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This week’s highlights:
Weekly Market Update: Stocks Fall 0.99% as Tech Sector Tumbles
5 Undervalued Stocks That Crushed Q4 Earnings
10 Stocks with the Largest Fair Value Estimate Increases During Q4 Earnings
A Stock Market Rotation Is Underway. Will It Last?
What’s Happening With Palantir Stock?
10 Funds Making the Biggest Bets on Palantir Stock
Wall Street’s word for the week: “rotation.” As we noted last week, the big bull market seems to be catching its breath. But there’s lots happening under the hood. For one, stocks sensitive to consumer sentiment are struggling. The net result is that the Morningstar US Market index is essentially flat in 2025 and down over the last three months. As we highlight in our weekly market update, last week saw stocks slip roughly 1%, led by the technology and communication services sectors.
While on the surface, it looks like not much is happening in the market, there’s a lot of churn underneath as investors shift out of the recent winners. Sarah Hansen takes a close look at what is driving the rotation, where investors are moving from and to, and what could come next.
This rotation has taken some of the air out of 2024’s hottest stocks, especially when there has been a whiff of negative news. Case in point: Palantir. The data analytics company had a massive run in 2024, gaining some 340%, and it rose another 65% to start 2025. But since mid-February, Palantir has given back nearly 30% of its value. What’s behind the runup and collapse? I take a look.
Speaking of Palantir, until the past couple weeks, it’s been a big winner for some funds with big weightings in the stock. Gabe Alpert highlights the ETFs and mutual funds with the largest bets on this volatile name.
Another name that has run out of gas had defined the bull market since Spring of 2023: Nvidia. After rallying about 900%, the semiconductor company’s shares are trading back where they were in June, and after reporting earnings Wednesday night, its stock slid 8.5%. Still, Morningstar equity strategist Brian Colello saw lots for investors to like in Nvidia’s earnings. Find out why here.
Lastly, as fourth-quarter earnings begin to wind down, we’ve got two screens screen. The first is for US stocks covered by Morningstar analysts that have biggest fair value increases. We’ve got 10 names including IBM and SAP. Check out the full list here. Then to close things out, we’ve got five undervalued stocks that blew away earnings, including a toy manufacturer and a pharma stock.
Be sure to visit our Markets page for our latest coverage and live stock market updates, along with our weekly calendar of key upcoming data and events.
