Why adversity creates opportunity | MoneyWeek

Netflix (NFLX 0.81%) saw its stock rise 1.8% amidst a broader market decline, fueled by positive analyst coverage following robust first-quarter results that exceeded expectations in sales and earnings, and a forecast of $8 billion in free cash flow. Investment firms like Wedbush, Morgan Stanley, and JPMorgan have raised their price targets, highlighting Netflix's strong growth potential even amid macroeconomic volatility, with projected sales growth of 15% for Q2 and a full-year revenue target of...

Billionaire investor Bill Ackman aims to emulate Warren Buffett's success and has been exploring a modern version of Berkshire Hathaway. His investment strategy focuses on acquiring substantial stakes in undervalued stocks, often advocating for management changes to enhance shareholder value. Currently, Ackman's $13 billion portfolio has 44% concentrated in three main companies: Uber (17%), Alphabet (14%), and Brookfield (13%), with Ackman believing these stocks are primed for significant growth based on their business fundamentals. Full...

Rivian Automotive (RIVN) began 2023 strong but has faced declining momentum, compounded by potential 25% tariffs on imported components like batteries from South Korea and China. Bernstein analyst Daniel Roeska maintained an underperform rating with a $6.10 price target, predicting a 20% cut in their 2025 delivery forecast to 37,000 units and negative $2.2 billion EBITDA, raising concerns over achieving profitability milestones tied to a joint venture with Volkswagen and a $6.6 billion DOE loan....

Tesla (TSLA -0.13%) stock peaked at $480 in December but has since fallen 50%, as CEO Elon Musk's political involvement has led to a "brand crisis," according to analyst Dan Ives at Wedbush Securities. Despite previously optimistic projections for Tesla, Ives warns that Musk's actions risk "permanent brand destruction," prompting a cut in the target price to $315 per share. While Wall Street has lowered earnings estimates, Tesla's upcoming ventures into robotaxis and robotics present...

Investing in the stock market often involves navigating selloffs and volatility, but exchange-traded funds (ETFs) like the JPMorgan Equity Premium Income ETF (JEPI), Vanguard Utilities ETF (VPU), and Vanguard Energy ETF (VDE) can help mitigate risks while providing passive income. JEPI focuses on low volatility and offers a nearly 7.5% dividend yield, while VPU, with a 2.9% SEC yield, benefits from consistent revenue in utility stocks, outperforming the S&P 500. VDE presents a buying opportunity...

Amid rising market volatility, Berkshire Hathaway's stock portfolio remains a strong investment option, showcasing Warren Buffett's knack for identifying resilient companies. Two standout growth stocks are Amazon, which has a dominant position in the cloud market through AWS and is currently attractively valued, and Mastercard, a highly profitable company with significant growth potential despite economic uncertainties. Both stocks are recommended as solid buys, with Amazon's diverse revenue streams and Mastercard's resilience in transaction processing positioning...