Magnificent Seven Tech Stocks Dominate S&P 500 in 2023, But Face Growth Challenges Ahead
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The "Magnificent Seven" tech stocks make up 29% of the S&P 500's market cap, the largest ever for just 7 stocks.
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The Magnificent Seven gained 71% in 2023 while the other 493 S&P stocks gained just 6%.
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Goldman expects the Magnificent Seven will continue to grow earnings faster than the rest of the S&P 500.
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The Seven have faster growth, higher margins, more investment, and stronger balance sheets than other S&P stocks.
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Goldman sees limited upside for the Magnificent Seven in 2024 due to high expectations after big gains in 2023.