BUZZ Investing: High-Valuation Tech Stocks Reset

U.S. equities were broadly stable during the recent period between index selection dates (October 9, 2025 – November 13, 2025, the “Period”), with both the S&P 500 and Nasdaq Composite posting only minor net changes. Beneath the surface, however, renewed trade tensions, an extended government shutdown, and shifting expectations around Federal Reserve policy created a more uneven backdrop for risk assets. Technology stocks, particularly the large-cap AI and growth-oriented companies that had driven market leadership for much of the year, experienced a valuation reset. This shift weighed on several of the high-profile names that have frequently ranked among the strongest contributors to BUZZ Index performance. As a result, the BUZZ NextGen AI US Sentiment Leaders Index (the “BUZZ Index”) declined 15.2 percent during the Period. Year to date, the BUZZ Index remains solidly positive relative to broader equity benchmarks.

Macroeconomic developments added further complexity. The prolonged government shutdown limited the availability of key economic data, reducing visibility into labor, inflation, and spending trends. At the October meeting, the Federal Reserve delivered its second consecutive 25 basis point rate cut, but subsequent communications from policymakers signaled a more cautious stance toward additional easing, pushing Treasury yields higher into early November. At the same time, escalating U.S. and China tariff announcements and stalled progress in bilateral discussions contributed to renewed concerns around global supply chains and the inflation outlook. While these crosscurrents weighed on high valuation segments of the market, corporate earnings through the heart of the third quart high-valuation segments of the market, corporate earnings through the heart of the third-quarter er reporting season were broadly constructive, with a high proportion of companies exceeding expectations. Overall, the Period reflected a more selective market environment shaped by policy uncertainty, geopolitical friction, and a recalibration within the technology sector.

The BUZZ Index returned 6.03% during the month of October compared to a return of 2.34% for the S&P 500 Index during the same period. Year-to-date, the BUZZ Index leads the S&P 500 with returns of 53.97% and 17.52%, respectively, as of the end of October.

Opendoor Tops BUZZ Contributors while Micro Extends its AI-Driven Rally

Shares of Opendoor Technologies (NASDAQ: OPEN) advanced during the Period, making it the largest contributor to BUZZ Index performance. The stock continued to benefit from renewed optimism around the company’s multi-year turnaround effort, reinforced by commentary from JPMorgan that highlighted a “major transformation” underway under new leadership. Management’s pivot toward a volume-driven acquisition strategy, combined with recalibrated pricing models and a push to clear legacy inventory, was viewed as an important step toward stabilizing contribution margins. Opendoor signaled that home acquisitions are expected to rise at least 35% quarter over quarter in Q4 and reiterated its goal of achieving net-income breakeven by the end of 2026. Investors appeared encouraged by the company’s increased emphasis on AI-enabled pricing tools, workflow automation, and the expansion of ancillary services such as mortgage and warranty offerings, which may enhance transaction economics over time.

Micron Technology (NASDAQ: MU) was another leading contributor, continuing its rally on the back of an increasingly tight memory-chip supply environment. The stock rose as industry data pointed to accelerating demand tied to AI-related infrastructure build-outs and rapidly rising DRAM and NAND pricing. Reports indicating that major competitors such as SK Hynix and Samsung had sold out or paused contract pricing due to surging demand reinforced expectations of a robust pricing cycle heading into year-end. Research firm TrendForce projected fourth-quarter DRAM price increases of 18% to 23%, a backdrop that may meaningfully improve Micron’s profitability outlook. The combination of strong industry fundamentals and growing evidence of supply constraints helped support Micron’s gains during the Period.

Top BUZZ Index Contributors: October 9, 2025 – November 13, 2025

Source: BUZZ Holdings ULC, Bloomberg. Past performance is no guarantee of future results. Index performance is not illustrative of fund performance. Not intended as a recommendation to buy or to sell any of the securities mentioned herein.

Widespread Declines Across Innovation Themes Pressure BUZZ Index Returns

The BUZZ Index’s decline during the Period was driven by a broad-based pullback across several of its larger-weighted, thematically technology-oriented constituents, with each of the top ten detractors falling by more than 20 percent during the Period. A cluster of AI-linked and infrastructure names including Applied Digital Corporation (NASDAQ: APLD), Nebius Group N.V. (NASDAQ: NBIS), Super Micro Computer Inc. (NASDAQ: SMCI), Rigetti Computing Inc. (NASDAQ: RGTI), SoundHound AI Inc. (NASDAQ: SOUN), and AST SpaceMobile Inc. (NASDAQ: ASTS) all declined sharply as investors reassessed valuations across segments tied to data centers, AI hardware, quantum computing, and next-generation connectivity. These companies operate in fast-advancing segments of the technology ecosystem, and their valuations may be more sensitive to shifts in macro uncertainty, higher discount rates, or a market that, during the Period, placed greater weight on near-term execution rather than longer-term potential. While positive online sentiment remained elevated for many of these stocks, price action may reflect a valuation reset rather than a deterioration in their standing within the BUZZ framework.

At the same time, companies linked to digital assets and retail trading activity also weighed on returns. MicroStrategy Inc. (NASDAQ: MSTR) and IREN Ltd. (NASDAQ: IREN) declined alongside renewed volatility in crypto-related markets, while Webull Corporation (NASDAQ: BULL) and Robinhood Markets Inc. (NASDAQ: HOOD) faced pressure in an environment that turned less supportive for high-beta, retail-engagement-driven business models. Together, the drawdowns across AI infrastructure, emerging technology platforms, and trading or crypto-adjacent names reflected a broad cooling in investor appetite for higher-volatility innovation themes during the Period, particularly against a backdrop of shifting policy expectations and a rotation toward more defensive positioning.

Bottom BUZZ Index Contributors: October 9, 2025 – November 13, 2025

Source: BUZZ Holdings ULC, Bloomberg. Past performance is no guarantee of future results. Index performance is not illustrative of fund performance. Not intended as a recommendation to buy or to sell any of the securities mentioned herein.

BUZZ Index November 2025 Rebalance Highlights

Meta Platforms, Inc.

Meta Platforms (NASDAQ: META) has seen its BUZZ Index weight decline from the 3 percent maximum in May to less than half that level over recent months, as investor attention gravitated toward the highest-profile AI names such as NVIDIA (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOGL). While META’s share performance has trailed that cohort, the past month brought a meaningful rise in positive online sentiment despite limited stock-specific news. Market participants may be increasingly attentive to META’s significant investment in foundational AI models and its efforts to integrate AI into next-generation consumer hardware, including its smart-glasses platform. The sentiment shift suggests a potential recalibration of investor expectations around META’s AI roadmap. Accordingly, META’s weighting increases this month to the Index’s maximum 3 percent level.

MP Materials

This month, the BUZZ Index adds a first-time entrant, MP Materials (NYSE: MP). The company operates Mountain Pass, the only rare-earth mine in the United States, an asset once owned by Molycorp before its 2015 bankruptcy and subsequent revival through a 2020 SPAC merger with Fortress Value Acquisition Corp. Rising global demand for rare-earth minerals has elevated the strategic importance of domestic supply, particularly as the U.S. seeks to reduce reliance on China for inputs used in batteries, magnets, and other advanced technologies. Rare earths have increasingly been framed as critical to national security, a shift that has brought substantial federal support for MP, including recent policy actions such as newly announced 25 percent tariffs on Chinese rare-earth imports and the U.S. Department of Defense becoming the company’s largest shareholder. Against this backdrop, investor sentiment has accelerated, bringing MP Materials into the BUZZ Index for the first time at a 0.73 percent weight.

For more on rebalancing results and a full breakdown of index constituents added and removed for the month, view the BUZZ Index reconstitution report.