Mon, Oct 12, 2026|Sean Michael Cummings

This Unflashy Market Could Give U.S. Tech a Run for Its Money

If America's post-financial crisis motto was "move fast and break things," Europe's was "make sure nothing breaks."

After 2009, instead of chasing tech innovation, the European Union ("EU") built up regulatory frameworks. It set global standards in data protection, sustainability, online safety – and eventually, AI safety. But that increased regulation came at a cost.

Today, just three of the world's 50 biggest companies are headquartered in Europe.

The continent sat out the tech boom of the past 20 years. And it missed out on about two decades of gains as a result.

Meanwhile, the AI race has injected tons of cash into the S&P 500. It's essentially a heavyweight technology index now – with around half of its market cap tied to technology, media, and telecom.

That's all well and good when those sectors are booming, like they have in the U.S. since the financial crisis. But today, it looks like we could be setting up for another Internet bust.

And Europe could now be uniquely positioned to weather the storm – and even prosper as the AI trend continues...

Meta's New AI Agent Threatens the Internet

I've written before about the OpenClaw AI platform...

This open-source AI-assistant tool runs on your own devices, not in some remote data center. It ties into messaging apps like WhatsApp, allowing users to give instructions on the fly. And it works with just about every app because it writes its own code.

Importantly, OpenClaw isn't just for chatting. It gives you an AI agent that's able to act on your behalf.

But OpenClaw is risky. It requires "shell access" – or the ability to make commands and interact with an operating system. That's a major security issue... and it has actually slowed broad consumer adoption of OpenClaw.

But today, AI agents are finally having their mainstream moment.

On September 8, Meta Platforms (META) released what you might call its own version of OpenClaw: Meta Muse AI. Muse is very similar to OpenClaw – except it runs on Meta's servers, not the user's computer.

The app has already shot to the top of the App Store. And Meta has soared double digits since the release. Take a look...

But the Muse release has also led to a sell-off in traditional Internet-based companies – the kind the U.S. has been building for the better part of two decades.

Take a look at these popular travel-agency stocks, for example...

Booking (BKNG), Expedia (EXPE), and Airbnb (ABNB) essentially make finding travel accommodations online a little more convenient. But when agents like Muse can plan a vacation for you, that's no longer a competitive edge.

Many other Internet stocks with apps built for humans will likely come under fire soon enough.

But investors have an unexpected safe haven: Europe is safe from this pullback.

The Case for European Stocks in the AI Age

Since it didn't share America's tech boom, Europe's market is built on goods and services – not well-coded apps.

What's more, the EU has laid the groundwork for the next wave of innovation...

Because of the regulatory framework the continent has been installing for two decades, Europeans are much less shy about AI use than Americans. Take a look...

If you believe that AI will boost business efficiency and add to companies' bottom lines, this is a good sign for European markets.

In short, two powerful tailwinds could make Europe a good opportunity in the next wave...

First, its businesses aren't the ones most threatened by AI agents like Muse. That makes it a good hedge against a pullback in "traditional" U.S. Internet stocks.

Second, the regulations in place are leading to stable AI demand and adoption across Europe. It's possible these countries could take first-mover advantage as agentic AI starts to boost markets.

Consider adding European stocks to your portfolio today.

Good investing,

Sean Michael Cummings

P.S. Right now, Brett Eversole is stepping forward with a warning for AI investors. He says it may be time to rethink the stocks that have dominated this trend so far... And investors only have until November 4 to get positioned for the next phase of the AI boom.

This Unflashy Market Could Give U.S. Tech a Run for Its Money

Meta's New AI Agent Threatens the Internet

The Case for European Stocks in the AI Age

Further Reading