International Business Machines (IBM 1.10%), which is usually referred to by its ticker IBM, is a global icon in the technology sector. The company has a surprising ability to change with the times, and it’s been doing so for more than 100 years now. Indeed, when IBM was founded back in 1911, it made things like scales and clocks. Today, it makes all sorts of equipment, including quantum computers, and it supports the cloud computing industry, which is the backbone of artificial intelligence (AI).

Wall Street loves IBM again

Even after a fairly sizable drawdown since July, shares of IBM still trade up around 20% or so over the past year. Over the trailing three years, the stock has nearly doubled in price. That’s a pretty sizable return and highlights the fact that Wall Street is obsessed with IBM shares again. As noted, the company has shifted into key areas like quantum, cloud computing, and AI.

But what’s special about IBM is that it hasn’t always been focused on these areas. Just a few years ago, investors pretty much hated the stock because it was out of step with the technology sector. The concern about IBM was so bad that between 2012 and 2020, the stock actually lost roughly half of its value. Contrarian investors with a long-term view, however, realized that IBM had updated its business many times before.

IBM is worth loving most of the time

The business revamp was difficult and took many years. It involved a large corporate spin-off, asset sales, and acquisitions, the largest of which was Red Hat. But IBM did what needed to be done to remain relevant. So while IBM is popular again because of its current business focus, the real reason to be obsessed with IBM for long-term investors is its proven ability to change with the world around it.

Reuben Gregg Brewer has positions in International Business Machines. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy.

Plug Power (PLUG -4.52%) has captivated growth investors for decades. The company specializes in producing hydrogen fuel systems, a segment of the market that could see massive growth rates throughout the rest of this century. There should be plenty of near-term growth, too. According to research published in 2024 by Bloomberg, clean hydrogen fuel demand is expected to “skyrocket 30-fold to 16.4 million metric tons per year by 2030.”

But investors aren’t all on board: Some Wall Street analysts remain bearish on the stock. Morgan Stanley analysts, for example, rate PLUG stock as a sell with a price target of just $0.75 — roughly 50% below the current share price.

This is the No. 1 problem with Plug Power stock today

While industry forecasts call for major hydrogen fuel demand growth, the technology is still largely uncompetitive versus traditional fossil fuels, and even versus renewable sources like wind and solar. As Bloomberg’s research highlights, demand growth forecasts will be very sensitive to changes in government regulations and subsidies — two components that are critical in making hydrogen fuel economically viable.

A lack of economic viability has consistently reduced demand for Plug Power’s products over the decades. The company itself has often been reliant on large government subsidies to remain financially afloat. This is exactly what Wall Street analysts are worried about. Morgan Stanley’s analysts have been sounding the alarm since 2023. “We see significant risk around PLUG’s business model,” they wrote then. “On paper, PLUG’s strategy makes sense to us, but we have reduced confidence in the company’s ability to execute on that strategy barring a potential dilutive capital raise.”

Image source: Getty Images.

Morgan Stanley’s concerns were prescient. Since that time, Plug Power has nearly doubled its share count, massively diluting shareholders in an attempt to stay financially viable. Today, the company continues to post negative net incomes quarter after quarter.

The future is bright for hydrogen fuel. But Plug Power’s lack of profitability continues to concern analysts, and is something investors have to watch.

Some positive things are going Whirlpool‘s (WHR 0.96%) way of late. The home appliance maker looks set to be a net winner over the long term from the Trump administration’s recent tariff actions. The company’s decision last year to exit its European business (which combined with Arcelik to form Beko Europe) should magnify the tariff’s benefits further by increasing the company’s exposure to North America.

Whirlpool’s near-term headwinds

That said, the company needs to overcome some near-term headwinds, and the irony is that they are caused by the self-same tariff actions that will help the company over the long term. As recently discussed, Whirlpool’s immediate problem is that Asian competitors are preloading product into the market in anticipation of higher tariffs (as they did in the first quarter) or to take advantage of any tariff pauses (as they did in the second quarter).

As a result, Whirlpool’s markets are suffering intense promotional activity as its competitors sell their inventory into the market through 2025. According to Whirlpool CEO Marc Bitzer on a recent earnings call, “we expect that foreign competitors will begin to experience the full implications of tariffs and appliances as they sell down their preloaded inventory in the back half of 2025.”

Bitzer’s comment speaks to a likely continuation of the near-term pressure that caused the company to cut its full-year guidance.

Whirlpool’s long-term growth prospects

Still, it also refers to the substantive tariffs currently applied to Asian competitors. Whirlpool outlined some of them on its earnings presentation, with imports from China tariffed at 44% to 61%, Korea at 29%, Vietnam at 25%, Thailand at 39%, etc. While these rates may change, and its competitors can expand investment to produce more in the U.S., 80% of what Whirlpool sells in the U.S. is made in the U.S.

Image source: Getty Images.

Simply put, Whirlpool is best placed to benefit from the new tariff regime, and that should become clear enough as the full impact of tariffs kicks in. As such, Whirlpool stock has excellent upside prospects.

Since the start of 2024, Bitcoin (BTC -3.05%) has been on a spectacular bull run. It’s up 179% over that time period, and each time it looks like the leading cryptocurrency could be pulling back, it reaches a new all-time high.

With that in mind, is it still worth buying Bitcoin right now? I believe so for one important reason.

Image source: Getty Images.

More institutional and corporate investors

For most of Bitcoin’s history, retail investors were the only ones buying it. Most of the biggest investors, namely hedge funds and investment banks, wouldn’t touch Bitcoin with a 10-foot pole because it was a volatile, unproven asset.

In January 2024, the Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETFs that invest directly in the cryptocurrency. ETF approval has given Bitcoin more legitimacy and brought in money from institutional investors. As of this writing (July 30), total Bitcoin ETF inflows have surpassed $55 billion.

It has also become normal for public companies to buy Bitcoin for their treasuries. Some aim to hold as much Bitcoin as possible, becoming Bitcoin treasury companies. Strategy (MSTR 1.91%), which started buying Bitcoin in 2020, was the first notable company to do this. There are now over 100 companies that hold Bitcoin.

Although Bitcoin is the oldest cryptocurrency, it has only been around since 2009, and it has just started getting interest from businesses and institutional investors in the last few years. Inflows from these deep-pocketed investors could be a continued growth catalyst for Bitcoin over the rest of the decade — or longer.

Don’t bet against Bitcoin

Even after Bitcoin’s recent success, many analysts think it could get much more valuable. British bank Standard Chartered has projected that it will reach $500,000 by 2028. Bitcoin is volatile, and it’s not a good idea to invest in it too heavily. But it’s the most successful cryptocurrency, and it has delivered incredible returns, so you may want to regularly put a small amount of your money into it.

Visa (V 0.90%) is a dominant force in the financial services industry. It runs a leading payments platform that connects consumers, banks, and merchants across the globe. The business even finds itself in Warren Buffett-led Berkshire Hathaway‘s portfolio.

This financial stock trades close to all-time highs, and a valid argument can be made that the current valuation isn’t cheap. But this is an outstanding company that still deserves a closer look.

Here’s one reason investors should buy Visa.

Image source: Visa.

Visa’s unassailable competitive position

In fiscal 2024, Visa processed 233.8 billion transactions valued at a whopping $15.7 trillion. It currently has 4.8 billion active cards that are accepted at 150 million merchants around the world. That scale is unmatched, and it demonstrates just how formidable Visa’s competitive position is, which is a key reason to scoop up shares.

The business benefits from an extremely powerful network effect. As the number of merchants that accept Visa grows, it’s more valuable to have a Visa card. The opposite is also true, with more cardholders creating more sales opportunities for merchants.

The threat of stablecoins

With the passing of the Genius Act, investors might start to worry about the threat that stablecoins pose to Visa’s business model. As things stand today, there’s no reason to be concerned. While merchants will test the waters in an effort to cut payment processing costs, the real question of whether or not consumers will make the jump.

Favorable legislation passing doesn’t necessarily mean there will be mass adoption of stablecoins. People love their credit cards and the perks and rewards they offer. And a company like Visa is so ingrained in our economy, with the network effect already mentioned, as well as its deep relationships with banks and other players in the financial services industry, that it’s a monumental task to disrupt it.

Visa should continue to dominate the payments landscape for the foreseeable future.

Data mining specialist Palantir Technologies (PLTR -0.97%) picked up right where it left off in 2024. Last year, Palantir stock was the top performer in the S&P 500 index, as well as the third-best stock in the Nasdaq-100. So far in 2025, things haven’t changed much for the artificial intelligence (AI) software player — as shares have rocketed by an eye-popping 74% as of this writing (June 10).

While the momentum doesn’t appear to be slowing down at all for Palantir, my prediction is that the stock will plummet during the second half of the year.

Let’s explore some of the trends fueling Palantir stock right now, as well as some interesting breadcrumbs that could support my idea that shares are headed for a sell-off.

Should you dump your Palantir position right now? Read on to find out.

Palantir’s valuation is sky high, and…

There is a lot that can be gathered from the chart below. The obvious takeaway is that Palantir’s price-to-sales (P/S) multiple of 105 is significantly higher than any of the software growth stocks in this peer set. However, the bigger idea from the analysis below is that Palantir’s valuation continues to expand.

PLTR PS Ratio data by YCharts

These dynamics imply that investors are buying Palantir stock in droves. The deeper question I’ve been asking is: Who are the investors that keep chasing Palantir’s momentum?

Based on some recent clues, I think I might have an answer.

…smart investors are taking profits

Ark Invest CEO Cathie Wood is one of the original Palantir bulls on Wall Street. Shortly following the company’s IPO in late 2020, Wood appeared on financial news programs on a regular basis — constantly talking about her excitement around Palantir and the company’s ability to disrupt legacy software providers. While this was a great source of indirect PR for Palantir, Wood shocked the investment world when she dumped her stake sometime in 2022.

Following these moves, Wood started accumulating a position in Palantir stock once again in 2023. Per the graph in the prior section, Ark Invest’s position in Palantir is sitting on a healthy profit considering shares now hover around all-time highs. Wood has taken note of these trends, and the famous tech investor is once again reducing her exposure to Palantir.

Wood isn’t the only notable personality on Wall Street that’s choosing to take profits in Palantir, though. Billionaire investor Stanley Druckenmiller of the Duquesne Family Office completely exited Palantir during the first quarter, per the fund’s most recent 13F filing. Similar to Wood, Druckenmiller has also been in and out of Palantir stock in recent years.

I view the decision to reduce exposure to Palantir stock right now as a prudent one. While the selling from Wood and Druckenmiller does not necessarily imply a bearish view of Palantir at all, I think trimming exposure and taking profits in a stock that seems overbought makes sense.

Image source: Getty Images.

My prediction is that more institutions will follow in the second half of 2025

Palantir’s valuation is historically high, even compared to what investors witnessed during the peak bubble days of the dot-com boom. I think a rising number of institutions will come to the opinion that Palantir’s current valuation trajectory is not sustainable given how far the stock has already run.

PLTR Shares Increased by Institutional Investors data by YCharts

The graph above illustrates the number of shares of Palantir stock that have increased and decreased by institutional investors over the last year.

As the trends indicate, there was pronounced institutional buying of Palantir stock during the last few months of 2024. At the same time, the orange line — which indicates institutional selling — also steadily climbed during late 2024 and ultimately converged with the purple line (buyers) at the start of 2025. Right now, shares bought by institutions remains higher than shares sold, which implies large investors are net buyers of Palantir stock for the time being.

Throughout this year, both buying and selling activity has decelerated — as indicated by the relative flattening of both lines. These trends suggest that while institutions remain cautiously optimistic about Palantir, there could be further selling on the horizon as the narrowing gap between buyers and sellers becomes more obvious.

As such, I think the current momentum fueling Palantir stock could tempt more institutions to dump their shares — leading to a plummeting share price and much-needed valuation normalization.

Ultimately, I don’t think dumping your position in Palantir is entirely necessary. As a long-term investor, it’s important to hold on to your highest-conviction winners. However, I do think taking some gains off the table could be a smart decision right now.