Insights   |   May 9, 2024

Unpacking the Puzzle of the ‘Magnificent 7’

Why investing in monikers like the ‘Magnificent 7’ for AI exposure will only end in tears

Simon Steele
Senior Vice President and Senior Portfolio Manager, Head of Fiera Atlas Global Companies Team

Is every stock that makes up the ‘Magnificent 7’ equally magnificent, or are some more equally magnificent than others? The latter looks increasingly true. For while our obsession with the so-called ‘Mag 7’ creates the illusion of a Big Tech collective, our analysis of consensus earnings expectations reveals a growing performance disparity that puts into question whether ‘magnificent’ is – at least for some of the group – a bit of an overreach.

Original article published by Trustnet.

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