Forward multiples:
META 24
AAPL 28
GOOGL 18
NVDA 27
MSFT 28
AMZN 31
GOOGL is on sale. And NVDA has revenue growth that is incredible still and will continue for the foreseeable future.
Those are the two I would nibble more into.
The others are not “on sale” yet. Only the froth has come off AAPL, MSFT, META and AMZN.
Love em all long…..but just passing along my opinion on these names because they are so widely held.
Meta has definitely come down….and yes AI is their focus.
One thing to note on AMZN and MSFT is that their data center expansion/investment is gigantic this year (and last year). I think their earnings may be drastically undervalued. AMZN right now has a forward PE of 29. That would mean 69.9B in earnings. They announced their Capex spend for this coming year will be $100B. I understand their wanting to get ahead, but if they don’t need that huge spend in the future their earnings could explode both from the potential new AWS revenue and from the drop in Capex spend.
Also, I think AI may be a big employment concern for a lot more people in a few years. I think that most of the Mag 7 are also going to be some of the top beneficiaries of those AI savings.