Rabu, 18 Juni 2025

Is Big Tech Losing Steam?

Shield

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EDITOR'S NOTE

The Magnificent Seven stocks were the best performers in the entire market. They averaged nearly 17,000% gains over the last 20 years.

But there have been chinks in the armor of the original Mag Seven…

Big Tech led the market lower during the sell off from earlier this year...

While these companies have since seen a strong rebound, the overall group is still down year to date. The chance to capture growth and get rich from these amazing companies might be over.

BUT a new set of AI stocks could be set up to take over.

Dubbed "The Next Magnificent Seven," these companies are leveraging the explosion in AI to do things no companies have ever done before.

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How Are the Magnificent Seven Doing?

Matt Benjamin, Senior Markets Expert, The Oxford Club

Matt Benjamin

It's always worth checking in on the Magnificent Seven...

That's because the group of seven behemoth tech and AI-related companies have contributed massively to the market's rise over the past decade. They were responsible for 55% of the total return of the S&P 500 in 2024 alone.

Whatever direction this group has gone in recent years, the broader market has followed.

The name "Magnificent Seven" was coined a couple of years ago by Bank of America analyst Michael Hartnett. It's a cool-kid reference to the 1960 film of that name that had stars galore including Yul Brynner, Steve McQueen, and Charles Bronson.

The companies included in the group are:

  1. Microsoft (Nasdaq: MSFT)
  2. Amazon (Nasdaq: AMZN)
  3. Meta Platforms (Nasdaq: META)
  4. Apple (Nasdaq: AAPL)
  5. Alphabet (Nasdaq: GOOGL)
  6. Nvidia (Nasdaq: NVDA)
  7. Tesla (Nasdaq: TSLA)

Yes, the group includes some very large household names. And they're all great companies.

But the increases in their stock prices have slowed down a bit over the past year. That's partly because their valuations have become very rich (i.e., most of the stocks are now expensive relative to the earnings they're expected to generate).

Also, a few have had some idiosyncratic problems...

Discover Them Here
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