The Morning Filter 3 Cheap Stocks to Buy Now as Small Caps Heat Up
30 snips
Feb 2, 2026 They debate whether the weakening U.S. dollar is worrying and unpack global yield and yen risks. Big tech earnings get a close look, from cloud and AI spending to margin and CapEx questions. They explore why small-cap stocks are rallying and highlight three undervalued small caps to consider. Several consumer and industrial names get quick status checks amid changing demand and cost dynamics.
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Meta: AI Spending Bolsters Ad Growth Thesis
- Meta posted 24% revenue growth and guided to 30% for the quarter while massively raising CapEx for AI.
- The market cheered because AI-driven ad demand plus heavy CapEx suggested longer-term value creation.
Balance AI Exposure With Value Stocks
- Keep your portfolio balanced between AI-exposed stocks and value stocks to manage volatility.
- Use value holdings to buy into AI winners during sell-offs and take profits when AI names run up too far.
Tesla Upgrade Fueled By Robo-Taxis And Robots
- Morningstar raised Tesla's fair value mainly from faster expected robo-taxi adoption and earlier Optimus robot cash flows.
- The upgrade came from pulling forward free cash flow expectations tied to software and robots.