For the past few years, “experts” told investors that only one trade mattered: AI.

This week was a reminder that even the strongest narratives eventually succumb to economic reality.

As the market digested earnings from the world’s largest companies, investors also began asking tougher questions about AI business models. Given the trillions in cash going to AI, investors need to ask if trillion-dollar valuations can survive in a competitive, free-market world.

Stories move stocks in the short run. Cash flows determine value over the long run. While we have no answer as to where the AI cash flows will come from, we can see from where the market assumes they will come by analyzing stock valuations with our best-in-class models.

Our research goes much deeper than the headlines. Whether we’re looking for undervalued businesses with durable competitive advantages, evaluating AI companies through the lens of expectations investing, or breaking down earnings beyond the media narrative, our goal is always the same: help investors make more informed decisions based on superior fundamental data.

See our research from this week for real-time examples.

Long Idea:

As an industry leader with the proven ability to generate profits in good and bad times, this stock remains undervalued and continues to provide strong upside potential.  

The Price Is Not Right:

Anthropic and OpenAI’s pure-play AI model valuations (~$1 trillion each) could crater as the market digests the implications of drastically lower prices for similar capability from open-source models.

Earnings Watch Party Replay:

The world’s largest companies have reported results. The market pundits already declared the winners and losers. But flashy headlines don’t explain if these companies are actually worth owning. That’s exactly what our Market Heavyweights Earnings Watch Party is designed to uncover. Stocks discussed include AAPL, MSFT, AMZN, META, V, MA, PG, ARM, KO, QQOM, and more.

Style Rankings for 3Q26:

We published our Style Rankings report for 3Q26 and our best and worst ETFs and Mutual Funds reports for each individual style. See the recap here.

How to Find the Best & Avoid the Worst Funds in 3Q26:

We published our quarterly series on how investors can find the best & worst ETFs and mutual funds for both sector and style in 3Q26.

Cheap Funds Dupe Investors:

Investors are good at picking cheap funds. We want them to be better at picking funds with good stocks. Both are required to maximize success.

Model Portfolio Updates:

We updated our Dividend Growth Stocks Model Portfolio.

Danger Zone Podcast:

CEO David Trainer joined Chuck Jaffe to discuss why these frontier models are in the Danger Zone ahead of their (possibly) upcoming IPOs.

We hope you had a great week!

See a preview of upcoming research below.

Upcoming Research