Your Portfolios in Brief
Vertiv Holdings Co. (NYSE: VRT), a global player in critical infrastructure for data centres, networks, and industrial facilities, is now emerging as a strategic leader in the digital economy. The company, headquartered in Westerville, Ohio, designs power, cooling, and IT integration solutions that are essential to the operation of data centres, especially those driven by artificial intelligence (AI) workloads.
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Highlights for 2025
• Strong Q1 results: Vertiv exceeded Wall Street’s expectations in the first quarter with revenue of $USD 2.04 billion, up 24% year-over-year, and adjusted earnings of $USD 0.64 per share, up 49% from last year.
• Increased full-year guidance: The company raised its 2025 sales forecast to $USD 9.45 billion, $250 million above its previous guidance. Expected organic growth is between 16.5% and 19.5%.
• Order growth: After a disappointing Q4 2024, Vertiv reassured investors with a 13% year-over-year increase in orders in Q1.
• Strategic partnership with Nvidia: Vertiv is making its mark in industrial-scale AI data centres with reference designs for Nvidia’s GB200 and GB300 NVL72 platforms. This partnership positions the company at the forefront of the emerging “AI factories” era.
• Geographic diversification: The company also highlighted its ability to mitigate the impact of tariffs thanks to an industrial footprint spread across multiple continents, reducing dependence on specific regions.
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Why This Stock Is Worth Watching
Vertiv is far more than just an infrastructure supplier. It offers direct exposure to the exponential growth of AI and the cloud. While giants like Amazon Web Services and Microsoft indicate shifts in their investment strategies, Vertiv continues to capture strong demand, showcasing the structural strength of the market.
The need for specialized cooling and power solutions continues to grow with the intensification of AI workloads, which consume far more energy and generate significantly more heat than traditional cloud environments.
Moreover, Vertiv’s valuation remains attractive, with a price-to-free-cash-flow ratio still below 24x—moderate for a growth company at this stage of the tech cycle.
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What Analysts and Investors Are Saying
• Analysts at JPMorgan and others have maintained a positive (overweight) rating on the stock, with a price target of $USD 100, citing strong results, order momentum, and strategic alignment with AI megatrends.
• Some analysts have recently raised concerns about a potential “digestion” phase in demand or a slowdown among hyperscalers like AWS or Azure. Vertiv has countered this narrative with solid numbers showing that demand for its solutions remains structurally strong.
• According to both technical and fundamental valuation models, the stock ranks in the top 5 of its industry based on combined criteria of growth, profitability, and initiative.
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Conclusion
At Pratte Portfolio Management, we firmly believe in Vertiv’s potential. Its strategic positioning in a booming sector, robust financial performance, and commitment to innovation make it a valuable addition to our portfolio.
The excellent first-quarter results not only validated our choice but were also praised by the market: the stock closed Wednesday session up 8.6%, after jumping more than 21% intraday. This movement reflects renewed investor confidence in the company, which we believe is well positioned to continue creating long-term value.
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Market Brief
Monday
• Dow Jones: -2.48% (38,170.41 points)
• S&P 500:-2.36% (5,158.20 points)
• NASDAQ: -2.55% (15,870.90 points)
• TSX (Toronto): -0.76% (24,008.86 points)
On the currency market, the Canadian dollar traded at an average rate of 72.36 US cents, up from 72.17 US cents last Thursday. This rise is attributed to a weakening of the greenback, in a context of political tensions in the United States.
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Trump’s Attacks on the Fed and Trade Escalation Weigh on Markets
North American markets opened the week sharply lower, affected by a series of critical comments from Donald Trump aimed at Jerome Powell, chairman of the U.S. Federal Reserve. The president reiterated his calls for an immediate interest rate cut, accusing the Fed of reacting too slowly to support the economy.
At the same time, trade tensions between the United States and China escalated. Beijing issued a clear warning to other nations, urging them not to strike deals with Washington at the risk of compromising their relationship with China. Discussions with Japan have yet to conclude, leaving uncertainty looming over the future of global trade.
This double shock—uncertain monetary policy and intensified trade war—rekindled investor nervousness, prompting a rotation toward safe-haven assets like gold, and triggering a broad sell-off in equity markets, particularly in the technology sector.
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Stocks in Brief
Top Gainers of the Session
• Barrick Gold (+3.25%): The stock benefited from the sharp rise in gold prices to $USD 3,425.30 per ounce, strengthening the appeal of gold stocks as safe-haven assets.
• Franco-Nevada (+2.10%): The mining royalty company also gained from the flight to safety into gold.
Top Losers of the Session
• Tesla (-5.80%): The automaker’s stock was heavily penalized by the broad decline in the tech sector, amplified by fears of a more restrictive rate environment.
• Caterpillar (-2.80%): The American industrial firm fell due to rising trade tensions, which could affect global demand for its heavy equipment.
• Nvidia (-4.20%): The graphics chip maker suffered from the broader NASDAQ correction and expectations of slowing demand.
• Meta Platforms (-3.00%): The stock dropped as investors fled growth stocks in an environment of high economic uncertainty.
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Sector Performance
• Sector Up: Materials
The materials sector was one of the few to perform positively, propelled by the surge in gold prices, which reached a historic high of $USD 3,425.30 per ounce (+$USD 96.90). This performance reflects strong demand for safe-haven assets. Canadian miners responded particularly well, helping limit the TSX’s decline.
• Sector Down: Information Technology
The tech sector posted the largest sector decline of the day. Major names in the tech space, notably the “Magnificent Seven,” were the most affected by trade tensions and repeated criticism of the Fed.
On the Commodities Front:
• Crude oil lost $USD 1.60, closing at $USD 62.41 per barrel, affected by fears of a global demand slowdown.
• Natural gas dropped 23 US cents to $USD 3.02 per million BTU.
• Copper dipped slightly, losing less than 1 US cent to $USD 4.73 per pound, reflecting decreased appetite for industrial metals.
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Tuesday
• Dow Jones: +2.66% (39,186.98 points)
• S&P 500:+2.51% (5,287.76 points)
• NASDAQ: +2.71% (16,300.42 points)
• TSX (Toronto): +1.24% (24,305.98 points)
On the currency market, the Canadian dollar traded at an average rate of 72.32 US cents, down from 72.36 US cents the previous day.
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Wall Street Surges on Trade Optimism and Technical Rebound
Global stock markets caught their breath on Tuesday after Monday heavy losses. On Wall Street, indexes jumped, driven by a broad technical rebound and hopes of easing trade tensions between the United States and China.
Reassuring comments from U.S. Treasury Secretary Scott Bessent played a leading role. During a closed-door meeting at JP Morgan Chase, he said that the current trade situation with Beijing was untenable and mentioned a likely easing. White House spokeswoman Karoline Leavitt added that trade talks were going “very well” and that all parties wanted a quick agreement.
• iShares China Large-Cap ETF (FXI) (+3.10%): Optimism on the U.S.-China front supported stocks directly exposed to China.
• Baloise (+4.50%) and Helvetia (+2.50%): The two Swiss insurers announced their merger, creating a CHF 20 billion premium giant, welcomed by the markets.
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Stocks in Brief
Top Gainers of the Session
• Eli Lilly (+4.75%): The pharmaceutical company presented promising results for a new anti-obesity pill, strengthening its position in a very competitive sector.
• iShares MSCI China ETF (MCHI) (+3.00%): The fund surged on signs of easing tensions between Washington and Beijing.
• Baloise (+4.50%) and Helvetia (+2.50%): Their strategic merger creates a new insurance leader in Switzerland.
Top Losers of the Session
• Novo Nordisk (-7.10%): The stock fell after Eli Lilly’s progress in obesity treatment threatened its market share in a key segment.
• Canadian dollar (-0.06%): Slightly down against the U.S. dollar, which strengthened thanks to renewed confidence in equity markets.
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Sector Performance
• Sector Up: Energy and Financials
The energy sector supported the Toronto Stock Exchange, driven by rising oil prices. The financial sector also benefited from renewed investor optimism favouring trade détente.
On the New York Mercantile Exchange:
• WTI crude oil rose $USD 1.26 to $USD 63.67 per barrel.
• Brent climbed 1.78%, reaching $USD 67.44.
• Copper jumped 15 US cents, to $USD 4.88 per pound, reflecting a more optimistic outlook for the global industry.
• Sector Down: Healthcare (Europe)
The decline of Novo Nordisk, Europe’s second-largest market cap, dragged down the European pharmaceutical sector, despite an overall positive day for other segments.
Other Indicators:
• The U.S. 10-year bond yield remained stable at 4.40%, after significant tension the day before.
• The Dollar Index rose 0.68%, reaching 98.95, while the euro traded at $USD 1.1420.
• The price of gold declined by $USD 5.40 to $USD 3,400.80 per ounce, due to a rotation into riskier assets.
• Natural gas slipped 1 US cent to $USD 3.01 per million BTU.
In Europe:
• Paris rose 0.56%, Frankfurt 0.41%, and London 0.64%. Milan, more cautious, closed near flat at -0.09%.
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Wednesday
• Dow Jones: +1.07% (39,606.57 points)
• S&P 500:+1.67% (5,375.86 points)
• NASDAQ: +2.50% (16,708.05 points)
• TSX (Toronto): +0.64% (21,345.12 points)
On the currency market, the Canadian dollar traded at an average rate of 74.85 US cents, up from 74.52 US cents the previous day.
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Easing Trade Tensions and Fed Support: Wall Street Rebounds
U.S. markets closed higher for a second straight session, boosted by a more moderate tone from President Trump regarding the trade war with China. He hinted that current tariffs could be significantly reduced. At the same time, he stated that he had no intention of removing Jerome Powell from his position as head of the Federal Reserve, easing concerns about the central bank’s independence.
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Stocks in Brief
Top Gainers of the Session
• Tesla (+5.37%): Boosted by a reassuring speech from Elon Musk and enthusiasm around upcoming projects.
• Nvidia (+3.78%): The chipmaker rose on renewed optimism in the tech sector and hopes of easing trade tensions with China.
• Apple (+2.23%): The tech giant advanced thanks to its exposure to Chinese supply chains and the prospect of lower trade barriers.
• Meta Platforms (+3.90%): The stock rebounded along with the entire tech sector, supported by renewed risk appetite.
Top Losers of the Session
• Chipotle (-3.73%): Lower same-store sales and declining foot traffic worried investors.
• Dollar Tree (-2.65%): The stock fell under cautious forecasts for discount retailers amid falling consumer purchasing power.
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Sector Performance
• Sector Up: Information Technology
Technology stocks led the rebound, supported by apparent easing of U.S.-China trade tensions and the absence of new attacks on the Fed. The “Magnificent Seven” stocks especially benefited from this renewed confidence.
• Sector Down: Consumer Discretionary
Despite an overall positive day, some consumer-linked stocks suffered from signs of slowing household spending. Chipotle’s disappointing results weighed on the entire sector.
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Tesla Quarterly Results: A Tough Quarter Despite Promising Outlook
Tesla reported disappointing financial results for Q1 2025, with revenue of $19.3 billion, down 9% year-over-year, and net income down 71%. The drop in vehicle deliveries, particularly in China and Europe, as well as controversies surrounding Elon Musk’s political involvement, weighed on the company’s performance.
Despite these results, the stock gained over 5% after Musk announced his intention to reduce his involvement in government affairs to focus more on Tesla. The company also confirmed the launch of a more affordable model in the first half of 2025 and the deployment of a robotaxi service in Austin by June.
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Thursday
• Dow Jones: +1.23% (40,093.40 points)
• S&P 500:+2.03% (5,484.77 points)
• NASDAQ: +2.74% (17,166.04 points)
• TSX (Toronto): +1.04% (24,727.53 points)
On the currency market, the Canadian dollar traded at an average rate of 72.18 US cents, up from 72.09 US cents the previous day.
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Tech Leads Wall Street Despite Trade Uncertainties
U.S. markets recorded a third consecutive day of gains, supported by a strong rally in technology stocks.
The “Magnificent Seven” all ended in positive territory: Nvidia (+3.62%), Tesla (+3.50%), Microsoft (+3.45%), Amazon (+3.29%), Meta (+2.48%), Alphabet (+2.57%), and Apple (+1.84%). Alphabet also reported better-than-expected earnings after the close, driven by strong performances in cloud and digital advertising, and announced a 5% dividend increase as well as a $70 billion stock buyback program.
Despite the rebound, global trade uncertainties persist. China confirmed that no negotiations are underway with the United States and called for the removal of “unilateral” tariffs. Nevertheless, the Trump administration hinted at a possible quick deal with South Korea and other partners. The market continues to hope for easing tensions.
The yield on the 10-year U.S. Treasury note declined to 4.30%, from 4.39% on Wednesday, contributing to renewed risk appetite.
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Stocks in Brief
Top Gainers of the Session
• Hasbro (+14.58%): The toymaker far exceeded expectations with earnings of $1.04 per share and revenue of $887.1M, supported by strong demand.
• Freeport-McMoRan (+6.60%): The mining group surprised positively with its first-quarter results.
• Texas Instruments (+8.50%): Sharp rise following better-than-expected results and optimistic guidance for the current quarter.
• ServiceNow (+7.90%): The company reported a net profit well above expectations, boosting the tech sector.
Top Losers of the Session
• IBM (-6.60%): Despite solid results, cautious management commentary on near-term demand weighed on the stock.
• Tractor Supply (-4.00%): The retailer cut its full-year guidance, citing increased uncertainty due to new tariffs.
• Intel (-6.00% after hours): The group posted better-than-expected results, but it’s Q2 outlook disappointed investors.
• Procter & Gamble (-2.00%): The conglomerate missed revenue expectations and lowered its forecast for the fiscal year.
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Sector Performance
• Sector Up: Information Technology
The technology sector led the session, driven by strong performances from megacap stocks and positive results from companies like Alphabet, Texas Instruments, and ServiceNow. Expectations of a slowdown in tariff hikes also supported the rebound.
• Sector Down: Consumer Staples
Consumer staples stocks declined, penalized by disappointing results from Procter & Gamble and cautious guidance from several retailers. The sector remains sensitive to macroeconomic volatility and trade tensions.
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Commodities and Currency Market
• Crude oil (WTI) gained $USD 0.84, to $USD 62.79 per barrel, supported by renewed risk appetite.
• Brent rose 0.65% to $USD 66.55.
• Natural gas fell 6 US cents to $USD 3.10 per million BTU.
• Copper rose 1 US cent to $USD 4.85 per pound.
• Gold jumped $USD 54.50 to $USD 3,348.60 per ounce, confirming interest in safe-haven assets.
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Friday
• Dow Jones: -0.20%
• S&P 500:-0.10%
• NASDAQ: -0.20%
On the currency market, the Canadian dollar is trading lightly at the start of the session. Updated data will be released later in the day.
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Cautious Opening Despite a More Optimistic Tone on Trade
U.S. markets are trading without clear direction on Friday morning, following a solid three-day winning streak. Investors are digesting the results from Alphabet and Intel, while keeping an eye on developments in trade tensions.
Alphabet is gaining about 3% after exceeding expectations in the first quarter, both in revenue and earnings, reinforcing its leadership role among the “Magnificent Seven.” In contrast, Intel is down 7%, weighed down by disappointing guidance and the announcement of reduced operational and capital expenditures.
Attention remains focused on tariffs: a report indicates that China may temporarily suspend its 125% tariff on certain American goods, which is partially supporting sentiment. However, Beijing has denied any ongoing negotiations with Washington and reiterated its demand for the removal of existing tariffs.
President Trump, for his part, reaffirmed in an interview with Time Magazine that he would consider it a “total victory” if tariffs of 20% to 50% on imports are in place a year from now. He has nonetheless promised many announcements of trade deals “within the next three to four weeks.” Markets are thus oscillating between hopes of progress and caution in the face of persistent protectionism.
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Stocks in Brief
Gainers in Early Trading
• Alphabet (+3.00%): The tech giant beat Q1 expectations, announced a 5% dividend increase and authorized a $70 billion share buyback. It is the first megacap to report since the new tariffs took effect.
• Meta and Microsoft are extending their gains following Alphabet’s lead.
Losers in Early Trading
• Intel (-5 to -7%): Despite solid results, the chipmaker disappointed with its Q2 outlook. Its new CEO, Lip-Bu Tan, announced an operational overhaul to revive innovation.
• T-Mobile and Sketchers: Both companies are down after flagging early negative effects from the new tariffs.
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Conclusion
As Friday session continues, the major U.S. indices are heading toward a generally positive week, driven by a strong three-day rally.
Hopes of a trade de-escalation — despite persistent uncertainty surrounding negotiations with China — have supported market momentum. A more moderate rate tone from the Trump administration earlier this week, combined with promises of trade deal announcements “within the next three to four weeks,” was welcomed by investors.
Megacap tech stocks played a central role, particularly Alphabet, which exceeded expectations in Q1 and launched a major share buyback program. This rebound in the tech sector helped offset concerns linked to more cautious outlooks from companies like Intel or Tractor Supply.
