🎁What the Tigers Say | Mag 7 at Lows: More Pain Ahead?

The S&P 500 peaked in February—but by April, the Magnificent Seven took a hit. Apple, Microsoft, Nvidia, Google, Amazon, Meta, and Tesla all closed lower on April 4.

Tesla’s market cap has halved since its $1.5T high. Nvidia is down 40% from January. Even Apple lost over $1T in value since Christmas.

With valuations back at multi-month lows— Is there more downside ahead?

Which stock do you think will bounce back first?

🎁Special Notes: Whoever showed up on the” What the Tigers Say” column will receive 100 Tiger Coins and an exclusive interview invitation to honor your contribution.

Click titles to read the full analysis:

1. @Mkoh:

Key Points:

Short-Term vs. Long-Term: If you’re looking to trade a quick rebound, timing the exact bottom is tricky and risky given the current volatility. If you’re a long-term investor, the current dip might be less critical, as these companies’ core strengths (e.g., AI leadership, brand power) remain intact.

Diversification: Rather than betting heavily on one stock, spreading investments across the group or beyond could reduce risk.

Watch Earnings: The next earnings season will be key. If these companies signal tariff-related cost increases or guidance cuts, the sell-off could deepen. Conversely, resilience or adaptation strategies could spark a recovery.

Ultimately, “bottom fishing” here is a gamble on whether the tariff storm is a temporary shock or the start of a prolonged downturn. If you believe in the long-term growth of these tech titans and can stomach near-term volatility, the current levels might look appealing. But if you’re wary of further trade war escalation or economic slowdown, waiting for clearer signals—like stabilization in stock prices or policy clarity—might be prudent.

2. @nerdbull1669: Major Tech Stocks Expected To Expand Roles In Federal Cloud Computing

Key Points:

Amid significant market fluctuations, $Alphabet(GOOG)$ and $Amazon.com(AMZN)$ are positioning themselves to capture a larger share of federal contracts. The creation of the Department of Government Efficiency could facilitate this transition, which might impact $Microsoft(MSFT)$ stronghold in government software. Additionally, Amazon Web Services, Google, and Oracle (ORCL) are expected to expand their roles in federal cloud computing solutions.

$Meta Platforms, Inc.(META)$ is reportedly investing nearly $1 billion in a new data center project in Wisconsin. This move is part of a broader trend of tech companies expanding infrastructure to support growing data needs. Microsoft (MSFT) celebrated its 50th anniversary by unveiling new AI features at a special event, highlighting the company's ongoing innovation and adaptation in the tech landscape. The event also served as a reflection on Microsoft's historical impact on the technology industry.

Tech giants could benefit from government contracts as a hedge against tariff disruptions, provided they navigate regulatory, geopolitical, and operational challenges effectively. Success hinges on balancing domestic production incentives, compliance readiness, and maintaining agility in a shifting political landscape.

A strategic, risk-assessed approach—leveraging core technological strengths while diversifying supply chains—would optimize outcomes.

3. @Shumer:

Key Points:

Right now, market fear is through the roof. In fact, volatility is sitting at some of the highest levels we’ve seen in years (95th percentile). This means something fascinating: you can get paid really well for agreeing to buy stocks at lower prices through put options.

Let me give you a real example I’m looking at: say you’re interested in the $SPDR S&P 500 ETF Trust(SPY)$ . You can sell a 45-day put option about 10% below where we are now. If the market doesn’t tank further? You pocket around 7% profit in just 45 days. If it does drop? You end up buying at that lower price you wanted anyway, plus you keep that premium. That works out to about 70% annualized returns for basically saying "Sure, I’ll buy if it gets cheaper".

It’s like telling the market: "Hey, I’m happy to buy, but only if you give me an even better deal – and I want you to pay me while I wait." Pretty neat, right?

Here’s why this works so well: Markets are emotional creatures. When fear spikes, people make irrational decisions, creating these beautiful pricing distortions. If you’re thinking long-term (like 10+ years out), these are exactly the moments you want to be methodical and strategic.

This isn’t some complex Wall Street wizardry. It’s just basic derivatives math mixed with a bit of behavioral psychology and the courage to think differently when everyone else is losing their heads.

You know what’s funny? If you work in tech, you probably already think this way. It’s all about probabilities, asymmetric outcomes, and systematic thinking. Sound familiar?

4. @yourcelesttyy:

Key Points:

Why It’s a Big Deal:

• Price Shock: US shoppers will see costs soar—think $1,000 iPhones and pricier Walmart hauls.

• Profit Crunch: Companies like Apple and Tesla, reliant on Chinese manufacturing, face margin hits.

• Economic Drag: The Peterson Institute estimates a 0.5% global GDP drop by 2025 if this escalates.

Sector Fallout: Winners and Losers

• Tech: Apple ( $Apple(AAPL)$ ) and Qualcomm ( $Qualcomm(QCOM)$ ) are reeling—supply chain woes could mean 15-20% drops.

• Consumer Goods: Nike ( $Nike(NKE)$ ) faces higher costs and weaker China sales—watch for a 10% hit.

• Energy: Exxon ( $Exxon Mobil(XOM)$ ) shrugs it off—oil’s at $62.30, but tariffs barely touch it.

Playbook: Navigating the Storm

• Short Game: Ride the waves with SPY puts or VIX calls—volatility’s spiking.

• Long Game: Buy the dip at S&P 500 4,800 or Shanghai 2,400—if you’ve got the stomach.

• Safe Havens: Utilities (XLU) or gold (GLD) for shelter.

My Bet: I’m watching Nasdaq for a 12% drop to 16,000—tech’s oversold signal. China’s too dicey unless talks heat up.

5. @Bullaroo:

Key Points:

Volatility Ahead: What Investors Can Do

The S&P 500 is down nearly 9% from its February peak, and the Nasdaq has erased post-election gains, signaling more choppiness ahead. Tariff uncertainty will likely keep markets on edge, but investors can take proactive steps:

1. Tax-Loss Harvesting: Sell underperforming assets to offset gains, using substitutes to maintain exposure and cut tax bills.

2. Portfolio Rebalancing: Trim winners (e.g., tech) and bolster laggards (e.g., value stocks) to realign with risk targets.

3. Opportunistic Buying: After a 5% pullback, history shows 12% average returns a year later—deploy cash at dips.

4. Stay Disciplined: Tune out noise, stick to long-term plans, and keep a cash buffer (e.g., in 4%+ yielding money market funds).

Diversifying into international equities or bonds, up over 2% recently, can also help. The key is avoiding knee-jerk reactions in a tariff-driven storm.

6. @Mickey082024:

Key Points:

Valuation: Is Apple Now a Bargain?

Let’s shift from fundamentals to valuation.

Before the tariff announcement, Apple’s stock looked expensive by historical standards:

• A forward P/E ratio above 27

• Modest growth expectations

• Heavy dependence on mature products

After the drop, Apple now trades at a forward P/E of 24.7—lower, but still not cheap, especially given the increased risk.

Using a discounted cash flow (DCF) analysis, I calculate Apple’s intrinsic value at approximately $175 per share, assuming moderate growth and stable margins.

Yet, Apple’s current stock price—around $230—is still over 30% higher than my estimated fair value. Even after a 10% pullback, the market hasn't priced in the full extent of these new risks.

Conclusion: Is This a Buying Opportunity?

So, is this dip in Apple stock a chance to “buy the fear” and scoop up shares at a discount?

In my view: Not yet.

Yes, Apple is a world-class business. Yes, it has a sticky ecosystem, a loyal customer base, and enviable profit margins. But great companies are not always great investments—especially when macroeconomic and geopolitical risks are rising.

Here’s what I’m watching for before upgrading Apple to a buy:

• How Apple handles pricing in the next product cycle

• Whether suppliers share in the cost burden

• Early signs of consumer resistance or weakening demand

• Potential for regulatory pressure, especially abroad

Until we have more clarity, I believe caution is warranted. The current valuation still bakes in a lot of optimism, while the risks are mounting.

If you're a long-term investor, keep Apple on your watchlist—but don’t rush in just because of a headline-driven dip.

7. @ToNi:

Key Points:

$NVIDIA(NVDA)$ is showing clear signs of a bullish breakout, making it a compelling buy right now. Despite a recent dip to $96.30 on April 8th, 2025, the stock is testing key support at $98.47, near the 50-day moving average (MA50) of $100.09. This level has historically been a springboard for reversals, and with moving averages converging, a breakout above the MA20 at $111.88 could send the stock back toward its recent high of $148.97—a 54% upside.

Fundamentally, NVIDIA remains a leader in AI and GPUs, with strong earnings and a bright growth outlook. The post-market gain of 0.60% signals renewed buying interest, and the broader tech sector is supportive. Now is the time to buy NVIDIA for both short-term gains and long-term growth. Don’t miss this opportunity!

Questions for you:

Is there more downside ahead?

Which stock do you think will bounce back first?

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⏰Duration

• 16 April (24pm EDT)