Investors bullish on 7 tech giants for growth and profitability in October

From Nasdaq: 2024-10-11 04:27:00

The “Magnificent Seven” tech companies have a combined market cap of $15.7 trillion and delivered an average 40% return in 2024, double the S&P 500 index gain. Microsoft and Meta Platforms are set to release Q3 earnings and have significant AI initiatives in place. Investors are eyeing the potential of these companies for growth and profitability.

Microsoft is well-positioned to benefit from the AI revolution, with the Copilot virtual assistant and Azure cloud platform driving growth. With a P/E ratio of 34.7, the stock looks slightly expensive but offers potential for substantial revenue from AI services. Investors should consider buying ahead of the upcoming earnings report for updates on AI initiatives.

Meta Platforms has seen a 544% stock increase since 2022, driven by increased profitability and AI investments. The company’s upcoming earnings report is expected to show 18.6% EPS growth, signaling sustainable profitability. Meta’s AI features and Llama models lay the groundwork for future revenue streams, making the stock an exciting opportunity for investors.



Read more at Nasdaq: 2 “Magnificent Seven” Stocks to Buy Hand Over Fist in October