Gordon Reid, President & CEO, Goodreid Investment Counsel
Focus: U.S. Equities
Top Picks: Booking Holdings, Meta Platforms, Microsoft
MARKET OUTLOOK:
Artificial intelligence (AI) has taken on a life of its own, leading many companies on a euphoric, parabolic rise higher, while shrouding others in a fear fog, concerned that the hundreds of billions of dollars of data centre investment will fall flat. Our experience tells us that outcomes will normalize, but the over-arching theme will be a positive one. At Goodreid we own quality businesses but are always alert to short term excesses and opportunities to safeguard out portfolios. Most recently we added to our position in Apple, believing that Siri AI will be very additive to the fortunes of the company, while trimming our holdings in Crowdstrike, after it rose 67 per cent in 2026 year-to-date (YTD) alone.
While the market’s focus is firmly fixed on AI, there are hundreds of quality companies that are performing very well but whose stocks are getting little love. This is leading to progressively better valuations that sooner or later will attract capital. In this environment it is important to balance our portfolios’ composition to ensure we are participating in the AI movement while positioning for an eventual rotation and broadening of stock ownership.
- Market-moving news, fast: Get the BNN Bloomberg App now
- Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/subscribe
TOP PICKS:
Booking Holdings (BKNG NASDAQ)
Booking is a stock held back by fears of travel disruption because of geopolitical concerns, fears of a weakening consumer and fears of AI disruption to their business.
Goodreid believes all three issues are overstated and as a result the market is left with an outstanding opportunity to own a company growing earnings at 15 per cent per year at a 30 per cent discount to the market.
Meta Platforms (META NASDAQ)
Meta seems to be going all in on the AI space. Mark Zuckerberg is showing his competitive stripes and has significant resources to be a major player in the space.
At 18 times 2026 estimated earnings Goodreid believes there is ample room for valuation expansion on top significant organic growth.
Microsoft (MSFT NASDAQ)
Microsoft’s cloud initiatives continue to surprise and impress. However, they have given ground in AI development because of their close association with OpenAI.
Recently Microsoft renegotiated that agreement giving it more latitude. Revenue growth is impressive at 15 per cent annually over the past five years. Coupled with expanding operating margins this software company deserves a richer valuation than it is currently assigned.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| BKNG NASDAQ | Y | N | Y |
| META NASDAQ | Y | N | Y |
| MSFT NASDAQ | Y | N | Y |
PAST PICKS: JULY 15, 2025
Apple (AAPL NASDAQ)
Then: US$209.11
Now: US$295.58
Return: 41%
Total Return: 42%
Crowdstrike (CRWD NASDAQ)
Then: US$473.28
Now: US$686.47
Return: 45%
Total Return: 45%
MasTec (MTZ NYSE)
Then: US$171.92
Now: US$371.86
Return: 116%
Total Return: 116%
Total Return Average: 68%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AAPL NASDAQ | Y | N | Y |
| CRWD NASDAQ | Y | N | Y |
| MTZ NYSE | N | Y | Y |
