The "Magnificent Seven" group of stocks hasn't really been known for being called cheap. This group includes some big tech high-flyers that led the market over the past few years but have gotten slammed this year. They are: All seven of these stocks are off their all-time highs alongside the market, amid uncertainty caused by the Trump administration's trade policies. But only a few of these stocks have tumbled to price points where the stocks can actually be considered cheap. The three that I think fit thi ...

Core Insights - Netflix's stock has achieved an 11-day positive trading streak, marking its longest run ever, surpassing the previous record of nine days in late 2018 and early 2019 [1] - The stock is currently trading at all-time high levels since its IPO in May 2002 [1] Financial Performance - In the most recent earnings report on April 17, Netflix reported a 13% revenue growth in Q1 2025, driven by higher-than-expected subscription and advertising revenue [2] - The company forecasts full-year revenue between $43.5 billion and $44.5 billion, indicating stability in its business outlook [4] Market Position - Netflix has outperformed traditional media stocks during President Trump's second term, with shares increasing over 30% since mid-January [3] - In contrast, traditional media companies like Warner Bros. Discovery and Disney have seen declines of nearly 10% and 13%, respectively, since Trump took office [4] Economic Resilience - Netflix's co-CEO Greg Peters noted that the company has not experienced significant impacts from tariffs or economic downturns, emphasizing the historical resilience of entertainment during tough economic times [5] - Analysts from JPMorgan see further upside potential for Netflix shares, reinforcing the company's strong market position [5][6] Pricing Strategy - Netflix has increased its subscription prices, with the standard plan now at $17.99, the ad-supported plan at $7.99, and the premium plan at $24.99, yet it appears to have maintained its value proposition for customers [7] - The company has shifted focus from sharing membership numbers to emphasizing revenue growth, leaving uncertainty about the growth or decline of its subscriber base [7]

Core Viewpoint - Apple is shifting its manufacturing strategy to mitigate the impact of tariffs imposed by the Trump administration, with most iPhones being sourced from India and iPads from Vietnam, aiming to avoid significant price increases for American consumers [1][10]. Financial Performance - For the first three months of the year, Apple reported revenue of £71.8 billion and earnings of £18.6 billion, surpassing analyst expectations [4]. - The company anticipates an additional cost of £677 million in the current quarter due to tariffs, assuming no changes in Trump's policies [2]. Market Dynamics - High demand for iPhones was noted during the period, likely driven by US consumers making purchases before the new tariffs took effect [4]. - The full impact of any panic buying will be assessed in Apple's results for the April to June period [4]. Supply Chain and Manufacturing Changes - Apple's previous reliance on Chinese factories for iPhone production made it more vulnerable to the effects of the trade war compared to other companies [5]. - Devices sold outside the US will continue to be manufactured in China, while the company is diversifying its supply chain to reduce risks associated with having all production in one location [10]. Stock Market Reaction - Following the announcement of reciprocal tariffs, Apple's stock experienced a significant decline of 23%, resulting in a loss of £582 billion in market value, although it has since recovered slightly [7]. - Despite the recovery, the stock remains 5% lower than before the tariffs were announced [7]. Sales Impact - Sales in China fell by 2.3% between January and March, influenced by the growing tensions between Washington and Beijing [7].

Core Viewpoint - Starbucks experienced a significant decline in stock price due to external factors such as tariffs and disappointing fiscal second-quarter earnings results [1][4][7] Group 1: Stock Performance - Starbucks shares fell 18% in April, contrasting with the overall stock market which saw a 90-day pause on some tariffs [4][2] - The stock's performance was notably weaker at the beginning of April and did not recover by the end of the month [4][5] Group 2: Financial Results - In the fiscal second quarter, Starbucks missed estimates on both revenue and earnings, with comparable sales down 1% and revenue declining 2% [7] - Adjusted operating margin decreased by 460 basis points to 8.2%, and adjusted earnings per share fell 40% to $0.41 [7] Group 3: Business Challenges - The company faces challenges due to discretionary spending trends, making it more vulnerable to economic slowdowns [5] - Tariffs may complicate operations, although the cost of importing coffee beans is manageable, comprising 10%-15% of product and distribution costs [6] Group 4: Management and Future Outlook - CEO Brian Niccol, with a strong background from Chipotle, is expected to lead a turnaround strategy, warranting investor patience [9] - Despite macroeconomic headwinds, Niccol's optimism about recovery is noted as a positive aspect for the company's future [9]

Core Viewpoint - Vertiv (VRT) shares have declined 19% year to date, underperforming the broader Zacks Computer and Technology sector and the Zacks Computers - IT Services industry, primarily due to macroeconomic challenges and trade war fears stemming from U.S. tariffs [1][2]. Company Performance - VRT stock has underperformed compared to Eaton (ETN), which has invested over $8 billion in sustainable energy solutions, with Eaton's shares down 11.3% year to date [2]. - Vertiv's organic orders grew approximately 20% in the trailing 12 months, with a book-to-bill ratio of 1.4 for Q1 2025, indicating strong prospects [5]. - The backlog increased by 10% sequentially and 25% year over year, reaching $7.9 billion [5]. Product Portfolio Expansion - Vertiv launched four new systems in March 2025 aimed at AI applications, including Vertiv Unify software and SmartRun modular solutions, enhancing power efficiency and scalability [6]. - The introduction of the Vertiv CoolLoop Trim Cooler offers up to 70% energy savings and 40% space reduction for high-density cooling environments [7]. Strategic Partnerships - Vertiv's partnerships with companies like Tecogen, NVIDIA, and others are key growth drivers [8][9][10]. - The collaboration with Tecogen focuses on advanced natural gas-powered chiller technology for data centers, enhancing cooling solutions [9]. - The partnership with NVIDIA aims to launch a modular AI supercomputer in Italy by 2025 [10]. Financial Guidance - For 2025, Vertiv expects revenues between $9.325 billion and $9.575 billion, with organic net sales growth projected at 16.5% to 19.5% [11]. - The second-quarter 2025 revenue forecast is between $2.325 billion and $2.375 billion, with organic net sales growth expected in the 19% to 23% range [12]. Earnings Estimates - The Zacks Consensus Estimate for second-quarter 2025 revenues is $2.27 billion, indicating a year-over-year growth of 16.48% [13]. - The 2025 earnings estimate is pegged at $3.55 per share, reflecting a 24.56% increase from 2024 [14]. Valuation Metrics - Vertiv is currently trading at a trailing 12-month Price/Book ratio of 12.19X, compared to the sector's 8.90X, indicating it is overvalued [15]. - The company has a Zacks Rank 3 (Hold), suggesting investors should wait for a more favorable entry point [19].

Group 1: Costco - Costco raised its quarterly dividend by 12% to $1.30 per share, resulting in an annual payout of $5.20 [2] - The company faces challenges due to tariffs impacting one-third of its sales from imported goods, particularly from targeted countries like China, Canada, and Mexico [4][3] - Despite a recent decline in stock value, Costco is actively working to mitigate tariff impacts by pressuring suppliers to reduce prices [5] - The dividend increase will take effect on May 16, with a yield of 0.5% at the current share price [7] Group 2: TJX Companies - TJX announced a 13% increase in its dividend to $0.425 per share, marking its 28th dividend hike in the past 29 years [8] - The company plans to spend $2 billion to $2.5 billion on share buybacks in the current fiscal year, supporting its stock price [9] - TJX's profitability allows it to manage both dividend increases and stock repurchases, driven by effective inventory management and flexible buying strategies [10] - The company experienced growth in fiscal 2025 through new store openings and a 4% rise in same-store sales [10] - The new dividend will be distributed on June 5, yielding 1.3% at the latest closing price [12]

Group 1 - Michael Burry's largest holding, Alibaba, experienced a significant decline of over 25% in April due to the Liberation Day announcement, although Wall Street analysts remain bullish on the stock for the next year [1] - Analysts predict an average rally of 37.96% for Alibaba stock, targeting $164.77 over the next 12 months, with the highest forecast reaching $194.33, a 62.71% increase [2] - Despite recent struggles, Mizuho maintains a 'buy' rating for Alibaba, projecting a price of $170, which is 42% above the latest closing price of $119.43 [5] Group 2 - Analysts have shown caution regarding Alibaba, with the lowest price target set at $94.55, indicating mixed sentiment despite overall optimism [6] - Out of 58 analysts, 54 rate Alibaba as a 'buy' or 'strong buy', while only one analyst rates it as a 'strong sell', reflecting a predominantly positive outlook [7] - Although Alibaba shares are currently 18.32% below their 2025 highs, they remain up 42.15% year-to-date [7][8] Group 3 - Alibaba stock has shown resilience, with a steady upward trend since hitting a 30-day low of $99.37 on April 7 [10]

Core Viewpoint - Vicor's shares plummeted over 23% following a disappointing quarterly earnings report, despite a generally positive day for the stock market overall [1] Financial Performance - Vicor reported first-quarter revenue of nearly $94 million, which is a 12% increase compared to the same period in 2024, but fell short of the average analyst estimate of over $97 million [2] - The company's GAAP net income was $2.5 million ($0.06 per share), a significant improvement from a $14.5 million loss in the same quarter last year, yet it missed the consensus estimate of $0.29 per share profit [3] Operational Challenges - CEO Patrizio Vinciarelli noted that revenue and gross margins declined sequentially, attributed to reduced income from a licensee transitioning to new unlicensed products [4] - The ongoing trade war raises concerns for device makers like Vicor, who may face increased component costs, adding to investor anxiety [4]

Nvidia Corporation (NASDAQ: NVDA , NVDA:CA) has found itself as the centerpiece of the trade war with China, leading to further export restrictions on its China-built H20 GPU. With the possibility of restrictions persisting, Nvidia may write down a $5.5BMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, ...

Core Insights - Amazon is seeking significant supplier discounts to mitigate the impact of U.S. tariffs, specifically requesting low double-digit price reductions from various merchants [1][2] - The company is facing potential operating profit reductions between $5 billion and $10 billion this year due to the 145% tariffs on goods imported from China [2] - Amazon has shifted its sourcing strategy by canceling direct imports from China and opting for suppliers with American stock to adapt to the tariff environment [3][4] Supplier Relations - Amazon's aggressive stance towards suppliers is influenced by its dominant market position, leading brands to feel dependent on the platform [2] - The company is collaborating with a diverse range of selling partners to help them adjust to the evolving market conditions while keeping prices low for consumers [4] Competitive Landscape - Research indicates that many consumers are increasingly engaging with both Amazon and Walmart, with nearly 25% of American adults holding memberships for both retailers, a significant increase from 2021 [5] - The traditional perceptions of Walmart and Amazon are evolving, as consumers seek value across both platforms, often shopping simultaneously [6]