BY MARK SEBASTIAN
April 13, 2025
This weekend we are going to tell you when we will buy 3 of the most notable mag 7 names and 1 name we think is under the radar.
The goal is for you to know where we are at Option Pit…no matter the panic…will buy these stocks…so lets dig in…
AAPL…
Huge day on Wednesday….
But unlike some of the other mag 7 this one has huge China exposure and based on President Trump’s statements…the screws are going to be dug in on that battle.
This is going to hurt AAPL earnings and growth….in addition, AAPL is slowly turning into ATT from the 1950s….a great stock with tons of cash…but not a growth engine…
AAPL belong with a 15-20 PE…that puts it in the 140-150 range…if it gets there I am a buyer…
NVDA:
There is a lot of noise in the chip sector…NVDA has had a great bounce along with names like AMD and even INTC.
Even with the major sell off NVDA had PE was over 30….below 100 I was legitimately interested…
It gets to 90…I am buying…this company is here for the long haul…should it be the largest company in the world…no…but below a 2 bill valuation…I get interested…
AMZN
On Tuesday Amazon carried a price earnings ratio below 30…that is the first time in years.
Now the stock popped and the PE is now close to 31…but still historically dirt cheap…
AMZN moved back to the 21 DMA…I like the stock here and am long call currently…
WIth the lack of debt…sales power…and cloud presence at a PE of 30 I like it….at the low from the 7th with Amazon at 160 I would be buying with both hands (meaning I want the stock)….
Amazon below 150…I am buying as much as I can.
Finally we have my personal pick…
Devon Energy (DVN) this is a stock that does oil and natural gas…in the last year the stock at the lows was down more than 50%
The current assumption in the pricing is that there will be more oil and gas exploration and Oil prices will stay low…
Those tow theories do not work well together…Oil gets cheap…les oil exploration…oiil goes up…more..
With that in mind either DVN is selling more gas or they are getting a higher price…it is going to take 6 months for the stock to turn around and get back to 50…
But this is a stock I would buy today…the PE is 6…6…I can make money owning that.
Zooming out looking at the bigger picture of Apple (Ticker: AAPL) on the weekly chart, the lows of the week of April 7th the stock bounced off my median line that held back in April 2024:
The is also support of the downward sloping pitchfork meaning the bottom could very well be in for now.
On the upside, I would be a buyer over $207.
If this support level fails, pitchfork support comes in at $155 and $138.
It is quite possible that the bottom is in for Nvidia (Ticker: NVDA) also, here it is on the daily chart:
The bottom of the pitchfork held as the stock traded below intraday but managed to close back into the pitchfork.
Remember the close is always more important than the intraday action.
I am a buyer above $115.
If we revisit the lows, I like $87 and then $76.
For Amazon (Ticker: AMZN) I am using the weekly chart with my pitchfork that goes back to 2023:
As you can see my pitchfork has been honored very nicely.
This week’s candle is a change in trend bullish candle.
I would be a buyer of AMZN over $190.
Should we sell off I will be watching $161 and $152.
My “under the radar” stock is Palantir Technologies (Ticker: PLTR):
The stock did trade down 47% and quickly but it held the support of its most recent low of January 13th with the MACD turning bullish.
It has closed above the downtrend line for a couple of days now which is bullish.
It doesn’t have much tariff risk as it provides software platforms with the US Government being one of largest clients.
That is of course if DOGE doesn’t take a machete to it.
This stock is very volatile so I would use a stop loss of a close below $80 and continue to use a trailing stop as the stock rallies.
I think PLTR can recover back to $100 pretty quickly and retest its highs at $125 much sooner than the rest of the market reclaims its highs.
Well, well, well – the miracles never cease. Warren Buffett made yet ANOTHER good decision it seems. He was already sitting on wads of cash before jettisoning a whole bunch of Apple a couple of months ago – very conveniently ahead of a stock market swoon.
Lee Trevino said “the more I practise the luckier I get”. Warren has practised investing an awful lot. And yes he ends up lucky too. But is it really luck?
At the moment I want to like Apple, but it’s hard to. Not just because it’s no longer the innovator it once was. Not just because it annoys me with the need to constantly use iTunes. But mostly because it’s embroiled in this whole China mess. 90% of its phones are made there. It’s in the eye of the storm. This is a conundrum that may take a long time to sort out. But I could be convinced to buy the stock at a steep discount to make up for all that. Say, $1600. I’m sitting on the bid.
Nvidia is another Mag7 name that I’m not thrilled with. It’s most certainly inexpensive for the growth that it has been experiencing. But again, narrative is everything, and I don’t like that there could be a potential slowdown in AI and chip demand. That won’t work well for the premiere picks-and-shovels maker in the space. I’d prefer to buy it for around $70.
Amazon is a name I just love. It does everything pretty darn well. It’s a wonderful blend of new and old worlds – the physical world combined with the digital world in the most sublime of ways. And after this market selloff it’s trading for around the cheapest valuation it has EVER seen. On an EV/EBIT basis it is trading just slightly above all-time lows. This is a company that does well in good or bad times because people just love getting little brown boxes dropped in front of their doors each day. It is a great monetizer of AI and can only get more and more powerful. I would buy this one right here.
My extra pick is Uber. Uber holds a commanding position in the global ride-hailing and food delivery markets. It benefits from a powerful brand and network effects, where increased rider and driver engagement strengthens its ecosystem. Like Amazon, it has eyeballs galore! And excellent free cash flow, up 105% year over year, and a PEG ratio of 1.2 (anything under 1.5 is desirable). Folks have been worried about robotaxis but the true is that this will be a strength for the company as the premiere interface for companies to partner with. Uber is also hedged in a sense: in the pandemic when rail-hailing plunged, it made up for that weakness in food delivery.
Uber is a verb. It is a super app. They do cars, limos, boats and even hot air balloon rides in Turkey. I would buy Uber right now.
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