Nasdaq Correction: 2 "Magnificent Seven" Stocks Down 19% and 21% You'll Regret Not Buying on the Dip

Core Viewpoint - The Nasdaq-100 index, comprising 100 of the largest non-financial companies on the Nasdaq, has outperformed the S&P 500 over the past decade, but is currently experiencing volatility and a correction phase, particularly among its largest constituents, the "Magnificent Seven" [1][2]. Group 1: Meta Platforms - Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, serves over 3.3 billion users daily and generates revenue primarily through advertising [4]. - The company is focusing on user engagement through AI-driven recommendation engines, resulting in an 8% increase in time spent on Facebook and a 6% increase for Instagram year-over-year [5]. - Meta AI, an AI chatbot launched last year, has over 700 million monthly active users and is powered by the Llama family of large language models, which have seen over 600 million downloads [6][7]. - Meta's revenue reached a record $164.5 billion in the previous year, marking a 22$23.86, resulting in a price-to-earnings ratio of 24.7, making it the second-cheapest among the Magnificent Seven stocks [9][11]. Group 2: Alphabet - Alphabet, the parent company of Google, YouTube, and Waymo, generates more than half of its revenue from Google Search, which is facing competition from AI chatbots [12]. - The company is investing heavily in AI to maintain its 90% market share in search, launching AI Overviews that enhance user experience and engagement [13][14]. - Google Cloud is the fastest-growing segment of Alphabet's business, with AI training and inference workloads increasing eightfold over the past 18 months, and Vertex AI seeing a fivefold increase in customers [16][17]. - Alphabet's EPS grew by 38% in 2024 to a record $8.04, with a price-to-earnings ratio of 20.2, making it the cheapest stock among the Magnificent Seven and 32% cheaper than the Nasdaq-100 index overall [19].