Core Viewpoint - The Nasdaq Composite is down over 7% year to date, presenting potential buying opportunities for quality growth stocks as market dips are common [1][2] Group 1: Nvidia - Nvidia is positioned as a leading supplier of data center hardware, benefiting from the long-term adoption of artificial intelligence (AI) [3][6] - The company’s revenue surged 114% year over year to $130 billion, with expectations to reach $205 billion in fiscal 2026, a 57% increase [4][6] - Nvidia's GPUs are critical for AI servers, and the AI market is projected to grow 26% annually, reaching $1 trillion by 2031 [6] - The company has a strong market position, with its Blackwell AI computing platform generating $11 billion in sales last quarter [5] Group 2: Take-Two Interactive - Take-Two Interactive is a major player in the video game industry, which is valued at around $200 billion, and has seen its stock rise over 700% in the last decade [7][8] - The upcoming release of Grand Theft Auto VI is expected to significantly boost revenue, with analysts forecasting $8.2 billion in fiscal 2026, a 45% increase from fiscal 2025 [9][10] - The company has a diverse portfolio, including popular titles like NBA 2K and Sid Meier's Civilization, contributing to over $5 billion in annual revenue [10] - Analysts predict earnings growth at an annualized rate of 41% over the next few years, with the stock trading at a reasonable 28 times fiscal 2026 earnings estimates [11]

Core Viewpoint - Berkshire Hathaway's cash balance has reached an all-time high of $334.2 billion, raising questions about the company's outlook amid current market conditions [4][10][14] Group 1: Market Context - The S&P 500 and Nasdaq Composite have started the year poorly, with declines of 3% and 7% respectively, following double-digit gains in 2023 and 2024 [1] - Investors are facing uncertainty due to new tariff policies, ambiguous Federal Reserve communications, and mixed economic indicators [2] Group 2: Historical Analysis - Historical trends show that during previous recessions, such as the dot-com crash and the Great Recession, Berkshire Hathaway increased its cash position before deploying it as market conditions worsened [6][7][9] - In the early 2000s, leading up to the dot-com crash, Berkshire's cash balance increased, but began to decline as the recession started, indicating a strategy of investing during market sell-offs [7][8] Group 3: Current Strategy - Currently, Berkshire has not made significant new portfolio additions, opting instead to accumulate cash and invest in Treasury bills, reflecting a cautious approach in a market perceived as inflated [13][14] - Buffett's philosophy of being greedy when others are fearful is evident in Berkshire's historical actions, but the current strategy suggests a lack of attractive valuations rather than an outright fear of recession [11][14]

Group 1: Market Overview - The Nasdaq Composite is in market correction territory, being over 10% below its recent bull-market high, presenting a buying opportunity for Nvidia and AppLovin [1][2] Group 2: Nvidia - Nvidia has a 60% upside implied by the median target price, with a current valuation of 38 times earnings, which is considered cheap compared to its historical valuation of 58 times earnings [7][11] - The company reported a 78% increase in revenue to $39 billion in the fourth quarter, driven by strong sales in the data center segment due to AI infrastructure demand, and non-GAAP earnings rose 71% to $0.89 per diluted share [4][11] - Nvidia holds a 95% market share in AI accelerators and is expected to maintain its dominance through the decade, with Wall Street estimating a 51% earnings increase in fiscal 2026 [3][6][7] - Concerns arose from reports of a Chinese start-up, DeepSeek, achieving cost efficiencies in training large language models, but capital spending forecasts from major cloud services companies alleviated some worries [5][6] Group 3: AppLovin - AppLovin has a 104% upside implied by the median target price, with a current share price of $270 and a median target price of $550 [9][11] - The company reported a 44% increase in revenue to $1.4 billion in the fourth quarter, with GAAP net income soaring 253% to $0.49 per diluted share [10][11] - AppLovin's software utilizes a machine learning-based recommendation engine called Axon to effectively target ad content [9] - Despite facing scrutiny from short-sellers, the CEO has rejected allegations of data theft and illegal tracking, asserting the company's strong performance and technology [12][13]

Group 1: AI Market Overview - The recent correction in the Nasdaq Composite, driven by AI companies, has raised concerns about potential economic slowdowns affecting AI investments, but no signs of this have emerged yet, presenting a buying opportunity for AI stocks [1][2] - Companies in the AI hardware sector, particularly Nvidia, Taiwan Semiconductor, and ASML, are expected to emerge stronger from the current market correction due to ongoing investments in AI infrastructure [3][4] Group 2: Nvidia's Position - Nvidia is a key player in the AI arms race, providing GPUs that are essential for training complex AI models, which require significant computing capacity [4][5] - The CEO of Nvidia predicts a $1 trillion data center buildout, indicating strong growth potential in data center computing driven by AI spending [5][6] - Nvidia's stock is currently trading at 26 times forward earnings, which is considered a reasonable price given its growth potential [6][7] Group 3: Taiwan Semiconductor's Growth - Taiwan Semiconductor is experiencing high demand for chips, with a $100 billion investment announced to expand U.S. production capabilities, driven by the need for U.S.-produced chips [8][9] - The company expects AI-related chip revenue to grow at a 45% compounded annual growth rate (CAGR) over the next five years, with overall revenue increasing at around a 20% CAGR [10] Group 4: ASML's Unique Position - ASML is the sole provider of extreme ultraviolet (EUV) lithography machines, which are critical for manufacturing high-end chips, making it a vital player in the chip production expansion [11][12] - With its stock down approximately 35% from its all-time high, ASML presents a strong investment opportunity as demand for chips continues to rise [12]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive adopts technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - The U.S. stock market, particularly the Nasdaq-100 index, has experienced a significant decline, but historical trends suggest that such downturns often lead to recoveries, presenting potential buying opportunities for investors, especially in high-quality stocks like Netflix [1][2]. Company Performance - Netflix has emerged as a leader in the streaming industry, ending 2024 with 301.6 million paying subscribers, significantly outpacing competitors like Amazon Prime and Disney+ [4]. - The company generated a record $8.7 billion in net income in 2024, a 61% increase from the previous year, on revenues of $39 billion [5]. - Netflix's advertising revenue doubled in 2024, with expectations for it to double again in the current year [8]. Growth Strategies - The introduction of a cheaper ad-supported subscription tier in November 2022 has been pivotal, accounting for 55% of new signups in available markets [6][7]. - Netflix plans to invest $18 billion in content creation and licensing in 2024, with a focus on live programming to enhance subscriber engagement [9][13]. Market Position and Valuation - Netflix's stock is currently trading at a price-to-earnings (P/E) ratio of 49, which is higher than the Nasdaq-100 average of 29, but its growth potential suggests a forward P/E ratio of 32 based on projected earnings [14][15]. - Analysts remain bullish on Netflix, with 32 out of 54 giving it the highest buy rating, and an average price target of $1,086 indicating an 11% upside potential [17][18]. Long-Term Growth Potential - Netflix estimates it has only captured 6% of its $650 billion total addressable market, indicating substantial room for growth in paid memberships, advertising, and gaming [19].

Despite the stock's struggles, there remains a lot to appreciate about The Trade Desk.After stellar performances in 2023 and 2024 that resulted in a two-year gain of 84.5%, the Nasdaq Composite fell as low as 17,303.01 on March 13 -- a drop of 14.2% drop from the high of 20,173.89 it set on Dec. 16. With that downturn exceeding 10%, the index officially entered correction territory. Although the Nasdaq Composite has ticked up a bit over the past few weeks, it is still about 10% lower than its previous high. ...

Market Overview - The stock market experienced significant downturns, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite declining by 8.6%, 10.1%, and 13.7% respectively between February 19 and March 13 [2] - The S&P 500 quickly recovered from correction territory, while the Nasdaq Composite followed shortly after [3] Investment Opportunities The Trade Desk - The Trade Desk's shares are over 57% below their all-time high, presenting a buying opportunity despite near-term economic concerns [4] - The company is well-positioned to benefit from rising digital advertising spending, particularly through its Unified ID 2.0 technology [5] - The forward P/E ratio of 27 is significantly lower than its average of nearly 89 over the past five years, indicating a potential value buy [6] PayPal Holdings - PayPal's total payment volume increased by 10% to $1.68 trillion in 2024, despite modest active account growth [8] - The appointment of CEO Alex Chriss is expected to drive innovation and cost-cutting measures, enhancing profitability [9] - PayPal's forward P/E ratio of 12.6 represents a 37% discount compared to its average over the last five years [10] Amazon - Amazon's future growth is heavily reliant on its AWS segment, which is the leading cloud infrastructure provider [12] - The company is also expanding its advertising and subscription services, with both segments showing double-digit sales growth [13] - Shares are currently priced at approximately 12.2 times forecast cash flow for 2026, which is 42% below its historical average [14] BioMarin Pharmaceutical - BioMarin focuses on rare diseases, providing it with unique pricing power and limited competition [15] - The company's top-selling drug, Voxzogo, generated $735 million in sales, a 56% increase from the previous year [16] - BioMarin aims to reach $4 billion in annual sales by 2027, a 40% increase from 2024 sales of $2.85 billion [17] - The forward P/E ratio of 13.5 is 64% below its average over the past five years [18] Alphabet - Alphabet is positioned as a strong investment opportunity, with a dominant market share in internet search [20] - The company's future growth is expected to be bolstered by its Google Cloud platform, particularly with the integration of AI solutions [21] - Shares can be purchased for 16.4 times forecast earnings in 2026, a 27% discount to its five-year average [22]

2. Amazon The Nasdaq, an index that roared higher over the past two years, spent most of March doing just the opposite. The benchmark slid into correction territory earlier in the month, meaning it fell more than 10% since its most recent high back in December. The reason for this shift? Investors worried that President Donald Trump's plan to impose a series of tariffs on imports could hurt growth at home. Growth-oriented stocks are particularly sensitive to the economic backdrop, so when uncertainty arises ...