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What Is the Cheapest "Magnificent Seven" Stock?

The article compares valuations across the “Magnificent Seven,” using operating cash flow (CFO) as the preferred metric. It finds Meta Platforms and Microsoft among the cheapest on a CFO basis (Meta ~13x CFO; Microsoft <18x CFO), while Tesla (~95x CFO) and Nvidia (~56x CFO) are the most expensive. The author argues CFO is a clearer measure given AI-related accounting distortions and suggests Meta and Microsoft could offer buying opportunities if multiples revert higher. The piece concludes that, from a CFO standpoint, big tech valuations are within normal ranges and expresses a bullish view on the market’s near-term trajectory.

Category

Amazon

Sentiment

Bullish

Event

Market commentary

Reading time

1 min