What are the magnificent 7 mega tech stocks?
The Magnificent Seven – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla – command nearly 30% of the S&P 500 market cap.
Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. But the first quarter of 2024 has shown a big divergence of returns.
CNBC's Jim Cramer on Friday reviewed the "Super Seven," mega cap European stocks Citi recently named as alternatives to the Magnificent Seven, but with lower valuations. The Super Seven are: Novo Nordisk, ASML, LVMH, Richemont, SAP, Schneider Electric and Ferrari.
Key Facts. Apple, Microsoft, Nvidia, Tesla, Meta, Alphabet and Amazon each outgained the broader market in 2023, but it's been a mixed bag for the group over the first eight weeks of 2024 even as indexes sit at record highs.
The mega-cap leaders dubbed the “Magnificent Seven” have outperformed the stock market for several years. However, 2023 was quite impressive for the seven tech-focused US companies—Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla.
- Alphabet.
- Amazon.com.
- Apple.
- Meta Platforms.
- Microsoft.
- Nvidia.
- Tesla.
Investors should take a closer look at Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in particular. Trading at a forward price-to-earnings (P/E) ratio of just 21.8, this tech giant is the cheapest of all the Magnificent Seven stocks based on this popular metric.
While each of the Magnificent Seven has significantly outperformed the S&P 500's return in the past decade, Nvidia's roughly 21,540% gain is about 18 times the total return of any of the other six stocks.
A mega cap stock is typically defined as a company with a market capitalization, or the value of its outstanding shares, above $200 billion, though the definition can vary depending on the market environment.
Magnificent Seven Stocks Aren't Overvalued—Cyclicals Are, J.P. Morgan Says. The Magnificent Seven stocks are raking in returns this year, but their valuations don't look stretched, J.P. Morgan argued on Monday.
What tech stock is Warren Buffett buying?
While Buffett doesn't always follow the crowd when it comes to investment choices, he does have exposure in three out of the five “FAANG” stocks (Facebook, Amazon, Apple, Netflix, and Google) through NEAM. These large-cap tech stocks are all household names.
The focus remains on the "Magnificent Seven" companies, a term coined by Bank of America analyst Michael Hartnett to describe the seven largest tech-focused companies in the S&P 500 -- Microsoft, Apple, Nvidia, Amazon, Alphabet, Meta Platforms, and Tesla. Combined, they make up 28.8% of the index.
Those seven stocks — Apple Inc., Alphabet Inc., Meta Platforms Inc. Microsoft Corp., NVIDIA Corp., Amazon.com Inc. and Tesla Inc.
AI provided a massive tailwind for the top growth stocks last year. These high-flying stocks are collectively known as the "Magnificent Seven: Google parent Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia (NASDAQ: NVDA), and Tesla.
The most expensive stock listed on U.S. exchanges is Berkshire Hathaway. At the time of this writing, Berkshire Hathaway stock was trading at $623,000 a share. But that price point is for its Class A stock (BRK. A).
The Magnificent Seven stocks (Microsoft, Apple, Alphabet, Amazon, Nvidia, Meta, and Tesla) have been the largest driver of equity returns in recent years and were again the dominant contributors in 2023, accounting for more than half of the market increase.
Stock | Expected Change in Stock Price* |
---|---|
Tesla Inc. (TSLA) | 61% |
Mastercard Inc. (MA) | 14.2% |
Salesforce Inc. (CRM) | 7.2% |
Advanced Micro Devices Inc. (AMD) | 11.3% |
The Roundhill Magnificent Seven ETF trades on the Nasdaq under the ticker symbol 'MAGS'.
Stock | Market Capitalization | Sector |
---|---|---|
Colgate-Palmolive Co. (CL) | $73 billion | Consumer staples |
Sysco Corp. (SYY) | $41 billion | Consumer staples |
Coca-Cola Co. (KO) | $261 billion | Consumer staples |
S&P Global Inc. (SPGI) | $134 billion | Financials |
What Is the Most Expensive Stock in the World? Berkshire Hathaway is the world's most expensive stock. One of the main reasons why the company's stock is so expensive is because it never went through a stock split.
What are top 10 most expensive stocks?
Company | Market Cap | Book Value Per Share |
---|---|---|
Berkshire Hathaway Inc. | 781.834B | 363,303.28 |
Lindt & Sprüngli AG | 25.514B | 18,698.74 |
Next Plc | 10.861B | 9.06 |
Seaboard Corporation | 3.584B | 4,449.60 |
1. Berkshire Hathaway ($628,390) Berkshire Hathaway is the holding company of billionaire investor Warren Buffett. Berkshire Hathaway A shares (BRK.A) reached a high of $628,390 on March 20, 2024.1 The stock traded at $623,300 per share as of the intraday trading session on March 26, 2024.
Company | Ticker symbol |
---|---|
Delta Air Lines | DAL |
Thermo Fisher Scientific | TMO |
Discover Financial Services | DFS |
Pfizer | PFE |
Amazon's analyst rating consensus is a Strong Buy. This is based on the ratings of 41 Wall Streets Analysts.
Like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best stocks to buy and hold forever.
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