With tariff-weary investors able to breathe a bit easier, the tech-heavy NASDAQ exploded higher. All after President Trump reversed course on tariffs, with a 90-day delay.
“You have to be flexible,” Trump said, as quoted by ABC News. “You have to be able to show a little flexibility. And I’m able to do that.”
As a result of his tariff decision, the NASDAQ rocketed 1,857 points, or 12% higher, taking some of the most oversold tech giants along for the ride. That included:
Alphabet
Shares of Alphabet (NASDAQ:GOOG | GOOG Price Prediction) closed up about 10% or $14.48 on the day.
In fact, after finding strong support at around $145, the stock is now at $161.06.
From here, we’d like to see an initial retest of $190 a share. We also have to consider that at its current price, Alphabet is cheap, trading less than growth and at about 16x earnings. In addition, strength in its fourth quarter and full-year results show impressive revenue and EPS growth thanks to incredible growth in Google Search, Google Cloud, and YouTube.
While revenue of $96.5 billion, up 11.8% year over year, missed by $170 million, its EPS of $2.15 did beat expectations by two cents.
Meta
Shares of Meta (NASDAQ:META) were up $75.32, or by nearly 15% on the day.
All thanks to tariff relief.
We also have to consider that Meta recently traded with a price-to-earnings growth ratio (PEG) of just 0.35. Plus, its forward price-to-earnings multiple of 20 and its enterprise value-to-sales ratio of 7.6 did not fully reflect the company’s future growth.
Also, with $52.1 billion in free cash flow and $77.81 billion in liquidity, META was trading at just 22x earnings, which is attractive given Wall Street’s long-term growth estimate of about 17%.
Meta also has 3.35 billion daily active users across its platforms, which is a strong advertising magnet. With most of the planet using its family of apps, it generated $164 billion in revenue just last year. It’s also strongly investing in artificial intelligence, with its Meta AI assistant projected to reach about a billion users this year.
Marvell
Marvell (NASDAQ:MRVL) closed up $10.93, or by nearly 22% on the day.
Again, thanks to investors now able to breathe again. Fueling even more upside, Infineon announced it would buy Marvell’s automotive ethernet business, which is expected to produce $225 million to $250 million in sales this year for about $2.5 billion.
That’s on top of news Marvell recently authorized an additional $3 billion increase to its stock buyback program. Plus, it announced a dividend of six cents per share, which is payable on May 1 to shareholders of record as of April 11.
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