Breakfast News: Nasdaq Positive For 2025

Breakfast News: Nasdaq Positive For 2025

Source: Image Created by Jester AI.

1. Magnificent 7 Send Nasdaq Green YTD

The Nasdaq ended yesterday in positive territory year to date for the first time since February, with a 0.8% rise, after May saw stocks post their best month since 2023. Nasdaq and S&P 500 futures remain flat this morning, despite President Trump's doubling of steel and aluminum duties.

• Top tech stocks driving markets: Last month's gains were led by the Magnificent 7, after an earnings season that saw the full-year outlook becoming increasingly uncertain. Together the group posted first-quarter earnings growth of 27.7% year over year. According to FactSet, that's almost three times the performance of the other 493 stocks on the S&P 500, which hit a combined 9.4%.
• Global stock markets set new record: The MSCI All-Country World Index hit 887.73 points, marginally beating February's previous high. Signs of U.S. economic resilience have helped offset global tariff fears.

2. CrowdStrike Down 6.5% on Lower Revenue Forecast

CrowdStrike (CRWD 0.48%) stock fell following the closing bell, after predicting weaker revenue growth in the second quarter. Adjusted free cash flow in Q1 dipped and annual recurring revenue (ARR) growth suffered, as the outlook signals slowing spend on cybersecurity by government and businesses.

• "ARR reacceleration and margin expansion in the second half of fiscal year 2026": CFO Burt Podbere remained bullish on the longer term as the new flexible "Falcon Flex" licensing program gains popularity, with its total deals value up six-fold year over year.
• "Share repurchase reflects our confidence in CrowdStrike's future": The company announced a new $1 billion buyback, which should help offset a 14% rise in the share count over the past five years.

3. Software Stocks Beat Expectations

Asana (ASAN -2.65%) fell 8% after hours yesterday on slowing revenue growth. The work management software specialist beat Q1 revenue and estimates, and customers spending $100,000 or more annually rose 20% year over year. But the 9% revenue increase was well below the 26% in the same quarter in 2024.

• "Very large deals in the pipeline": Hewlett Packard Enterprise (HPE -0.39%) CFO Marie Myers told MarketWatch the company is ramping up its AI product developments, as Q2 results pushed the stock up 5% after market close. Net new orders reached $1.1 billion, with revenue and earnings beating estimates.
• "Record Q3 sales activity and 17 cloud deals": Mike Rosenbaum, CEO of Guidewire Software (GWRE 0.86%), spoke after the company reported a 22% Q3 revenue rise over the same quarter last year with subscription revenue up 32%. The stock jumped more than 10% after close.

4. What to Watch on Wednesday

Dollar Tree (DLTR 8.97%) fell short of first-quarter revenue expectations this morning, with $4.6 billion against a predicted $4.72 billion. Earnings per share came in 5 cents ahead of estimates at $1.26, and the company posted full-year guidance around the current consensus. The stock dipped 2% in a pre-market reaction.

• Watch for AI-based revenue growth: We'll have Q1 results from MongoDB (MDB 12.85%) after market close. The database platform provider posted revenue and earnings beats in Q4, but provided guidance below Wall Street expectations. This time, estimates suggest revenue growth to slow to 17% year over year, down from 22.3% in Q1 last year.
• Up 16% year to date: Five Below (FIVE 5.62%) will also report Q1 after the closing bell, after beating Q4 estimates. The company spoke of plans to open 150 new stores, as analysts predict 18% year-over-year revenue growth this time. Watch for signs of impact from tariffs.

5. Rule Breakers: Your Take

Take a trip down memory lane, back to the summer of 2018, when three consecutive Rule Breakers recommendations were Salesforce (CRM 1.34%) – beating the S&P 500 by 54% since – then MongoDB (+96%), and finally DocuSign (DOCU -0.82%), which is lagging the market by 74%.

Which of the three do you think stands the best chance of beating the S&P 500 over the next five years from here, and why? Debate with friends and family, or become a member to hear what your fellow Fools are saying.