Most 'Magnificent Seven' Stocks Underperforming Market; Motley Fool Recommends Microsoft and Warns Against Tesla
As of July 29, only Apple (AAPL) and Alphabet (GOOGL) outperformed the S&P 500 this year. The rest of the 'Magnificent Seven' have underperformed due to concerns over high valuations in big tech stocks and a shift toward value sectors like memory hardware. The Motley Fool recommends Microsoft (MSFT), which has seen recent gains after reporting strong AI-related progress, including Azure surpassing $100 billion in revenue. Despite a 17.4% year-to-date decline, the stock surged nearly 9.5% post-earnings due to positive results and growing cloud adoption. Conversely, Tesla (TSLA) is advised against by The Motley Fool despite record vehicle deliveries and higher revenues in Q2. However, its operating income dropped significantly while free cash flow turned negative at -$1.09 billion, raising concerns about sustainability.
Tickers: $AAPL $GOOGL $MSFT $TSLA
Topics: AI investments Azure growth Microsoft stock performance