From Nasdaq:

The collective market capitalization of the seven leading U.S. technology companies has reached around $13 trillion. These include Apple Inc. (AAPL), Microsoft Corp. (MSFT), Alphabet Inc. (GOOG) (GOOGL), Amazon Inc. (AMZN), Meta Platforms Inc. (META), NVIDIA Corp. (NVDA), and Tesla, Inc. (TSLA). The total worth of these companies surpasses the GDP of several global cities.

The Bloomberg columnists and Wall Street veteran Ed Yardeni raised concerns about the dominance of these companies. Meta Platforms, in particular, saw a historic $204-billion market value jump in a single day, the largest for any U.S. company ever.

The JPMorgan Chase & Co. analysis shows that the Magnificent Seven collectively account for 29.3% of the MSCI USA Index. This concentration is close to the 33.2% peak seen during the dot-com bubble. The Goldman Sachs report reveals that the Magnificent Seven account for nearly 13% of holdings across 735 hedge funds.

Goldman Sachs equity analysts Ben Snider and David J. Kostin discussed the forward path of the Magnificent Seven. These companies are expected to generate $523 billion in sales in the fourth quarter alone, marking a year-over-year increase of 14%.

Cautions have been raised about sales growth, hedge fund positioning, antitrust litigation, and macroeconomic shifts, which will be crucial in determining the trajectory of these stocks.

The tech bubble of the early 2000s serves as a reminder of the risks of overestimating market potential. The cautionary tales of the past remind investors of the importance of approaching consensus estimates with a critical eye.



Read more: Magnificent 7 Eye $13-Trillion Market Cap: ‘They Are Sucking All The Air Out Of The Universe,’ Wall Street Veteran Says