The Nasdaq has entered correction territory, and just as the so-called "Magnificent Seven" stocks led the market higher during the bull run, these stocks have helped lead the market lower during this recent correction. The "Magnificent Seven" consist of seven leading technology companies: Alphabet (GOOGL -1.76%) (GOOG -1.82%), Amazon (AMZN 0.49%), Apple, Meta Platforms, Microsoft, Nvidia (NVDA 1.93%), and Tesla, all of which trade on the Nasdaq stock exchange.Let's take a look at the three best "Magnificent ...

Market Overview - The Nasdaq Composite has experienced a decline of over 10% from its peak, entering correction territory [1] Investment Opportunities - Corrections are viewed as buying opportunities, particularly for dividend-paying stocks [2] - Three Nasdaq-listed dividend stocks are highlighted for potential investment: Broadcom, PepsiCo, and T. Rowe Price [2] Broadcom (AVGO) - Broadcom's stock has decreased by approximately 25% from its peak, resulting in a dividend yield of around 1.3% [3] - The company has a strong track record of dividend growth, with an 11% increase last year, marking 14 consecutive years of growth and an overall increase of 8,330% during this period [4] - Demand for Broadcom's semiconductors is driven by artificial intelligence, with AI revenue increasing by 220% to $12.2 billion last year [5] PepsiCo (PEP) - PepsiCo's shares are about 15% below their 52-week high, maintaining a dividend yield of approximately 3.5% [6] - The company plans to raise its dividend by 5% later this year, marking the 53rd consecutive year of dividend increases, placing it among the elite Dividend Kings [7] - PepsiCo has a strong financial position, generating significant cash flow and targeting high-single-digit earnings-per-share growth over the long term [8] T. Rowe Price (TROW) - T. Rowe Price's shares have fallen over 20% from their 52-week high, resulting in a dividend yield exceeding 5% [9] - The company raised its dividend by 2.4% last month, extending its growth streak to 39 years [9] - T. Rowe Price's assets under management (AUM) increased by 11.2% to $1.6 trillion, contributing to a more than 20% rise in earnings per share last year [10] Future Outlook - The Nasdaq's decline may impact T. Rowe Price's AUM in the short term, but recovery is expected during the next market rally [11] - A list of high-quality dividend stocks, including Broadcom, PepsiCo, and T. Rowe Price, is being compiled for potential purchases if prices decline further [12]

Market Overview - Technology stocks are experiencing a downturn as investors seek safer investments amid a tariff-induced trade war [1][2] - The Nasdaq Composite index has entered correction territory, down 13% from its recent high on December 16 last year [3] The Trade Desk (TTD) - The Trade Desk's stock has dropped nearly 49% in 2025, presenting an attractive buying opportunity at a valuation of 12 times sales, down from 25 times at the end of 2024 [5][6] - The company missed its revenue expectations in Q4 2024 due to execution issues, leading to the stock's decline [6] - The programmatic advertising market, where The Trade Desk operates, is projected to generate $2.75 trillion in revenue by the end of the decade [7] - The Trade Desk has been integrating AI tools into its platform since 2017, with AI adoption in digital advertising expected to grow at an annual rate of 22.5% through 2033 [8] - Analysts expect The Trade Desk's growth to accelerate in the coming years despite near-term challenges [9][10] - The company ended 2024 with adjusted earnings of $1.66 per share, with expectations of single-digit growth this year followed by stronger growth in subsequent years [10][11] Broadcom (AVGO) - Broadcom's AI revenue grew 77% year over year in Q1 fiscal 2025, exceeding original expectations by nine percentage points [12][13] - The company sees a serviceable addressable market for its AI chips worth $60 billion to $90 billion over the next three fiscal years, significantly higher than its current $16 billion annual revenue run rate [14] - Analysts have raised revenue growth expectations for Broadcom for the next three fiscal years due to impressive top-line growth [15] - Earnings are expected to increase by 36% in the current fiscal year to $6.61 per share, with Broadcom trading at 28 times forward earnings, which is competitive compared to the Nasdaq-100 index [16] - Broadcom's substantial addressable opportunity suggests potential for sustained long-term growth, making it a favorable investment following a 20% decline in 2025 [17]

Core Viewpoint - The Nasdaq Composite index has entered correction territory in 2025, following significant gains in 2023 and 2024, primarily driven by advancements in artificial intelligence (AI) [1][2]. Market Conditions - Investors are taking profits from high-performing tech stocks due to economic uncertainties, including a trade war, declining consumer confidence, and a weak jobs report, leading to a more than 13% drop in the Nasdaq since its peak on December 16, 2024 [2]. Stock Market Correction - A stock market correction is defined as a decline of 10% to 20% in a major index, and the Nasdaq is currently in this range, presenting potential buying opportunities for investors [3]. Nvidia's Current Valuation - Nvidia is currently trading at 24 times forward earnings estimates, which is lower than its forward earnings multiple of 34 at the end of 2022, making it an attractive investment option [6][7]. Nvidia's Growth Performance - Nvidia's revenue for fiscal 2025 increased by 114%, and adjusted earnings rose by 130%, contrasting with flat revenue growth and a 25% drop in adjusted earnings in fiscal 2023 [7]. Market Leadership - Nvidia commands 92% of the AI chip market, positioning it well for continued growth in data center revenue, even if it faces competition [10]. Revenue Opportunities - Nvidia sold $11 billion worth of its latest Blackwell AI processors in the previous quarter, indicating strong demand and potential to capture a significant share of the projected $500 billion AI chip market by 2033 [11]. Automotive Sector Growth - Nvidia's automotive revenue is expected to triple to around $5 billion in the current fiscal year, following a 55% increase in the previous year, supported by partnerships with major automotive companies [12][13]. Enterprise Software Growth - Nvidia's enterprise software revenue doubled last year due to rising demand for AI solutions, indicating a substantial addressable market that complements growth in other segments [14]. Long-term Investment Potential - Nvidia is expected to emerge strongly from the current market correction, providing healthy long-term gains for investors looking to add a fast-growing company to their portfolios [15].

The Nasdaq is officially in correction territory, with the Nasdaq-100 index down by more than 12% from its recent high. A big driver of this has been the "Magnificent Seven" stocks, many of which are down by 20%, or much more, in just a few weeks.To be fair, there's a solid case to be made that some of the megacap technology stocks are still a bit on the expensive side, even after the recent declines. But one that looks especially attractive right now is Google parent company Alphabet (GOOGL -1.45%) (GOOG - ...

Group 1: Market Overview - The Nasdaq is currently in correction territory, with the Nasdaq-100 index approximately 13% below its recent high, presenting opportunities for long-term investors [1] - The Invesco QQQ ETF, which tracks the Nasdaq-100 index, is a popular choice for investors looking to buy on the dip [2] Group 2: Investment Strategy - The Invesco QQQ ETF has a concentration issue, with nearly half of its assets in just nine companies, which may not align with a diversified investment strategy [3] - The largest stocks in the QQQ ETF are also major components of the S&P 500, leading some investors to prefer the Vanguard S&P 500 ETF for lower expense ratios [4] Group 3: Alternative ETFs - The Direxion Nasdaq-100 Equal Weight ETF (QQQE) offers a more balanced investment approach by allocating equal weight to all 100 stocks in the index, allowing smaller companies to have the same impact as larger ones [5] - The Ark Autonomous Technology and Robotics ETF (ARKQ) is an actively managed fund focusing on companies that are expected to benefit from the AI revolution, with a diverse portfolio of 36 companies [8] Group 4: Performance and Future Outlook - The Ark Autonomous Technology and Robotics ETF has seen a decline of about 23% from its January high, prompting interest in adding shares to capitalize on the dip [10] - Despite market volatility and potential economic challenges, there is confidence that both the QQQE and ARKQ ETFs will appreciate significantly over the long term [11]

Core Viewpoint - The Nasdaq Composite index is experiencing a correction, down over 9% year-to-date and over 13% from its December 16 high, indicating a potential opportunity for investors to acquire high-quality stocks and ETFs at more affordable prices [1][2]. Group 1: Nasdaq Composite and Correction - The Nasdaq Composite has entered correction territory, defined as a decline of 10% to 20% from recent highs, with a current drop of over 9% year-to-date and over 13% from its December 16 peak [1]. - Historical context shows that the Nasdaq-100 has faced notable corrections in the past 20 years, with declines of up to 54% during bear markets, yet it has outperformed both the Nasdaq Composite and S&P 500 over the same period [8][9]. Group 2: Investment Opportunities - The Invesco NASDAQ 100 ETF is highlighted as a favorable investment option during this correction, tracking the 100 largest non-financial stocks in the Nasdaq-100, providing a more focused exposure compared to the broader Nasdaq Composite [3][4]. - The Invesco NASDAQ 100 ETF has a lower expense ratio of 0.15% compared to the more popular Invesco QQQ Trust ETF, making it an attractive alternative for long-term investors [4]. Group 3: Sector Breakdown - The Invesco NASDAQ 100 ETF is heavily weighted towards the technology sector, which comprises 49.95% of the ETF, followed by communication services at 15.71% and consumer discretionary at 13.61% [5]. - Despite current challenges in the tech sector, its long-term potential remains significant, indicating that the sector will continue to play a major role in the economy [5]. Group 4: Investment Strategy - Dollar-cost averaging is recommended as a strategy to mitigate risks associated with market timing, allowing investors to consistently invest a set amount over time regardless of market conditions [10][12]. - The importance of maintaining an investment schedule is emphasized, as it helps avoid the pitfalls of trying to time the market based on price fluctuations [11][12].

Market Overview - The Nasdaq Composite has entered correction territory, down over 9% year to date and approximately 13% since its high on December 16 [1] Investment Opportunities - Despite the correction, it presents an opportunity to buy top stocks at a relative discount [2] Company Analysis: Amazon - Amazon's stock was down 11% in 2025, but the decline is not due to fundamental changes in its business [3] - Amazon's international segment improved significantly, moving from an operating loss of $2.7 billion in 2023 to an operating income of $3.8 billion in 2024, indicating better global operations [4] - Amazon Web Services (AWS) is a key growth driver, with significant enterprise deals signed, including PayPal, Intuit, and Reddit [5] - The cloud industry is expected to grow, with Amazon planning to spend $100 billion in 2025, primarily for AWS growth [6][7] Company Analysis: Microsoft - Microsoft's stock was down roughly 10% year to date and close to 19% from its July 2024 high [8] - Microsoft has a diversified business model, integrating itself into corporate operations through products like Microsoft Office, Azure, and LinkedIn [9][10] - In Q2 of fiscal year 2025, Microsoft generated $69.6 billion in revenue (up 12% year over year) and an operating income of $31.7 billion (up 17% year over year) [11] - The large number of enterprise clients provides stability during economic downturns, as their products are essential for business operations [12] - Microsoft has a strong cash position of $71.5 billion, allowing it to weather economic challenges [13] - Recent stock drops provide an opportunity for investors to acquire shares of a leading company at a more attractive price [14]

Core Viewpoint - The Nasdaq Composite has entered correction territory, dropping over 13% from its record high on December 16, indicating a natural part of the stock market cycle that presents potential investment opportunities, particularly in companies like Alphabet [1][2][3]. Company Performance - Alphabet's stock is down 12% year to date and nearly 20% from its 12-month high, with only Tesla and Nvidia performing worse among the "Magnificent Seven" stocks [4]. - Despite the stock price drop, Alphabet's financial performance remains strong, with over $350 billion in revenue for 2024, a 14% year-over-year increase, and a 31% rise in operating income from 2023 [5]. Revenue Streams - Google advertising is the primary revenue source for Alphabet, but Google Cloud and YouTube have also shown consistent growth, contributing to an annual revenue run rate of $110 billion [6]. - Google Cloud's revenue grew 30% year over year in the fourth quarter, reaching $12 billion, driven by demand for cloud services [7]. Future Investments - Alphabet plans to invest approximately $75 billion in capital expenditures in 2025, focusing on expanding its AI capabilities and enhancing Google Cloud's competitiveness [8]. Valuation - Following recent stock price declines, Alphabet's price-to-earnings (P/E) ratio is around 20.5, below its 10-year average, suggesting the stock may be undervalued compared to other major tech stocks [9][10].

The Nasdaq Composite's (^IXIC 0.35%) sell-off deepened Monday as investors' worries about the state of the U.S. economy pushed the index deeper into correction territory. But as Nasdaq stocks have fallen, some now look like bargains.One of these is tech giant MongoDB (MDB 2.43%). Its shares hit a 52-week low of $173.13 on March 10, and through that date, the stock is down 23% in 2025. MongoDB's plunge is a dramatic turnaround from the 52-week high of $387.19 reached last May. Wall Street's fears of economic ...