Displaying items by tag: technology

Amid ongoing market volatility, technology stocks centered on AI, cloud computing, 5G, and IoT continue to gain traction, offering long-term growth potential. Small and mid-sized companies like UiPath Inc., Five9 Inc., and Innodata Inc. are drawing attention with strong revenue growth and recent positive earnings estimate revisions. 

Despite challenges stemming from concerns over high valuations and Federal Reserve policy shifts, the tech sector remains buoyed by relentless innovation and adaptability. Investors are particularly interested in companies providing automation platforms, intelligent cloud solutions, and advanced AI-driven data services. 

For example, UiPath has introduced generative AI features tailored to business needs, Five9 focuses on enhancing customer engagement through its cloud contact center platform, and Innodata supports Big Tech with AI data engineering services. 

Finsum: While the AI battle will happen at scale these companies could prove to be fruitful growers in the AI age.

Technology stocks are making a strong comeback, with the Nasdaq Composite and S&P 500 approaching record highs after their recent pullback. For those exploring artificial intelligence opportunities, stocks with reasonable valuations and solid growth potential remain attractive. 

Evercore strategist Julian Emanuel identifies promising options like Visa and Micron Technology, which leverage AI to enhance performance and competitiveness. Visa's adoption of AI-driven fraud prevention tools is expected to drive earnings growth of over 12% annually for the next two years. 

Similarly, Micron’s AI-related components, crucial for powering Nvidia’s chips, position the company for a 25% annual sales increase through 2026. 

Finsum: These examples highlight how AI can fuel profitability and create sustained momentum in select technology stocks.

A recent survey reveals that 83% of advisors who switched firms in the past three years are satisfied with their decision, with many wishing they had made the move sooner. The primary motivations for these changes are improved technology and better compensation, as highlighted by 80% of respondents citing tech as a factor in their decision. 

Satisfaction is closely tied to the quality of the tech stack, with advisors emphasizing tools that enhance efficiency, attract clients, and improve work-life balance. Beyond tech and pay, advisors often cite inadequate support and administrative inefficiencies, such as delays in marketing approvals, as key pain points driving their transitions. 

Mergers and acquisitions also prompt advisors to reassess firm culture and alignment with their goals, particularly amid ongoing industry consolidation. 

Finsum: Firms looking to retain talent might focus on addressing tech frustrations, including better integration, improved client-facing tools, and AI-powered automation to boost advisor productivity.

Family offices are increasingly pivoting away from traditional investments and embracing alternative assets such as private equity, real estate, and venture capital. According to J.P. Morgan’s Global Family Office Report, nearly half of family office portfolios are now in private markets, reflecting their long-term horizons and ability to capitalize on illiquidity premiums. 

This shift allows for higher potential returns and smoother valuation changes compared to the volatility of public stocks. Many family offices also leverage their entrepreneurial roots for direct investments, contributing expertise and networks to private companies. 

Beyond diversification, these offices adopt goal-based strategies tailored to multigenerational needs, ensuring alignment with unique family objectives. 

Finsum: As they navigate evolving trends like generative AI and private market rebalancing, family offices continue to balance innovation with prudent risk management.

Advisors remain divided on the adoption of direct indexing, despite its increasing popularity and benefits like tax efficiency and portfolio customization. A recent survey revealed that while 34% of respondents currently use or plan to use direct indexing, 39% have no plans to adopt it, and 28% are open to considering it in the future. 

Experts view the 62% engagement or consideration rate as promising but notes barriers such as high account minimums and misunderstandings about the strategy. Advocates highlight its advantages, including tax loss harvesting, personalized portfolios aligned with client values, and competitive performance compared to traditional ETFs. 

However, misconceptions persist, particularly around how capital loss generation works without sacrificing returns. 

Finsum: Advisors should start exposing themselves to direct indexing because we will see costs decrease and the tool become more standard over the decade.