Zaid

The company also got a big boost a few weeks ago after Nvidia announced a $2 billion investment in the company.

That was a massive vote of confidence.

Oh, and not to mention the company also got added to the S&P 500 in late March, which was also a big deal.

Now looking ahead, the things to watch is their next earnings report, which is on May 12th.

Since the stock has had a massive run-up, the expectations are sky high, but the company does expect revenue to grow by 85%.

All right, so those were some of the big winners from Q1.

Now let's talk about the losers.

All right, now let's flip the script and talk about the losers because there were some notable ones.

First up, let's talk about big tech and software companies.

We briefly mentioned them at the start of this episode, but it's worth zooming in here because the damage to software stocks and big tech was really the defining story of Q1.

Every single company in the Magnificent Seven was in the red for Q1, losing a combined $2 trillion in market cap from their highs.

Now after being hot for three consecutive years, the Magnificent Seven are finally starting to pull back.

The worst of the bunch was Microsoft, which fell over 23% in Q1.

That was the worst quarter for Microsoft since the financial crisis in 2008.

that these companies like Microsoft got hit so hard is growing skepticism about the returns on all of their AI spending.

And we learned during earnings that the hyperscalers which includes Microsoft, Meta, Amazon, and Google plan to spend around $700 billion on AI CapEx in 2026.

So investors are starting to get impatient and they want to see some sort of ROI on all that investment.

But it's not just the Magnificent Seven getting crushed.

The entire software sector was down big in Q1.

The ETF IGV, which tracks software companies like Salesforce, Adobe, and ServiceNow, dropped more than 20% in Q1.