247Wallst·2026-01-26 15:59Core Viewpoint - The Magnificent Seven tech stocks are experiencing mixed performance, with some members showing significant growth while others are under pressure, leading to a divergence in their valuations [1][2]. Group 1: Performance of the Magnificent Seven - Apple, Microsoft, and Meta Platforms are struggling, while Tesla and Alphabet have shown strong performance recently [1]. - Nvidia and Amazon are currently flat, but there is potential for them to regain momentum before the quarter ends [2]. - Tesla's stock has increased by over 47% in the past six months, making it one of the top performers among the Magnificent Seven [8]. Group 2: Alphabet's Position - Alphabet's shares have risen nearly 64% over the past year, yet the stock remains relatively inexpensive with a forward price-to-earnings (P/E) ratio of 29.5 [5][3]. - The company is expected to continue gaining traction with its AI initiatives, particularly with Google Gemini, which could enhance its market position [6][7]. - Analysts believe Alphabet has the potential to surpass Nvidia in market value due to various growth opportunities, including AI partnerships and new applications [7]. Group 3: Tesla's Valuation and Growth Potential - Tesla's stock is viewed as expensive with a trailing P/E of 311, which may hinder its ability to reach new highs [8]. - Despite the high valuation, long-term growth opportunities such as Full Self Driving subscriptions and potential robotaxi services could justify the premium price [9]. - The execution and timing risks associated with Tesla's growth strategies are acknowledged, suggesting a cautious approach to investment [10].