TOP 5 STOCKS TO WATCH THIS WEEK
In a Nutshell
Top 5 stocks to watch this week: Meta (earnings Wed close, elevated at $700 with AI hype but long-term risks), Netflix (testing support at $92, wait for breakdown to $75-80), Robinhood (Tue earnings, volatile Bitcoin proxy with PE 40.5, crashes in downturns), AMD (overbought at PE 132 despite 80% rally, unsustainable hype), and Micron (strong fundamentals at PE 23, 57% rally but volatile). Key events include FOMC rate pause Wed with Powell presser, big tech earnings (MSFT, AMZN, META, GOOG Wed; AAPL Thu), and oil plays amid Iran de-escalation news. Microsoft highlighted as fundamentally solid (PE low, $120B net income) but weakest Magnificent Seven performer; trade facts over politics, avoid leverage for beginners.
These notes were generated by AI and may contain inaccuracies.
Live on Sunday, April 26, 7:27 in Arizona. Overnight hours opened two and a half hours ago. Trump has ended the Iran war for the eighth week in a row. Market continues to push to all-time highs celebrating peace talks, but back to square one with higher oil prices and incredibly weak labor market. Suggests Trump should continue delaying the end of the Iran war to push S&P 500 to 7,000 by July. NASDAQ up 0.34% on Sunday, one of the first times in five to six weeks it's opened in the green, technically at new all-time highs from Friday. Consistent pattern: markets open up on Sunday overnight due to Trump actions on weekends, followed by peace talks before Monday open causing rallies.
Big week for big tech. Federal Reserve FOMC interest rate decision on Wednesday at 2 p.m. Eastern; expected to pause, no cut anticipated. Jerome Powell speaks 30 minutes after in press conference lasting 30-45 minutes. Plan to live stream with LPP team. Focus on Wednesday and Thursday: After Wednesday close, earnings from Microsoft, Amazon, Meta, Alphabet (Google's parent) – combined market cap nearly $10 trillion. Apple on Thursday. Also Chevron and Exxon Mobil for oil profits after higher oil prices. Job is to make aware of reports; viewers should note and care.
NASDAQ pushing higher. Question: With everything this week, what is your top stock to focus on?
Meta reporting earnings after Wednesday close. Recent rally from lows of $517 to nearly $700 (not all-time highs; previously nearly $800). Market cap 1.71 trillion. Owns Meta long-term, bought more on sell-off. Not an incredibly good deal at nearly $700. Could go higher short-term, but long-term concerns over overinvesting (past issues), capex spending projected for 2026, report vs. expectation. Not a really good deal for beginners; likely to drop in downturn (previously from $700 to $500, 34% sell-off, now up 28%). Announced 10% workforce layoff (around 8,000 employees?) to increase profit margins. Short-term bet okay if trading favorably this week. PE ratio 28.3, revenue $201 billion, net income $60 billion, growing rapidly, solid margins, biggest revenue from paid advertisements (family of apps). Even in downturn to $500, expected to grow, but elevated after 30% rise in 30 days – sharpest recovery since 2009. Concern: what pushes markets higher in struggling economy? AI thriving, but consumer spending down could hurt. Harder to add at elevated levels; earnings this week may provide insight for Q1 2026 slowdown.
Joke on Trump ending Iran war repeatedly (7-8 times), markets push higher. News: Iran offers new proposal to reopen Strait of Hormuz – good sign if true, de-escalation. How many times celebrate end of war? Initial ceasefire, then multiple endings. Trump back-and-forth annoying, but stock market doesn't care about politics, only de-escalation. Reminder for trades: base on facts, not bias.
Netflix testing previous support range after recent sell-off. Hope it breaks support to $75, but alert set for oversold reversal if breaks above EMA with increasing value. Cheap at $92, but can get cheaper. Critical stage: wait for confirmation (break above or below). If breaks below, stay away as beginner; revisit at $80 or $75 lows for reversal signs. Subscription price increased recently.
Anecdote: Grew up with cable at $80-120/month. Switched to cheap streaming ($5.99-$9.99, no ads). Now multiple platforms (Amazon Prime, Netflix, HBO Max, Hulu, Peacock) total $50/month with ads, or $20 each ad-free = $100, back to square one.
Farmer analogy: Happy farmer on land; businessman convinces to commercialize, ends up back to square one with more work.
Robinhood reports earnings Tuesday after close. Trades like Bitcoin proxy. Business model: subscriptions and payment for order flow; revenue drops if trading activity slows (e.g., downturn from 2021 peak post-pandemic). Sold off 44% from highs of $153 to lows of $85 (previously from $83 to $6.81-$7). Currently PE 40.5. If consumer spending down, trading lower, revenue drops, becomes more expensive premium. Volatile; crashes hard in market uncertainty. Be careful pre-earnings gambles. If believe in it, invest but don't overleverage, understand timeline and risk tolerance. Will crash hardest if markets drop.
Bought AMD at $199, sold at $210. Made video buying below $200 (~3 months ago) for daughter's long-term portfolio. Still invested, trimmed portion. Up 80% in 27 days. Unsustainable; markets irrational longer than shorts solvent, but P/E 132 (higher than competition: Nvidia 42, Micron 23, Intel low). Market cap $567 billion. Not cheap fundamentally/historically.
AMD P/E high vs. peers. Nvidia 42, Micron 23, Intel low.
Fair Value Analyst sees 24% downside for AMD. RSI indicates overbought territory, persisting for a week. Speaker is invested in AMD and benefits from its rise but warns beginners of risks. Stock may rally to $400 but likely won't hold. Compares to Carvana (CVNA), which went from $100 to $800 in 30-40 days despite losing a billion dollars yearly. Highlights hype and manipulation in markets driving unsustainable plays. AMD has gained traction from price performance, now beyond fundamentals, moving on its own. Short-term pumps can yield profits, but long-term it's unrealistic and likely to drop.
Intel: Overvalued Despite Speculation
Intel loses money fundamentally but price up 300% in one year. Trump administration took 10% stake. Two truths: amazing price performance from speculation and poor fundamentals. People get offended betting against American companies.
Micron has huge offices in Arizona. Technically not attractive, overbought at near all-time highs. Fundamentally cheap: beautiful revenue, $24 billion net income, 23 PE ratio—low for its size. Fair value shows upside per Pearl Research; growing quickly but sustainability uncertain due to AI hype risks. 57% rally in 23 days from $300. Established business printing nearly $20 billion net income. Wall Street loves GPU/CPU companies like Micron. Advice: no leverage, understand trade vs. investment, stomach volatility if believing long-term vision. Speaker went all in at $326, now up 50%.
Microsoft reports earnings Wednesday after market close (MSFT). Speaker trimmed position due to weak price performance: from lows of $354, up 18-19%—weakest among Magnificent Seven. Losing AI race vs. competitors but always fine fundamentally: $120 billion net income.
Crypto vs. Stocks Analogy
If I owned 100% of Microsoft, salary aside, I would make $120 billion in net income a year. I would print money. If I owned 100% of Bitcoin, what do I get? Fancy code—worthless unless sold to someone else.
Stocks = ownership in revenue-producing businesses. Crypto lacks this. Speaker avoids crypto, prefers stocks for business ownership.
Microsoft has relatively low P/E ratio, seems cheap P/E-wise but not overall after significant rally to highs of $552. Bought during trade war sell-off when daughter started investing. Strategy: buy uncertain times, sell primed conditions, take profits, rebuy dips. Now questioning if it'll correct before rallying again.
Oil prices up overnight. Careful with USO/UCO amid Iran proposal to reopen Strait of Hormuz and end war—markets celebrating prematurely for eighth week. Watch:
- Big tech earnings
- FOMC rate decision
Trade live every morning with LPP team: one-time payment, lifetime access at market open. See screen, prep for day, discuss setups, watch live trades. Second link in description; sign up tonight for tomorrow. Message via Instagram for questions. Software links: Investing Pro, Webull, LPP team. End year strong.
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