tl;dr
The Magnificent 7, consisting of Apple (AAPL), Amazon (AMZN), Alphabet (GOOG) (GOOGL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA), are trading cheaper today compared to the rest of the market than in the past 5 years, despite their strong performance. This relative valuation pres...
The Magnificent 7, consisting of Apple (AAPL), Amazon (AMZN), Alphabet (GOOG) (GOOGL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA), are trading cheaper today compared to the rest of the market than in the past 5 years, despite their strong performance. This relative valuation presents potential opportunities for investors, but it is important to note that these stocks are not immune to profit disappointments and could still be impacted by cyclicality. European Cyclicals are trading at more than one standard deviation expensive vs Defensives, and Cyclicals in general are at price relative highs vs Defensives, signaling potential risks in the market. Looking at earnings in 2023, the Magnificent 7 saw significant net income growth, with Nvidia leading the charge at 335%, followed by Amazon 307%, Meta 66%, Alphabet 22%, and Microsoft 13%. In contrast, Apple saw a decline of -3% and Tesla saw a decline of -29%. Overall, the S&P 500 (SP500) (NYSEARCA:SPY) (IVV) (VOO) saw net income growth of 1%, but without the Magnificent 7, it was down -4%.
More about Apple Inc
Apple Inc. is the world's largest technology company by revenue, totaling $274.5 billion in 2020. As of January 2021, it is also the world's most valuable company.
More about Amazon.com Inc
Amazon.com Inc is a leading American multinational technology company with a focus on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is a major player in the U.S. information technology industry, alongside Google, Apple, Microsoft, and Facebook. The company is highly influential economically and culturally and is recognized as the world's most valuable brand. In terms of financials, Amazon.com Inc has a market capitalization of $1.821 trillion, with a stock price of $3,578.78 at a 52-week high of $3,773.08 and a 52-week low of $2,891.49. The stock has a beta of 0.0529, indicating low volatility, and a P/E ratio of 206.2, reflecting high investor confidence. The company's revenue is $574.78 billion, with an EPS of 50.69, demonstrating strong financial performance. Market sentiment towards Amazon.com Inc is bullish, with an upward trend in stock performance and positive investor sentiment. However, it is essential to consider potential risks and uncertainties associated with the stock, as past market behavior may not always be indicative of future performance.
More about Alphabet Inc Class C
Alphabet Inc Class C is a technology company with a market capitalization of 1.688 trillion dollars. The stock has a price-to-earnings ratio of 23.46 and a dividend yield of 5.81%. The stock has shown a 24.34% increase in the last year and has a market sentiment score of 0.24. With a market volume of 307.39 billion dollars, the stock is currently trading at 162.2 dollars per share. The stock has shown a 0.56% increase in the last month and has a Relative Strength Index (RSI) of 0.135, indicating a neutral market sentiment.
More about Alphabet Inc Class A
Alphabet Inc. Class A is a major technology company and one of the most valuable in the world. Its stock has a market capitalization of $1.69 trillion, with a price-to-earnings ratio of 23.35. The stock has shown a 5.8% increase in the past year, with a current stock price of $161.75. The company's market sentiment appears positive, with a bullish trend in recent months. However, it is important to note that past performance is not always indicative of future results, and potential risks and uncertainties should be considered when making investment decisions.
More about Meta Platforms Inc.
Meta Platforms Inc. is a technology company that develops products for connecting and sharing through various devices. With a market cap of $1.29 trillion and a stock price of $504.54, the company has shown strong performance. However, with a high P/E ratio of 34.0 and a relatively low dividend yield of 0.29, it may be considered overvalued by some investors. The stock has shown a bullish trend, reaching a 52-week high of $52.41. Market sentiment towards Meta Platforms is positive, but potential risks and uncertainties should be considered, especially in the rapidly evolving technology sector.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company with a market capitalization of $301.84 billion. The stock is currently trading at $36.76 with a 2.86% increase in the last trading session. The company has a price-to-earnings ratio of 11.05 and a dividend yield of 0.363. With a total revenue of $227.58 billion, Microsoft is a major player in the technology sector, known for its software products like Microsoft Windows and Office suite, as well as hardware products like Xbox and Microsoft Surface lineup. The stock has shown a bullish trend with a Relative Strength Index (RSI) of 456.81, indicating strong market sentiment. However, it's important to note that past performance is not always indicative of future results, and there may be potential risks or uncertainties associated with investing in Microsoft.
More about NVIDIA Corporation
NVIDIA Corporation is a leading American multinational technology company in the semiconductor and related devices industry. With a market cap of $218.82 billion and a current stock price of $855.75, NVIDIA has shown strong financial performance. The company's P/E ratio of 73.55 indicates a higher valuation relative to its earnings, suggesting potential for future growth. The stock has demonstrated a 0.16% increase, reflecting positive market sentiment. NVIDIA's RSI of 24.68 suggests the stock is currently oversold, potentially signaling a buying opportunity. However, the company's beta of 0.488 implies lower volatility compared to the market, which may limit potential returns. With a debt-to-equity ratio of 2.653, there are potential risks associated with the company's financial leverage. Overall, while NVIDIA's financial metrics and stock performance appear strong, investors should be mindful of market uncertainties and the company's debt levels when considering an investment in the stock.
More about Tesla Inc
Key Financial Metrics:
- Sales in plug-in and battery electric car segments: 16% and 23% market share, respectively
- 3 GWh of battery storage supplied in 2020
- Revenue: $96.77 billion
- Net income: $4.3 billion
- Operating income: $4.3 billion
- Market capitalization: $558.42 billion
- Stock price: $205.55
Stock Performance:
- Stock price: $205.55
- Market capitalization: $558.42 billion
- Current P/E ratio: 40.78
- Return on Equity: 30.49%
- Dividend yield: 1.115%
- Price to sales ratio: 0.155
Market Sentiment:
- Tesla had the highest sales in the plug-in and battery electric car segments in 2020
- Tesla Energy is a major installer of solar photovoltaic energy generation systems in the United States
- Tesla Energy is one of the largest global suppliers of battery energy storage systems
- Market capitalization of $558.42 billion indicates strong investor confidence
- Potential risks and uncertainties associated with the stock performance and market sentiment
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