Meet the 2 “Magnificent Seven” Stocks Billionaires Are Selling, and the 1 They Can’t Stop Buying

Last week, institutional money managers had a significant deadline to file Form 13F with the Securities and Exchange Commission, revealing their buying and selling activities in the first quarter. This is crucial information for investors, especially when it comes to the “Magnificent Seven” stocks that have been driving the market to record highs.

The Magnificent Seven consists of Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla. These companies have outperformed the S&P 500 over the past decade and have strong competitive advantages in their respective industries. However, billionaire investors had different outlooks on these stocks in the first quarter.

Nvidia, known for its role in the AI revolution, saw prominent billionaires selling off shares in the first quarter. This could be due to increased competition and the potential threat from its own top customers, who are developing their own AI-GPUs. There are also concerns about a possible bubble burst in the artificial intelligence sector, which could impact Nvidia significantly.

Meta Platforms, another member of the Magnificent Seven, also saw billionaire investors selling off shares. This could be attributed to profit-taking, uncertainty about the company’s capital expenditure forecasts, and concerns about the health of the U.S. economy. However, DailyBubble believes that selling Meta Platforms may prove to be a regrettable decision, given its strong position in the social media space and its relatively low valuation.

On the other hand, Amazon was a favorite among billionaire investors in the first quarter, with many buying up shares. The company’s ancillary segments like AWS, advertising services, and subscription services are driving growth and generating strong cash flow. Additionally, Amazon’s relatively low valuation compared to its cash flow makes it an attractive investment opportunity.

In conclusion, while billionaire investors had mixed opinions on the Magnificent Seven stocks in the first quarter, DailyBubble sees potential in Amazon as a compelling investment opportunity. It’s essential for investors to consider these insights when making decisions in the market.