Magnificent Seven Stocks Are in Different Sectors

Even if you have not heard of the Magnificent Seven stocks as a group, you likely know the companies.

The Magnificent Seven comprises Apple (AAPL), Microsoft (MSFT), (AMZN), Nvidia (NVDA), Meta Platforms (META), Tesla (TSLA), and Alphabet (GOOG/GOOGL).

I asked my 13-year-old son to help me take a deeper dive into what some of these companies provide. Apple makes iPhones, iPods, iPads, and Mac computers. Tesla makes electric vehicles that benefit the environment. Alphabet owns YouTube and Google, a search engine platform. Microsoft owns Xbox, Minecraft, Skype, LinkedIn, and the creator of Call of Duty.

Todd and Eli Rosenbluth

As my colleague Roxanna Islam wrote, “it makes sense that investors like big tech. They can get exposure to innovation and technological advances while staying relatively safe due to these companies’ scale.”

However, there is a catch.