Editor's note: Folks, we've seen a lot of upheaval in the markets lately... In particular, the tech sector has been on a wild ride. With all of the ups and downs, it's easy to let emotions take over. When that happens, investors often forget to look at the larger picture.
Editor's note: Folks, we've seen a lot of upheaval in the markets lately...
In particular, the tech sector has been on a wild ride. With all of the ups and downs, it's easy to let emotions take over. When that happens, investors often forget to look at the larger picture.
So today, we're sharing an updated version of a classic essay from Joe Austin. It was originally published in the June 25, 2025 edition of the Chaikin PowerFeed. And in it, Joe shares the importance of separating the future winners from the "hype" stocks in a disruptive industry like tech...
Even the CEO of IBM Got This Wrong
By Joe Austin, senior analyst, Chaikin Analytics
Artificial intelligence ("AI") is a generational opportunity...
By that, I mean it's a disruptive technology. It will boost almost every part of the economy. And one day, our grandchildren will reflect on what's happening in real time right now.
It's a lot like Apple's (AAPL) iPhone, for example...
The first iPhone launched in June 2007. That was less than two decades ago. And yet, almost everyone walks around with a smartphone in their pocket these days.
The iPhone isn't the only tech to disrupt our daily lives, of course...
Major tech waves often follow a specific pattern of adoption. And right now, AI is about where the PC was in 1985...
Back then, a lot of people believed in the potential of PCs. But the machines simply weren't practical yet.
I worked as a technology analyst at the time. I vividly remember PCs sitting idle on many senior managers' desks – for years, in some cases.
Heck, even IBM's (IBM) CEO, John Akers, looked at an early model of the PC as just a toy. He didn't believe it could ever become a critical part of our everyday lives.
A rare new class of AI stocks has opened a way to potentially double your portfolio... by foreseeing the biggest earnings beats on 5,000 stocks, BEFORE they occur. A colossal "divide" coming to AI on August 26 has opened the best opportunity since 2022 to apply this breakthrough new strategy today. Wall Street legend Marc Chaikin shares the full details and two free picks. Watch now (time-sensitive stocks).
In April 2020, my Power Gauge flashed BULLISH on Overstock.com. I never liked that stock. The system did. Four months later, Overstock was up as much as 1,050% – a $10,000 stake would have grown to as much as $115,000. This morning, that same system did it again. It rated one stock VERY BULLISH – the highest grade it gives. Click here to learn how to get the name of the stock.
It Pays to Catch Tech Cycles at the Right Time
The PC changed our lives long before we all carried smartphones in our pockets. It made things easier across all sorts of industries. And it combined with another disruptive force...
In the early 1990s, a lot of companies started shifting their focus to the Internet. They saw the technology's potential. So they invested time and money into it.
Investors who catch tech cycles at the right time can make massive returns.
After all, innovation always marches on. And the dot-com boom is proof. For example, look at what happened with Internet-related stocks – both over the short and long term...
According to FactSet data, the S&P Composite 1500 Internet Services & Infrastructure Subindustry Index produced a cumulative return of nearly 4,000% from 1995 to 2000. That performance crushed the benchmark S&P 500 Index's cumulative return in that span.
When we zoom out, the outperformance is even more impressive...
Even with the dot-com bust from 2000 to 2002, the S&P Composite 1500 Internet Services & Infrastructure Subindustry Index had produced a cumulative return of around 16,000% from 1995 to 2024. That's more than 4 times the S&P 500's cumulative return over that period...
As you can see, buying into the broad-market indexes isn't always the right move. If you only do that, you'll often miss the biggest gains.
Sure, in a broad-market index, you'll get some exposure to the winners. But you'll also get exposure to companies that the innovation displaces or that decline for other reasons.
Not every Internet-related stock became a big winner. We've all heard of dot-com busts like Pets.com, eToys.com, and Webvan.
Here's where the hard part comes in...
The trick to successfully investing in disruptive technology is twofold. You need to find the big winners and avoid the big losers.
As you likely know by now, Marc Chaikin and I gave a special presentation on this very topic just yesterday. We discussed how a major "disconnect" is underway in the market. It's poised to send some stocks soaring... and others plummeting.
This moment is similar to what Marc saw six years ago during the 2020s tech boom, when the Power Gauge pointed him to five little-known companies that each went on to double – while many of the year's most celebrated IPOs went on to crash.
You can still get all the details on this market move. In the replay of our broadcast, Marc and I will tell you exactly where we believe you should move your money for the biggest potential gains this year... with the least amount of risk.
This event is free to watch. And you won't want to miss it... Check it out here.
Good investing,
Joe Austin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.24%
11
13
6
S&P 500
-0.68%
131
254
107
NASDAQ
-1.69%
29
53
17
Small Caps
-1.26%
587
987
342
Bonds
+0.38%
Pharmaceuticals, Biotechnology and Life Sciences
+2.88%
30
28
4
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes remain all bullish.
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+4.51%
Real Estate
+1.25%
Staples
+1.05%
Health Care
+1.02%
Utilities
+0.89%
Financial
+0.07%
Information Technology
-0.25%
Communication
-0.71%
Industrials
-1.15%
Discretionary
-2.42%
Materials
-2.74%
* * * *
Industry Focus
Telecom
6
23
10
Over the past 6 months, the Telecom subsector (XTL) has outperformed the S&P 500 by 10.46%. However, its Power Bar ratio which measures future potential is Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved up 1 slots over the past week.
Indicative Stocks
AD
Array Digital Infrastructure, Inc.
ASTS
AST SpaceMobile, Inc.
GSAT
Globalstar, Inc.
* * * *
Top Movers
Gainers
TRGP
+7.13%
PODD
+5.96%
ULTA
+4.75%
INTU
+4.41%
MNST
+4.09%
Losers
COHR
-12.75%
LITE
-9.87%
STX
-9.16%
SNDK
-9.01%
CIEN
-8.90%
* * * *
Earnings report
Earnings Surprises
KEYS Keysight Technologies, Inc.
Q3
$3.07
Beat by $0.59
JKHY Jack Henry & Associates, Inc.
Q4
$1.53
Beat by $0.09
HD The Home Depot, Inc.
Q2
$4.92
Beat by $0.19
MRCY Mercury Systems, Inc.
Q4
$0.37
Missed by $-0.01
TOL Toll Brothers, Inc.
Q3
$2.97
Beat by $0.05
* * * *
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