Future of 'Magnificent Seven' Stocks Uncertain Amid Competition, Insider Selling and Possible China Restrictions
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The "Magnificent Seven" stocks (Microsoft, Apple, Nvidia, Amazon, Alphabet, Meta, Tesla) have powered the stock market's gains with their competitive advantages.
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Alphabet should benefit from the long-term growth of digital advertising, cloud computing, and YouTube. It's historically inexpensive now.
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Nvidia has benefited from AI chip scarcity and price increases, but faces more competition, possible loss of big customers, and restrictions on sales to China.
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Insider selling and a dot-com-like valuation are reasons to avoid Nvidia stock.
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Other Magnificent Seven stocks have strengths (Apple innovation, Amazon e-commerce share) but some face economic sensitivity like Alphabet.