Worst News for Stocks in 50 Years
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P.S. You may have noticed we see "surprise" crashes every year now. Think about it: rate spikes in 2022... the bank crisis in 2023... $8 trillion wiped out in 2024... $11 trillion wiped out during the tariff crash in 2025... and, this year, $12 trillion was wiped out in 30 days during the Iran War. Something is off and Wall Street suggests this could continue (and worsen) well into the 2030s. Click here to learn the truth about this market and see what you must do now to prepare.
AI Is Selling Off, But These 5 Stocks Could Benefit Next
Reported by Ryan Hasson. First Published: 7/6/2026.
Key Points
- Capital appears to be rotating out of crowded AI-related trades like semiconductors and memory stocks into financials, biotechs, and beaten-down quality names.
- Meta, Microsoft, MercadoLibre, DLocal, and Robinhood have all posted strong earnings growth despite trading well below their 52-week highs.
- Several of these stocks show bullish signals, including insider buying, wide analyst upside targets, and early technical signs of bottoming out.
- Special Report: Everyone wanted SpaceX. Smart money wants this.
The AI trade appears to be stumbling. Memory stocks, neocloud names, and semiconductors — the very groups that helped carry the market through the first half of 2026 — have been selling off hard in recent weeks, and the money leaving those trades does not appear to be heading entirely for the sidelines. Instead, it appears to be rotating. Financials and biotechs, for example, have shown notable relative strength over the past couple of weeks, a classic sign of capital moving from crowded winners into neglected pockets of the market. Even pockets of the technology sector, such as cybersecurity, have shown remarkable relative strength.
That rotation raises an interesting question: where does that capital go next? One logical destination is the group of high-quality names that have spent much of 2026 ignored or outright punished while the AI complex soaked up all the attention. Stocks that have been beaten down but whose underlying businesses remain excellent tend to be exactly what rotational capital hunts for. Here are five worth watching closely.
Meta Platforms: A Top-Ranked Stock Trading at a Discount
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Reserve your free seat for the Zero-Dollar Trade Advantage session nowMeta Platforms (NASDAQ: META) is down almost 12% year-to-date and trades 27% below its 52-week high of $796.25. For a company of this quality, that drawdown and severe underperformance stand out. Meta scores in the top percentile of MarketBeat's MarketRank, currently ranking 4th out of 624 stocks in the computer and technology sector, and the fundamentals and current valuation explain why.
For its first-quarter results, reported on April 29, META topped estimates by $3.77 per share, with quarterly revenue rising 33% year-over-year to $56.3 billion and also topping expectations.
The valuation is where the opportunity in META becomes especially interesting. At a forward price-to-earnings (P/E) ratio of under 20, the company trades at a meaningful discount to its mega-cap peers despite growing revenue 33% in its most recent quarter. The consensus price target of $840.64 across 48 analysts implies over 44% upside from current levels, among the widest gaps in all of big tech. However, there is still work to do from a technical perspective. The stock is in a downward-trending channel, and for momentum to shift, it will first need to reclaim its 200-day SMA and the downward-trending resistance near $650.
Microsoft: The Worst Performer in Big Tech May Be the Best Setup
Microsoft (NASDAQ: MSFT) has been one of the more surprising laggards of 2026. The stock is down close to 19% on the year and sits roughly 30% below its 52-week high, a drawdown few would have predicted for a company still growing Azure at around 40%. The weakness has been driven by broader pressure in the software sector and concerns about the pace of AI monetization rather than any collapse in the underlying business.
In its most recent report, the company posted an impressive earnings and revenue beat, with sales increasing 18.3% over the prior year in Q3 2026 earnings, reported on April 29.
Like Meta, Microsoft is in the top percentile of MarketBeat's MarketRank. The consensus price target of $560.86 across 47 analysts implies nearly 44% upside, almost in line with META’s upside potential. From a technical perspective, there are early signs of a potential bottom for the software and technology giant. The stock may have put in a double bottom near $350 after retesting April’s low in late June and finding support. If MSFT can begin stabilizing above its 20- and 50-day SMAs, all eyes will be on its upcoming earnings release on July 29, a potential catalyst that could shift momentum for the stock.
MercadoLibre: Insiders Are Buying the Dip in Latin America's E-Commerce Giant
MercadoLibre (NASDAQ: MELI) has been left for dead this year, and that framing is barely an exaggeration. The Latin American e-commerce giant and fintech leader is down 12% year to date and trades nearly 31% below its 52-week high of $2,548.50, punished by concerns about margin compression as the company invests aggressively in logistics, credit, and its Mercado Pago fintech arm.
The market has treated that spending as a problem, but history suggests it is usually the source of MercadoLibre's next leg of growth.
Fundamentally, the growth engine has not slowed for MELI. The company reported Q1 2026 earnings on May 7, with revenue rising 49% year-over-year to $8.85 billion, comfortably topping analysts' estimates. Analysts project earnings growth of almost 47% for the year ahead, the highest of any name on this list, and the consensus price target of $2,255.33 across 18 analysts implies close to 28% upside. Notably, MarketBeat data shows insiders have been acquiring shares during the decline, a signal worth weighing when a stock is this out of favor. Similar to MSFT, MELI shares appear to be bottoming out. If the stock can reclaim its 200-day SMA, a break of the downtrend could be confirmed as higher-timeframe momentum shifts above that key zone.
DLocal: The Small-Cap Fintech Quietly Winning Back Wall Street
DLocal (NASDAQ: DLO) is the smallest, and likely the least familiar, name on this list, and the beaten-down story here is a longer one. The Uruguay-based cross-border payments company, which connects global merchants like Amazon (NASDAQ: AMZN) and Spotify (NYSE: SPOT) to local payment methods across emerging markets, remains far below the highs it set after its 2021 IPO, even after a major recovery from its 52-week lows. The stock still trades roughly 11% below its 52-week high and is up almost 5% year-to-date.
What makes DLocal interesting now is the quality hiding underneath. The company reported stellar Q1 2026 earnings on May 14, topping estimates for both earnings and sales. Revenue rose almost 55% year-over-year to $335 million, with earnings per share of 17 cents. For the year ahead, DLO’s earnings are projected to grow by almost 32%, from 81 cents to $1.07 per share.
The company carries a Buy consensus rating from eight analysts, the strongest rating of any name here, alongside a strong dividend yield and a forward P/E of just over 18. The stock recently broke out of its downtrend, clearing resistance near $14, an early sign that momentum may already be shifting for this Latin American payments innovator. If the stock can base over $14 and turn prior resistance into support, a newfound uptrend might follow.
Robinhood: A Flat Year Hides a Massive Round Trip
Robinhood Markets (NASDAQ: HOOD) is technically flat on the year, down less than 1%. But that number hides one of the wilder round trips in the market. The stock collapsed from a 52-week high of $153.86 to as low as $63.51, and has since fought its way back above $112. Even after that recovery, shares still sit almost 27% below their 52-week high, which is what earns Robinhood a place on this list.
The business itself has been anything but beaten down. Net income reached $1.88 billion over the trailing 12 months, with remarkable net margins exceeding 41%, and analysts project earnings growth of almost 38% ahead. The company was also just approved to underwrite IPOs, opening an entirely new revenue stream at a time when the IPO market is heating up again.
An insider has been purchasing shares, too. Director Meyer Malka has purchased almost $55 million in stock in Q2. And the stock has done a good job of carving out a bottom and reclaiming critical levels. Going forward, though, investors will want to see volatility slow in the name and a base form above the 200-day SMA, signaling stabilization and a steady hand from the bulls.
Rotation Could Mean Opportunity in Forgotten Names
Rotation is a feature of every bull market, and the current shift away from the crowded AI trade is creating opportunities in names the market ignored in the first half. These five stocks span mega-cap tech, Latin American e-commerce, emerging-markets fintech, and retail brokerage. Still, they share a common profile: meaningful drawdowns from their highs, fundamentals that never broke, and in several cases, insiders and analysts leaning bullish while the crowd looks elsewhere. If capital continues to rotate out of the AI complex, beaten-down quality might be exactly where it lands.
3 European Stocks to Carry Investors Through the Back Half of 2026
Reported by Chris Markoch. First Published: 7/1/2026.
Key Points
- The Euro Stoxx 50 index is up 8.2% through June 30, nearly matching the S&P 500's 9.3% gain amid several European tailwinds.
- ArcelorMittal, Arm Holdings, and Novartis are three Euro Stoxx 50 components that have each delivered index-beating returns over the past 12 months.
- Analysts project earnings growth of over 49%, approximately 77%, and around 11% for ArcelorMittal, Arm Holdings, and Novartis, respectively, over the next 12 months.
- Special Report: Everyone wanted SpaceX. Smart money wants this.
The first half of the year is over, and it may surprise some investors that European stocks are nearly matching U.S. stocks. The tale of the tape as of June 30 tells the story:
The S&P 500 is up about 9.3%. It’s a solid number, even if it’s not a record. However, the Euro Stoxx 50 index is up 8.2% this year. That extends a bullish trend in the index that began in October 2022.
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Reserve your free seat for the Zero-Dollar Trade Advantage session nowSeveral tailwinds have supported European stocks. These include a weaker dollar relative to the euro and other European currencies, a valuation re-rating, increased defense spending in the European Union flowing into industrials, materials, and defense-adjacent names, broader sector diversification, and a more hawkish interest rate policy.
How to Invest in European Stocks
It’s fair to say that investors may be cautious about European stocks because the growth isn’t based on fundamental performance. Multiple expansion and currency dynamics aren’t sustainable over the long term.
But the same can be said for the SPDR S&P 500 ETF Trust (NYSEARCA: SPY), which is a good proxy for the S&P 500. In fact, “SPY and chill” is a simple way to invest as part of a long-term strategy.
For the Euro Stoxx 50 index, the SPDR Euro Stoxx 50 ETF (NYSEARCA: FEZ) is a solid proxy. However, investors may find better opportunities by buying individual components within the index. Here are three names that have produced index-beating returns over the last 12 months.
ArcelorMittal Rides Europe's Industrial and Steel Revival
The first stock on this list is headquartered in the Netherlands. ArcelorMittal (NYSE: MT) is one of the world’s largest steel producers and operates an integrated value chain spanning raw material extraction, steelmaking, processing, and distribution.
Like any steelmaker, ArcelorMittal is sensitive to fluctuating steel prices. However, the company has delivered results that highlight its resilience in a volatile, competitive market.
MT is up more than 90% over the past 12 months and is trading within 2% of its consensus price target as of June 30. But that growth hasn’t come in a straight line. The stock dropped approximately 28% from late February through late March. Since then, it has been boosted by the company’s Q1 earnings and the announcement of a share buyback program.
A more recent pullback of approximately 17% from its 52-week high leaves room for investors to get involved with a company that’s expected to grow earnings by more than 49% over the next 12 months. Investors will learn more when the company reports Q2 2026 earnings, scheduled for July 30.
Arm Holdings Remains a Core AI Infrastructure Growth Stock
Arm Holdings (NYSE: ARM) is one of the leading names in AI infrastructure. The England-based semiconductor IP company doesn’t manufacture chips. Rather, it licenses its architecture and instruction set to other companies, which then design and produce their own chips based on Arm’s technology.
Like all the names in this space, ARM has been subject to volatile price swings. The stock is up over 220% in 2026, but it has also seen two drops of nearly 25% from June 4 through June 30.
Much of that is due to general volatility in the chip sector, which could continue. However, analysts still predict earnings growth of approximately 77% in the next 12 months. That’s likely to be the catalyst for further gains. It may also be enough for investors to keep overlooking the stock’s lofty valuation of over 300x forward earnings.
Investors should expect more volatility as the AI infrastructure trade continues to develop. But as long as chip demand remains elevated, ARM remains an essential name for investors looking for profits.
Novartis Offers Defensive Growth Through Innovation and Dividends
Biopharma stocks may offer significant upside for the rest of 2026 and beyond. Among European stocks, Novartis (NYSE: NVS) is a name to watch. The company is based in Switzerland and has a deep pipeline alongside a broad catalog of currently available products in areas such as oncology and gene therapy.
The company also faces threats from biosimilar (generic) products and its own research and development (R&D) spending, which is significant. Even so, the company still expects earnings growth of around 11% over the next 12 months.
NVS is up about 14% in 2026 and is about 8% below its consensus price target of $141.20. The long-term story will require new revenue streams to offset its R&D spending, but it may not be time to fade the stock just yet.
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