The Magnificent Seven at the Edge of Valuation
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The Magnificent Seven stocks, Amazon, Alphabet, Microsoft, Meta, Nvidia, Apple, and Tesla, have led the markets for years. Add Netflix to the mix, and you have the most influential group of companies driving indices to new highs. But how do they look when examined through the lens of Structural Valuation Analysis (SVA)?

Ross Healy, Chairman of Strategic Analysis Corporation, reviews each stock in detail, comparing current prices to SVA benchmarks like bubble price (7.4x book), super growth levels, and HB valuations.

Highlights:

• Amazon: Rebounded from its super growth price but stalled at bubble levels.
• Alphabet: Multiple failed attempts at bubble price breakout.
• Microsoft: On track toward HB2 ($609), but resistance ahead.
• Meta: Recovered strongly post-metaverse pivot, but unlikely to break HB1.
• Nvidia: Showing the “jaws of death” formation, high risk of pullback.
• Apple: Pushing HB7/8 despite flat earnings, overvalued territory.
• Tesla: Needs to hold HB2, or risk deeper downside.
• Netflix: While not one of the 7, still great to review. Has had a strong rebound past bubble price, now testing HB4.

Ross concludes: while these stocks remain market leaders, they are uniformly expensive and carry significant risk. Investors should watch SVA breakpoints closely to gauge potential reversals.

📺 Watch the full analysis here: https://youtu.be/sdNPLzWdjxg