Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Of the MAG7 what would be you top picks in the current pullback? Are you targeting any for the international equities portfolio and when would you enter? On Amazon specifically, does the c.20% pullback from the highs in early February present an accumulation zone? It appears to have averaged a PE of around ~60x past five years vs current trailing PE ~36x and forward PE ~32x.
Hi Scott,
By definition seven stocks here, below is our snapshot take on each but we are in general looking to buy this current pullback by equities:
Amazon.com Inc (AMZN): Jeff Bezos has lost a few $$ of late following AMZN’s almost 19% pullback but we see value approaching ~$US200. Bloomberg have its FY25 P/E at 27.5x, in the “cheap” quartile of recent years.
Alphabet (GOOGL US): we like the way Alphabet is evolving as a business with its recent sell-off after Februarys result a buying opportunity for us; Specifically GOOGL shares tumbled after the Google-parent posted a cloud revenue miss as it ramps up spending on AI, worrying investors that the mega-cap technology company will take longer to capitalise on its AI ambitions – a theme that’s rolled through markets in recent weeks.
Apple Inc (AAPL US): We sold out of Apple in January and would want to stock ~$US200 be considering re-entering. Its arguably a maturing business hence we want to buy at a compelling value.
Nvidia (NVDA US): This AI chip giant has corrected 28% in almost as dramatic fashion as it rallied through 2024. Competition from China in the AI space was the trigger but we believe excellent value is approaching fast.
Meta Platforms (META US): This is one Big Tech company that reported well this year: Fourth-quarter earnings and revenue beat expectations, with sales surging +21% year over year which drove a +49% increase in earnings.
Microsoft (MSFT US): One of our favourite US companies and if MM had no position we would be buying now under $US400.
Tesla (TSLA): Elon Musk’s baby has fallen a whopping 47% from its December high with its founder focused elsewhere and the company losing markets share to the likes of BYD at an alarming rate.
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