Investor Nancy Tengler says to buy this beat-up ‘Magnificent Seven' titan
Microsoft shares are looking a bit dented in 2025, but they're worth buying, according to money manager Nancy Tengler of Laffer Tengler Investments. The firm's CEO and chief investment officer joined CNBC's " Power Lunch " on Tuesday to offer her take on the "Magnificent Seven" titan, as well as a pair of other market movers. Here's what Tengler had to say during the "Three-Stock Lunch" segment. Microsoft Microsoft has not been exempt from the broader sell-off plaguing tech megacaps this year. Shares have fallen more than 6% in 2025 and are down nearly 16% since their high from last July. The company's latest quarterly results are due on Wednesday afternoon . Tengler thinks that investors may have unduly punished the stock, since Microsoft's business still seems "pretty robust." She estimated that Microsoft's revenues will grow between 10% to 11%, while its earnings will increase by 10%. "We think that the company is relatively tariff-proof, because software seems to be a little bit of a carve out," she said. "Dividend growth of 10.3%, a great management team — we think you use these periods of weakness to add to the whole thing." Spotify Shares of Spotify slid more than 3% on Tuesday, after the music streaming platform reported first-quarter operating income of 509 million euros, while analysts polled by FactSet had penciled in 519.9 million euros. Spotify's revenue of 4.2 billion euros was in line with estimates, while its monthly active users of 678 million was also in line with prior guidance. Tengler remains bullish on the name, which she said she has owned "for a long time" and was one of her top ideas for the year. "We think it has plenty of room to run, and that is because management has made really strong decisions around ad-supported growth," she said. "It's going to be lumpy, but they have a strong balance sheet, and we think as cash flow improves we will begin to see an attractive capital allocation plan for the benefit of shareholders." Shares are up about 29% in 2025. AbbVie Finally, Tengler singled out pharmaceutical stock AbbVie , which she said was her largest health-care holding, as another attractive name. Last week, AbbVie reported a first-quarter earnings and revenue beat. The company also raised guidance for full-year earnings per share. Investors may be asking if the stock has run too far, with shares up nearly 20% in the past 12 months. Tengler said the answer is no. For starters, she called out the company's dividend growth of 7.2% and its robust quarterly report. "They delivered a triple play, which is a beat, beat and a raise," she said. "They're well positioned, we think, to replace the HUMIRA revenues with Skyrizi and Rinvoq very, very soon, and we think they're going to raise estimates on those two names. Then they don't have any loss of exclusivity anymore for another 10 years." Tengler added that another one of AbbVie's benefits is that the stock is largely tariff-proof. For instance, she noted that much of the manufacturing for Skyrizi takes place in the U.S.
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WASHINGTON — I'm cruising around Bowser's Castle with my old pal Toad. It's not exactly relaxing, what with all the lava pits and banana peels and turtle shells littering the road. Add 23 other characters — is that a cow driving? — who are trying to get to the finish line first, and it's chaos. The hectic, high-speed insanity of any race in the new Mario Kart World would have caused the eight-year-old Switch console to wheeze a bit. And that's why we've got the Switch 2 ($449.99), the souped-up sequel to Nintendo's popular home-and-portable hybrid. It looks prettier, too. The 7.9-inch portable display (up from 6.2 inches) boosts the resolution to 1020p (from 720p), and while the LCD screen isn't quite as sharp as an OLED screen might have been, it's much cleaner than the original recipe Switch. It looks even better when connected to an HDTV since it now supports 4K and HDR. 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