Educational Articles

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Reading time • 11 minute(s)
How to invest in AI stocks?
In the last decade of the 20th century, the internet hit the imagination of investors, starting the so-called dot-com bubble. Almost 20 years later, investors become again fascinated by disruptive technology of generative AI. How to invest in artificial intelligence stocks? Artificial intelligence is no longer Sci-fi. From Hollywood screens, advanced algorithms have undergone a powerful evolution. They have improved productivity, accelerated data analysis and surprised hundreds of millions of people with their text and image generation capabilities. ChatGPT in 2022 was hailed as the fastest-growing app in the world. This revolution is ongoing, AI continues to improve, and companies that have the means and capabilities to use it have taken a special place in the minds of investors. Now virtually everyone can use it, and the world's largest technology companies have entered the race to reach millions of consumers with their products: private and corporate. Like flywheels in a powerful mechanism, market laws have determined the industries that can benefit from the AI trend. In these industries, only some of the best-managed and technology-implementing companies can keep up with the trend. From Microsoft's cloud computing and Nvidia's semiconductors enabling growing computing power (and more advanced AI) to Arista Networks' networking solutions. Let's find out which AI stocks stand to gain from the new technological shift that began in the second decade of the 21st century. In the following article, you will learn why AI has hit the floor of the world's largest stock exchanges. We will also try to identify the companies that can benefit from it.
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Reading time • 2 minute(s)
Understanding ISAs: A Tax-Efficient Way to Save and Invest
For many, saving money can feel like an uphill battle. Between everyday expenses and long-term goals, it's easy to see your hard-earned cash disappear. In the realm of personal finance, the term "ISA" often surfaces in conversations about saving and investing. But what exactly is an ISA, and why is it hailed as a cornerstone of tax-efficient financial planning? What if there was a way to make your savings grow faster, with the government giving you a helping hand? Enter the Individual Savings Account (ISA), a tax-efficient tool designed to help your savings strategy.
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Reading time • 5 minute(s)
US Presidential Election 2024: Kamala Harris vs Donald Trump. Which candidate is better for stock markets?
The US presidential elections take place every 4 years. This year, the election is scheduled for Tuesday, November 5th, whilst the inauguration will be held on January 20th, 2025. Voters will cast their ballots for candidates to the US Congress, composed of the House of Representatives and the US Senate. This year’s election concerns the entire HoR (435 members elected every 2 years), as well as 1/3 of the Senate (33 members for a 6-year term). Back in July, it seemed that Donald Trump's victory in the November 2024 US presidential election was almost certain. President Joe Biden's health problems caused a significant drop in his popularity. An unsuccessful assassination attempt on Trump during a campaign in Butler, Pennsylvania (one of the key swing states) seemed to seal his presidential race.
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Reading time • 20 minute(s)
Investing during a crisis: Strategies and Tips
Asset prices in financial markets largely depended on the emotions of market participants. Their fluctuations mean that periods of temporary panics and euphoria are cyclical. They are part and parcel of the “mechanics” of the market, and since human psychology has not changed significantly over the past hundreds of years, financial crises and crashes happen periodically. And they are likely to continue to happen, in the future. Usually, a crisis is preceded by a period during which most investors are wrong, driven by greed. Such situations may lead to a crash and can herald a prolonged crisis, fuelled by investors' fear. Most spectacular examples include the 2020 crash caused by the Covid-19 virus, the dot-com bubble of the 2000s, and the Great Depression of 1929, after which the US stock market took nearly 25 years to recover. In good times, investors overestimate the value of some companies and underestimate the risk. This is a characteristic element of a great economy, during which no one worries about the future. Risk control and uncertainty recede into the background. Usually, however, an unexpected event shows that reality is not so great. It could be a systemic problem in the financial sector like the subprime loans in 2008, a war or a period of economic downturn. During a recession, corporate profits and revenues begin to fall. The effect? In the end, euphoria turns into panic and leads to drastic price drops. During them, the market gets rid of assets it loved until recently. Investors see the future in black. They believe that there is no price too low for the things they own. Over time, they are proven wrong again, and the market begins to recover.
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Reading time • 6 minute(s)
What is Next for the AI Trade?
The Artificial Intelligence trade has been a huge market theme for most of the last 18 months, and big gains for the likes of Nvidia have been a key driver of US stock markets. However, has it reached a tipping point? As we move through the second half of the year, the AI trade can no longer be relied on to keep stock markets moving higher. Added to this, the Q2 earnings season also shows us that investors are becoming more demanding about the financial impact of Artificial intelligence investments.
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Reading time • 4 minute(s)
What’s Next for Global Stock Markets?
The first half of 2024 will be remembered for strong gains in stock markets, particularly in the mega caps stocks in the US and Japanese equities. Smaller cap stocks and European equities trailed these gains, however, there could be a chance for them to play catch up. The start of the year was dominated by the chip makers and US stocks, especially the tech stocks. The Nasdaq was one of the top performing stock indices globally, rallying more than 16% from January through to the end of July. Japanese stock indices were also top performers, the Nikkei is higher by more 13% than while the Topix is higher by 14%, as investor interest in Japan was piqued by the prospect of interest rate normalisation by the Bank of Japan. As we move through Q3 a new theme could be about to take over markets.
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Reading time • 14 minute(s)
Climate change investments: Maximising impact
The world is moving forward, and high economic development continues to generate significant levels of carbon emissions. The Earth's climate is changing, and restoring a sustainable environment will help humanity achieve long-term growth without disrupting the planet's ecosystem and the risks that supply behind its damage. A very important “green economy” trend has been hatched as a response to rapid climate change. However, it cannot happen without trillions of dollars worth of investment from the private sector. Climate change creates powerful opportunities for companies that get given the ability to create successful business models based on the new green trend. Investors who choose to invest in this change can expect long-term returns and a positive impact on planet Earth. Of course, this cannot take place without the risks that always accompany investments. How to invest and, above all, how to understand the trend of investing in climate change? From electric cars to investments in uranium miners to investments in water. Examine how renewable energy, sustainable transport, and carbon reduction technologies can align your investments with environmental sustainability and potential growth. Read this article to know how to benefit and impact from climate change investments.
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Reading time • 3 minute(s)
Utilities, Homebuilders, Healthcare & Tech firms: Stocks To Look Out For ahead of the UK General Election
We recently highlighted several stocks that could be worth watching as the general election approaches. Now, with the election drawing nearer, let's take a look at how some of those stocks have been performing over the past month in the lead-up to the big day.
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Reading time • 6 minute(s)
Poll Shows Public More Confident in Labour's Ability to Tackle Economy and the Stock market
The UK is soon approaching July 4, making the pound rally ahead of election day. Labour is still on track to win 40%, with the conservatives on 20% and Reform on 17%. This election is incredibly significant as it could end 14 years of the Conservatives ruling, meaning this would be Labour's biggest win since Tony Blair's 1997 landslide.
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Reading time • 17 minute(s)
UK General Election 2024: What Investors Need to Know
As anticipated by many on July 4, 2024, the United Kingdom will hold a general election. This election will involve voters across the UK selecting Members of Parliament (MPs) to represent them in the House of Commons​. The election is significant as it will be contested under new constituency boundaries established by the 2023 boundary review. These changes are expected to impact the distribution of seats, with some regions gaining and others losing seats based on population shifts​. This general election comes as part of the regular democratic process, and it will follow the dissolution of Parliament on May 30, 2024, leading to a 25-working-day campaign period​. With the UK less than six weeks away from the General Election, Keir Starmer’s Labour is leading ahead, after 14 years of the Tories ruling. Will this election be different and can it shake things up? This article is updated every few days to bring you the latest news and analysis concerning the latest UK election.
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Reading time • 9 minute(s)
Can Reddit Win the Internet and the Stock Market? Reddit’s IPO Journey Explained
In the vast landscape of the internet, few platforms have left as indelible a mark on online culture as Reddit. What began as a humble experiment in 2005, has since blossomed into a global powerhouse of discourse, entertainment, and community engagement. Reddit's journey from a simple link-sharing forum to a dynamic network of diverse communities — each with its own distinct identity and fervent following — mirrors the evolution of internet culture itself. Considering Investing in Reddit's IPO? In this article, we delve into its history, pivotal moments, and enduring impact of Reddit, exploring how it has shaped internet culture and influenced the way we connect, share, and interact online. Reddit's recent IPO has sparked investor interest. To help you decide if it's a good fit for your portfolio, let's explore some key details about the company.
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Reading time • 2 minute(s)
A guide to leveraging your stocklist
As we are all aware in the fast-paced world of finance, information is power and making timely decisions is crucial. A well-maintained stock watchlist can be a goldmine for investors and traders. A watchlist is essentially a curated list of stocks that an investor monitors closely, either due to existing investments or potential future opportunities. However, merely creating a watchlist isn’t enough; knowing how to effectively utilise it is key to maximising its potential. In this article we discuss how to create a watchlist and how to maintain it.
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Reading time • 13 minute(s)
NVIDIA Earnings Report: Insights and Expectations
NVIDIA (NVDA) capped off a phenomenal year with a record-breaking earnings report, exceeding even the most optimistic analyst predictions. The company reported staggering revenue of $22.1 billion, surpassing expectations of $20.41 billion, and earnings per share of $5.16, exceeding the anticipated $4.63. This impressive performance sent NVIDIA's stock price soaring, further solidifying its position as a leader in the booming artificial intelligence (AI) market. In this article, we delve into the expectations surrounding NVIDIA's earnings report, analysing key metrics, market trends, and potential implications for the broader tech landscape. Join us as we dissect the latest chapter in NVIDIA's financial journey.
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Reading time • 9 minute(s)
Tesla Braces for Q2 2026 Earnings: Can It Break the Post-Earnings Slump?
Headquartered in Austin, Texas, Tesla, Inc. is an American multinational automotive and clean energy company. If you have not kept up with the automotive sector Tesla made a breakthrough through its innovative electrical engineering combining both supercar performance and zero emissions. Many are unaware that the company was founded in 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined shortly after, providing crucial funding and assuming leadership as CEO. The company is named after Nikola Tesla, the renowned inventor and electrical engineer. It designs, manufactures, and sells electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla has become one of the world's most valuable companies and is a leader in the electric vehicle market. In 2021 the company was valued at $1.06 trillion making it the fifth most valuable company in the S&P500. So where does Tesla stand today and why is its stock tanking?
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Reading time • 5 minute(s)
Uber Takes a Ride to the Top: A Milestone Journey to the S&P 500
After navigating through months of a stock market roller coaster, Uber's shares have experienced a remarkable upswing, surging by nearly 150% this year, making its return comparable to Bitcoin. This notable achievement positions Uber at the threshold of a significant opportunity. Mark your calendars for December 18, as Uber is poised to make a momentous leap by joining the 'elite' group of companies listed on the largest U.S. index, the S&P 500, where it will replace Sealed Air Corp.
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Reading time • 11 minute(s)
Green Investment - How to invest in a greener future?
Do you agree that green energy is a better future for the Earth? Learn how to start green investment. Green investment is a growing global trend. More and more countries and investment, sustainable funds are choosing to join it. Green energy investments can be of interest to environmentally conscious individuals who want to support the trend while earning from it. In this beginner's guide, we will explore what green investments mean, what types of green investments are available at XTB and how to choose the right investment option. We will also look at the impact of these investments. If you're interested in investing in green energy companies, ETFs or just trading CFDs just keep reading!
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Reading time • 14 minute(s)
Top 10 Dividend Stocks at XTB
Dividend stocks have long held a special place in the hearts of investors seeking a reliable source of income and long-term wealth growth. In the fierce world of investing, where market conditions can be unpredictable, dividend-paying companies provide a sense of stability and consistency that is highly valued. But what exactly are dividend stocks, and why are they considered a cornerstone of many successful investment portfolios? In this comprehensive guide, we delve into the world of dividend stocks, exploring their benefits, risks, and the strategies that savvy investors employ to harness their potential.
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Reading time • 8 minute(s)
Birkenstock IPO: Where Comfort Meets Finance
Here is a summary of everything there is to know about the Birkenstock IPO: Company: Birkenstock Sector: Consumer discretionary Exchange: New York Stock Exchange Ticker: TBD Valuation: $10 billion Shares to be sold: At least 32 million Price range: $44-$49 per share Proceeds: To be used to pay down debt Underwriters: Goldman Sachs, J.P. Morgan, Morgan Stanley Strap in and get ready to walk the financial runway as Birkenstock, the legendary footwear brand known for its timeless comfort and style, takes its first bold step into the world of public trading. In this article, we'll delve into the latest Birkenstock Initial Public Offering (IPO), exploring where the brand came from, its anchor investors, the risks associated with the IPO and how to buy shares when it goes public.
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