7 Stocks to Scoop Up as Last Week's CPI Shifts Market Sentiment

Economic Overview - The latest CPI report shows inflation cooling, with a year-over-year increase of 3.4% and a monthly rise of 0.3% in April, potentially leading the Federal Reserve to reduce interest rates sooner [1] - Investors are accumulating stocks in anticipation of interest rate cuts, which typically benefit equities by reducing borrowing costs [1] Alphabet (GOOG, GOOGL) - Alphabet is well-positioned to benefit from lower interest rates, as businesses will have more capital to invest, particularly in advertising and cloud services [2] - In Q1 2024, Alphabet's revenue increased by 15% year-over-year, and net income surged by 57% year-over-year, with the stock up 27% year-to-date and 213% over the past five years [3] Crowdstrike (CRWD) - Crowdstrike provides cybersecurity solutions, which are increasingly important as cybercrime becomes more lucrative [4] - The company achieved 33% year-over-year revenue growth in Q4 FY24, with a GAAP net income of $53.7 million and annual recurring revenue of $3.44 billion [5] Chipotle (CMG) - Chipotle has successfully implemented price hikes due to its healthier food offerings, with Q1 2024 revenue increasing by 14.1% year-over-year to $2.7 billion [6] - The company opened 47 new restaurants in the quarter and expects to open 285-315 in 2024, with shares up 43% year-to-date and 385% over the past five years [6] Duolingo (DUOL) - Duolingo's revenue grew by 45% year-over-year to $167.6 million, with a significant improvement in profitability, reporting $27 million in GAAP net income compared to a loss last year [7] - A 41% year-over-year increase in total bookings indicates continued growth potential for the company [8] Meta Platforms (META) - Meta reported a 27% year-over-year revenue growth and a 117% year-over-year net income growth in Q1 2024, with a net profit margin of 33.9% [9] - The user base grew by 7% year-over-year, reaching 3.24 billion total users, and the average price per ad increased by 6% year-over-year [10] HubSpot (HUBS) - HubSpot's revenue increased by 24% year-over-year in Q4 2023, with subscription revenue reaching $570.2 million [11] - Speculation about a potential acquisition by Alphabet has made HubSpot more attractive to investors [12] Broadcom (AVGO) - Broadcom reported a 34% year-over-year revenue growth in Q1 2024, driven by high demand for semiconductors and the recent acquisition of VMware [14] - The company anticipates generating $50 billion in fiscal 2024 revenue and has repurchased $8.29 billion worth of shares in the quarter [14]