Alphabet Seizes Mag 7 Crown With 62% Stock Surge — But Amazon's Bargain Is The Plot Twist

Core Insights - The performance of the Magnificent 7 stocks has diverged significantly this year, with Alphabet Inc leading and Amazon.com Inc lagging behind [1][2]. Group 1: Alphabet Inc - Alphabet's stock has increased by 62.26% year-to-date, marking it as the strongest performer among the Magnificent 7 [2]. - The company's market capitalization is approximately $3.7 trillion, making it the third-largest in the group [4]. - Alphabet's earnings yield stands at 3.27%, with a PE ratio around 30 and a PEG ratio near 1.6, indicating reasonable valuations for its growth [4]. - The stock has shown recent momentum, rising over 8% in the past month [4]. Group 2: Amazon.com Inc - Amazon's stock has only risen by 1.05% year-to-date and has decreased by about 4.4% over the past month, positioning it as the laggard in the group [5]. - The company trades at a price-to-sales ratio of 3.48, the lowest among the Magnificent 7, and has an EV-to-EBITDA multiple around 15.4, also near the bottom of the group [6]. - Amazon's forward PE is approximately 27, with an earnings yield above 3%, highlighting its contrasting valuation compared to its peers [6]. Group 3: Comparative Analysis - Alphabet is recognized for its performance, scale, and consistency, while Amazon's underperformance makes it appear undervalued in a group where valuations have generally increased [7]. - Despite Alphabet's dominance, Amazon may be perceived as a bargain within the premium segment of the market [7].