Unpacking the Puzzle of the ‘Magnificent 7’

May 9, 2024 | Equities, Public Markets
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Photo Simon Steele
Senior Vice President and Senior Portfolio Manager, Head of Fiera Atlas Global Companies Team
Photo Harald Karlsson
Associate Portfolio Manager, Fiera Atlas Global Companies Team

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

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.