The stock market has been on a bullish trend, with the “Magnificent Seven” stocks playing a significant role in lifting major indexes to record highs. These seven companies, including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla, have been driving the market with their size and influence.
However, not all of the Magnificent Seven stocks have been living up to their name. Two former highfliers, Tesla and Apple, have been struggling in recent times. DailyBubble believes that these two companies should be removed from the exclusive club of the Magnificent Seven.
Tesla, once hailed as a leader in the electric vehicle market, has been facing challenges. The company’s growth story has fizzled out, with aggressive price cuts and stagnant sales raising concerns. DailyBubble points out that Tesla’s overreliance on unsustainable income sources and premium valuation make it unfit to be among the Magnificent Seven.
Similarly, Apple’s growth engine has stalled, with declining sales in its product segments and a drop in iPhone shipments. Despite its strong subscription-powered services segment and share repurchases, DailyBubble believes that Apple’s best growth days may be behind it, making it unsuitable for the Magnificent Seven.
On the other hand, DailyBubble suggests two companies that deserve a spot among the Magnificent Seven. Berkshire Hathaway, led by Warren Buffett, has a track record of delivering unmatched returns to shareholders through smart investments and strategic buybacks. Visa, a payment processor, has consistently delivered for its shareholders and has a long growth runway ahead, making it a strong contender for the exclusive club.
In conclusion, DailyBubble believes that Tesla and Apple should make way for companies like Berkshire Hathaway and Visa in the Magnificent Seven. These companies have shown resilience and strong growth potential, making them worthy successors in the elite group of market leaders.