Amazon(AMZN) The Motley Fool·2025-03-26 01:34Core Viewpoint - The "Magnificent Seven" stocks have experienced significant sell-offs in 2025, with some stocks being more attractive than others for investment opportunities [1] Group 1: Stocks to Avoid - Apple has not introduced any innovative products recently and has struggled to grow revenue meaningfully over the past three years, with projected growth rates of only 4.6% and 8% for FY 2025 and FY 2026 respectively, leading to a premium valuation compared to peers [3] - Tesla is facing brand issues linked to CEO Elon Musk's political involvement, which has caused dissatisfaction among some customers, making it a stock to avoid until the brand image is improved [4] Group 2: Attractive Stocks - The remaining five stocks—Nvidia, Microsoft, Alphabet, Meta Platforms, and Amazon—are considered intriguing at their current prices, having declined 15%-20% from their highs and trading near relative valuation lows from the past three years [5][6] - Alphabet is the cheapest among these stocks, trading at 19 times forward earnings, which is below the S&P 500's 20.5 forward P/E, with projected growth rates expected to exceed market pace [7] - Nvidia is projected to grow revenue by 57% in FY 2026 and 23% in the following fiscal year, significantly outpacing the S&P 500's average growth of 10%, with a potential path to 752 billion in 2024 to $2.4 trillion in 2030 [9][10] - Meta is heavily investing in AI and has several promising projects in its Reality Labs division, with expected revenue growth of 15% in 2025 and 14% in 2026, making it a strong candidate for market outperformance [11] Group 3: Market Outlook - The "Magnificent Seven" stocks remain relevant, but selective investment is crucial, with the recent market sell-off providing opportunities to acquire some of these stocks at lower prices, potentially leading to market-beating returns over the next three to five years [12]