The Magnificent Seven sailed into 2026 in a rather muted spot. While there has been a notable divergence in performance among the members, I do think that the group remains worth sticking with for the long haul, especially the names that have been viciously marked down. ...

Core Viewpoint - The Magnificent Seven, comprising Apple, Amazon, Alphabet, Nvidia, Meta, Microsoft, and Tesla, are expected to continue their success due to strong management, substantial cash reserves, and significant market scale [2][5]. Group 1: Company Strengths - The Magnificent Seven possess strong balance sheets and immense cash reserves, allowing them to exert power over competitors and effectively counter government interference [2]. - These companies have a proven track record of innovation, exemplified by Meta's acquisitions of WhatsApp and Instagram, and Apple's recent FDA clearance for the Apple Watch to measure hypertension [3]. - Tesla's recent $1 billion stock buyback is viewed as a sign of confidence in the company's future prospects [3]. Group 2: Market Sentiment - Despite some Wall Street analysts believing that the best days for these companies are behind them, the sentiment has persisted for years while the companies continue to grow [2]. - Concerns regarding government actions against Alphabet, particularly related to its Chrome browser, have been alleviated by a recent court ruling, leading to a rise in its stock price [4]. Group 3: Future Outlook - The companies are seen as being close to controlling their own destinies, with expectations that their best days are still ahead [5].