Ranking the Best "Magnificent Seven" Stocks to Buy for 2026. Here's My No.

Core Insights - The "Magnificent Seven" companies, including Tesla, have provided significant long-term gains, but Tesla may be overextended compared to its peers [1][2] - Tesla's core business growth is slowing, contrasting with the strong revenue growth of other companies in the group [3][4] Company Performance - Tesla's electric vehicle deliveries declined in the first half of 2025, although it remains the market leader; automotive revenue grew by only 6% year over year, with a 7% increase in deliveries [5] - The operating margin for Tesla fell to 5.8%, down from 10.8% a year earlier, indicating potential profitability issues [5] - Tesla is investing heavily in artificial intelligence and robotics, but these investments have not yet yielded significant returns [6][9] Market Position - Tesla's Robotaxi service is currently operational in select markets, but profitability at scale remains uncertain, and the service is still reliant on human monitors in many areas [7][9] - Tesla's stock is trading at 178 times expected 2026 earnings, suggesting a valuation that may not align with its core electric vehicle business [9] Comparative Analysis - Other companies in the Magnificent Seven, such as Apple, Amazon, Alphabet, Microsoft, Meta Platforms, and Nvidia, continue to show strong revenue growth and profitability across various segments [4] - Tesla's current valuation appears increasingly disconnected from its core business, leading to a recommendation for investors to consider other compelling opportunities in big tech [9]