Sarat Sethi is watching this ‘Magnificent Seven’ stock
Tech companies are back in focus, and Douglas C. Lane & Associates managing partner Sarat Sethi has his eyes on one stock in the sector: Amazon . “I think Amazon is also firing on all cylinders,” Sethi said Wednesday on CNBC’s ” The Exchange .” Amazon is up nearly 7.7% year to date and is one of the top performers in the “Magnificent Seven.” The group includes Nvidia and Meta Platforms , which are up 6.6% and 1.7% during the same period, respectively. Alphabet is the only other Mag Seven stock beating Amazon this year, with shares up 7.7%. Sethi cited the e-commerce company’s strong core business growth, alongside its new business ventures for his optimism. “We know their retail business is doing well. We know the other businesses, like AWS, are also doing well,” Sethi said. “And now they’re in the other businesses as well.” One of Amazon’s new businesses will send the company to space. Amazon announced Tuesday that it finalized its acquisition of Globalstar , a telecommunications company with a constellation of low-Earth orbit satellites. The deal will power Amazon’s satellites, called Amazon Leo, with direct-to-direct service, enabling emergency SOS and texting in areas without preexisting cell tower service. Amazon and Apple already have a deal to add Amazon Leo connectivity to iPhones and Apple Watches. The pending merger values Globalstar at $90 a share . Outside of the technology sector, Sethi is also watching Blackstone and JPMorgan . Sethi said the overall traditional banking industry is strong. “[Mergers and acquisitions] activity, IPO activity is increasing, and you’re seeing that, whether it’s the Anthropics of the world or SpaceX,” he said. “And then you’re also seeing the wealth management businesses doing really well.” In particular, Sethi owns shares of JPMorgan, which posted a first-quarter earnings beat Tuesday. As for Blackstone, Sethi says the stock will “have some great upside.” He noted that the company is “pretty well diversified when it comes to private equity.” Though shares are up 13% week to date, the stock is still down 15% year to date on fears surrounding private credit.
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