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Smooth Investing When the Ride is Bumpy
5:42 pm
The Motley Fool Hidden Gems team takes a listener question on diversification—exploring market volatility and why diversification remains a winning long-term strategy.
Jon Quast, Matt Frankel, and Rachel Warren discuss:
- Market volatility: What it is
- Downside risk: How bad things can get
- Diversification: How it can improve returns
- Stock ideas: Picks that support long-term growth
🎧 The Motley Fool Money podcast drops daily after the bell! Listen on Apple Podcasts, Spotify, or other podcast platforms—or check out the Fool's podcast feed.
AEHR’s 2,000% Run Isn’t Done
4:32 pm — AEHR +17.69% today
Shares of Aehr Test Systems (AEHR +1.98%) jumped about 17% Monday, extending a staggering run—now up 2,082% over the past five years—as momentum builds into Tuesday’s earnings report. The rally reflects a mix of recent contract wins, improving bookings outlook, and a broader tech bid tied to easing geopolitical tensions. With expectations rising alongside the stock, investors appear to be betting that demand for semiconductor test systems, particularly in AI-linked markets—continues to accelerate.
- Called It Early: CMFFrankDip flagged the inflection in February: “I have owned AEHR for a couple of years. I got the feeling this business was about to really pick up. AI companies are all in a race so time is at a premium.”
- High Bar Ahead: A multi-year breakout plus a sharp pre-earnings move leaves little room for disappointment if results or guidance underwhelm.
NASDAQ: AEHR
Key Data Points
Closing Bell
4:07 pm
Stocks pushed higher as investors weighed volatile oil markets and fragile ceasefire talks in the Middle East. Meanwhile, Twilio (TWLO 5.75%) drew bullish attention after Jefferies upgraded the stock, citing its growing role in the Voice AI tech stack and projecting about 22% upside. Elsewhere, crypto-linked stocks like Strategy (MSTR 0.12%) moved higher alongside Bitcoin (BTC +0.42%), while retail play Boot Barn (BOOT 1.69%) jumped on a “buy the dip” call.
- AI’s Quiet Backbone: Twilio’s communications layer could become essential plumbing for Voice AI. Small adoption gains may compound into years of growth.
- Energy Risk Lingers: Oil near $110+ keeps inflation pressure alive, even as markets bet disruption may not fully derail growth.
Chip Stocks Bounce on Ceasefire Talk
3:23 pm — MU +3.59%
Shares of Micron Technology (MU 0.23%) rose Monday, outpacing the broader market as easing geopolitical tensions with Iran lifted sentiment across growth stocks. Comments from President Donald Trump pointing to active negotiations helped fuel hopes that disruption in the Strait of Hormuz could be avoided—an outcome that would support global stability and demand-sensitive sectors like semiconductors. Micron remains volatile but is still up roughly 33% year to date, with macro headlines continuing to drive near-term moves.
- Geopolitics in the driver’s seat: Micron’s gains highlight how quickly AI-linked chip names can swing with shifts in global risk sentiment.
- Binary setup ahead: A deal could extend the rally in growth stocks, while escalation risks a sharp reversal across tech.
NASDAQ: MU
Key Data Points
Eight S&P Stocks Hit Fresh Highs
2:58 pm
According to CNBC, eight stocks in the S&P 500 notched new 52-week highs Monday, spanning everything from utilities to data infrastructure. The list includes Bunge (BG +0.78%) (highest since 2008), Hologic (HOLX +0.00%) (Dec. 2024 levels), Ciena (CIEN +1.77%) (since 2001), plus all-time highs for Lumentum (LITE +0.24%), Seagate (STX +0.47%), Equinix (EQIX 0.10%), CMS Energy (CMS 0.69%), and Entergy (ETR 0.76%). Only Keurig Dr Pepper hit a new low.
- Foolish overlap: Entergy, Equinix, and Lumentum are all Motley Fool–recommended, highlighting strength in power, data centers, and connectivity infrastructure.
- What it signals: This isn’t just momentum. Capital is clustering around the backbone of AI and electrification, from regulated utilities to global data hubs to optical networking.
War Demand Meets Wall Street Optimism
2:38 pm — KTOS +9%
Shares of Kratos Defense & Security Solutions (KTOS +2.94%) climbed about 9% Monday, fueled by a mix of geopolitical tension and a bullish analyst call. Ongoing conflict in Iran is reinforcing demand for missile and drone systems, while Jefferies upgraded the stock to “buy” with an $85 price target—implying roughly 26% upside. The firm sees a sizable $14 billion opportunity in hypersonics and rocket motors, key areas of U.S. defense spending.
- Valuation tension: The stock now trades near 88× operating cash flow—more than double its five-year average.
- The bigger bet: Kratos offers direct exposure to next-gen defense tech, but with volatility that may not suit every portfolio.
NASDAQ: KTOS
Key Data Points
NHTSA Ends Probe Into 2.6M Tesla Cars
1:10 pm -- TSLA -3.4%
The National Highway Traffic Safety Administration (NHTSA) closed its investigation into 2.6 million Tesla (TSLA +0.91%) vehicles equipped with the "Actually Smart Summon" remote-driving feature. Regulators determined that roughly 100 reported crashes were minor, low-speed incidents resulting only in property damage rather than injuries. Tesla mitigated safety concerns through over-the-air software updates that improved camera clarity and obstacle detection. While this specific probe is shuttered, the EV maker remains under the microscope as NHTSA continues a separate, more advanced "engineering analysis" into the Full Self-Driving system’s performance in low-visibility conditions.
- Digital Defensive Maneuvers: Tesla’s ability to resolve federal safety concerns via remote software patches continues to be a massive operational advantage over traditional automotive recalls.
- The FSD Shadow: Despite this win, the regulator is still hunting for "traffic-safety violations" across 2.9 million vehicles, keeping the pressure on the company's autonomous driving narrative.
NASDAQ: TSLA
Key Data Points
Today's Lunchtime News
1:25 pm -- ORCL -1.3%
Oracle (ORCL +0.17%) appointed Hilary Maxson as chief financial officer Monday, bringing in an executive with deep infrastructure and energy experience as the company takes on heavy debt to fund its AI and cloud buildout. Maxson most recently served as group CFO at Schneider Electric (SBGSY +1.06%), which generates more than $45 billion in annual revenue. Oracle shares are down about 25% this year.
- Why her background matters: Oracle's AI infrastructure ambitions require massive capital expenditure and disciplined debt management -- areas where Maxson's experience overseeing a large-scale industrial company's finances is directly relevant. She said she aims to ensure "disciplined investment for creating lasting value" for customers and shareholders.
- Leadership continuity: Doug Kehring, who served as Oracle's principal financial officer for the past six months, will step down from the role and return to the company's go-to-market operations. The appointment comes as Oracle navigates surging AI demand, a heavy debt load, and investor scrutiny over the pace and returns of its infrastructure spending.
Booking Does the Splits
12:10 pm -- BKNG +2.3%
By Buck Hartzell
After market close on April 2, Booking Holdings (BKNG 1.78%) split their stock 25:1. That means you'll now see 25 shares for every 1 share you owned previously. This is a good time to remind folks that a split doesn't add any value. If you had one slice of pizza prior to a split and then you sliced that one piece into 25 smaller slices, you are still have the same amount of cheese, sauce, and dough.
But, in the case of Booking, I think this makes sense. The stock is easier to average into for smaller retail investors now. That group includes my children. :)
Bitcoin Surges Toward $70,000
11:10 am -- BTC +0.9%
Bitcoin (BTC +0.42%) climbed 4% Monday, nearing the $70,000 threshold as geopolitical tensions eased. Reports of potential ceasefire negotiations involving U.S. and Iranian mediators boosted risk appetite across the digital asset space, lifting Ethereum (ETH +2.25%) and Solana (SOL +0.31%) in tandem. Institutional stability remains a cornerstone of the current rally, with spot ETFs and treasury holders now controlling 12% of total supply. Amid this optimism, MicroStrategy (MSTR 0.12%) doubled down on its aggressive treasury strategy, revealing it purchased another $330 million worth of tokens early this month.
- Saylor’s Unshakable Conviction: MicroStrategy’s latest nine-figure acquisition cements its lead as the largest corporate holder while the token trades within its tight five-week range.
- The Geopolitical Catalyst: Analysts suggest a formal 45-day truce could provide the necessary momentum to finally propel Bitcoin past its stubborn $73,000 resistance level.
CRYPTO: BTC
Key Data Points
Top of the Morning
11:15 am
By Morning Show host Loren Horst
Team Rule Breakers
One of the hallmarks of March Madness is the relentless promotion of Invesco QQQ Trust (QQQ +0.14%), the innovation-themed ETF tracking the Nasdaq 100 and the official ETF of the NCAA. While the timing is presumably in part due to the closing window in which investors can make IRA contributions for last year, the marketing has always paralleled the up-and-comers cementing their legacies in the college basketball tournaments with tomorrow's big winners reshaping the landscape of their industries and the stock market.
And to now, Invesco (IVZ +0.04%) has enjoyed a virtual monopoly on tracking that major index for U.S. investors. We're not talking 80% or 90% -- according to ETF Database, QQQ and its more buy-and-hold "mini" version, Invesco NASDAQ 100 ETF (QQQM +0.15%), control nearly 99.5% of all U.S. dollar assets tracking the large-cap index. This places what everyone commonly knows as QQQ as the fifth-largest exchange traded fund by assets under management (or ETF by AUM), trailing three S&P 500 funds and one total stock market ETF.
But according to a filing from earlier today, BlackRock will be joining its own big dance shortly with an offering of its own: the iShares Nasdaq 100 ETF, to be traded under ticker IQQ. This would be the first ETF from an asset manager other than Invesco to purely track the index (a handful of others add derivatives).
10:05 am
By Morning Show host Jim Gillies
I like a good annual letter out of a company. The problem is, most companies don't really give you more than "Rah-Rah!" platitudes in their annual communiques, if they give one at all. I want talk of the business, the problems they've been facing, the mistakes made – real communication, in other words.
The gold standard for many years was, of course, the annual letter penned by Berkshire Hathaway's (BRKB 1.14%) Warren Buffett, but there are others worth mentioning – from Fairfax Financial (FFH 0.80%), to Nelnet (NNI 0.56%), to Brookfield (BN 0.36%)(BN 0.45%) to or even tiny (I doubt anyone outside of Fool Canada has heard of them) Decisive Dividend (DE 0.64%).
To this, add JP Morgan (JPM 0.15%) CEO Jamie Dimon's annual letter, even though I don't read it because I'm particularly interested in the stock of bank he heads up. Rather, I like to get his insights into the state of the world and a more "macro" viewpoint.
9:35 am
By Morning Show host Nick Sciple
Team Rule Breakers
It's starting to feel like Groundhog Day. Five weeks after the first U.S. and Israeli strikes on Iran, the Strait of Hormuz remains effectively closed. Oil continues to surge well above $100 per barrel. And President Trump is still dishing out ultimatums, claiming the war will be over soon. He said "very shortly" on April 1. He said "very soon" on March 9. The talking points haven't changed. The strait hasn't opened. Physical barrels of Dated Brent touched $141 on April 2, the highest since 2008.
Opening Bell
9:30 am
The S&P 500 remained nearly flat Monday as investors weighed competing reports of a potential 45-day ceasefire against a Tuesday night deadline set by President Trump. While Pakistan-brokered terms for an immediate end to hostilities have reached both sides, Trump warned on Truth Social that "Tuesday will be Power Plant Day" in Iran if the Strait of Hormuz remains blocked. West Texas Intermediate crude eased to $110 per barrel as traders balanced these peace hopes with the threat of escalated strikes. This session also marks the first opportunity for the Nasdaq to react to Friday's blowout jobs report, which showed 178,000 positions added, nearly triple the consensus.
