Giorgi Tumanishvili @gtumanishvili: "📈 “Magnificent 7” — Still..."

Georgia

📈 “Magnificent 7” — Still Magnificent or Losing Steam? The chart clearly shows how the “Magnificent 7” — ($AAPL (Apple) 🍏, $MSFT (Microsoft) 💻, $GOOGL (Alphabet Inc Class A) 🌐, $AMZN (Amazon.com Inc) 📦, $META (Meta Platforms Inc) 📱, $NVDA (NVIDIA Corporation) 🤖, and $TSLA (Tesla Motors, Inc.) ⚡️) — have powered the S&P 500 ($SPX) since 2021. 👉 Highlights (2021 – 2025 YTD): $SPX up +14 % YTD (2025). S&P 500 ex-Mag7 up +11 % YTD. Magnificent 7 up +18 % YTD. Their share of S&P 500 returns has eased from ~63 % (2023) to ~45 % (2025 YTD). That’s a clear sign of market broadening — leadership is starting to spread beyond mega-cap tech. --- 💡 Why They’ve Dominated Earnings power: Mag7 generated roughly 70 % of total S&P 500 earnings growth in 2023. AI momentum: $NVDA and $MSFT continue leading the AI boom, boosting cloud and productivity ecosystems. Cash strength: $AAPL, $GOOGL and $META together hold >$400 B in cash — a massive cushion against macro headwinds. --- ⚠️ Risks & 2025 Trends Earnings slowdown: Growth expected to moderate (~10 % vs. 34 % in 2023). Valuations stretched: Forward P/E ≈ 28× vs. 17× for the rest of the S&P. Rotation building: Funds trimming Mag7 exposure while cyclicals and value names gain momentum. --- 🔄 What It Means for Investors The Mag7 still lead on innovation, margins, and balance sheets — but their outsized impact is normalizing. This broadening market presents new opportunities in undervalued sectors such as industrials, financials, and clean energy. My current stance: selectively long on AI leaders ($NVDA, $MSFT) while rotating into growth-at-reasonable-price opportunities beyond the tech giants. --- 📢 Quick Takeaway > The “Magnificent 7” are still impressive — but the next phase of market gains could come from outside their circle. Strategic diversification will be key to capturing 2025’s broader rally. --- 👉 Follow me on Etoro (@gtumanishvili) for daily updates. 💼 Copy my portfolio — up 140 % in 2 years — for a smart blend of growth and risk management. 📊 See my performance here: bullaware.com/etoro/gtumanishvili --- ⚠️ Past performance is not an indication of future results. This information is for informational purposes only and should not be taken as investment advice. Always do your own research before investing. Warm regards, Dr. George Tumanishvili ❤️