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- [00:01]
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- [00:30]
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This is Scott Becker with the Becker Business in the Becker Private Equity Podcast. Today's discussion is the Magnificent Seven and the gear to eight results and a lot more. So so first I'm going to go through the Magnificent Seven. These obviously make up a disproportionate amount of of the indexes that we invest in. Whether the NASDAQ and The S&P7 companies comprise the Magnificent Seven, each one of them plays a different role in AI and technology and what's going on. But let me give you the results very quickly. First, the two companies are the most down this year of the magnificent seven are Microsoft and Tesla. Microsoft's down almost 19%, Tesla's down about 11%. These will be a little bit better after Monday. We're recording this on Monday. You'll get this on Tuesday. Monday looks like an update for some of these stocks, so it won't be as bad as this, but this is pretty clear directionally. Microsoft's down 19%, almost 19%, Tesla down 10 and a half percent, 11% and Amazon down 9%. Next, in terms of the Magnificent Seven, Nvidia as of Monday down 5%, Apple down 2.82% and Meta Platforms down 1.8%. The one company Alphabet, Google, is the least down this year. As of Monday it was down 0.4%. And a lot of this might change overnight, but generally these are where we're at. So again, Microsoft's down the Most at about 19%, effort bets down the least at about 0.4%. So a couple more points on the Magnificent Seven. We're starting to see more and more valuation dispersion inside the Magnificent Seven. Some names are really at the height of of their valuation and price for almost perfection. So this past week, even though Nvidia released good results, it fell on those results because it's priced for just perfection. The flip side is some of the companies have become more of cash cows and not sure where they're going in terms of artificial intelligence and more. That would be the concept with Apple and Amazon, which are sort of. Sort of cash cows now, but not as clear as how they're going to monetize AI versus their cloud business. Microsoft, of course, is also big in the cloud business business and we're watching that again the concept here. Regardless, all of the magnificent seven is of Monday we're down year to date. Probably that'll change a little bit as of Tuesday with maybe Alphabet being in the black year to date, but that might be the only one that's in the black by Tuesday. But but the bigger notion is you're seeing evaluation dispersion amongst these seven companies and are much less likely to move in tandem with each other. So Microsoft, which is big on cloud infrastructure and big on software, has got some more challenges from an AI dominant world where software companies and SaaS companies may be devalued a little bit. Fascinating to watch in any event. Thank you so much for listening to the Becker Business, the Becker Private Equity podcast. We hope you find this helpful. We hope you enjoy it. Thank you for listening.
- [03:37]
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