Magnificent 7 Tech Stocks Will Outperform the S&P 493 in 2024: Goldman
"The net margins of the Magnificent 7 are twice the margins of the rest of the index, and consensus expects this gap will persist through 2025."
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"The net margins of the Magnificent 7 are twice the margins of the rest of the index, and consensus expects this gap will persist through 2025."
Investors should forget the "Magnificent Seven" stocks that have accounted for the market's gains this year, Robert Conzo told Reuters.
Apple, Microsoft, Alphabet, Amazon and Nvidia are worth nearly $9 trillion combined as an AI boom has seen investors pile into mega-cap tech stocks.
A slowdown in demand for tech hasn't been priced into markets yet - so investors should avoid buying into mega-cap stocks, BofA's Savita Subramanian said.
Mega-cap tech stocks are overbought and their rally may be closer to stalling - but there's no evidence yet of them topping out, Fundstrat's Mark Newton said.