Stock Market Sell-Off: 3 "Magnificent Seven" Stocks Down 20% or More to Buy Right Now

Core Viewpoint - The technology sector has faced challenges in 2023, with many leading stocks, including Meta, Alphabet, and Amazon, down significantly from their all-time highs, presenting potential buying opportunities for long-term investors [1][2]. Meta Platforms - Meta Platforms operates three major social media platforms: Facebook, Instagram, and WhatsApp, with 3.35 billion daily users, representing over half of the world's population outside China [3]. - Meta's revenue grew 21% year-over-year to $48 billion, with operating margin increasing from 41% to 48%, resulting in a 43% year-over-year increase in operating income [4]. - The company is heavily investing in AI and mixed reality technologies, with a focus on maintaining a strong market position, while still achieving a 48% operating margin [5]. - Currently, Meta's stock is down 26% from its all-time highs, with a trailing P/E ratio of 22, making it an attractive investment despite potential tariff-related earnings uncertainty in 2025 [6]. Alphabet Inc. - Alphabet, owner of Google and YouTube, has a vast user base and is down 21% from its all-time highs, despite a recent strong earnings report [8]. - Google Search revenue grew 10% year-over-year to $51 billion, YouTube advertising revenue also grew 10% to $8.9 billion, and Google Cloud revenue increased by 28% to $12.3 billion, with operating margin expanding to 34% [9]. - Alphabet's Gemini AI tools and Waymo's self-driving robotaxi service, which recently achieved 250,000 weekly rides, indicate strong future growth potential, with a P/E ratio of 20 [10]. Amazon.com Inc. - Amazon's stock is down 20% from its highs, and while it currently has lower profit margins compared to its peers, it is expected to experience profit expansion over the next five years [11]. - The company's e-commerce model has shifted to managing transactions for third-party sellers, with a high-margin advertising business generating $56 billion and subscription revenue at $44 billion, indicating higher margin potential [12]. - Amazon Web Services (AWS) generates over $100 billion in revenue with a 37% operating margin, and combined with rising e-commerce margins, Amazon's overall profit margins could grow from 11% to 15% or even 20% in the coming years [13]. - Projected future revenue of $750 billion could lead to $150 billion in annual income at a 20% profit margin, suggesting that Amazon's current market cap of $2 trillion may be undervalued [14].