Spain's antitrust watchdog says Apple, Amazon took too long to refine anti-competitive contracts | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]The logo of Apple company is seen outside an Apple store in Bordeaux, France, March 22, 2019. REUTERS/Regis Duvignau/File Photo [Purchase Licensing Rights, opens new tab]- Companies[Amazon.com Inc]Follow[Apple Inc]FollowMADRID, Feb 25 (Reuters) - Apple [(AAPL.O), opens new tab] and Amazon ...

Core Viewpoint - Qualcomm announced that a lawsuit in the UK alleging it abused its dominant position to impose inflated royalties on Apple and Samsung will be withdrawn, with no compensation to be paid to consumers [1]. Group 1: Lawsuit Details - The lawsuit was initiated by the British consumers' association Which? on behalf of approximately 29 million consumers who purchased iPhones or Samsung devices since 2015 [1]. - Which? claimed that consumers were entitled to up to £480 million ($652.03 million) in compensation due to inflated royalties charged by Qualcomm [1]. - The lawsuit argued that Qualcomm's "no license, no chips" policy forced manufacturers to pay royalties even if its chips were not used in the devices [1]. Group 2: Qualcomm's Response - Qualcomm stated that the lawsuit mischaracterized its licensing requirements for standard essential patents, which are necessary before manufacturers can purchase chipsets [1]. - Following a trial, Which? concluded that Qualcomm's practices did not infringe competition laws, did not result in inflated royalties, and did not increase mobile phone prices for consumers [1]. - A Qualcomm spokesperson emphasized that the recognition by the class representative reaffirms the legality of Qualcomm's licensing practices, consistent with previous court rulings in the United States [1].

Summary of Key Points from Citi Research Call Industry and Company Focus - **Industry**: US Equity Strategy with a focus on AI and Cyclicals - **New Baskets Introduced**: - Small/Mid AI Enablers (CGRBSAIE) - Falling Dollar Beneficiaries (CGRBDUSD) [27] Core Insights and Arguments - **Barbell Strategy**: Emphasis on owning select Growth and Cyclicals to navigate a volatile bull market [4][7] - **Growth Exposure**: - Large Cap Growth is favored for its defensive nature amid macro weakness, with earnings revisions trending higher [8] - AI at a Reasonable Price (CGRBAIRP) is highlighted as a core growth basket [5][13] - **Cyclical Exposure**: - Small Cap Value is expected to show the strongest earnings growth inflection, providing a margin of safety for EPS estimates [9] - Positive ROE Trend (CGRBGROE) is recommended for core cyclical exposure [6][64] Performance Metrics - **Year-to-Date Returns**: - S&P 500 Growth: 0.50% - S&P 600 Value: 2.36% - Small Cap Value: 4.75% [11] - **Core Baskets Performance**: - Core Baskets: 3.11% - Core+ Baskets: 1.08% - Russell 3000: 1.47% [16] New Basket Details - **Small/Mid AI Enablers**: - Focus on companies under $40B market cap that are AI Enablers, with a strong revision backdrop and premium growth expectations [28][30] - **Falling Dollar Beneficiaries**: - Targeting exporters of goods and services, with a quantitative approach to identify fundamental beneficiaries [49][50] Earnings and Valuation Insights - **Earnings Growth**: - AI Enablers are expected to see premium EPS growth compared to the broader market, with a narrowing fundamental gap [36][37] - **Valuation Metrics**: - Small/Mid AI Enablers have the most attractive PEG ratio compared to their Large Cap peers [37][40] Market Trends and Risks - **Dollar Sensitivity**: US equities are not overly sensitive to dollar movements unless tied to economic breakdowns [49] - **Cyclical Recovery**: The current earnings season indicates a recovery from the EPS growth recession, with expectations for improved business models [77][78] Recommendations for Investors - **Focus on Quality**: Emphasizing operational improvements and forward-looking ROE trends in investment decisions [66][90] - **Diversification**: Consider non-US AI opportunities for thematic value and growth exposure [99][100] Notable Stocks and Ratings - **Citi Buy-Rated Stocks**: - Top expected total return stocks include Intuit Inc, Palantir Technologies Inc, and Global Payments Inc [95][96] - **Market Cap Focus**: - Stocks with significant market caps like NVIDIA Corp and Amazon.com Inc are highlighted for their growth potential [97][98] This summary encapsulates the key insights and recommendations from the Citi Research call, focusing on the US equity strategy, particularly in the context of AI and cyclical investments.

Roundhill CEO Dave Mazza may follow the Magnificent Seven stocks more than the average investor thanks to the Roundhill Magnificent Seven ETF (BATS:MAGS) , which launched in 2023. When it comes to looking at the Magnificent Seven stocks in 2026, Mazza shares with Benzinga his top picks based on setups. • Alphabet stock is showing upward bias. What’s ahead for GOOGL stock?Top Magnificent Seven Stocks For 2026Mazza recently told Benzinga that he wasn't concerned about the underperformance of the Magnificent S ...

Group 1 - RTX Corporation experienced significant stock volatility following comments from President Trump regarding defense spending and corporate buybacks, with a notable drop when he proposed banning buybacks and a subsequent spike when he announced plans to increase the defense budget from $1 trillion to $1.5 trillion [11] - The average purchase price for RTX was $80.70, and it is currently trading at $192.47 in premarket [11] - President Trump aims to fund the increased defense spending through tariffs, which generated $195 billion in fiscal year 2025, with estimates for fiscal year 2026 ranging from $191 billion to $247 billion [11] Group 2 - The article highlights a surge in productivity in Q3 at 4.9%, with labor costs declining by 1.9%, indicating positive trends for the U.S. economy and stock market [11] - Job openings reported in the JOLTS data were at 7.146 million, down from 7.449 million previously, suggesting a potential slowdown in job growth [11] - The ISM Non-Manufacturing Index came in at 54.4, above the consensus of 52.2, indicating strong non-manufacturing activity [11]

Summary of US Equity Strategy Conference Call Industry Overview - The focus is on the US equity market, particularly the S&P 500 index and its performance outlook for 2026, with a target set at 7700 based on projected earnings of $320 per index share [1][2][21]. Core Insights and Arguments - **Earnings Projections**: The base case for the S&P 500 is set at 7700, with a bull case of 8300 and a bear case of 5700, reflecting varying expectations for earnings growth and valuation [2][8][21]. - **AI Impact**: The ongoing integration of AI is expected to drive productivity improvements, shifting focus from AI enablers to adopters, which may lead to increased performance dispersion among stocks [3][12][71]. - **Sector Performance**: Strong corporate earnings are anticipated, particularly in Value, Cyclical, and Small/Mid Cap sectors, with growth estimates expected to exceed consensus [4][51]. - **Valuation Risks**: The current high valuation presents a challenge, with a slight expected multiple compression from 25x to 24x. Factors such as lower 10-year yields and a supportive Federal Reserve are crucial for maintaining valuation levels [5][57][59]. Additional Important Points - **Market Volatility**: The fourth year of the current bull market is expected to bring bouts of volatility, influenced by macroeconomic conditions and potential geopolitical developments [9][20][71]. - **Earnings Growth Dynamics**: The growth cohort needs to consistently outperform expectations to support valuations, while broader market participation in earnings growth is anticipated as headwinds dissipate [51][54]. - **Defensive and Cyclical Sectors**: The defensive sector has shown negative revisions, while cyclical sectors are expected to recover as tariff concerns ease [37][51]. - **Geopolitical Considerations**: The report does not specifically account for geopolitical developments in its base case, acknowledging the unpredictability of such events [20][71]. - **Investor Sentiment**: The current market sentiment is described as euphoric, which historically correlates with premium valuations and potential for corrective phases [70][71]. Conclusion - The outlook for 2026 is cautiously optimistic, with expectations for strong earnings growth driven by AI and sectoral broadening. However, the high valuation and potential for volatility necessitate careful stock selection and monitoring of macroeconomic indicators [71].

Core Insights - Samsung Electronics has launched the Galaxy Z TriFold, a significant advancement in foldable technology, featuring a 10-inch display and a unique three-pane design, positioning itself ahead of Apple's anticipated foldable iPhone [1][2] - The TriFold is designed to be a productivity device rather than just a novelty, with a 5,600 mAh battery, flagship-grade cameras, and powered by the Snapdragon 8 Elite chipset [2] - Apple's foldable iPhone is expected to launch in 2026 with a single-fold design, which may not compete effectively against Samsung's innovative tri-fold design [3][4] Market Implications - Samsung's aggressive launch strategy aims to establish itself as a leader in the foldable market, potentially shifting consumer perception of foldables from niche products to mainstream devices [5] - The pricing of the TriFold is approximately $2,500, which raises questions about its long-term viability and consumer adoption [6] - The competitive landscape is intensifying, with Samsung's early move forcing Apple and other competitors to respond quickly or risk losing market share [5][6]

Core Insights - The article highlights concerns regarding Oracle Corp's (NYSE: ORCL) ability to meet gross margin expectations from AI infrastructure rentals, indicating potential overvaluation in the sector [14]. Group 1: Oracle Corp Analysis - Oracle generated $125 million in gross margins from $900 million in rentals over the last three months, resulting in a gross margin of 14%, which is below the expected 25% from credible analysts [14]. - The article suggests that if a well-established company like Oracle struggles to achieve expected margins, projections for smaller players in the AI space may be overly optimistic [14]. Group 2: Circular Financing Concerns - The article raises red flags about circular financing, where the same dollars are counted multiple times among different companies, potentially leading to inflated valuations [14]. - Examples of circular financing include Nvidia's $2 billion investment in Elon Musk's xAI, which subsequently purchases Nvidia chips, creating a loop of financial transactions that may distort actual revenue figures [14]. Group 3: Market Context - The article notes that the FOMC minutes are scheduled for release, which could impact market movements, particularly in the context of AI investments [14]. - It emphasizes the importance of maintaining sufficient cash reserves to capitalize on new opportunities while adjusting hedge levels for stock positions [15].

Summary of Semiconductor Industry Conference Call Industry Overview - **Industry**: Semiconductors - **Region**: North America - **Current View**: Attractive [5][7] Key Points and Arguments Section 232 Tariffs - President Trump announced a 100% tariff on all chips and semiconductors entering the U.S., but companies committed to building in the U.S. would be exempt from these tariffs [2][3] - The immediate implementation of such tariffs is a concern, but companies may have time to adjust, making the real cost the higher expenses of U.S. chip manufacturing [2][3] - The timeline for companies to demonstrate intent to build in the U.S. is crucial for understanding the impact of these tariffs [2][3] Reshoring and Market Dynamics - Reshoring to the U.S. is expected to benefit semiconductor equipment (SPE) companies, with a projected increase in wafer fabrication equipment (WFE) intensity above the recent average of 15% [7][10] - The U.S. consumes approximately 30-35% of semiconductors but only 10-15% of WFE, indicating a significant opportunity gap of about $140-160 million in the semiconductor market and $20-24 billion in WFE [10] - Companies like Micron are highlighted as key players in memory WFE, with their U.S. manufacturing capabilities being a competitive advantage [10] Company-Specific Insights - **Intel (INTC)**: Faces challenges in building a successful foundry business, especially with TSMC's expansion in Arizona. Major customer commitments are needed for Intel to advance its 14A development [8][10] - **Texas Instruments (TXN)**: Benefits from shipping into the U.S. from domestic fabs, but has seen a threefold increase in fixed costs, making it less competitive against fab-light models [8][10] - **GlobalFoundries (GFS)**: Expected to benefit from reshoring, but competition remains if Taiwanese foundries invest in the U.S. [12] - **Amkor (AMKR)**: Starting investments in the U.S. for packaging facilities, but faces challenges due to labor costs [12] Strategic Recommendations - Companies should prepare for a multipolar manufacturing strategy, focusing on building in regions where products are consumed [3][7] - The biggest tailwind is anticipated for memory WFE, while mature node logic may see less relative benefit due to existing capital expenditures by competitors [10] Market Implications - Strong retaliatory tariffs are expected globally, complicating the semiconductor landscape [3] - The reshoring trend will likely shift demand from other regions, impacting global supply chains [10] Additional Important Information - Morgan Stanley has potential conflicts of interest due to its business relationships with companies mentioned in the report [5] - The report emphasizes the importance of considering multiple factors in investment decisions, rather than relying solely on this research [5]

Group 1 - The Magnificent 7 stocks, which include major technology companies, have had a rough start to 2025, with all seven stocks down and most underperforming against the S&P 500 [1][2] - Concerns over tariffs and macroeconomic issues have negatively impacted the stock market, leading to declines in stock prices during the first quarter of the year [1][2] - A recent poll indicated that Amazon is expected to outperform other Magnificent 7 stocks over the next three months, with Nvidia and Tesla following closely [2][3] Group 2 - The Roundhill Magnificent Seven ETF (MAGS) is down 14.1% year-to-date in 2025 but has increased by 18.8% over the past year, while the SPDR S&P 500 ETF Trust (SPY) is down 4.4% year-to-date and up 6.8% over the last year [4] - Meta is the only Magnificent 7 stock outperforming the SPY year-to-date in 2025, while Amazon is slightly higher over the last year but trails the S&P 500 year-to-date [5] - Year-to-date performance for the Magnificent 7 stocks shows significant declines, with Tesla down 29.7% and Nvidia down 20.6%, while Meta is down only 2.3% [6] Group 3 - A poll conducted indicated that 48% of respondents believe Nvidia will dominate the Magnificent 7 stocks in 2025, with Tesla and Amazon following at 27% and 8% respectively [7][8] - Sentiment appears to be shifting towards Amazon as a potential leader for 2025, indicating a change in investor outlook compared to previous preferences for Nvidia and Tesla [8]