Zacks Investment Ideas feature highlights: Apple, Alphabet, Microsoft, Alibaba and Nvidia

For Immediate ReleaseChicago, IL – February 25, 2025 – Today, Zacks Investment Ideas feature highlights Apple AAPL, Alphabet GOOGL, Microsoft MSFT, Alibaba BABA and Nvidia NVDA.Bull Market Intact: Why Friday's Selloff Was Likely OverdoneAfter stocks plunged Friday and the Nasdaq gave up its year-to-date gates, investors may wonder whether or not the US equity bull market is at risk. Below are key reasons the selling may have been overdone and the bull market remains fully intact:Seasonal Weakness Normal This Time of YearOn Wall Street, seasonality is the study of how stocks historically perform during specific times of the year. Like a farmer who must seek to plant crops during periods when the climate allows, investors use historical data to give them an additional edge when investing. More sophisticated stock analysts also account for other factors to make the data and the odds more accurate.For example, the end of February in a post-election year (like 2025), tends to be very weak as investors come down from the presidential election euphoria.Bull Market Drawdowns NormalMeanwhile, the S&P 500 Index averages multiple drawdowns a year, with the average annual drawdown being ~14.2%. For this reason, investors must understand their time frame, manage risk, and avoid being top-heavy when the market gets stretched.Monthly OPEX Can Cause VolatilityFinally, Friday’s drop may have been exaggerated by monthly OPEX (options expiration). Price action is often funky during monthly OPEX days as options traders reposition. As I mentioned in my Tech Innovators service, the Friday of February OPEX was lower in 14 of the past 24 instances. With OPEX shenanigans out of the way, stocks may be able to stabilize.Government Job Cut Impact OverblownThe impact of Elon Musk’s “Department of Government Efficiency” (DOGE) is another headline on Wall Street that may be causing downward selling pressure. Musk’s team has already offered generous payout packages for government employees and ended work-from-home policy. However, President Trump urged Musk last week to be more aggressive in shrinking the government. In recent years The government job market has become a larger slice of the overall job market. The recent cuts have already taken a toll on the Washington DC housing market, but some investors believe it may impact the overall jobs market.Fortunately, there is a historical precedent for such a situation. Carson Group Market Strategist Ryan Detrick points out, “During the President Obama budget cuts of 2011-2014 a total of 146k federal jobs were cut. The economy still grew by more than 8 million jobs.” In other words, DOGE fears are likely overblown.Sentiment: One Foot Out the DoorWith the major indices all within 5% of all-time highs, sentiment measures like the CNN Fear and Greed Index show that investors are skittish. The CNN Fear Greed Index flashed a “Fear” reading money morning.AI Spending Remains StrongAI and technology stocks have led the market higher, so naturally, investors are concerned about a slowdown in AI spending. Just this morning, Apple announced plans to spend more than $500 billion to accelerate its AI investments. Apple also announced plans to integrate Alphabet’s Gemini AI into Apple intelligence. Meanwhile, a rumor shook stocks this morning as a report emerged stating that Microsoft would slow down AI spending and cancel current orders. However, a Jeffries report “strongly refutes” any changes to MSFT’s AI strategy.Meanwhile, Chinese AI spending is soaring. Alibaba announced plans to invest $53 billion in cloud and AI infrastructure over the next three years. Regardless of their point of view, investors will get more information about AI spending when AI leader Nvidia reports earnings on Wednesday after the close.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks