Eugenio Catone @CatoneEugenio: "After a strong rally in..."

Italy

After a strong rally in January, February began with some headwinds. Both Novo Nordisk and Evolution released their Q4 2025 results, and they were disappointing to say the least. The former released guidance that was completely at odds with my expectations (the Wegovy pill is having a backfire effect), while the latter is unable to resolve regulatory and cybersecurity issues. After careful consideration, I decided to close both positions and allocate that money to other companies that currently give me more certainty (Hermès, Ferrari, Booking, and Visa). Today, Alphabet is reacting to its quarterly results released last night, and the market does not seem to have taken it well. However, unlike Novo and Evolution, the numbers were very positive, and I view this movement as an overreaction. From a certain point of view, I expected something like this to happen, which is why I have reduced the weight of the tech sector in my portfolio in recent months. After three years of strong gains, only perfection will satisfy the markets today. Clearly, Alphabet remains one of the best companies in the world even after this pullback, and I am willing to increase my position if it reaches lower levels. This is not a positive phase for the markets, but I am not worried. Over the past few weeks, I have increased my cash and short-term bonds in order to take advantage of any market declines. I don't think it's time to “go all in” yet, so I'm still waiting. Some companies, such as Netflix and S&P Global, are close to my price target. As always, I remain optimistic about the future and see the pessimism in the markets as a potential opportunity. $NFLX (Netflix, Inc.) $GOOG (Alphabet) $RACE (Ferrari NV) $NVO (Novo-Nordisk A/S SPONS ADR) $EVO.ST (Evolution AB )

Not investment advice. The author may have financial interests in the mentioned instruments.