Top fund managers discuss outlook for tech giants; Alphabet faces regulatory risk.

From Morningstar: 2025-06-26 03:54:00

The tech giants, known as the Magnificent Seven, have seen their stock prices fluctuate recently. At the 2025 Morningstar Investment Conference, three top large-growth fund managers discussed the outlook for companies like Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.

Alphabet faces a significant risk from regulation, especially after a recent ruling against the company. Amazon’s success can be attributed to consistent small risks paying off big. Apple’s growth thesis is declining, but its strong brand and ecosystem may help consumers look past AI capabilities.

Meta Platforms has been criticized for poor capital allocation, while Microsoft has already seen revenue from AI technology. Nvidia’s cyclical business model poses risks, and Tesla’s innovation in auto manufacturing and distribution sets it apart in the industry. Tesla, seen as more than a car company by Elon Musk, is recommended for purchase if you believe in its tech platform potential. Morningstar gives Tesla a 2-star rating and recognizes its narrow economic moat. The authors do not hold any shares in the mentioned securities. To access the full article, become a Morningstar Basic member.



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