change.”

Will a US-China Trade Agreement Be Reached?

While Trump said Thursday that he expects talks to be “substantive”, it’s unlikely the delegations will be able to hammer out a complete trade agreement over the weekend.

U.S. trade agreements take an average of 18 months to negotiate and often even more time to implement, so de-escalation of the tariffs would be more likely. On Friday morning, Trump suggested that tariffs on Chinese goods could be lowered to 80% but said he would leave the final number up to Bessent.

The two countries could also discuss other trade barriers, such as the de minimis exemption that Trump excluded China from last week, affecting Chinese bargain shopping sites like Temu and Shein.

A 2025 Pew Research Center survey finds that Americans believe the best age to retire is around 61.8, which is earlier than when most people qualify for full government benefits like Medicare and Social Security.

While many hope to leave the workforce in their early 60s, financial pressure and access to Medicare and Social Security benefits often push actual retirement further out. Understanding how retirement expectations stack up against real-world milestones can help you create a more resilient retirement plan.

What Americans Say Is the “Best” Retirement Age

In the Pew survey, about 26% of respondents said the best age to retire falls between 65 and 69, while 20% preferred retiring between 60 and 64. A smaller share—just 6%—said 70 or older was ideal. Interestingly, about a third said there is no one “best” age to retire.

Globally, the picture looks different. Across 18 other countries surveyed, the average ideal retirement age is 58. According to Pew Research, “On average across the 18 non-U.S. countries, people say it is best to get married and have a child around age 26, buy a home around 30, and retire around 58.”

How the Ideal Retirement Age Compares to Reality

While many Americans hope to retire around 62, the real-world timing often looks different. Health, finances, and access to government benefits all influence when people actually leave the workforce.

Average Retirement Age in the U.S.

The Pew survey explained, “Over the years, more Americans have been working past age 65, and 19% of Americans ages 65 and older were employed in 2023.” Most Americans retire between the ages of 62 and 64. But several factors are pushing retirement later, including rising life expectancy, greater financial need, and delays in access to Medicare and full Social Security benefits.

Medicare and Social Security Milestones

Healthcare and government benefits play a major role in when people actually retire. Medicare eligibility begins at 65, while full Social Security benefits kick in between ages 66 and 67, depending on birth year. Although Americans can start claiming Social Security as early as 62, doing so results in reduced monthly payments.

Factors That Shape Retirement Timing

While the national average offers a broad picture, the “age U.S. adults think is best for each milestone differs based on factors like political party, age, income, and the importance they place on religion.”

When it comes to retirement savings, deciding whether to max out your 401(k) or IRA first can feel like a good problem to have—but it’s one that requires careful planning. In 2025, the annual contribution limit for a 401(k) is $23,500 and the limit for individual retirement accounts (IRAs) is $7,000.

The right strategy depends on several variables, including your current tax bracket, savings goals, stage of your career and whether you expect higher or lower income in retirement.

Here’s how to weigh your options and make the most of your tax-advantaged savings.

How to Divide Your Retirement Savings

Deciding where to put your retirement savings can be overwhelming. When choosing how to balance these contributions, the first step is understanding the distinct tax differences for 401(k)s, traditional IRAs, and Roth IRAs. This is because it can make a meaningful difference in the value of your withdrawals in retirement years. 

Given the rising cost of living, contributing solely to a 401(k) may not be enough for building your retirement savings nest. That’s why having more than one account, such as a traditional or Roth IRA, can be a useful tool for growing your retirement savings and hedging against future tax rates.

A useful rule of thumb for those with a tax bracket higher than 12% is to add 20 to your age, contribute this percentage into a 401(k), and put the remaining into a Roth IRA. For instance, if you’re 30 years old, you would put 50% of your savings into a 401(k) and 50% into a Roth IRA.

When to Max Out a 401(k) First

A 401(k) is based on the simple idea of getting a tax break on retirement contributions, which are typically taken out of your paycheck over each pay period. In addition, many employers will match these contributions up to a dollar-for-dollar cap of 3% of the employee’s salary, then a 50% match for the next 2%.

“At the bare minimum, all decisions between IRA and 401(k) contributions should come after the client has ensured that they are capturing the full company match,” says David Rath, a wealth advisor at Continuum Wealth Partners.

Maxing out your contributions to these accounts is a powerful way to generate free money for your retirement savings since it can effectively double your contributions. On average, employers matched 4.6% of contributions according to a survey from Vanguard.

Additionally, you may choose to max out your 401(k) first if you are in your peak earning years and expect your retirement income to be lower in retirement.

“If you are above certain income levels, your ability to contribute on a pre-tax basis (and thus lower your current tax bill) will be limited to 401(k) contributions,” says Rath. This may help lower your current income tax rate today, thanks to the tax break on contributions from 401(k)s. 

When to Max Out an IRA First

For those with lower tax rates who expect their income to rise in the future, it may be worth contributing to a Roth IRA first. If you’re early in your career, this can serve as a valuable planning strategy to help offset taxes in the future.

For instance, you may pay a 24% tax rate on contributions to a Roth IRA today—but could protect yourself from a 20% tax hit in retirement. Let’s say a worker put $5,000 a year into a Roth IRA for 40 years that returns 5% annually. Over this time period, the savings grow to over $600,000, with the entire balance available in retirement. But if these savings are put in a 401(k), these savings face taxes upon retirement. So if a person’s tax rate in retirement is 20%, $120,000 of the savings will go to the IRS. 

In this way, you can take advantage of tax-deferred growth over time with a Roth IRA while also making the most out of the tax deductions on contributions to 401(k)s when your income tax rises over the decades.

Finally, another benefit of IRAs is their flexibility. “If your employer-sponsored plan has a limited investment menu and you are looking for more options, it would make sense to focus on IRA contributions,” says Rath. “Also, be sure to look at the underlying fees on the investments in the 401(k) plan.”

The Bottom Line

Deciding which type of retirement account to max out first depends on many factors, including your income and expected future tax rates. At its core, these financial decisions hinge on whether you choose to pay taxes today or in the future. One strategy to consider is putting your 401(k) tax refund into a Roth IRA to help build your spending power even further in retirement years.

Shares of Insulet (PODD) surged 20% in Friday afternoon trading to pace the S&P 500, a day after the insulin pump maker reported stronger-than-anticipated quarterly results and lifted its full-year revenue outlook.

After the bell Thursday, Insulet posted first-quarter adjusted earnings per share of $1.02 on revenue that jumped 30% year-over-year on a constant-currency basis to $569 million. Analysts surveyed by Visible Alpha had anticipated $0.81 and $543.0 million, respectively, while the company had projected revenue to grow by 22% to 25%.

The Acton, Mass.-based firm raised its constant-currency 2025 revenue growth outlook to between 19% and 22% from 16% to 20%. 

“Insulet is just getting started on an exciting journey to revolutionize diabetes management globally,” new CEO Ashley McEvoy said.

Jefferies analysts lifted their price target on Insulet stock—which had been down close to 2% for this year entering Friday’s session—to $360 from $350. “We are encouraged by PODD’s execution and continue to view it as a top idea for ’25 given a path to robust growth, driven by product differentiation and new indications,” they wrote.

Stocks were buoyed Thursday by a U.S.-U.K. trade agreement, the first deal to come out of a month of negotiations. Now the question is: Can future deals continue to impress Wall Street? 

The U.S. and U.K. announced a trade deal framework yesterday that eases automobile, steel, and aluminum tariffs, and opens the British market up to an estimated $6 billion of U.S. goods. The deal also included a commitment by a U.K. airline to purchase more than $10 billion worth of Boeing (BA) jets, an acquisition announced by British Airways parent IAG on Friday. 

The framework leaves in place a 10% tariff on all imports, a sign to some that the baseline rate isn’t going anywhere.

US and China to Begin Talks This Weekend

“If the 10% global tariff is here to stay, the only other major tariff relief could come from a de-escalation with China,” Michael Pearce, Deputy Chief U.S. Economist at Oxford Economics, wrote on Thursday.

American and Chinese officials will meet in Switzerland this weekend to hold their first talks since the onset of their tit-for-tat trade war.

The stakes are high. Shipments from China to the U.S. reportedly slumped more than 20% in April after Trump raised tariffs by more than 100%. Treasury Secretary Scott Bessent has called current rates “unsustainable” and said the world’s two largest economies have effectively embargoed each other. Trump on Friday floated the idea of lowering duties on Chinese goods to 80% from a maximum of 145% today. 

Does UK Deal Bode Well for China Talks?

The U.K. “deal was low-hanging fruit,” Pearce wrote. The U.S., he notes, runs a trade surplus with the U.K., meaning Britain never was subject to the “reciprocal” tariffs announced on April 2. The two countries also have a long history of cooperation.

It will be much harder to develop a similar framework with China, considering both the scale of trade and the animosity between the two parties. Given the challenges, “we are sceptical that tariff relief is on the near-term horizon,” Pearce said. 

Trump has said this weekend’s talks with China could be “substantive,” but the scope of the U.K. deal could temper Wall Street’s expectations. “Tellingly, the deal did not touch on more contentious issues, such as opening healthcare markets to US providers or the UK’s digital services tax,” Pearce wrote. That could signal that “other countries will be unwilling to offer significant politically difficult concessions in return for minor tariff relief.”

Economists at middle-market consultancy RSM dubbed Thursday’s framework “the U.S.-UK trade agreement that isn’t.” They called the framework “neither comprehensive nor complete,” and said it “does not provide the clarity necessary to lift the fog of uncertainty.”

A U.K. trade deal may be a cakewalk compared with China, but it’s still “an important test case and a model for what could be accomplished,” says Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management. “If the administration can follow this up with additional agreements, it would go a long way toward healing a stock market that has been battered and bruised this year.”

When the markets are dropping and your portfolio is falling with it, the instinct is to sell everything, cut your losses, and stick with cash. However, history shows that remaining invested is the best choice over the long run. Volatility is normal. Stocks undergo intra-year declines of about 16%, yet generate positive calendar-year returns around 80% of the time, demonstrating resilience.

Panic selling is rarely the smart move. So, before you consider pulling your money out, it pays to understand how a disciplined approach can help you achieve long-term gains.

Understanding Market Volatility

Significant volatility in the market refers to the stomach-churning ups and downs of stock prices that can cause even seasoned investors to question their strategies. These swings happen when new information hits the market—surprise earnings reports, economic news, or global events that make investors rethink what companies are worth. A low-volatility asset experiences minimal movement, while a high-volatility asset can see significant daily swings.

While the word “volatility” is heard most often when the market is swinging wildly, it’s a regular occurrence—like waves in the sea. Every significant downturn in U.S. history (thus far) has been followed by eventual recoveries. Those who keep their investments during these periods often achieve the best results in the long run.

The Risks of Pulling Your Money Out of the Market

Selling investments during a downturn locks in losses and eliminates the chance to benefit once the market recovers. Retail investors often do the exact opposite of the buy-low, sell-high maxim—selling after sharp declines and missing the market’s strongest rallies.

Moreover, timing the market requires getting it right twice: when selling and when you buy, a risky strategy even for seasoned professionals.

Historical Recovery Periods

Since 1929, the average length of a bear market in the U.S. has been around 11 months, so they typically last less than a year, even if the stress and drama of them lasts far longer. They occur about once every five years, so they are also not unusual—the last one was in 2022, with swings in April 2025 coming close.

Two Important Strategies To Prepare for Bear Markets

Diversifying across different asset classes, sectors, and geographies helps mitigate the effects of poor performance in any one stock or asset type. Bonds and alternative assets like commodities tend to behave differently from equities, which helps stabilize a portfolio when stocks drop. 

Dollar-cost averaging is another smart strategy that involves investing fixed amounts at regular intervals—putting a percentage of each paycheck in your 401(k) is an example of this—that helps avoid timing while also ensuring you are buying during periods of lower prices.

Your Age Should Help Inform What To Do

Young people can afford to stay invested in equities thanks to their longer time horizons, which allow them to ride out short-term swings. Essentially, the younger you are, the less you need to worry about a bear market.

Retiring during one, however, creates genuine risk because of sequence-of-returns problems—withdrawing from declining investments can permanently damage your portfolio’s long-term value. If you’re within five years of retirement, consider building a cash buffer covering one to two years of expenses and gradually shift toward more conservative allocations using a rule of thumb like the “100-minus-your-age” rule (e.g., 40% stocks/60% bonds at age 60).

When Selling May Be Necessary

While panic selling is typically unwise, there are real problems you might face that require you to pull out funds from your investments—a job loss, medical emergencies, or other financial hardships.

In these situations, consider selling only what’s absolutely necessary, starting with bonds, other stable assets, and stocks most unlikely to make gains in a rebound. You begin with these since they aren’t going to increase in value as much as, say, your shares in a tech stock.

The Bottom Line

Panic selling often exacerbates losses and derails financial goals. While volatility can be unnerving, it is a routine feature of markets. Stay invested and disciplined—and resist the temptation to pull out entirely.

Tom Yeung here with today’s Smart Money. 

Car designers all know it’s hard to have everything all at once.

In 2011, Nissan attempted to produce the world’s “first all-wheel drive crossover convertible.” It combined a sedan, SUV, and sports car into a single vehicle.

When designers add too much to a single car 

The result was the Murano CrossCabriolet – a vehicle so terrible it won CNN’s award for the “most disliked car” of the year. Car and Driver magazine noted the SUV portion added weight and height that caused a “frightful lack of grip.” Meanwhile, a reviewer at the Jalopnik website noted how the convertible aspect meant you “can’t see anything smaller than a fire station” with the top raised.

Nissan discontinued the car several years later.

Investing is usually the same way. Everyone knows that 1) high growth, 2) high-profit companies bought at 3) low prices are the key to success.

Warren Buffett bought Apple Inc. (AAPL) in 2016 when it was trading for just 11X forward earnings. It eventually netted his firm $120 billion in profits.

Eric helped his readers gain 1,350% in only 11 months from another “triple threat” firm back in 2021 – copper and gold miner Freeport-McMoRan Inc. (FCX).

But it’s hard to find “triple threats” like Apple and Freeport that combine these three things into a single package. Most firms usually only satisfy one of the three criteria (or two if you’re lucky). And those fulfilling all three often have something terrible going on beneath the surface.

That’s why finding these triple-threat firms is one of the greatest joys in investing. It’s that “aha” moment when you realize why markets are completely wrong about a stock.

And it’s why Eric recently recommended to his Fry’s Investment Report members a company that embodies all three criteria. It’s a fast-growing AI stock that’s so high-performing that, as Eric says, if we pulled a brown bag over its logo, so that we did not know the company’s identity, its raw performance would be enough to tempt anyone to buy in.

But, before we get into this company, let’s consider some other AI firms that illustrate why finding these triple threats is so hard…

The “Single” Threat

Most AI stocks are much like Xometry Inc. (XMTR), a firm I recommended last March in the InvestorPlace Digest e-letter. Though shares of the company have since risen 20% (a splendid return by any measure), it only covers one of the three triple-threat criteria (growth) that top stocks should have.

Xometry is a 3D printing marketplace that uses AI software to match customers with producers. A small firm looking for a half-dozen parts can log onto Xometry’s site and get an instant quote for the order, no matter how complicated the piece might be. Even large customers benefit, since the digital marketplace can channel bulk orders to the cheapest producers.

That’s turned Xometry into a hypergrowth firm. Net profits are expected to flip from negative $2 million to positive $13 million this year, and then double twice over the next two years.

However, these fast-growing companies usually lack quality and value… and Xometry is no exception.

• Quality. Xometry has generated losses since its 2021 initial public offering, making it a tough company for conservative investors to swallow.
• Value. Shares trade at 110X forward earnings, more than five times the S&P 500 average.

That makes the Maryland-based firm a bit like a Maserati GranTurismo: a beautiful sports car, but one with a high price tag and significant reliability issues.

So, what does a “double” threat look like instead?

Two Out of Three

That brings us to Arm Holdings PLC (ARM), a British chip designer whose TK market share makes Nvidia Corp.’s (NVDA) 90%market share in GPU-embedded servers seem low.

Arm is a 35-year-old firm that runs 99% of all smartphone CPUs. It has pioneered supremely power-efficient chip architecture, and its designs are a “must-have” wherever energy is at a premium. That includes virtually any battery-powered electronic device, such as laptops, Internet of Things (IoT) devices, and self-driving cars. Its designs are also increasingly found in data centers to help reduce power consumption.

The “must-have” nature of Arm’s architecture has translated into generous royalty payments… at least for Arm and its shareholders. Its latest v9 architecture charges a 5% fee on final sale value on top of regular licensing fees. So, if Apple sells an iPhone 16 Pro for $1,199, 5% of that higher value (rather than the lower $485 cost of building the phone) goes straight to Arm. The British firm generates over 40% returns on invested capital.

Arm’s AI ambitions have additionally turned the company into a hypergrowth firm. It is pushing ahead with power-efficient AI accelerators for both battery-powered devices and servers, and analysts expect profits to rise 25% on average over the next three years.

However, this great news comes with an eye-wateringly high price tag, making the stock prone to selloffs. Shares trade at 61X forward earnings (despite having a slightly slower growth rate than Xometry).

By that metric, it’s twice as expensive as Nvidia.

Indeed, Arm’s stock plummeted 12% on May 7 despite an earnings beat, because management forecasted that sales would “only” grow 12% next quarter to $1.05 billion. (It has since regained two-thirds of that selloff.)

That’s why neither Eric nor I recommend shares of this high-priced AI “supercar.” It’s simply too expensive in this current market.

The “Real” Triple Threat

So, what does a company that “has it all” look like?

Consider Corning Inc. (GLW), a current holding in Fry’s Investment Report.

Corning is an upstate New York firm that’s developed high-end glassware since 1851. It invented Pyrex in 1915, low-loss fiber optic cable in 1970, and the iPhone’s “Gorilla Glass” in 2007.

Today, the firm is a leader in liquid-crystal display (LCD) panels, smartphone screens, and the fiber optic cable used in broadband connections. It’s an upmarket manufacturer that’s survived outsourcing and offshoring thanks to decades of innovation.

Perhaps most excitingly, Corning also manufactures the high-end fiber optics used in data centers to link servers. This essential technology allows AI-focused data centers to send more data across tighter spaces. It’s become one of Corning’s greatest growth drivers.

Meanwhile, Corning’s profitability is excellent. The company has earned positive operating earnings for the past two decades (even through two recessions), and analysts expect return on equity (ROE) to surge to 17% this year – roughly twice as high as market averages. Corning’s shares additionally trade at just 19X forward earnings – below the S&P 500 average of 20.2X.

Now, you obviously might think there must be something wrong. How can a firm have it all without secretly being a Murano CrossCabriolet? And you’d be right to worry.

Corning supplies many of the world’s top TV makers, which are now facing enormous tariffs on exports to the United States. Public funding for broadband expansion may also get cut in the upcoming federal budget. Both factors have contributed to a 15% selloff since February.

However, it’s becoming increasingly clear that the market’s “sell first, ask questions later” approach has turned Corning into an irresistible “Buy.”

Ninety percent of its U.S. revenues are generated by products made in America, and 80% of its sales in China are made in China. The direct impact of tariffs should remain under $15 million – a rounding error relative to Corning’s $2.8 billion in expected pretax profits this year.

Corning also plans to create the first fully U.S.-made solar module supply chain. If successful, the project could help solar firms sidestep incoming tariffs on solar cells that could be as high as 3,500% if the U.S. International Trade Commission agrees with the Commerce Department’s proposals this June.

One More Triple-Threat Company

Corning’s data center connectivity products only nibble at the edges of the AI revolution. Eric’s other pick, the “brown bag” buy we mentioned earlier, is right in the center.

As Eric wrote in a recent Smart Money…

This “brown bag” buy competes directly against Nvidia Corp. (NVDA) in an industry that is brutally competitive and deeply cyclical. Because of factors like these, investors have been dumping the stock for months, despite the company’s superb operating performance and bulletproof balance sheet.

The company’s core operations are making rapid gains, especially its fledgling data center division. This critical division is growing at a blistering pace. Last year, its revenues nearly doubled and accounted for half of total company revenue.

In fact, Nvidia was almost bought by this forward-looking firm in the early 2000s.

The company is a major supplier of cutting-edge semiconductors, and it has very profitably become a major player in many facets of AI technologies.

And the company’s current share price has become too compelling to ignore.

You can learn how to access all about th8is “have it all, triple-threat” – and many of Eric’s other triple-threat plays – in Eric’s free, special broadcast.

You can click here for all of the details.

Until next week,

Tom Yeung

Markets Analyst, InvestorPlace