To The Moon

There is something to be said about the Magnificent Seven group of stocks. For one, a handful of them are really resilient. Nothing could keep them down for long. Like it or not, they still make up a lion’s share of S&P 500 market value. However, recently some managers of actively managed mutual funds are seeing better value and growth in Financial and Healthcare stocks, instead of the Magnificent 7. Underweight Stocks. A Goldman Sachs recent study found that for Q1 2025, managers of 541 large-cap mutual funds with $3.5 trillion in total assets owned less big tech stocks than their usual benchmarks. For example, fund managers had the biggest underweight in $Apple(AAPL)$ (#1) and $NVIDIA(NVDA)$ (#2) th

How Netflix became a margin machine while the rest of the industry kept burning cash For years, investors obsessed over Netflix’s subscriber count like it was the Rotten Tomatoes score of a new season of Stranger Things. But the real story isn’t in the size of the audience—it’s in the size of the margins. Netflix’s Q1 2025 operating margin stands at a staggering 31.7%, up from a more modest 18% just a few years ago. In an industry often mocked for losing money faster than a Hollywood blockbuster in January, $Netflix(NFLX)$ has quietly rewritten the script. The numbers don’t lie: With a $532 billion market cap and a one-year return of 92.31%, this is no longer just a growth stock. It’s a margin machine. Margins now steal the spotlight from subscrib