From Nasdaq: 2025-04-15 13:00:00

The tech giants, including Apple, Amazon, Microsoft, NVIDIA, Tesla, Alphabet, and Meta, known as the “Magnificent Seven,” have suffered losses due to ongoing tariff turmoil. Roundhill Magnificent Seven ETF has dropped by 5.9% in the past month. Analysts expect a potential turnaround after the first-quarter earnings season.

These tech giants are seeing a resurgence in investor interest after a period of cooling off from the AI boom. Valuations have fallen to levels last seen before ChatGPT launched in late 2022. Despite improved trade sentiment, companies are expected to remain cautious in their guidance due to regulatory risks.

Valuations for the Magnificent Seven stocks have significantly decreased. Amazon’s P/E ratio is now at 32, down from 86 at the time of ChatGPT’s debut. Other tech giants like Apple and Microsoft have also seen declines in their P/E ratios. However, Tesla and Meta stand out with higher ratios.

Recent market volatility has led to a wave of bargain-hunting among investors, with some tariff exemptions on electronics imports providing a boost. While individual stock picking within the Mag-7 group is gaining interest, the core strengths of these companies remain intact, with solid balance sheets and enduring competitive advantages.

The era of group-wide rallies for the “Magnificent Seven” may be over, with investors now focusing on more selective stock picking. Despite attractive valuations, the group is no longer seen as the pillar of Wall Street, as individual stock performances diverge due to various factors.



Read more at Nasdaq: Should You Brace for Mag-7 ETFs Before It’s Too Late?