Market Reactions - Markets are showing resilience to tariff news, indicating a shift in investor sentiment compared to previous months when volatility was high at the slightest hint of trade tensions [2][3] - The current market behavior suggests an expectation for a quicker resolution to tariff issues and trade wars, alongside a belief that inflation remains under control, which could lead to rate cuts by the Federal Reserve [4] Federal Reserve Insights - The Fed's preferred inflation gauge, the core PCE index, rose 2.5% annually in April, down from 2.7% in March, indicating tame inflation despite tariffs [5] - The Consumer Price Index (CPI) report for April showed a 2.3% increase in consumer prices year-over-year, below the expected 2.4%, marking the lowest annual increase since February 2021 [6] - Some Fed officials express skepticism about the transitory nature of inflation caused by tariffs, with ongoing debates about the impact on employment and price stability [7][8] Stock Performance - AppLovin (APP) is experiencing strong performance, surpassing earnings estimates for eight consecutive quarters, with a projected full-year EPS of $8.39, reflecting an 85.2% growth rate year-over-year [12][15] - Sea Limited (SE) is also outperforming, with analysts raising fiscal 2025 EPS estimates by 1.44%, projecting a total revenue of over $22.37 billion this year, a 32% increase from 2024 [17] Market Outlook - The decline in volatility surrounding tariffs and stable inflation trends suggest potential for further market gains, with expectations of two rate cuts by the Fed this year [19]

Core Viewpoint - The article discusses the potential resurgence of the bull market, highlighting opportunities in lesser-known tech stocks alongside established names like the Magnificent 7 and leading AI companies [1] Group 1: Under-the-Radar Tech Stocks - Three tech stocks, Sezzle Inc. (SEZL), Pagaya Technologies Ltd. (PGY), and AppLovin (APP), are identified as having significant growth potential and are showing strong momentum [2][3] - These companies are characterized as high-growth innovators with robust growth forecasts and favorable stock price movements, supported by a top Zacks Rank [2] Group 2: Pagaya Technologies Ltd. - Pagaya Technologies operates at the intersection of AI and financial technology, utilizing machine learning to improve credit decision-making and underwriting in consumer lending [4] - Despite a setback following a disappointing Q1 earnings report, Pagaya has shown a strong recovery, with analysts raising earnings forecasts and achieving a Zacks Rank 1 (Strong Buy) [5] - The stock trades at a forward earnings multiple of 8.3x, with projected sales growth of 20% this year and 16% next year, alongside expected earnings growth of 112% in 2025 and 39% in 2026 [6] Group 3: Sezzle Inc. - Sezzle operates in the Buy Now, Pay Later (BNPL) sector, providing flexible financing options while focusing on profitability and disciplined growth [8] - The stock, despite a significant rally, remains attractively valued at 26.9x forward earnings, with projected sales growth of 62% this year and 20.8% next year, and earnings expected to rise 76% in 2025 and 30% in 2026 [9][10] - Sezzle also holds a Zacks Rank 1 (Strong Buy), reflecting a positive earnings revision trend with significant increases in earnings estimates for 2025 and 2026 [10] Group 4: AppLovin - AppLovin provides a mobile app marketing and monetization platform powered by machine learning, aiding app developers in revenue optimization [11] - The company has experienced substantial growth, with recent upward earnings revisions of 19.2% for the current quarter and 12.5% for the full year [12] - Although trading at a premium valuation of 42.5x forward earnings, the growth outlook is strong, with projected sales increases of 24.3% in 2025 and 16.3% in 2026, and earnings expected to grow by 70.6% this year and 44.8% next year [13][16] Group 5: Investment Considerations - For investors seeking high-growth tech exposure beyond major names, Pagaya Technologies, Sezzle, and AppLovin present a compelling mix of momentum, earnings strength, and long-term potential, supported by rising analyst estimates and top Zacks Ranks [17]