Netflix may replace Tesla in the "Magnificent Seven" stocks due to strong performance and growth potential.

From Nasdaq: 2024-04-27 03:32:00

In the last decade, Tesla has seen a remarkable gain of 943%, earning its place among the “Magnificent Seven” stocks. However, another stock, up 1,040% in the same period, may deserve a spot in that club instead of Tesla.

Tesla’s recent financial results missed expectations, reflecting macro headwinds and increased competition in the EV industry. With declining sales and profitability, its stock remains expensive at a high forward P/E ratio of 57.

Netflix, a FAANG member, added 9.3 million subscribers in Q1, reaching 269.6 million total. Revenue increased by 14.8% year over year. Its success is driven by an ad-supported tier and a strategic position in streaming entertainment, setting it apart as a tech leader.

Investors can consider Netflix with a forward P/E ratio of 31, positioning it at an attractive valuation within the Magnificent Seven stocks. Despite not being among the 10 best stocks identified by Stock Advisor, Netflix’s strong performance and growth potential make it a compelling investment option.



Read more at Nasdaq: Should This Phenomenal Stock Replace Tesla in the “Magnificent Seven”?