Core Insights - The article highlights the "Magnificent Seven" stocks, which are innovative companies leading various secular trends and capturing a larger share of the stock market capitalization [1] Group 1: Company Characteristics - Alphabet (GOOGL) and Meta Platforms (META) are identified as standout companies within the "Magnificent Seven" due to their significant network effects [2][4] - Alphabet has a market capitalization of $4.0 trillion, with a gross margin of 59.18% and a dividend yield of 0.25% [3][4] - Meta Platforms has a market capitalization of $1.7 trillion, with a gross margin of 82.00% and a dividend yield of 0.32% [6] Group 2: Network Effects - Both companies benefit from strong network effects, where increased usage enhances the quality of their platforms, creating a positive feedback loop that strengthens their competitive positions [5] - The extensive user base of Alphabet and Meta makes it extremely challenging for new entrants to disrupt their services, as building a widely adopted search engine, video streaming service, or social media app from scratch is nearly impossible [7]