If you currently hold Tesla NASDAQ: TSLA and Apple NASDAQ: APPL—two popular Magnificent Seven stocks—you might want to consider rotating out of them and into Broadcom NASDAQ: AVGO and Oracle NYSE: ORCL instead. This advice comes from Vimal Patel, Co‑Portfolio Manager of the Columbia Seligman Global Technology Fund (SHGTX), whose mutual fund has outperformed its tech-sector peers by 6% over the past five years.Get SoftBank Group alerts:Tech stocks are navigating a volatile 2025 landscape marked by geopolitic ...

Executive Vice President of Investor Relations 2 Safe Harbor and Note About Non-GAAP Financial Measures May 28, 2025 Salesforce Q1 FY26 Earnings Call NYSE: CRM @Salesforce_ir Introduction Mike Spencer "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about the Company's financial and operating results and guidance which include, but are not limited to, expected GAAP and non-GAAP financial and other operating and non-oper ...

Core Insights - The earnings reports from the Magnificent 7, including Amazon, Apple, Meta Platforms, Microsoft, Alphabet, and Tesla, were broadly positive, with Microsoft standing out as a leader in cloud growth and performance [1][4][18] Group 1: Microsoft Performance - Microsoft reported a 33% year-over-year growth in Azure revenue, the fastest among major cloud providers, with AI services contributing 12 percentage points to this growth [4] - The Intelligent Cloud segment generated $26.8 billion in revenue, up 21% from the previous year, with operating income reaching $11.1 billion [4] - Microsoft holds the highest Zacks Rank of the Magnificent 7 group at 2 (Buy) and has been the best-performing stock over the last month, three months, and year-to-date [2] Group 2: Competitive Landscape - Amazon Web Services (AWS) reported $29.3 billion in revenue, growing at 17%, the slowest pace in five quarters, raising concerns about its growth momentum [5] - Google Cloud's revenue increased by 28% year-over-year to $12.3 billion, with operating income improving significantly from $900 million to $2.2 billion [6] - Microsoft's leadership in enterprise cloud and AI infrastructure positions it favorably for long-term value creation [6][7] Group 3: Tariff Risks - Microsoft has lower tariff exposure compared to Apple, Meta, and Amazon, making it less vulnerable to US-China trade tensions [8] - Apple is particularly sensitive to rising import costs due to its reliance on Chinese manufacturing, which could impact its revenue from Chinese consumers [9] - Amazon's global retail supply chain is heavily dependent on low-cost manufacturing in China, which could affect its margins due to tariffs [10] Group 4: Valuation Insights - Microsoft currently has the highest earnings multiple among the Magnificent 7, but this premium is justified given its strong fundamentals and growth prospects [13][15] - Other companies in the group are trading below their five-year averages, which may appeal to valuation-conscious investors [14] - Microsoft is expected to grow its earnings by 14.6% annually over the next three to five years, indicating robust growth potential [14] Group 5: Investment Considerations - Microsoft is viewed as a compelling core holding for long-term investors due to its strong cloud growth, earnings momentum, and low exposure to macro risks [16][18] - The stock's premium valuation reflects growing investor confidence in its leadership in AI and enterprise business [18]