From Nasdaq, Inc.:

Wall Street experienced impressive success in 2023, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all climbing to record highs. The “Magnificent Seven” – including Apple, Tesla, Meta, and Nvidia – were credited with lifting the market. Amazon emerges as the top buy for investors in 2024, while Nvidia is advised to be avoided due to potential headwinds.

Apple, Tesla, Meta, Microsoft, Alphabet, Amazon, and Nvidia, known as the “Magnificent Seven”, have competitive advantages in the market. Amazon tops the list as a wise investment, with its diversified business models and strong positions in cloud infrastructure service spending and online retail sales. Its high-growth ancillary operating segments, led by AWS, set it apart.

Amid the success of the “Magnificent Seven”, Amazon emerges as the top buy for investors in 2024, with its strong position in cloud infrastructure service spending and online retail. Recession concerns are mitigated by its strong segments and potential for double-digit growth. Amazon is currently considered undervalued and is anticipated to deliver high returns in 2024.

On the other hand, Nvidia is advised to be avoided as a stock for investors in 2024, despite tripling in value in 2023. Potential drawbacks include pricing power, growing competition, regulatory headwinds, and historical trends of new innovation adoption. These factors could adversely impact Nvidia’s performance in the new year.



Read more: 1 “Magnificent Seven” Stock to Buy Hand Over Fist in 2024, and 1 to Avoid Like the Plague