NVDA - Amazon: Ranking 'The Magnificent 7' (Midyear Update)

2024-05-24 17:19:12 ET

Summary

• We provide an update to our January rankings of the Magnificent 7 stocks, with a special focus on Amazon.
• After reviewing Amazon's business, four big growth drivers, valuation and risks, we rank each "Mag-7" stock with special consideration for market conditions and the group's maturation, dividends, AI and more.
• We conclude with our strong opinion on investing in Amazon (and each of the Magnificent 7 stocks) for the remainder of this year (and beyond).

As you can see in the table below, “The Magnificent 7” mega-cap stocks have posted incredible 10-year returns. However, there have recently been some big changes in the market (e.g. interest rate expectations) and to these seven businesses in particular (e.g. maturation, dividends, AI and more). In this report, we provide an update to our January rankings of the Magnificent 7 stocks, with a special focus on Amazon ( AMZN ) (including its business, four big growth drivers, valuation and risks). We conclude with our strong opinion on investing in Amazon (and each of the Magnificent 7) for the remainder of this year (and beyond).

( AAPL ) ( TSLA ) ( MSFT ) ( SPY ) ( NVDA ) ( META ) ( GOOGL )

The Magnificent 7

Before getting into the details on Amazon, you’ll notice in the table above “the magnificent 7” mega-cap stocks have posted more than 2x the returns of the S&P 500 (on average) so far this year (i.e. +23% vs +11%), and this comes on the heels of a tremendous 2023 (whereby the group averaged over a 100% gain)....

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