By October 2002, the dream of an Internet-fueled world appeared dead... The tech-heavy Nasdaq Composite Index had fallen nearly 80% from its March 2000 peak.
Editor's note: The markets and our Chaikin Analytics offices will be closed tomorrow for the Fourth of July holiday. So we won't publish our Chaikin PowerFeed e-letter. You can expect to receive your next issue on Monday, July 7.
The End of the Internet Era... or Not
By Joe Austin, senior analyst, Chaikin Analytics
By October 2002, the dream of an Internet-fueled world appeared dead...
The tech-heavy Nasdaq Composite Index had fallen nearly 80% from its March 2000 peak.
For two and a half years, Silicon Valley startups collapsed like dominoes. These companies had no choice but to unplug their servers and auction off their office chairs.
As a result, people who staked their fortunes in the wrong places lost everything.
But thankfully, the dream didn't die for everyone. As many investors turned away from the idea of the Internet, a small group of entrepreneurs and companies did something radical...
Until midnight, you can claim one FREE year of the new "EQ" Power Gauge and essentially six free months of Chaikin's Breakthrough Investor as part of a special charter offer. It's a brand-new product with an underlying system that could help you double your money by foreseeing the biggest earnings beats – BEFORE they occur – especially in AI and high tech. Doors close on this charter offer at MIDNIGHT TONIGHT. Until then, click here for the full details.
Amazon's (AMZN) Jeff Bezos kept shipping books and DVDs from warehouses...
Netflix's (NFLX) Reed Hastings kept mailing red envelopes...
And Alphabet's (GOOGL) Larry Page and Sergey Brin kept tinkering with their search algorithm in a garage-sized server room.
Notably, though, these companies weren't in the limelight yet. They weren't running flashy Super Bowl ads or holding lavish public debuts for their stocks.
They just kept solving real problems with better technology. And in time...
They won.
Amazon, Netflix, and Alphabet are all household names today. They're recognized as some of the pioneers in our Internet-fueled world.
But that wasn't always the case...
When the dot-com bubble busted, a lot of folks viewed these three companies as stubborn outliers. They thought these entrepreneurs were betting on a future no one else could see.
In the ensuing years, these companies proved all the doubters wrong.
History is full of examples when technology eventually wins out...
I'm sure you remember all the buzz around the iPhone back in 2007...
It seemed absurd that Apple would launch a phone – let alone one without a keyboard.
After all, BlackBerry dominated the space at the time. And folks loved having the company's trademark keyboard on their phones.
But a seismic shift was underway. Apple soon displaced BlackBerry as the king of the smartphone market. And the people who saw this change coming reaped huge rewards.
Fortunately, investors like us are now in the early stages of another seismic shift...
A new tech-fueled era is beginning thanks to artificial intelligence ("AI").
AI is already writing legal briefs. Robots are helping with surgeries. New infrastructure is cooling billion-dollar data hubs. Heck, everyday tools are even getting AI-related upgrades.
But the thing is...
Many investors aren't sure if AI is all hype. They're waiting for someone else to dip their toes into the water first. Or they're simply sticking with the biggest names in technology.
That gives folks like us an opportunity...
Our job is to sort out the "fakers" from the "makers."
We want to find the companies that are using AI and other innovations to the fullest. But at the same time, we also need to avoid companies that are simply talking a big game.
Chaikin Analytics founder Marc Chaikin and I have developed a tool that helps us do that. And even better, we've upgraded the Power Gauge to include this tool.
Marc and I recently held a special event to explain the full details of how it all works. And we've talked about it frequently in the PowerFeed over the past couple of weeks.
But I'm bringing it up again for an important reason...
Today is the last day to access a replay of our presentation before it goes offline.
So if you want to learn about a strategy that will help you uncover "hidden AI" winners, I urge you to set aside some time for our presentation. You can watch it right here.
The dot-com boom happened roughly 25 years ago. When the bubble popped, many folks thought it meant the end of the Internet era.
But now, we know that wasn't the case. And the people who kept the dream alive thrived.
So as the AI revolution unfolds, don't get stuck watching from the sidelines.
Good investing,
Joe Austin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.04%
12
12
6
S&P 500
+0.45%
123
276
101
Nasdaq
+0.7%
31
55
15
Small Caps
+1.39%
667
904
308
Bonds
-0.64%
Energy
+1.72%
2
13
8
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Materials
+5.31%
Consumer Discretionary
+3.27%
Industrials
+3.05%
Energy
+2.83%
Consumer Staples
+2.47%
Financial
+2.35%
Communication
+2.13%
Information Technology
+1.71%
Real Estate
+1.33%
Health Care
+1.09%
Utilities
+0.91%
* * * *
Industry Focus
Mining Services
22
10
0
Over the past 6 months, the Mining subsector (XME) has outperformed the S&P 500 by +15.47%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #1 of 21 subsectors and has moved up 3 slots over the past week.
Top Stocks
WS
Worthington Steel, I
CMP
Compass Minerals Int
ZEUS
Olympic Steel, Inc.
* * * *
Top Movers
Gainers
ALB
+8.09%
COIN
+5.7%
MRNA
+5.54%
ORCL
+5.03%
TSLA
+4.97%
Losers
CNC
-40.37%
MOH
-21.97%
ELV
-11.5%
UNH
-5.7%
CVS
-4.28%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
No earnings reporting today.
Earnings Surprises
UNF UniFirst Corporation
Q3
$2.17
Beat by $0.08
* * * *
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