AI Stocks Meta, Oracle Lead Five Names Near Buy Points

Artificial Intelligence (AI) has emerged as a transformative force in the tech industry, driving growth and innovation across various sectors. Two prominent AI stocks, Meta Platforms (META) and Oracle (ORCL), are leading the pack of top five names near buy points, fueled by their AI initiatives. This article explores the AI-driven momentum behind these stocks and the broader investment landscape for AI-focused companies.

Meta Platforms, the parent company of Facebook and Instagram, is investing heavily in AI to improve its core business and boost advertising revenue. The company's AI-driven momentum in the advertising business is boosting Wall Street's confidence that its massive investment in AI will deliver substantial revenue over time. Despite concerns about elevated spending, analysts expect Meta's AI initiatives to ease investor concerns and drive long-term growth.

Oracle, a database software provider, is witnessing a resurgence in sales growth driven by AI-fueled demand. The company's focus on expanding its cloud infrastructure business and success with generative AI workloads have boosted its overall revenue growth. Wall Street is at its most bullish in six years for Oracle, with 24 firms rating the stock a buy. The company's partnerships with leading cloud services providers, such as Amazon Web Services and Microsoft Azure, are powering a major "cloud migration story" with wider implications for Oracle stock.

Netflix (NFLX), TG Therapeutics (TGTX), and GoDaddy (GDDY) are the other top AI stocks near buy points. Netflix's AI-driven content recommendations and personalization have contributed to its strong earnings growth and market leadership in the streaming wars. TG Therapeutics, a commercial-stage biopharmaceutical company, is leveraging AI to develop innovative therapies, while GoDaddy, a web hosting and domain registrar, is utilizing AI to enhance its services and customer experiences.


The relative strength lines for Netflix and TG Therapeutics are hitting highs, indicating strong outperformance against the S&P 500. Meta's RS line is improving after summer sluggishness, showing longer-term outperformance. Oracle's RS line is not far from highs, reflecting its robust earnings growth. Earnings growth for these AI stocks is robust: Meta and Netflix posted 37% and 45% year-over-year growth, respectively, while Oracle delivered 17% earnings growth in its fiscal first quarter. TG Therapeutics is expected to report earnings on November 12.


While AI stocks hold promise, investors should weigh new purchases carefully due to earnings volatility and election uncertainty. The author's core investment values emphasize a focus on sectors that generate stable profits and cash flows, such as utilities, renewable energy, and the REIT sector, over speculative ventures like AI that lack profitability. An income-focused strategy, known as the Income Method, is particularly suited for retirement portfolios. Investments in funds like the Cohen & Steers Quality Income Realty Fund (RQI) offer stable yields and potential for capital gains. Diversification and adaptability of investment strategies are crucial, as seen in the interest in the XAI Octagon Floating Rate & Alternative Income Trust (XFLT) and REITs like AWP and GOOD. Reliable income-generating investments, such as Scotiabank, offer high dividends and are supported by strong institutional stability.

In conclusion, AI stocks like Meta and Oracle are leading the pack near buy points, driven by their AI initiatives and strong earnings growth. However, investors should consider the risks and uncertainties associated with these stocks and explore income-focused investment options for a more stable and secure portfolio. By diversifying investments and focusing on sectors that generate stable profits and cash flows, investors can secure steady returns and mitigate risks in the ever-evolving investment landscape.