Ranking the Best "Magnificent Seven" Stocks to Buy for 2026. Here's My No. 2 Pick.

Core Viewpoint - Meta Platforms is highlighted as the second-best stock to buy among the "Magnificent Seven" for 2026, following a strong performance from the group of tech giants [2]. Group 1: Market Context - The "Magnificent Seven" includes Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, and Tesla, all of which have shown significant returns, with four companies exceeding a market capitalization of $3 trillion [1]. - The S&P 500 could potentially gain over 20% for the third consecutive year, a feat not seen since the late 1990s, although the index is considered relatively expensive due to concentration in 20 companies [4][5]. Group 2: Meta Platforms' Position - Meta Platforms is not priced for perfection, making it more attractive compared to other growth stocks in the "Magnificent Seven," as it is slightly more expensive than the S&P 500 but less so than its peers [6]. - The company's earnings are primarily driven by advertising revenue from its Family of Apps, which includes Instagram, Facebook, Messenger, and WhatsApp, helping it maintain leadership in social media despite competition from platforms like TikTok [7]. Group 3: Growth Potential and Investments - Meta Platforms is heavily investing in AI to improve ad targeting, performance, and user engagement, alongside significant expenditures in its Reality Labs division focused on virtual reality and the metaverse [10]. - Despite concerns regarding increased spending on data centers and AI, the Family of Apps remains a strong revenue source that can support Meta's long-term investments [9].