Meet the Only "Magnificent Seven" Stock That Is Cheaper Than the S&P 500 (According to This Key Metric)
The "Magnificent Seven" refers to seven of the largest tech-focused companies by market capitalization -- Nvidia, Microsoft, Apple, Amazon, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Meta Platforms, and Tesla.These companies are known for outperforming the S&P 500 over the long term. In recent years, these stocks have been responsible for a significant part of broader market gains, especially in 2023. But a prolonged period of outperformance has stretched the valuations of top performers, like Microsoft, which just made a new all-time high.The Magnificent Seven haven't been as dominant in 2025, with names like Apple and Alphabet underperforming the S&P 500. Alphabet is so beaten down that it has become less expensive than the S&P 500 by an important valuation metric.Continue reading
The "Magnificent Seven" refers to seven of the largest tech-focused companies by market capitalization -- Nvidia, Microsoft, Apple, Amazon, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Meta Platforms, and Tesla.
These companies are known for outperforming the S&P 500 over the long term. In recent years, these stocks have been responsible for a significant part of broader market gains, especially in 2023. But a prolonged period of outperformance has stretched the valuations of top performers, like Microsoft, which just made a new all-time high.
The Magnificent Seven haven't been as dominant in 2025, with names like Apple and Alphabet underperforming the S&P 500. Alphabet is so beaten down that it has become less expensive than the S&P 500 by an important valuation metric.
